So let’s peel back the curtain and take a closer look at how it all works. We’ll break down:

• What is a product release?
• What is a product launch?
• How they interact
• Who’s responsible for each
• When it’s a good idea to re-launch your product
• How ProdPad can help with releases and launches
• What’s coming next for both

What is a product release?

Think of a product release as the moment your creation emerges from the developer’s cave, ready to meet users (or at least a select few of them) for the first time. This phase is all about the technical nitty-gritty – you’ve got to make sure everything works as intended, is stable, and secure.

The release can be a big splash or a more controlled dip, like a beta version shared with a chosen group. This initial interaction helps you gather valuable user feedback, letting you fine-tune your product before a wider release. (Just to muddy the waters even more, a release to a smaller cohort is also sometimes called a “soft launch”.)

Essentially, a product release is one of the final development hurdles. It’s where you check if your product is working properly and is user-friendly. Often, this involves a limited rollout behind the scenes, using it internally (AKA “dogfooding” – something we do here at ProdPad), or feature flagging.

This measured approach helps you de-risk your product by gradually exposing it to users in a controlled environment, letting you catch any major bugs before they cause chaos.

What is a product launch?

In contrast with the more inward-focused product release, with your product launch, the spotlight shines outwards towards the market. This stage is all about marketing, PR, and promotions – creating a buzz and drumming up excitement for your masterpiece among potential customers.

Look at it as your grand opening. You’ll need to meticulously plan how to market your product, crafting messages highlighting its unique selling points and benefits.

You’ll want to generate awareness and drive adoption through every channel you can get your fingers on – social media, press releases, flashy events, targeted advertising campaigns, and anything else that might work.

Your product launch is a strategic move to reach a broad audience and position your product favorably against the competition. And here’s a secret for you – you can do it more than once! (More on that later.)

Product release vs product launch: How do they interact?

While a product release can sometimes happen on its own (think internal tools or niche market products), a launch without a prior release is often a recipe for disaster. A solid launch relies heavily on the product being ready and valuable, which you establish during the release phase.

Effectively coordinating between these two stages is what truly sets your product up for success. The feedback and data gleaned during the release phase are gold. They help us refine our marketing strategies and ensure our launch messages resonate with user experiences and expectations.

Understanding the distinction between these stages helps everyone manage their roles and responsibilities effectively. It’s a way to ensure both the market and the product itself are primed for what’s next.

Each phase supports the other, building a solid foundation for a successful market entry and long-lasting product growth.

Collaboration is king

The true magic of a successful product launch lies in seamless collaboration between Product and Development teams and Marketing teams. Clear and consistent communication is key – you need to keep the information flowing smoothly.

Dev teams need a clear understanding of the marketing plan to prioritize any final tweaks. Marketing, on the other hand, needs to know your product inside-out, its strengths, quirks, and even its limitations, so they can craft messages that are both exciting and honest.

Regular updates and shared tools keep everyone in the loop. Being transparent ensures a smoother handoff from the behind-the-scenes prep to the big public launch. Plus effectively highlighting your product’s true value across the board will propel it toward long-term success.

What are the roles and responsibilities in product releases vs product launches?

Getting your product to market will take a whole cast of characters, each playing vital roles to ensure everything from the back-end nuts and bolts to front-line user engagement is spot on.

Let’s dive into who does what for both product releases and product launches:

Who is responsible for product releases?

As befits a more technical process, product releases generally involve more inward-facing teams and roles, including:

• Product Manager: You’re leading the charge, ensuring everything aligns with strategy and regulations. You’re the maestro of the release, keeping features on track and the product humming.
• Development Team: These code wizards turn ideas into reality. They build, debug, and polish the product to meet all technical specs.
• Quality Assurance (QA) Team: The guardians of quality, the QA team relentlessly tests the product to eliminate bugs and guarantee a smooth user experience.
• Operations Team: They prepare the stage for launch. They handle server capacity, data security, and ensure everything runs smoothly when it goes live.

Who is responsible for product launches?

Being inherently an externally-focused event, a product launch is usually in the hands of anyone who interacts with your customers, including:

• Product Manager: You coordinate the overall launch strategy, ensuring it aligns with the broader product and business goals, as well as what your users need. You’re there to liaise between all the other teams involved to ensure a unified approach to the launch.
• Marketing Team: Craft captivating narratives that resonate with the target audience. They create buzz-worthy campaigns to drive excitement and user engagement.
• Sales Team: These product champions convert potential customers into loyal fans. Their interactions can provide you with valuable feedback for future improvements.
• Customer Teams: The frontline heroes addressing user questions, troubleshooting issues, and keeping the engine ticking over. Their prompt service keeps customers happy.

Did you spot that PMs are on both lists? You’re Heimdall, controlling the rainbow bridge between these two worlds. You’ll need to take what you learn from the early release to refine the marketing message for launch, making sure everyone’s on the same page. 

By working together, this all-star team can take your product from a promising concept to a market success story. It’s a team effort, and with everyone playing their part, your product can become the next big thing.

If at first you don’t succeed…

Let’s face it, product launches aren’t always a one-and-done kind of deal. Sometimes, strategically bringing your product back to the spotlight through a relaunch or even a series of them can be a game-changer.

There’s a good chance that you didn’t reach everyone the first time around. Don’t assume that everyone is actually reading your press releases and tweets!

Why relaunch? Maybe your first launch wasn’t quite the touchdown you hoped for. There could have been a few glitches or features that needed tweaking (hey, it happens!). A relaunch is your chance to listen to what your customers are saying, fix those things, and show them you’re committed to making things right. 

The world keeps spinning, and new trends pop up all the time. Maybe your product can be used in ways you didn’t expect, or perhaps there’s a whole new group of people who could benefit from it. Relaunching allows you to tailor your message to these fresh faces, spreading the word and building a whole new fan base.

A relaunch is also your chance to show everyone that your product is keeping up with the times. Maybe you’ve added some cutting-edge features, or maybe you’ve just given it a sleek new look. Either way, you can use the relaunch to shout from the rooftops (well, social media) about how awesome and up-to-date your product is.

People appreciate authenticity. If you relaunch your product, be upfront about what’s changed and why you’re bringing it back. This honesty builds trust and makes people curious about what’s new and improved.

How can ProdPad help you with your product releases and product launches?

Ever felt like you’re spinning a thousand plates during a product release or product launch? Features need managing, user feedback screams for attention, Marketing needs to know what’s going on, Sales wants that shiny new thing yesterday… it’s enough to make your head spin.

That’s where ProdPad comes in. It’s not just Product Management software, it’s your secret weapon for a smooth product launch. It’s the launch pad under your rocket giving your product rocket a stable foundation, but it’s also the gantry guiding you safely up after the engines fire up.

Release phase: Feedback made easy

ProdPad keeps all of those spinning plates under control. You can prioritize features with ease, and the best part? Capturing and integrating customer feedback is a breeze. No more hunting for scraps of information – ProdPad puts it all right in front of you.

This lets you make data-driven decisions and build a product that solves real problems for people. It’s like having a direct line to your ideal customer, constantly feeding you tips on how to get better and better.

Launch phase: Seamless teamwork takes flight

The transition from release to launch can be a communication nightmare. ProdPad fixes that. It creates a shared space where both the Development and Marketing teams (and everyone else interested) can see the latest progress, updates, and changes – all in real-time.

This transparency is golden. Marketing can craft kickass campaigns that perfectly reflect your product’s awesomeness because they know exactly what they’re dealing with.

Roadmapping your way to the stars

ProdPad doesn’t just keep things organized, it helps you plan for launch glory. The intuitive roadmapping features let you visualize the entire product journey. This means you can align your launch strategy with your business goals, ensuring every move you and your teams make has a purpose and drives results.

Set clear targets, track progress, and adjust your strategy based on real-time data – ProdPad makes you feel like the guy in charge of every NASA control room in pretty much every movie ever made involving space (except for Apollo 13!).

By bringing everything together in one place, ProdPad doesn’t just improve teamwork, it supercharges it. Miscommunication will become a thing of the past, and both your release and launch phases will run like a well-oiled machine.

What’s on the horizon for product launches vs product releases?

The world of Product Management is a high-speed rollercoaster – always twisting and turning. New tech pops up faster than you can say “Alexa, play Darude – Sandstorm!” in your morning stand-up, and consumer habits shift like sandcastles in a hurricane. But fear not, for the future of releases and launches looks pretty cool! Here’s why:

The way AI development is heading, PMs are effectively going to have a psychic teammate. AI can already analyze mountains of user feedback in a flash, uncovering hidden trends and preferences (ProdPad’s Signals is great for this) – all of which feels a bit like we’re reading minds.

Think about it – soon we’ll be predicting what our users want before they even know it themselves. You’ll be able to build features they’ll love, solve problems before they are widely recognized, and craft marketing messages that hit the bullseye. Basically, AI is going to give us cheat codes to create products users will crave.

And who can forget all those pre-release and pre-launch time sinks? Testing, deployment, even marketing – they’re all getting automated (even we’re at it!). This’ll free you up to focus on the real fun stuff – brainstorming and executing killer product ideas and strategizing your way to market domination.

Finally, consumers care more and more about the impact the products they use have. Companies are taking notice! Sustainability and ethics should be woven into your product’s creation and launch, ensuring your products are good for people and the planet. It’s go green or go home time, and we’re already home folks!

Let’s all go out for launch

A release is like a spaceship blasting off – all systems go, ready to explore! A launch, on the other hand, is about grabbing everyone’s attention and making them scream “Holy crap, look at that massive spacecraft blasting off!” It’s about creating a buzz and getting people excited.

So stay informed, understand the difference between a product release vs a product launch, embrace change, and use ProdPad! Adapt to survive, focus on finding brilliant ways to solve your customers’ problems, and your launch will be more this and less this. 

Getting your product to market is a wild ride, but it can be incredibly rewarding to see your little product all grown up. Strap in, buckle up, and get ready to fire your product into the stratosphere!

[callout CTA – Let us show you how ProdPad can transform how you work [book a demo]]

The post Product Release vs. Product Launch – What’s the Difference? appeared first on ProdPad.

• What is product-led growth vs sales-led growth?
• What are their benefits?
• Which approach suits your product and business?
• How to blend product-led growth and sales-led growth
• Key considerations to keep in mind
• How to measure your growth

The goal is to arm you with everything you need to align your business’s growth strategy with its overarching objectives, and to guide you to finding the right approach for your product between product-led growth vs sales-led growth.

What is product-led growth?

Product-led growth is when the product itself becomes the main engine for market penetration, customer acquisition, and business expansion.

In a utopian world, your product’s design and utility will be so intuitive that they completely eliminate any need for traditional sales interventions. Ideally, you’ll make a product that’s so user-friendly it’ll encourage users to discover, adopt, and invest in it just by letting them use it.

The allure of product-led growth lies in its scalability and efficiency. There are a lot of success stories in both the B2C and B2B worlds. Think how easy it was to start using streaming services like Spotify and communication tools like Slack, without ever once talking to anyone.

That should already tell you everything you need to know about how a truly well-crafted product can market itself, leverage its inherent and quickly obvious value, and provide a seamless user experience to foster its organic growth. Your work will need to speak for itself, basically.

This is a relatively more recent approach, and it doesn’t just turbo-boost your road to user adoption, it fits in with the modern consumer’s preference for doing things for themselves. Let’s be honest here – nobody really wants to submit a support ticket, do they?

By making building an intuitive UX your priority from the get-go, you can catalyze sustainable growth for your product. Word-of-mouth recommendations, viral marketing, and people loving your product and sticking with it will all bring more and more people in the door.

With product-led growth, your product is the champion. Through its intelligent design and self-explanatory functionality, it’ll be your prime mover, propelling your business forward and ensuring the line keeps going up.

The essence of product-led growth lies in creating a user experience so compelling and intuitive that the product almost sells itself. This approach relies on users discovering the value of the product through direct interaction, facilitated by a set of strategically designed mechanisms. These tools aim to reduce friction at every step of the user’s journey and to empower users to make informed decisions about adopting and upgrading within the product environment.

How can you drive product-led growth?

If you’re trying to create a user experience so compelling and intuitive that your product sells itself, you need your users to discover its value through direct interactions. There are a lot of ways to make this work, designed to reduce friction at every step of the user’s journey and to empower them with everything they need to know about adopting and upgrading.

Methods for driving product-led growth include:

• Free trial: This is your open house invitation. Users get full access to your product for a limited time, encouraging them to dive in and explore all its features. It’s the “try before you buy” ethos that can significantly lower the barrier to entry.
• Freemium model: Here, users get perpetual free access to a basic version of your product. It’s like a teaser that gets them hooked with enough value, betting that their growing needs will push them to upgrade for more features or capacity.
• In-app product tours: Think of this as your product’s guided tour, showcasing its best features and how to use them. It’s a hands-on approach to help new users find their footing right from the get-go, reducing confusion and highlighting value.
• Upgrade paths: These are the well-placed signposts within your product that show users what they could unlock with a premium plan. It’s about teasing the possibilities that lie just one tier up, enticing users to level up their experience.
• Self-serve checkouts: The power is in the users’ hands; they can decide to upgrade or subscribe at any moment without needing to speak to anyone, just by plugging in their card details. This frictionless path to purchase keeps the momentum going from decision to action.
• Automated emails: These are your nudges and whispers, reaching out to users with reminders, tips, and personalized upgrade suggestions based on their usage patterns. It’s a way to stay in the conversation and gently guide them toward deeper engagement or subscription.
• Community building: Creating spaces for users to connect, whether online forums or social media groups, turns the user base into a vibrant ecosystem of support and ideas. This sense of belonging can turn users into advocates and provides invaluable insights directly from those who know your product best.
• Gamification: Sprinkling elements of play, like achievements or progress badges, throughout the user experience can transform routine interactions into engaging and rewarding moments. This approach keeps users coming back, eager to discover what’s next. This is a technique we use here at ProdPad – just start a free trial to see how we use it!
• Referral programs: When users spread the word about your product to friends or colleagues, everyone wins. Incentives for referrals, such as bonus features or discounts, can turbocharge your user base growth, all while lowering the cost of acquiring new users.

What is sales-led growth?

Sales-led growth takes a more traditional and well-trod path vs the self-serve tactics of product-led growth. It puts the spotlight on direct sales efforts, depending on them to capture new clients and grow your business.

This strategy relies heavily on a fantastic Marketing funnel that captures focus and nurtures your leads all the way through to that coveted conversion. It takes a significant focus on personalized interactions with your prospective customers, and regular demos of the product’s value by the Sales team.

Sales-led growth is a very hands-on approach, where each prospect is guided through what your product can do and how it’s better than the rest by your Salespeople.

It’s all about lending that special, personal touch to every interaction you have with your potential clients, tailoring your demos to their specific needs, in the hope of landing what are often large chunks of revenue. It’s still a vital strategy if your product demands a deeper level of engagement and understanding to really get your head around how it can help.

How can you drive sales-led growth?

Sales-led growth strategies hinge on the power of personal touch and direct engagement. You’ll need to focus on understanding each customer’s needs in-depth and presenting them with customized solutions through a more hands-on approach.

From the first hello to the final handshake, sales-led mechanisms are all about creating a dialogue between you and your potential customers, guiding them toward seeing your product as the perfect fit.

Methods for driving sales-led growth include:

• Demos: This is the chance to see your product in action, often tailored to the prospective customer’s interests. It’s a chance to dazzle with a live showcase, highlighting exactly how your product can solve their specific problems.
• Enquiry buttons on pricing pages: These are the “I’m interested, tell me more” buttons that signal a user is considering taking the plunge but needs that extra bit of information or reassurance – opening the door for a direct conversation.
• Sales follow-up: Following up on inquiries or demo attendees with personalized communication can make all the difference. It’s about keeping the conversation going, addressing questions, and moving towards a commitment.
• Cold outreach: Sometimes, you’ve got to make the first move. This can be through targeted emails or calls to potential customers who fit your ideal user profile but haven’t engaged with your product yet. It’s about introducing your solution into their world.
• Invoice creation and contracts: Once a prospect is ready to become a customer, creating invoices and contracts formalizes the relationship. This step often involves negotiation on pricing and terms, paving the way for a long-term partnership.
• Customized onboarding: Especially for complex solutions, offering a tailored onboarding experience can ensure customers integrate the product into their processes effectively, setting the stage for successful adoption and long-term satisfaction.
• Personalized email campaigns: Beyond the initial outreach, crafting email campaigns that speak directly to the prospect’s needs and interests can significantly enhance engagement. Tailoring content based on the prospect’s industry, role, or previous interactions with your product ensures that every message resonates more deeply.
• Targeted advertising: Leveraging data to create highly targeted advertising campaigns can place your product in front of the right eyes at the right time. Whether it’s through social media platforms, search engines, or industry-specific websites, targeted ads can drive awareness and generate leads that are more likely to convert.
• Customer Success teams: Once a sale is closed, Customer Success teams play a crucial role in ensuring clients derive maximum value from your product. By offering ongoing support, training, and advice, these teams can boost customer satisfaction, encourage upsells, and reduce churn.
• Live chat: Offering instant communication options like live chat or chatbots on pricing or product pages can capture prospects at a critical moment of decision-making. These tools allow for real-time answers to questions, helping to remove barriers to conversion on the spot.
• Networking and industry events: Participating in industry events, whether online or in person, can be a powerful way to generate leads and build relationships. Networking opportunities, speaking engagements, and product demos at these events can significantly raise your product’s profile among potential customers.

What are the benefits of product-led growth?

As I mentioned, the draw of product-led growth is how it’s so directly aligned with our digital era’s demands for speed, efficiency, and self-service. There are plenty of ways it can help if you’re aiming to scale rapidly while keeping your focus on your user experience and satisfaction, including:

You’ll have more scalability and lower customer acquisition costs

Product-led growth can help you reach and onboard a potentially massive user base without having to sink your precious cash into a proportional increase in sales or marketing expenses. Salespeople aren’t cheap!

By making your product the primary tool for your customer acquisition and retention, you can achieve remarkable scalability. The reliance on self-service significantly reduces the cost of acquiring new customers, which can make it a huge draw for startups and established businesses alike.

You’ll have enhanced user adoption and retention

If people can easily explore your product and find its value for themselves, you’re far more likely to see higher adoption rates. Intuitive design and user-friendly interfaces are the name of the game – they encourage your users to press every button to see what they can do, and to learn by doing.

It will make people feel like they really own your product, and that’ll surely make them more loyal. Plus they’ll probably stick around for longer, as they keep discovering value and utility as they keep using your product, and you keep making it better with their feedback.

You’ll gain viral growth potential

If you’re aiming for product-led growth, you’ll want to incorporate features that naturally encourage people to share what they’re doing, and ideally promote viral growth.

Whether through built-in collaboration tools, user referrals, or simply making it easy for people to spread the word about how great your product is, you’ll be able to tap into your users’ networks to drive your organic growth.

People will quickly realize your product’s value

Last but certainly not least, one of the biggest hitters of the product-led approach is how it lets your users see your product’s value so quickly. Everyone loves a bit of immediate gratification!

Quickly scratching the itch that drove them to use your product can push people to convert from being free users to paying customers, as they see firsthand how your product does what they want and solves their problems.

What are the benefits of sales-led growth?

Sales-led growth places the responsibility more on the shoulders of Sales and Marketing teams to directly engage with and do their damnedest to convert new customers, and to get existing ones to upgrade. This approach particularly shines if your product is a more complex solution, or if you’re targeting enterprise clients. Its benefits include:

You can target your customer engagement

A sales-led growth strategy will help you to deeply personalize your interactions with potential customers. Your Sales teams can tailor their pitches and demos to address their specific pain points, industry context, and any other particular needs they might have. It helps make the sales process more effective and efficient.

You’ll make bigger deals

Direct sales efforts are often a huge part of securing enterprise-level deals, which are bigger in both scope and value. Through careful negotiation and customized proposals, your Sales teams can communicate what can be done to align your product’s offerings with the strategic goals of large organizations.

The result? Bigger contracts and more valuable deals.

It will help with complex product positioning

If your product needs some explaining or customization to get the most from it, a sales-led approach will help your customers fully grasp what you can do and why they need your product to do it.

This tailored onboarding is really important if you’ve got a steep learning curve, or it takes deep, complex integrations into people’s existing systems and workflows.

You’ll have stronger customer relationships

The personal touch inherent in sales-led models naturally builds stronger relationships between you and your customers. These more intimate relationships can help you keep people happy, driving repeat business, and referrals, and it’ll give you more chances to upsell and cross-sell.

What kind of companies suit a product-led growth approach?

Product-led growth isn’t a one-size-fits-all strategy, but it can be incredibly powerful when you’re in the right position to make the most of it. If your product caters to a broad market, and addresses a clear and immediate need, you’re probably well placed to take this approach.

SaaS companies

With a digital interface and often scalable cloud infrastructure, SaaS companies are by their nature going to benefit. These products are designed to be discovered, trialed, and picked up at the user’s pace, often making them ideal for a product-led approach.

Products and services that draw in a large, diverse audience 

These types of companies can also often succeed with product-led growth. They benefit from frictionless user adoption and the viral potential of their products. Think social media platforms, content streaming services, and productivity tools.

Businesses with a clear value proposition 

These types of products are well suited for product-led growth too. If a user can sign up and quickly see how the product solves their problems or makes their life better, you’re well-positioned to go for product-led growth.

What kind of companies suit a sales-led growth approach?

Sales-led growth can be more steady footing if your product’s value proposition is complex, or if your sales cycle involves a lot of stakeholders and decision-makers.

Enterprise software and B2B solutions

Anything that takes a significant investment or integration into people’s existing systems will often benefit greatly from the personalized touch of a Sales team. These are the products that serve critical business functions and promise a return on investment that can be best shown through direct sales efforts.

Companies with high-value, low-volume products

Businesses in this position often go for a sale-led strategy. If your customer lifetime value is high but you’re serving a more niche market, a sales-led approach will give you the deep, consultative selling you’ll need to close those vital deals. If you’re in this position, you’ll benefit from building your relationships and tailoring your pitches to meet the needs of each and every potential customer.

Specialized industries and bespoke solutions

You’ll likely be better suited to a sales-led strategy if your industry has specific regulations and legal requirements, or if your product requires customization for each client. Here, the sales process is as much about understanding each customer’s unique challenges as it is about selling your product, and often you’ll need to customize your offering to fit the customer’s requirements.

Product-led growth vs sales-led growth – which approach is right for you?

Choosing the right growth strategy can feel a bit like standing at a crossroads, with each path leading to two distinct futures for your business.

How to choose? Here are some tips that’ll help you figure out which route might suit your product best:

• Assess your product: Is it simple and intuitive or complex and customizable? Your product’s nature can point you toward your answer when considering a product-led growth vs sales-led growth strategy.
• Know your audience: Are you aiming for individual consumers or big enterprises? The size and expectations of your target market can dictate whether to lean towards product-led for ease and scalability or sales-led for depth and customization.
• Align with your goals: What are you aiming to achieve? Rapid market spread fits well with product-led growth, while building deep-value customer relationships aligns with a sales-led strategy.
• Check your toolbox: Do you have a killer sales team ready or a tech-savvy squad to enhance the product experience? Your current resources and capabilities should influence your strategy choice.
• Experiment!: Not sure which path to take? Test and learn. Run small pilots and MVPs to see what resonates with your market and what doesn’t.
• Stay agile: The only constant is change, especially in today’s digital world. Be ready to pivot your strategy based on new learnings, market shifts, and feedback.
• Listen to your customers: They’re the best ones to guide you to the right strategy. Their interactions with your product and feedback are golden nuggets of insight.

Remember, picking a growth strategy isn’t a one-and-done deal. It’s an ongoing journey of adaptation and refinement, ensuring your business not only grows but thrives in its unique landscape.

What are the key considerations when being product-led?

Embracing a product-led growth strategy means diving deep into some crucial areas that can skyrocket your product’s success if you nail them.

Here’s what to keep an eye on:

• User experience and intuitiveness: Your product needs to do the talking. Ensure every user interaction is smooth and intuitive, guiding them naturally to value discovery. This is where investing in top-notch UI/UX design pays off, making onboarding a breeze and your product a joy for everyone to use.
• Immediate value delivery: Make sure your product quickly shows off its worth. Aim for that early “Wow!” moment by clearly showcasing how it eases user pain points. It’s all about making that first impression count.
• Feedback loops and product iteration: Listen closely to what your users are telling you. Use their feedback, gathered through various means like surveys or in-app prompts, as an oracle for refining and evolving your product. It’s a journey of continuous improvement.
• Viral mechanisms and shareability: Make your product too good not to share. Embed features that naturally encourage users to spread the word, from collaboration tools to referral perks. The easier it is to share, the faster your product grows!
• Scalable customer support: Even in a self-serve world, users will sometimes need a helping hand. Roll out scalable support solutions, like detailed FAQs and AI chatbots, to ensure help is always at hand as your user base expands.
• Data-driven decision-making: Dive into the data to really understand how users interact with your product. The knowledge you can gain from things like usage patterns and conversion rates is invaluable, helping you tweak and tune the user experience for even better growth.

By putting your heart into these areas, you’re setting the stage for a product-led growth story that will rival the Spotifys of the world.

What are the key considerations when being sales-led?

If you’re setting your sights on a sales-led growth strategy, here’s a list of essentials to make it a roaring success:

• Deep product knowledge: Arm your Sales team with more than just the basics. They should know the product inside and out, understand its standout features, and exactly how it can solve customer problems. This deep dive enables personalized pitches and builds trust with prospects.
• Understanding your customer needs: Success hinges on your team’s ability to get the product and its potential customer in perfect sync. This means doing your homework on the customer’s industry, business processes, and hurdles, and presenting your product as the hero they’ve been looking for.
• Alignment with Marketing: Ensure your Sales and Marketing teams are in a tight partnership, crafting a unified customer journey. Marketing tees up with awareness and interest; Sales knocks it out of the park with insight-informed strategies that resonate.
• Effective Sales process management: Sharpen your Sales process to a repeatable, efficient cycle, from sparking initial interest to sealing the deal. Equip your team with training and tools to ensure a smooth ride through your sales funnels.
• Customer relationship building: Go beyond the sale. Nurturing ongoing support and understanding evolving needs can turn one-time deals into lasting partnerships, spurring renewals, upsells, and that priceless word-of-mouth.
• Flexibility and adaptability: Stay nimble, ready to adjust your sails as market winds shift. This agility allows your team to capture opportunities quickly and navigate around potential setbacks with ease.
• Measuring and optimizing performance: Keep a keen eye on sales metrics to continually refine your approach. A solid analysis of sales performance guides data-driven decisions, aligning sales strategies with broader business objectives.

If you keep all this in mind, your sales-led growth journey will be well-equipped to start driving sustained growth and push you toward a stronger, safer position in the market.

Real-world examples of product-led growth 

Let’s dive into some real-life stories that bring the concepts of product-led growth vs sales-led growth to life, shining a light on how different companies have taken these paths to success. We’ve got some more examples here if you want even more inspiration!

Slack

Ever wonder how Slack became the go-to for team communication? It’s a classic case of product-led magic. With its super intuitive design and the ability to make work life simpler and more productive, Slack naturally found its way into the hearts (and offices) of users worldwide. The key? A product experience so smooth, people couldn’t help but spread the word.

Zoom

Before it turned into a synonym for video calls, Zoom was just another contender in the crowded space of video conferencing. What set it apart? A relentless focus on user simplicity and reliability. Zoom made joining a video call so effortless that it quickly became the preferred choice for both personal chats and professional meetings.

Dropbox

In the early days of cloud storage, Dropbox stood out by making file sharing a breeze. Its clear-cut promise of easy storage and sharing, sweetened with referral bonuses for extra space, saw users flocking. The simplicity of Dropbox’s product did the talking, turning users into advocates.

Real-world examples of sales-led growth

Oracle and SAP

When it comes to handling complex business operations, Oracle and SAP are the heavyweights. Their Enterprise Resource Planning solutions, vital for integrating and managing core business processes, aren’t the simplest tools on the shelf. Through in-depth consultations and demos, their skilled Sales teams have been pivotal in custom-fitting their solutions into the intricate tapestry of businesses worldwide.

IBM

IBM’s journey through the tech world is a testament to the power of a sales-led approach. With a portfolio that stretches across various sectors and solutions, IBM’s success lies in building strong relationships with clients. Their sales teams excel at demystifying complex solutions, showing businesses exactly how IBM’s offerings can transform their operations.

Real-world examples of a blended growth strategy

Let’s take a look at how some companies have masterfully blended product-led and sales-led strategies, capturing the essence of both approaches. This strategy isn’t just about balancing; it’s about harmonizing the strengths of each approach to meet your customers exactly where they are.

Microsoft

Ever think about how Microsoft Teams became so widespread, almost overnight? Microsoft played a clever game here. They used their mighty Sales engine to push Teams into the spotlight, but also ensured the product itself was useful enough to draw people in.

Through Teams, Microsoft showed that even the big boys could dance gracefully between being product-centric and leveraging a world-class Sales team to get their fingers deeper into the pie. They have their cake and eat it too, growing through organic product appeal while solidifying big deals behind the scenes.

ProdPad

Now, for a bit of own-horn-tootin’! Here at ProdPad, we began our journey by letting our product lead the way, attracting our first users with its sheer usefulness. After all, we are Product Managers ourselves, and we made it for our use as much as anyone else’s!

But as we’ve grown, we’ve realized that some of our customers could really benefit from a consultative approach, helping them to understand exactly how ProdPad can help them operate a smoother product process within their particular organization and with their particular structure and existing processes. 

Our Sales team can listen to a customer’s exact use case for ProdPad – or, more accurately, listen to how they work now, understand the problems they are facing, and then show them specifically how they could set up their ProdPad account and process to drive success.

By gradually integrating our sales-led growth efforts into how we do things, we’ve expanded the types of customers we helping, engaging directly with larger teams and organizations to tailor solutions that fit them like a glove.

It’s helping us to not just grow, but to grow smart, reaching wider without losing our product-led soul.

How to blend product-led and sales-led growth strategies

Blending product-led and sales-led growth isn’t just about shoving them together like two Barbies. It’s about creating a dynamic, responsive growth engine that capitalizes on the direct feedback loop between your product and its users, all while keeping the personal touch that your lovely Sales bods can offer.

Here’s a quick guide on making it work:

• Spot the blend moments: Look at the customer journey for moments where a little sales nudge could enrich the product-led path. Maybe it’s when users hit a certain usage threshold on a feature or when big accounts need that human touch.
• Data is your best friend: Dive into how users interact with your product. This treasure trove helps Sales folks pinpoint prospects ripe for a deeper conversation, ensuring efforts are laser-focused.
• Smooth moves between Product and Sales: Aim for a seamless handoff that feels natural to the user, whether through a well-timed email or an in-app prompt that gently introduces Sales into the mix.
• Equip your Sales team: Arm Sales with everything there is to know about how users are engaging with your product. This knowledge turns them into wizards at identifying upsell opportunities and solving user challenges.
• Close your feedback loop: Sales insights can supercharge product development. Those frontline tales and user wishes can guide what your product does next, keeping it fresh and relevant.
• Tailor your approach: Different users need different things. Some love the independence of a self-serve model, while others appreciate a guiding hand. Crafting strategies that respect these preferences ensures everyone gets what they need.
• Tech to tie it together: Harness the power of CRM, automation, and analytics tools to stitch Product and Sales efforts together smoothly, tracking every interaction to refine and improve your approach continually.

How can you measure your growth?

Keeping an eye on your growth and understanding the impact of your strategy, whether it’s product-led growth vs sales-led growth, or a blend, is really the only way to know whether what you’re doing is paying off.

Here are some of the Key Performance Indicators (KPIs) and metrics to keep an eye on to make sure you’re heading in the right direction:

How to measure product-led growth

• User Acquisition Rate: Think of this as how many new friends your product is making over time. A growing circle suggests your product’s charm is working wonders.
• Activation Rate: This one’s about how many of those new friends decide to stick around because they see the value in your product. Whether they’re setting up their profile or making their first purchase, it’s a sign they’re into what you’re offering.
• MAU and DAU: Monthly and Daily Active Users give you a peek into how engaging your product is. A lively party versus a quiet dinner – both have their vibes, and the ratio tells you which one your product is hosting.
• Churn Rate: This tells you how many folks are leaving the party early. Keeping this number low means your product continues to be a hit over time.
• Customer Lifetime Value (CLV): CLV is all about understanding the long-term value each customer brings. A rising CLV signals that your product isn’t just a one-hit-wonder.
• Net Promoter Score (NPS): Essentially, how likely are people to rave about your product to their friends? High scores here mean organic growth is on your side.

How to measure sales-led growth

• Lead Conversion Rate: This is about how well your sales team can turn potential into actual customers. High rates here mean your team is on fire.
• Average Deal Size: Watching this helps you understand if your sales strategies are hitting the mark in upselling or catching the big fish.
• Sales Cycle Length: A shorter cycle means your team is swiftly moving from “hello” to “let’s do this,” speeding up revenue realization.
• Customer Acquisition Cost (CAC): It’s crucial to keep an eye on what it costs to win a customer over. Optimizing CAC is key to ensuring your efforts are profitable.
• Revenue Growth: The ultimate sign of health for sales-led strategies, this metric tells you if your sales efforts are translating into a healthier bottom line.
• Customer Retention Rate: Just like in product-led strategies, keeping customers coming back for more is a sign of lasting relationships built by your sales efforts.

How to measure a blended growth strategy:

• Mix and match: Keep tabs on a cocktail of the above metrics, adjusting your focus based on what your current strategy emphasizes.
• Seamlessness: Pay special attention to how smoothly customers move between experiencing your product and engaging with your sales team. This transition should feel natural and effortless.

Keep an eye on how these metrics ebb and flow over time – it can clue you into deeper insights about how healthy your growth strategy is and if you’re headed in the right direction.  You can also learn where you stand by comparing your numbers against industry standards or your competitors. It’s a reality check that can contextualize what you’ve been doing.

They lied. Size is everything.

Surviving the ever-shifting sands of today’s business landscape is a constant adventure. With markets always on the move and customer tastes evolving at lightning speed, trying to pin down the perfect growth strategy is harder, and yet more crucial, than ever.

Maybe you’re all in on letting your product take the lead, perhaps you see the value in a more hands-on sales-driven approach, or you might be eyeing the best of both worlds with a blended strategy. Whatever your choice, it hinges on really getting your product, knowing your market inside out, and playing to your organizational strengths.

But here’s the thing: choosing your strategy is just the beginning. Keeping tabs on your growth, tuning into feedback, and being ready to tweak your approach are part and parcel of the journey. It’s about picking a direction, yes, but you also need to be nimble enough to get around each twist and turn.

The ultimate aim? Cultivating dynamic growth, and being ready to adapt and thrive no matter what the market throws your way.

In the end, there’s no magic formula for growth. It’s a unique journey for every business, defined by your product, your team, and where you dream of going. Yes, deciding between product-led growth vs sales-led growth is complex, but if you’re armed with the right strategy, you know your product and your customers like the back of your hand, and you’re not afraid to adapt… the possibilities for growth are endless.

The post Product-led growth vs sales-led growth: Which is right for you? appeared first on ProdPad.

I sat down with ProdPad’s Head of Product, Kirsty Kearney-Greig, to get her take on the question after gaining over a decade of experience in the tech field. Is coding a must-have skill for Product Managers, or just an added bonus in your toolbox?

So, should product managers learn to code?

Whether or not to learn how to code isn’t just about adding another skill to your repertoire; it’s about the need to understand the core of what makes digital products tick. But, as with most things Product, this isn’t a black-and-white issue.

A lot of people represent knowing how to code as some sort of superpower in our tech-driven world. After all, for PMs it promises a better understanding of the products we manage and a closer connection with the engineering teams.

However, how necessary code really is for PMs isn’t set in stone. Not all Product Management roles require much technical expertise, let alone being able to actually sit down and bash out lines of code. And there’s a beauty in focusing on what PMs do best: bridging the gap between business needs, user experience, and technology.

Kirsty was pretty direct when I asked her if Product Managers need to code:

“My general answer would be no, I don’t think that Product Managers do need to code. Unless you’re working in a specifically code-focused product. Of course, knowing and speaking those languages, understanding the difference between backend and frontend, databases, that kind of stuff is useful, I think.

“But I wouldn’t expect any of my PMs to sit there and, you know, write out some JavaScript. That’s not their job. Their job is to be defining problems, and understanding that side of things.”

When is knowing how to code useful for Product Managers?

Of course, there are always exceptions to every rule. When I asked Kirsty if there were times when having some specific coding knowledge would be a benefit for a Product Manager, she did have a pretty solid exemplar:

“Using one of our customers as an example, Liz Love, who used to work with us, now works at Secure Code Warrior. It’s a platform to learn how to code, basically. When they were hiring a PM, they obviously wanted someone specifically who had coding knowledge and experience, because part of the product is an interface in which you’re learning and editing code.

“So, if your product is about teaching people how to code or it has some sort of specific coding focus, then having some basic coding knowledge can be useful. But, as a general rule, I don’t think you need to know how to code.”

Chatting with Kirsty, it quickly became clear that the context of your product and company plays a significant role in how important knowing code is. If you’re working on a tech-heavy product or in a very early-stage startup environment, coding knowledge can be invaluable.

Of course, it also helps if you can speak the language of your Developers, and if you’ve got your head around the intricacies of how their development process works. But for many other Product Managers, especially those in less technical domains, the story might be different.

Learning your engineers’ languages

If you don’t need to be able to write code yourself, does that mean you can just go ahead and ignore that side of the Product knowledge base? The answer may shock you! (Spoilers: it won’t shock you.)

Of course you can’t just ignore it, you fool! Don’t be so damn lazy! I’ll let Kirsty explain why coding’s still something that needs to be on your radar:

“I don’t think you need hard coding skills. But what you do need to have is a technical understanding of your own stack and the product that you are managing, what it’s built on, and what it uses. That’s so you can speak the same language as the Engineering or Development team when they discuss what you’re working with.”

That having been said, it’s not just about being able to discuss things with the Devs and know what they’re going on about:

“It can also be useful to have a basic understanding of things like frontend code, HTML, and CSS, because it can allow you to speak the language of your designers as well. Having some SQL knowledge can also be quite useful for data analysis. But having enough of a working understanding to talk about something isn’t the same as needing to know all of the ins and outs.”

Staying in your lane

The essence of being a PM often lies in strategic thinking, problem-solving, and user advocacy, skills that don’t really require any specific coding prowess. PMs are the orchestrators who ensure all parts of the product symphony play in harmony, and sometimes that means leaving the coding to the experts.

As Kirsty puts it:

“A Product person’s job isn’t to have all the answers yourself, but to surround yourself with the people that know more than you do in a specific subject matter. And Developers do coding day-in, day-out. That’s their job.”

So, do Product Managers need to learn to code? Kirsty’s take is that most of the time you don’t need it, but there are exceptions to the rule. It’s more about aligning your skills with the needs of your product and team:

“There’s a very well-known Venn diagram where you have three circles: business, design, and tech. Of course, Product people are at the center of that diagram, but most people are aligned to just one of those circles, or a couple of them, rather than all three.”

Essentially, learning to code is a personal decision that hinges on your career path, interests, and the specific demands of your role. And, of course, all of those can always change!

What are the advantages of knowing code as a product manager?

According to Kirsty, and other fine Product folks out there, there are several compelling advantages of having some coding skills in your toolkit.

Firstly, enhanced communication with technical teams. Understanding the basics of coding can go a long way toward bridging the gap between Product Managers and Developers.

It’s like knowing a bit of the local language when traveling to a foreign country – it goes a long way in building rapport and respect, and it makes getting things done quicker and easier. Improved communication fosters a more collaborative environment where ideas flow more freely and technical constraints and possibilities are understood more quickly.

Another advantage is that you’ll have greater autonomy and problem-solving ability. Some PMs, especially those in fresher start-ups, might encounter occasions where a basic understanding of code will allow them to independently troubleshoot minor issues or understand the feasibility of a feature without needing to pick the brains of their technical team. It empowers Product Managers to make more informed decisions and makes for a smoother product development process.

Plus, a Product Manager knowing how to code could gain a competitive edge in the job market. As Kirsty pointed out in our conversation, while it’s not a mandatory skill, it’s certainly a valuable one. In some companies, especially those with a heavy tech focus, a Product Manager who can understand and contribute to technical discussions is a significant asset.

It’s important to be aware that these advantages come with a caveat. Coding knowledge is beneficial, but it’s just one part of a much larger skill set required for effective product management. And in Kirsty’s mind, it’s not always the most important area to focus on:

“In my opinion, it’s more important for a Product Manager or Product person to have a really good understanding of how to conduct research and problem-solve, and how to ask the right questions.

“Collaboration as a skill is way more important than coding, I think. Being able to multitask is definitely a big one too. Empathy is a huge one. All of those skills are way more fundamental than being able to write a line of code.”

The key, then, is to find a balance that works for you and your specific role.

Are there any disadvantages to knowing code as a product manager?

While discussing the merits of being able to code as a Product Manager, you also have to consider the potential downsides. There are a few scenarios where being too involved in the technical details can lead to some tricky challenges.

One notable problem is the risk of role blurring. Product Managers, especially those with a technical background, can find themselves drifting toward more hands-on coding tasks. This shift can distract from what should be your primary role – strategizing, understanding the market, and focusing on the user experience. There’s a delicate balance between understanding the technical aspects and becoming too engrossed in them – the old “woods for the trees” analogy.

Another concern is the possibility of narrow focus. A deep dive into coding might inadvertently give you tunnel vision, leading you to prioritize technical elegance over user needs or business goals. As a PM, your strength lies in holding a broader view, and synthesizing all sorts of diverse inputs to guide your product strategy. Squinting too hard at just the technical side can skew this perspective.

It’s also worth mentioning the large time and effort investment. Learning to code isn’t a trivial pursuit, or a quick fix. Unless you’re a savant of some sort, it’ll take a lot of your training time that could have been spent honing some of the other essential skills in Product Management. For some, this investment could have a big payoff, but for others, it might not fit with their career trajectory or what they actually spend their time doing day-to-day at work.

Basically, as a Product Manager, it’s important to give some thought to how much technical depth is going to be helpful with your specific role. If you’re going to get to grips with code, make sure it’s complementing, rather than overshadowing, your broader responsibilities.

What do Product Managers need to know about code?

Ok, coding might not be an essential skill for every Product Manager. But we’ve established that some technical understanding can help to make you a better PM. So, what exactly should PMs aim to know?

Learn your tech stack: It’s crucial to have a grasp of the technologies that underpin your product. This doesn’t mean you need to know how to build it yourself, but rather understand your tech’s capabilities and limitations. Knowing whether your product is built on HTML, CSS, JavaScript, or Python, for example, and why those differences matter, will help you with making informed decisions and communicating effectively with your engineering team.

Understand basic technical concepts: Familiarity with basic coding concepts, even if it’s just the fundamentals, can go a long way. Things like understanding what an API is, how databases work, or what the difference is between frontend and backend development. You’ll be able to have more meaningful conversations with your Dev team and can help them translate the technical details into more business or user-focused language.

Develop your data analysis skills: Everything is data now. Having some competency in data analysis is incredibly, and increasingly, valuable. This might involve basic SQL knowledge or understanding how to interpret user data to inform your product decisions. These skills enable you to draw insights from your data and then use them to guide your product strategy.

Ultimately, as Kirsty pointed out, the depth of technical knowledge you need as a PM really depends on your particular product, industry, and company size. In some cases, a deeper understanding of the tech might be helpful or even required, say if you’re a founder of a very early-stage start-up and need to knock up a quick MVP of the product.

In other cases, just being on nodding terms with code as a Product Manager might suffice, so you know what the Devs are saying without wanting or needing to teach them to suck eggs. The key is to focus on building the level of technical knowledge that’ll empower you to make better product decisions and communicate effectively with your team, without wasting your time going down the rabbit hole.

Will coding skills come up when interviewing to be a Product Manager?

Every business has its own definition of what a Product Manager’s job entails. Some don’t even use the same job title, for God’s sake! It’s almost impossible to know going into an interview exactly what your day-to-day at that company will entail, but you can easily hazard a guess depending on the vertical of the company you’re applying for.

To give a direct example, ProdPad is a SaaS B2B product company. Seems like a pretty techy, data-led environment, right? But we don’t expect our PMs to know code. Here’s our Head of Product Kirsty’s view on it:

“I wouldn’t expect there to be any coding questions in an interview. Unless, like I said, maybe the environment or platform or products you are interviewing for is specifically some kind of coding environment.

“One thing they may ask you about is what languages the previous products you’ve worked on have been built in, or what frameworks you’ve used. That’s just so they can establish whether your experience maps to what they’re using, to see if you already have a technical understanding of it. But that’s all I’d really expect in a typical kind of PM interview question.

“It’s not something I’ve come across as a common question at all, and it’s not something I’ve ever asked when conducting an interview either.”

In many product manager interviews, especially for roles that are not heavily tech-centric, coding skills are unlikely to be a primary focus. However, interviewers will still often be looking for an understanding of technical concepts, the ability to communicate effectively with technical teams, and a general awareness of the tech stack used in product development.

For roles that lean more towards the technical side, such as a Technical Product Manager, you can expect deeper discussions around technical topics. These might include questions about specific programming languages, technical challenges you’ve faced, or how you’ve worked with engineering teams in the past.

It’s also not uncommon for interviewers to ask about your problem-solving approach in technical scenarios. They could be interested in how you translate technical challenges into business impacts or UX improvements. This doesn’t necessarily require coding prowess, but a solid understanding of the technical side of Product Management will help you give a good answer to these sorts of questions.

Ultimately, while hardcore coding skills are very unlikely to be a deal-breaker for many Product Management roles, demonstrating some technical aptitude and a willingness to engage with more technical subjects could well stand you in good stead. It shows that you’re a well-rounded candidate capable of bridging the gap between the technical and the non-technical.

But again, it’s absolutely not vital!

What are the best coding languages for Product Managers who do need to code?

While there’s no one-size-fits-all answer, some languages are going to generally be handy for PMs wanting to improve their understanding and communication of the Dev process:

• HTML/CSS: Getting to grips with the basics of HTML and CSS is useful when dealing with web-based products. It helps you understand how web pages are structured and styled, crucial when discussing your design and user experience with your team.
• JavaScript: Another great string to the bow of Product Managers working on web applications, understanding JS can be extremely beneficial. It’s the backbone of many of the interactive elements on websites and it’ll you help make more informed decisions about your UX and UI.
• Python: Known for its simplicity and readability, Python is a versatile language for Product Managers wanting to dig into data analysis, automation, and backend development. It’s also widely used in machine learning and Artificial Intelligence, fields that are quickly becoming meshed with Product Management.
• SQL: For data-driven Product Management, SQL is a skeleton key. It allows you to query databases and extract insights that can inform your product decisions, helping make sure they’re data-driven.

Remember, you’re not trying to become a code master, you’re just trying to make sure you’ve got enough knowledge to be able to make meaningful contributions to technical discussions instead of just nodding and going “Hmm, yes, but how does that affect the stack?” as if you had any clue what the Developers were really talking about.

The choice of language to learn, if any, depends on what your product and team are working with, though of course personal interest and the direction you want your career to take should also play a role. You do you!

Where can PMs go to learn basic coding skills?

If your role or ambitions as a Product Manager means you do need to learn to code, there are numerous resources out there to help you get started, catering to different learning styles and schedules.

• Online courses: Platforms like Code.org, Codecademy (Kirsty’s favorite), Coursera, edX, Future Learn, and Khan Academy offer a wide range of coding courses, from beginner to advanced levels. They’re ideal for PMs who prefer structured learning and appreciate the flexibility of learning at their own pace.
• Bootcamps: For a more immersive experience, coding bootcamps like General Assembly or Le Wagon provide intensive, hands-on training. These are great for PMs looking to gain a comprehensive understanding in a short period, like before joining a more code-based product.
• University courses: Several universities now offer coding courses online. These courses often provide a more academic approach to learning coding, which might appeal to those who prefer a traditional educational setting.
• YouTube and blogs: For those who prefer a more informal learning approach, there’s a never-ending stream of YouTube tutorials and coding blogs that can provide valuable insights and practical coding tips.
• Community and networking: Joining local or online coding communities, like GitHub or Stack Overflow, could be helpful too. These platforms not only offer resources for learning but also provide opportunities to connect with other learners and professionals.
• Side projects: Applying what you learn in a practical project is one of the best ways to understand coding. Whether it’s building a simple website or a tiny app, learning by doing is a great way to go.

Again, keep in mind that the goal of learning to code as a Product Manager isn’t to become an expert code wizard. Instead, it’s about gaining enough understanding to enhance your product management skills, improve communication with Developers, and make more informed decisions about your product.

The ancient art of balancing code and Product Management

It’s clear that the decision to learn to code as a Product Manager is a nuanced one, and whether it’s necessary at all is very dependent on individual roles, products, and your own career aspirations. That’s what we get for asking a simple yes/no question!

Kirsty nails the point on the head though:

“It’s about understanding enough to talk about it, not necessarily about doing it yourself.” 

So, as you navigate your career in Product Management, remember that your strength lies in your ability to blend technical understanding with strategic vision, empathy for your users, and a tasty sprinkling of business acumen.

So, final answer, no lifelines left: Do Product Managers need to code? Yes. No. Can I go 50/50? Damn. Ok… Sometimes. Final answer! But whether or not coding becomes a part of your personal PM skill set, remember to keep your eyes on the real prize: making the best product you can, and being the best damn Product Manager you can be!

The post Do Product Managers Need To Code? appeared first on ProdPad.

Why you need a startup roadmap

Imagine you’re in a boat on a vast ocean; that’s kind of like running a startup. A well-thought-out product roadmap is your navigation chart. It helps you steer clear of getting lost in a sea of endless possibilities and limited resources, and lets you keep your eye on the horizon to know what’s coming next, and what you’re going to do about it.

Clarity and focus

One big headache for startups? Keeping a clear head about your strategy. A roadmap lays it all out – what you’re building, why it’s being built, and how it fits into your grand vision. It’s your guide to focusing on the big strategic goals and not getting distracted by every shiny new opportunity that floats by.

Stand out from the crowd

In today’s jam-packed markets, being different is what gets you noticed. Your roadmap is your secret weapon for showing off what’s special about your product. It’s not just about piling up features; it’s about creating something that solves real problems in a way no one else does.

Smart use of resources

When you’re a startup, every little resource is as precious as fresh water at sea. Your roadmap can help you nail your strategy, to help you prioritize where to put your time, money, and effort for the biggest bang for your buck. It’s all about making every drop count towards your growth and success.

Learning and adapting on the fly

The journey of a startup is all about learning and adapting, so your startup roadmap needs to be flexible; it changes as you get feedback from the market and your team. This adaptability is a superpower for startups. It lets you shift your strategy to stay relevant and ahead of the game.

Keeping everyone in sync

A roadmap is also a great tool for making sure everyone – from your investors to your team – is on the same page. It’s a way to communicate what the product is all about and where it’s headed. This shared understanding is key for keeping everyone aligned and focused.

Validating your market and customers

You can use your roadmap as a reality check with your market and customers. It’s a way to show your plans and get feedback, making sure your assumptions are on point. This finger to the wind is crucial for building a product that really hits the mark with your audience.

Setting up for the long haul

When it comes down to it, your roadmap is there to lay the groundwork for long-term success. It’s the bridge from where you are now to where you want to be. By providing a clear yet adaptable path, it helps you navigate the complex world of product development and market entry, all while keeping your eyes on the prize – achieving your big dreams.

In short, a startup roadmap is more than just a plan; it’s your strategy playbook. It brings clarity, focus, a unique edge, smart resource use, flexibility, team alignment, market validation, and sets you up for long-term wins. That’s a lot of heavy lifting for one document, but hey, that’s the startup life for you!

The secret sauce of a startup product roadmap

Now you know “why”, here are a few navigational markers to point you in the direction of “how”. In other words, here are some tips on what to keep in mind when you’re building your startup roadmap:

Sequencing is key

A ship can’t pull away from the harbor until the anchor is raised, the ties are That’s what sequencing on your roadmap is all about. You’ve got to figure out which problems to tackle first, second, and so on.

This is really important when you’re a startup with limited resources. You’ve got to focus on solving the most impactful problems first, and your roadmap is your script for making that happen.

Experiment like a mad scientist!

At this early stage, your roadmap should have a bit of a mad scientist vibe. Not Dr Frankenstein, though – it’s not about just listing features to stitch together into some zeitgeisty abomination. It’s about experimenting with different ways to solve user problems.

This approach keeps you flexible and ready to pivot based on what you learn from each experiment. It’s like having a lab where you’re constantly trying out new things to see what works best.

Be flexible with your time

When the water is choppier, the horizons are closer. You’re more focused on what’s right in front of you, but you’re also keeping an eye on what’s just around the cape, and the tips of the sails poking over the curve of the sea (or Now-Next-Later, as our CEO Janna likes to call it, somewhat less poetically). This flexibility helps you adapt as things change around you.

Keep it crystal clear and super simple

Your roadmap should be as clear as a sunny day. It’s got to communicate your startup’s vision and strategy in a way that everyone can get, from your team to your investors. This clarity keeps everyone marching to the beat of the same drum.

Stay lean and mean

It should be lean, and all about outcomes, not just a laundry list of features. It’s like being a chef who’s focused on creating an amazing meal, not just chopping vegetables.

Keep your eye on the prize

Every piece of your roadmap needs to be tied back to your business objectives. It’s like a puzzle where every piece fits into the bigger picture of what you’re trying to achieve. This alignment is key to making sure your product development is really driving your business forward.

Stay on your toes

The only constant in a startup is change. Your startup roadmap needs to be a living document, always evolving based on feedback, market shifts, and what you’re learning along the way. When you’re sailing a ship, you have to adjust your course as the winds change.

Feedback is your friend

Listening to your customers and the market is vital. Your roadmap should be a tool for testing your ideas in the real world and making sure you’re building something that people actually want.

Collaboration is king

Lastly, your roadmap should be all about collaboration. It’s a central hub where everyone from your team can contribute ideas and insights. Think of it as a campfire where everyone gathers to share stories and plan the next adventure.

Startup vs. established company roadmaps: what’s the difference?

Now, let’s talk about how startup roadmaps differ from those of more established companies. It’s like comparing a speedboat to a cruise ship – both are on a journey, but they navigate the waters differently.

Shorter time horizons

Startups are like speedboats, zipping around and making quick turns. Your roadmap is more about immediate and short-term goals because things change so fast. Big companies, like cruise ships, have longer courses planned out, with roadmaps that look years ahead.

Stretching resources

In a startup, you’re always making the most with what you’ve got. Every decision on your roadmap is about getting the maximum impact with the resources you have. Big companies have more room to play with; they can spread their resources across more projects and experiments.

Flexibility vs. rigidity

Startups are all about being agile and adaptable – your roadmap needs to reflect that. It’s constantly evolving. In contrast, established companies often have more set roadmaps based on in-depth research and long-term trends.

Risk and innovation

As a startup, you’re often pushing the envelope, taking risks to make a mark. Your roadmap will probably include bold, untested ideas. Larger companies tend to play it safer, focusing on incremental improvements and well-researched initiatives.

Everyone has a say

In a startup, everyone from the intern to the CEO might have input into the roadmap. It’s a collaborative effort. In larger companies, roadmaps can tend to be more top-down, often crafted by the Product Manager with inputs from different departments.

Experimentation is the name of the game

For startups, the roadmap is all about experimenting and learning fast. Established companies do experiment, of course, but they’re often relying more on established data and market research to guide their roadmaps.

Outcome-focused vs. Feature-heavy

Startup roadmaps focus on solving specific problems and achieving business goals, while established (or more old-fashioned) companies might have roadmaps that seem more feature-heavy, detailing numerous product enhancements and releases over time. (Though we heartily advise staying well away from feature-focused, timeline-based roadmaps.)

Visibility and communication

Your startup roadmap is a daily reference for everyone on the team. It’s like having an open book where everyone can see the plot. But in larger companies, the roadmap might feel more like a top-secret document, shared in detail only with certain teams or management levels (though, again, it shouldn’t!).

Navigating pre- and post-launch with your startup roadmap

Braving the waters before and after your product hits the market is a bit like preparing for and then embarking on a grand voyage. Your product roadmap is the chart pinned to a table in the captain’s quarters, guiding you through the pre-launch preparations and the post-launch journey. Let’s dive deeper into what each of these phases entails for your startup.

Pre-launch startup roadmaps

Aligning development with the big picture

Before you even think about launching, your roadmap acts as your navigation chart, making sure that what you’re building is not just technically cool but also aligns perfectly with your startup’s vision and what the market actually needs. It’s about ensuring that your product doesn’t just function, but also sings the right tune for your audience.

Your lab before going live

This phase is all about putting on your lab coat and experimenting. Your roadmap should guide you through testing all those big ideas you have about your market, customer behavior, and product functionality. It’s like having a rehearsal before the big show, refining your product based on real feedback, and reducing the chances of any unwanted surprises post-launch.

Getting everyone on the same page

Now, let’s not forget about getting your Marketing and Sales teams in the loop. Your roadmap should give them a clear picture of what’s coming up. It’s like giving them a sneak peek of the script, so they know the story, the characters (aka the problems you’ll solve and your value propositions), and the audience they need to captivate.

Building anticipation: the drumroll before the curtain rises

In the pre-launch phase, you want to start creating that buzz and excitement. Use this time to engage with potential customers, get the word out on social media, and maybe even tease with early access or beta testing. It’s like the trailer for your upcoming blockbuster.

Post-launch startup roadmaps

Listening and adapting

Once your product is out on the open waters, you need to turn on your radar, and constantly be scanning for feedback. This is where you listen, really listen, to what your users are saying, and adjust your course accordingly. It’s about building trust and showing your users via your roadmap that you’re committed to constantly improving based on their needs.

Iterative improvements

Now your roadmap shifts its focus to guiding the ongoing evolution of your product. It’s like a continuous journey of refinement, where you decide which new bells and whistles to add, which ones to polish, and maybe which ones to drop. Your roadmap helps you keep track of these decisions based on user feedback and usage patterns.

Measuring your voyage’s success

How do you know if you’re heading in the right direction? By measuring your success against the goals you set out in your roadmap. This is where you look at metrics like user engagement, revenue, and market penetration. It’s like checking your coordinates and making sure you’re still on course to your destination.

Keeping the crew informed

Communication is key, especially after launch. Your roadmap should serve as a tool to keep all your stakeholders in the loop about how the journey is going. It’s about being transparent with your progress, the challenges you face, and the victories you achieve.

Eyes on the horizon

Finally, while you’re responding to the immediate waves and winds, your post-launch roadmap also helps you keep an eye on the long-term vision. It’s about making sure that while you tackle the here and now, you don’t lose sight of where you ultimately want your startup to go.

In essence, your startup roadmap is more than just a path to product development; it’s a strategic guide for your entire venture. It’s about setting you up for both immediate wins and long-term success. It’s a document that evolves with you, keeping you focused, adaptable, and always moving toward your ultimate goals.

So there you have it! Creating a startup roadmap is a journey in itself, one that requires thought, planning, and a whole lot of flexibility. But with the right approach, it can be the key to navigating the exciting, if shark-filled, waters of the startup world. Happy sailing!

The post Startup Roadmap: How to Make One From Scratch appeared first on ProdPad.

Different businesses work in different ways, which is why trying to get some clarity over roles and responsibilities can make the difference between success and stagnation. So, is the Product Owner’s role limited to just doing what the PM says? Does being a Product Owner mean you won’t be contributing to the vision and high-level strategic planning?

Ideally: No!

In this blog, we’ll delve into how Product Owners, even in what can often end up an inward-looking role, still play a vital part in not just relaying the product vision but actively shaping it.

What is a Product Owner?

In the Product ecosystem, an effective Product Owner can end up playing a pivotal role on the team, especially when the roles of product management and ownership are clearly delineated. 

In organizations that are lucky enough to have both roles filled by different people, the Product Manager typically takes on the more outward-facing role. They’re the ones scanning the horizon for the latest market trends, changes in customer needs, and the ever-shifting competitive landscape… All to help them better shape their overarching strategy for the product.

Conversely, the Product Owner is often seen as more inward-facing, taking the baton from the Product Manager to translate strategy into actions and guide the devs in executing the product vision. Being a Product Owner often treated as a hat worn by a member of the team, whereas a PM is a specific job title. We’ve written more about how product owners and product managers differ if you’d like to dig deeper into the details, as well as the definitive list of a Product Owner’s responsibilities.

The Product Owner acts as the voice of both the customers and the business within the development process, prioritizing work items, refining the product backlog, and making tactical decisions that align with the strategic product vision.

They are more than just conduits for the product vision though; product owners contribute to the vision, ensuring that the product’s evolution is feasible, valuable, and strategically sound.

How Product Owners contribute to the vision

The ways that a Product Owner contributes to the vision are multifaceted and can be deeply influential. After all, their contributions are crucial in translating high-level goals into workable plans that’ll drive the product forward.

Bridging strategy and execution

The Product Owner acts as a conduit between the PM’s market-oriented strategy and the dev team’s focus on execution. They are responsible for breaking the vision down into actionable user stories and tasks that the development team can understand and implement.

It’s a delicate art, though. It requires a deep understanding of the strategic vision and the ability to translate that vision into the language of development. By effectively communicating the ‘why’, managing stakeholder expectations, and translating high-level objectives into actionable tasks, the Product Owner ensures that every sprint is a step towards realizing the strategic vision of the product.

Turning vision into action

The Product Owner is the strategic linchpin that converts the product vision into actionable goals that the development team can pursue. They take the broad, often ambitious targets set by the Product Manager and distill them into specific, incremental objectives.

Being deep in the development trenches allows Product Owners to infuse the vision with their direct experience working with the product. They can spot potential challenges and opportunities that may not be so easy to pick out at the strategy level, such as tech debt that could impede new features, or emerging technologies that could provide a competitive edge (hello again, generative AI!).

Communicating the ‘why’ behind the ‘what’

For a development team to truly engage with the product vision, they need to understand not just what they are building, but why they are building it. The Product Owner is responsible for communicating the rationale behind each feature and how it fits into the larger picture.

By providing context and clarity, they help the team see beyond their backlog items to the impact their work has on users and the market. This understanding helps build a sense of ownership and motivation, which in turn can help them push to even greater heights.

Harmonizing what can be done with what people want

While the Product Manager might be basing their vision on market needs and business goals, the Product Owner has to balance all that with what the team can actually pull off. They gauge the development team’s skills and capacity, their technology stack’s limitations, and how possible it is to integrate user feedback into the product.

They serve as a reality check that’s crucial for setting realistic expectations. By keeping everyone’s feet on the ground, Product Owners contribute to the vision by ensuring it remains flexible and adaptable, and that the team will be able to make it happen.

Ensuring vision alignment through the backlog

Your product backlog isn’t set in stone; it is a living document that requires constant attention and refinement. The Product Owner’s role in this is absolutely central – they aren’t just managing a to-do list, but potentially shaping the product’s future with each item they prioritize, refine, or defer.

Through effective backlog management, the Product Owner ensures that the vision doesn’t get lost in the day-to-day of product development but acts as a driving force behind all the product team’s decisions and actions.

Prioritizing for impact

The product backlog is a dynamic entity that the Product Owner meticulously curates to keep it aligned with the product vision. It’s not just a list of what needs to be done; it’s a strategic map that dictates the direction of the product’s development. The Product Owner prioritizes backlog items based on their potential to move the product towards its strategic goals.

This prioritization is a continuous exercise in evaluating the importance and urgency of features, balancing short-term wins with the long-term vision, and making adjustments as new insights and feedback crop up. By weighing each item in the backlog against the vision, they ensure that the most impactful items are delivered first.

Keeping a nicely groomed product backlog

A well-maintained backlog helps with staying aligned with the product vision. The Product Owner ensures that each item is clearly defined and actionable. They work to refine the items, breaking down larger user stories into smaller tasks that can be completed within a sprint.

Clarity in the backlog keeps things unambiguous and lets the devs focus on delivering value without any unnecessary distractions. It also enables stakeholders to understand the trajectory of the product’s development and how what’s being worked on contributes to the vision.

Adapting the backlog to the times

As development progresses, the Product Owner has to adapt the backlog to reflect new learnings and experiences. The market can shift, user needs can evolve, technological advancements can open up new possibilities, and experiments can either pay off or not.

The Product Owner needs to stay agile, revising the backlog to accommodate all these changes while still steering the product in the right direction. This flexible response contributes to keeping the product relevant and competitive, and ensures that the team isn’t working in an echo chamber.

Why nailing your product vision is so important

Your product vision is the cornerstone of your product’s journey, serving as a beacon that guides your whole team through the tricky and exciting process that is product development. Done well, it articulates a clear, strategic direction and communicates the essence of what your product aims to achieve in the long term.

When Product Managers and Product Owners collaborate effectively, this vision becomes a dynamic positive force that infuses every aspect of product development, from high-level strategy to the day-to-day.

For a PM, the vision captures the ambitions of the product in the marketplace and helps in making decisions that will shape the product’s future. This outward-looking perspective ensures that everyone’s pushing in the same direction. It’s crucial for setting the trajectory of the product’s growth and maintaining its relevance in a changing market.

Meanwhile, the Product Owner has to internalize this vision, turning strategic objectives into tangible tasks for the devs to work on. The vision ensures that the Product Owner’s decisions, whether they’re prioritizing the product backlog or negotiating the scope of a sprint, are aligned with the broader goals. It’s a litmus test for determining the value and priority of each feature and task the team takes on.

It’s not just a statement of intent, but a living document that informs the day-to-day operations and the overall strategic approach. It can also be really helpful for motivating and aligning your team, as it gives everyone a shared understanding of what they are working towards and why.

Basically, the product vision is the conceptual bridge between strategy and execution, while the Product Owner is the practical one. That’s why nailing your product vision is so vital – it enables both Product Managers and Product Owners to steer the product forward in a concerted and strategic manner. It’s all about that alignment, people!

Product owners contribute to the vision holistically

The Product Owner’s unique position – immersed in the daily grind yet attuned to the broader strategic vision – enables them to blend foresight with pragmatism, shaping the product in ways that are both visionary and grounded.

Product Owners contribute to the vision’s execution, sure, but they are also a central part of shaping and refining the strategy itself. Through constant iteration, communication, and carefully managing the product backlog, the Product Owner ensures that the vision remains adaptable and achievable.

The post How Do Product Owners Contribute to the Vision? appeared first on ProdPad.

What is churn?

If you already know what churn is, then feel free to skip to the next section. For everyone else: there are two types of churn – customer churn, and revenue churn.

Customer churn (also known as logo churn or customer attrition) is the measure of how many of your customers are no longer paying for your product. It is represented as a percentage and is calculated like this:

Churn Rate = (Total number of churned customers / total number of customers) x 100

There are then two ways to calculate and track revenue churn. Those are:

Gross Monthly Recurring Revenue (MRR) churn is the measure of how much money you have lost from customers leaving or downgrading their service. It’s calculated like this:

Gross MRR Churn Rate = MRR Lost from Churn / Starting MRR x 100

Net MRR churn takes into account how new customers and people upgrading have counterbalanced the negative impact your Gross churn has had on your revenue stream, and is calculated like this:

Net MRR Churn Rate = (MRR Lost from Churn and Downgrades – MRR Gained from Upgrades and Add-ons) / Starting MRR x 100 

If you really want to get to grips with these metrics, and the other product metrics you’ll want to be tracking to get the best from your product, download our free eBook, The Complete List of Product Management KPIs.

What is churn prevention?

Churn prevention is like a secret recipe that you use to keep your customers happy and keep them sticking around. It’s all about understanding what makes those customers tick. You need to address any problems that crop up before they get big enough to make them want to drop your product.

Think of it as more than just keeping people from leaving, though. It’s about building a real bond with your customers. You’ve got to look at everything from the product itself to how they feel when they call for help, and make sure that you’re staying on top of what they want as it changes.

It’s like mixing all the different ingredients of a complex recipe together to make sure you get the perfect dish that keeps your customers smiling. To do it right, you’ve got to dive deep into your customer data.

Watch out for any signs that someone might be thinking of waving goodbye. That’s your chance to jump in with solutions before it’s too late. Or to sweeten the pot to keep them around long enough for you to make the fix they’re looking for.

Again, it’s not just about holding onto customers, no matter what. It’s about keeping your product or service as cool as a cucumber, as hot as a chili, and matching what your customers want in their product bellies. It’s about staying in tune with what they need and making sure you’re delivering the goods.

In the end, churn prevention isn’t just some business mumbo-jumbo. It’s the key to making your business last. It’s about knowing your customers inside out, staying ahead of the game, and always changing with the times. Give it the priority it deserves, and you’ll be building lasting relationships, making your brand shine, and setting yourself up for success.

Who is responsible for churn prevention?

Customer Success

Let’s be real: the entire team has a spoon in the churn pot. It’s one of those things that’s everyone’s business. But usually, it’s the Customer Success squad that’s on the front lines, building those vital connections with your customers once they’ve hopped on board. They’re the ones making sure your customers are digging what you’re dishing out.

Being there in the trenches (or is that trenchers, to continue the food metaphor?), Customer Success is usually the first to spot the signs – like when someone’s app usage is dropping off, or if they’ve started grumbling. But hey, if someone does decide to jump ship, remember, it’s not all on Customer Success’ shoulders. We’re all in this churn battle together!

Marketing

Marketing can contribute to keeping churn low by making sure they reel in the right kind of folks to begin with. Those who’ll really get a kick out of what you’re offering. No sketchy sales tactics, no promising haute cuisine then serving up a hot dog. Just honest-to-goodness value.

Product marketing, who usually own customer comms, can also help keep your users engaged and happy through supporting a multi-touch communication strategy. While the Customer Success people will be hands-on and often one-to-one with customers, Product (or Customer) Marketing will be responsible for the mass communications and ongoing nurture emails that can help your entire customer base feel like they’re in the loop. 

Sales

Sales also have to make sure they’re not promising champagne and delivering Mountain Dew. They’ve got to match the right product to the right people. Otherwise, those customers are out the door quicker than you can say “Wait, what’s churn again?”.

Product & Development

Then there’s the tech folks, the Product and Development crew. They’re the guardians of the product kingdom, making sure there’s no hair in the food, and that service is glitch-free. Can’t have a wonky product scaring off your precious customers!

Support 

Of course, you need Support to swoop in, flag bugs, and make sure your customers feel the love when they reach out.

So, just like getting a fine meal from fridge to table, and making sure no one pukes it up and writes you a terrible review… it’s a team effort. We’re all in the business of crafting an amazing customer experience together. At any moment, a sour taste can send customers packing. I really should have had lunch before writing this!

How to prevent churn as a product manager

Ok, so now you know what everyone else is doing to keep your churn under control, what can you as a product manager do to tie all of their efforts together?

Keep your eyes on your ICP

Right from the get-go, you have to know who your dream customers are. That’s your Ideal Customer Profile (ICP). Get that down pat, and you’ll be drawing in the right crowd, the ones who’ll stick around. Because trying to fix a poorly conceived ICP later is like trying to unscramble an egg.

If you’ve got a bunch of folks signing up but scratching their heads, wondering what they signed up for, that’s a problem. You have to know who you’re building your product for, aim for customers that’ll stick around for the long haul. They’re the ones who’ll keep that revenue gravy train chugging along.

That’s why it’s so important to know your ICP like the back of your hand. Shout it from the rooftops! Understand who your buyer persona is and work closely with your Sales and Marketing teams to make sure everyone’s on the same page. That means clear messaging, killer sales pitches, and marketing strategies that draw in the perfect match for your product. Quality of leads over quantity is the name of the game here.

Get them onboard, then make sure they stay there

Then comes the onboarding – not just a one-time deal, my friends. It’s a continuous journey, making sure your customers feel supported long after day one. Your Product and UX teams need to work their magic, ensuring customers see the value they were promised. And, of course, Customer Success is right there, reinforcing that message every step of the way.

You see, it’s not just about getting them on board. Churn prevention’s about keeping them jazzed up about your product. After all, the opposite of churn is repeat business more engagement – retaining customers and their continued payments. If you can get 95 happy diners to come back for more, they’ll make up for the 5 who decided to go for a McDonald’s next time. That’s how you build a rock-solid cohort of customers. That’s the secret sauce.

Get to grips with churn indicators

Read between the lines of your customer data. Dive deep into the usage stats of those who’ve churned. Look out for any signs of decreased activity, neglected features, or a sudden surge (or indeed fall) in support calls. These are just some of the red flags that could be your early warnings.

However, no two products have the same churn indicators – so you’ll have to do the analysis for yourself and work out what the unique signs are that your users are losing interest.  Catch them and work your magic with the Customer Success team to win those wavering hearts back.

On a practical level, once you’ve determined what those churn indicators are in your usage data, make sure you’ve set up alerts that shout at you if a customer starts to display these patterns. It’s no good knowing how churning customers behave in the run-up to canceling if you don’t use that intel to pre-empt churn and work to mitigate it! 

Get ahead of the game

It’s all about pipping churn to the post. Use the insights shared by your most dedicated users and the churn indicators you’re tracking to create a special radar for those who are slowly slipping away. Reach out with tailored solutions, show them some extra love, and watch as those churn risks get handled before they even realize they’re thinking of leaving.

Plus, once you find out a reason for your customer churn, share that insight across the business! One way we do that here at ProdPad is with a regular cross-functional meeting. We look through all the churn reasons that have come up lately, to discuss what (if anything) needs to be done to stop it being a problem in the future.

Price it right to prevent churn

Sometimes it’s not about the product, it’s about the price tag. During these wallet-tightening times, you can be the hero with flexible pricing options and sweet discounts. But you’ll need to keep an eye on the long game – you want happy customers and a thriving business, not just a quick fix that’ll leave you in the red down the line.

You’ll need to box clever, though, because pricing is a tricky one! You don’t want to devalue your product, or rush in and cut prices if you’re not certain that is definitely the reason for your churn. No one likes leaving money on the table.

Be the feedback whisperer

Listen, really listen, to what your customers have to say. Their gripes, their suggestions, their praises – take it all in. Then, roll up your sleeves and get to work. Show them you care by acting on their feedback.

Never forget to close the loop – make sure you have that baked into your process. Whenever a customer submits feedback, respond to it. Then come back and inform them of the solution to their problem whenever a related feature or improvement ships. Trust me, a little TLC goes a long way in keeping those hungry churn wolves from the door.

Map out a clear path ahead

Let your customers peek into the kitchen – show ’em what’s cooking with a clearly presented public roadmap. Lay out the plans, the fixes, the shiny new features and solutions you’re bringing to the table.

It’s all about building that trust, showing them you’re always hustling to make their experience top-notch. When they see you’ve got their backs, they’ll stick around for the long haul.

What are the best ways to reduce customer churn? 

If your churn prevention attempts aren’t landing, then you need to start minimizing your losses. When your customers start bailing on you, you’ve got to dig deep and find out why. Don’t be shy! Give them a ring, and ask straight up – why the sudden goodbye?

Get to the bottom of it. Sometimes, it might be a glitch in your system that needs fixing, or maybe you just weren’t clear enough with what you’re offering. You might even have to go drawing board and ask yourself, ‘Are we even aiming for the right crowd?’

But the best way to reduce your churn? Talk to the folks who are sticking around, the ones who are loving what you’re dishing out. Find out why they’re vibing with your product. 

Let your happy customers do the talking for you

Ask them exactly what problems they had before they found you. Find out how it feels now that they’ve got your magic solution. Get into their heads and use the way your happy customers talk about your product to attract more of their kind. It’s like having your own little fan club writing all of your ads for you!

Let’s say 10% of your customer base is all in for your product. Well, what if you could bump that number up to 20%, or maybe even 50%? That’s when the real party starts. You’ll be pulling in more folks who are nodding along, saying, “Yep, you’re giving me exactly what I needed.”

Instead of running around like a headless chicken trying to fix things for those who’ve already left, focus on the ones who are cheering you on from the sidelines. They’re your best friends. Get them happy, keep them happy, and watch your revenue grow.

Trust me, it’s the happy bunch you’ve already got that’ll show you the way to more success and help you to really nail your churn prevention efforts. So, go on, find your happy diners, and let them guide you to even more wins!

Is it too late when a customer clicks “cancel”? 

In a word: No!

This is exactly why it’s so worthwhile to set up your exit interview process and find out what’s making them leave.  One thing, though: never hold somebody hostage! You really don’t want to be telling people that they can’t cancel, or making it difficult for them to finish the cancellation process.

That right there is some shady, black-hat behavior that is sure to damage your reputation. Rather, you could try offering a win-back as part of your on-site cancellation flow.

Don’t just shrug your shoulders and move on

What you want to do is pick their brains. Try to truly understand what’s going on, and why they’re done with your product. You might get some positive results from offering a targeted win-back offer as part of their exit interview.

If there was a misunderstanding, correct it and show them how to do the thing they think can’t be done. Maybe they’ll be happy enough to come back on board. If you’re talking to them and they say, “Oh, I’m canceling because you don’t do this thing we need”, then you can point out: “Actually, we do help you to do this! Here’s how…”

Or with a bit of luck, their problem might be something that you are just about to fix. It might be something you could choose to prioritize next. Perhaps it’s something where, with a bit of communication and support, they might change their processes or learn how to use your product more effectively.

That’s why it’s always worth having that conversation if they’re willing. And that’s why it’s important to ask them what’s up, because it might be something you can fix.

Don’t expect to save all of them! But every customer rescued from the brink will help your bottom line, and teach you something about what your userbase needs.

A last note about preventing churn

One thing that a lot of PMs don’t realize is that your actual churn rate at any one time doesn’t really matter, as long as it tapers out eventually. In theory, as long as you’re keeping some people, and they’re sticking around for the long term, then you can run a healthy business.

Your results may vary depending on other factors in your business, but it’s more about making sure that you don’t consistently lose customers until your graph hits zero. It’s okay if you do lose a bunch, as long as your predicted losses taper out and flat line.

You could be losing 90% of them, but as long as you’re keeping 10%, and those 10% are big earners for you, then you might still be perfectly sustainable.

PayPal constantly loses most of its paying pals

Matt Lerner, a former Marketing Director at PayPal, recently pointed out that PayPal, which made over $11 Billion in gross profit in 2022, is in exactly that situation.

Pretty much everyone who signs up for a business account with PayPal turns off – within a year, they’re inactive. But the people who do stick around become big, happy sellers, and PayPal makes tons of money off them. Once you’re a successful PayPal seller, you’re not going to leave.

So, there you have a business that’s losing 90% of its customers regularly. Yet they’re making billions of dollars a year. Clearly, then, churn rate isn’t everything.

Ride the curve

What can you learn from this? Look at your own numbers. Figure out where your churn rate flattens out, and then what you can do to build value from the customers who have stuck around. If you can continue to keep those folks on board and grow revenue from them, then you might be just fine.

While churn prevention is a vital part of keeping your head above water, and keeping your customers liking the taste of what you’re serving them, the first thing on your agenda should always be to make a product that your users actually want and need.

If you’re not doing that, you need to either change your customers, change your sales pitch, or change your product!

The post Churn Prevention: A Product Manager’s Guide appeared first on ProdPad.

What is a SaaS product roadmap?

A SaaS product roadmap is a visual representation of your comprehensive product strategy, and how you plan to improve your Software-as-a-Service product.

Simply put, it tells people the “what,” “why,” and “when” of your product team’s been doing.

For product managers, your roadmap isn’t just for planning. It’s a dynamic tool that shapes how your team works. It’s the ever-changing blueprint for your product’s growth and evolution.

A well-made SaaS product roadmap serves both as a bird’s-eye-view of your product strategy and vision, and as a boots-on-the-ground guide for your team’s day-to-day (and sprint-to-sprint).

Beyond being a vital planning tool, your roadmap is a fantastic way to improve your communication and transparency. Done right, it can convey your overarching strategy to anyone who reads it, from someone who’s never heard of your product to the C-suite of your company.

It gives a variety of important stakeholders, including your customers, insight into just how you’re going to make that strategy a reality. And it keeps your people aligned on the same goal, giving them directly visible feedback on how their work is influencing the progress of their product.

In other words, it builds trust, both with your team and with your users. And trust is a vital resource when you’re always online.

Why is a SaaS product roadmap different from other roadmaps?

There are a few things that make SaaS roadmaps a different beast from standard product roadmaps, let alone yon old fashioned beasty, the timeline roadmap (like the famously grizzled old veteran, the Gantt chart).

After all, SaaS companies have to constantly innovate while constantly maintaining, all the while constantly reducing their tech debt and (you guessed it!) constantly managing their backlog… 

SaaS products are never “finished” (until, for one reason or another, they are eventually sunsetted). They require repeated and sometimes speedy iteration, and things could go wrong at any moment, requiring flexibility and adaptability.

SaaS companies also need to have a customer-centric focus, because a subscription-based model lives or dies on making sure people think your service is worth the money, and then keeping them thinking that as long as possible.

SaaS products are essentially a single platform that is used by all customers. One platform for all. Therefore, it comes with the challenge of serving all your customers at the same time.

Unlike when you’re building on-premise software for individual (usually high paying) customers and you can build their product however they want it, when you have one cloud based software for all, you have the tricky challenge of balancing the priorities to ensure you have a product that serves the whole of your customer base (and your business). It’s a particular skill – an art even – and it’s what makes SaaS product managers so damn cool .

Outcomes and time horizons, not features and deadlines

A SaaS product roadmap works best when it’s outcome-focused. It also needs to regularly incorporate insights gained from data and customer feedback to inform what makes it onto the roadmap, and whether it needs to be done now, next, or later.

The best SaaS roadmaps don’t limit themselves to specific timelines, at risk of turning into a product factory, focused on nothing but deadlines for the delivery of product features.

Instead many use an Agile methodology, such as Scrum. Agile is all about being flexible, efficient, and constantly learning both about how to improve your product, and what the people using it think of it.

The SaaS marketplace can be volatile, and it makes sticking to old-fashioned timeline roadmaps problematic. That’s where modern outcome-based roadmap formats like the Now-Next-Later approach can really save your bacon.

The Now-Next-Later roadmap, invented by our very own co-founder and CEO Janna Bastow, allows you the freedom to adjust your strategy and tactics on the fly, based on data and the metrics you are tracking. But more on that later!

Why is a SaaS product roadmap important?

Having a roadmap for your SaaS product is absolutely vital. You need to know what’s going on, and you need everyone else to know it too. You need a central source of truth – to guide your growth, to manage your backlog, and to prioritize what happens when.

Alignment

In a SaaS company, a whole gamut of teams from the devs to sales, marketing, and customer support… everyone needs to be working in harmony towards shared objectives.

Your product roadmap serves as the central reference point, a living document that is the beating heart of your efforts, aligning all your departments behind a shared vision. 

Without a clear roadmap, your teams might very well wind up working at cross-purposes, making things that don’t really mesh with your strategy or your users’ needs.

The end result? Wasted resources, lost opportunities, and even internal conflicts.

Prioritization

A good SaaS product roadmap will help you to prioritize what features, upgrades, and fixes should be tackled first. It’ll help you make sure your time and efforts are spent on the initiatives that are going to provide the best value.

By keeping your finger on the pulse of customer feedback, watching market trends like a hawk, and keeping sight of your established objectives and key results (OKRs), you can determine which items on the roadmap are most critical for your growth.

It’ll help you with balancing quick wins and long-term investments, striking the delicate equilibrium between working on immediate customer needs and building a sustainable product that will stand the test of time.

Communication

A well-made product roadmap inherently fosters trust and transparency with your customers, investors, and team members alike.

When your users know what to expect and why, they’re much more likely to remain loyal to your product. Your investors will gain confidence in your ability to execute your vision. Your team will stay motivated because they’ll see how their hard work visibly makes a difference.

It also helps you to manage expectations (a vital part of the job!). For instance, let’s say some functionality that your users are clamoring for is on the roadmap, but it’s in your “Later” column. Directly communicating this to customers with a public roadmap will help them understand why you’re it’s on your to-do list, but not at the top of it.

SaaS products thrive on customer feedback. Your roadmap is a structured way to incorporate all of your user suggestions and requests, ensuring that your product remains aligned with your customers’ evolving needs.

Flexibility

The software development landscape is dynamic as it is, constantly changing and evolving. The SaaS world is doubly so.

New competitors, technologies, and market trends rise and fall, sometimes it feels like at a daily pace. That is why your SaaS product roadmap can’t be a rigid contract. It needs to be a flexible guide. 

It has to allow you to pivot, to adapt to circumstances as and when they shift. A new change in the market cropping up or customer needs unexpectedly evolving needs to be an opportunity to take advantage of, not a roadblock to your cut-and-dried plan. That means you need to be able to adjust your roadmap accordingly.

Accountability

A roadmap is a tool for tracking progress. It helps you monitor whether you’re hitting your milestones and delivering on your commitments.

Accountability really is crucial for ensuring that the product development process stays on track. It helps to ensure that your team members take ownership of their work, as they can see how it fits into the bigger picture.

If you find that you’re deviating from your roadmap, from reacting to unforeseen challenges or opportunities, it still provides a reference point for you to make informed course corrections.

What should be on a SaaS product roadmap?

1. Objectives & goals

These are the specific and measurable outcomes you have chosen. Your OKRs need to be aligned with your product vision and strategy. They make your roadmap actionable by defining what success looks like.

These objectives and goals should be easily accessible from your roadmap, allowing anyone who looks at it to understand what you’re doing and why.

The most effective SaaS product roadmaps clearly connect everything on it with its corresponding objective. By tagging roadmap items with relevant objectives, you clearly articulate your strategy, and you demonstrate how you intend to meet your targets.

2. Time horizons

Whether it’s a flexible, agile-friendly structure like Now-Next-Later or a detailed (and dangerously inflexible) Gantt-style timeline with specific dates, time is the backbone of your roadmap. 

Opting for broader time horizons (i.e. Now, Next, and Later – or something with a name that clearly explains what that means in your specific context) rather than detailed timelines provides the vital flexibility you need to be able to adjust based on learning and feedback.

3. Initiatives

This is the granular content of your roadmap and is made up of the specific initiatives and problems that your team is working on.

One important tip: If you frame your roadmap initiatives as ‘problems to solve’ rather than picking specific features to work on, you promote flexibility, innovation, and outcome-based thinking, in one fell swoop.

By using this tactic, you’ll start looking at each initiative as an opportunity, and each potential solution as a hypothesis to be proven. You’ll develop a robust and flexible approach, – if the first method you use to solve the problem fails, you’ll have a plan B, C, and so on.

4. Ideas

Each initiative on your SaaS product roadmap should include all the related ideas (aka “Epics” to Agile folks). These ideas represent various ways you can address problems and delivering value, such as potential features and enhancements.

Ideas can come from brainstorming sessions, suggestions from team members, customer feedback, market research, or previously identified issues.

You’ll need to sift through these ideas in your product backlog and pick the ones that you think are worth pursuing, associating them with the respective roadmap initiative.

The best roadmap format for a SaaS product

Maintaining a fixed timeline can be challenging when the ground keeps shifting under your feet.

Unexpected issues, market shifts, and customer feedback can all force you to pivot on a dime, frustrating and annoying your stakeholders and damaging their trust.

Traditional timeline-based roadmaps can really struggle to meet the ever-changing demands of developing a SaaS product. That’s why Agile, outcome-based formats like the Now-Next-Later roadmap (our preferred choice here at ProdPad) shine as the preferred choice for SaaS product development. 

Timeline roadmaps often lead to rigid commitments. SaaS products, by their nature, require flexibility to adapt to changing customer needs and competitive pressures. Desperately trying to stick to fixed timelines is counterproductive – it forces you to rush development, miss opportunities, and just churn out feature after feature.

Rather than blinkered by focusing solely on features, the Now-Next-Later format centers on the desired outcomes and goals associated with each feature or initiative. Each item on the roadmap can be explicitly linked to specific objectives, allowing you to track progress towards achieving those objectives.

This outcome-driven approach ensures that every effort aligns with your goals/OKRs, keeping the product development efforts strategic and impactful because they are directly tied to the most important business outcomes.

Want to learn more about the Now-Next-Later product roadmap? We’ve got a dynamic product roadmap template you can access in our sandbox to not only try it out for yourself but learn how to implement the key features of the framework.

8 steps to create your SaaS product roadmap

The first thing you need to consider is the direction of play. The initiatives included on your roadmap should be informed from the top down, and the bottom up.

If you make sure that each item on your roadmap is addressing both a business objective (top-down) and a customer problem (bottom-up), you will be ensuring that you’re promoting this alignment. 

You will also be well served by ensuring you are performing user research and checking in with your most important stakeholders, both internal and external. By familiarizing yourself with their needs, expectations, and constraints, you can gain a clearer picture of what you should be prioritizing.

Once you’ve established an effective flow for generating your initiatives, and have communicated with your stakeholders, you’re ready to start building your SaaS product roadmap by taking these steps:

1. Establish your product vision and strategy

Begin by defining your product’s long-term vision. What are the product’s objectives, and how does it address customer needs? This vision serves as your roadmap’s guiding principle.

2. Set clear goals and objectives

Ensure your product goals align with your vision and overall business strategy. Utilize product goals and OKRs to define measurable outcomes.

3. Select your roadmap format

Review the roadmap format options and choose one that suits your product management approach and stakeholder expectations. Lean formats like Now-Next-Later offer advantages.

4. Create your initiatives

Start by brainstorming ways to achieve your vision and objectives. Consider solving customer problems that align with your product goals. Analyze customer feedback to identify common needs and match them to your vision and objectives. Examine your idea backlog for valuable insights.

5. Prioritize your initiatives

Prioritize at the initiative level, aligning your work with the product strategy and objectives. Consider the value, feasibility, and urgency to determine what’s Now, Next, and Later.

6. Add ideas to initiatives

Populate your roadmap with initiatives in priority order, then detail how you intend to solve problems and achieve product objectives. Mine your idea backlog, explore customer feedback, and brainstorm with your team. Use prioritization frameworks to surface valuable ideas.

7. Review and adjust

Share the draft with stakeholders, collect their feedback, and make necessary adjustments. Remember that a product roadmap is a dynamic document and should be regularly reviewed and updated.

8. Publish and communicate

Determine who needs access to your roadmap and at what level of detail. Tailor versions for each stakeholder group using a roadmap tool like ProdPad. Don’t forget to communicate your product strategy and plans to your customers, allowing them to see your vision. 

Why you need a public SaaS product roadmap

We’ve written before about how a well-crafted product roadmap is a vital tool for success, and that making it public can be a genuine game-changer for your business.

Not only will it align your team, communicate your vision, and ensure you’re light on your feet when responding to changes in your customers’ needs and the market as a whole… It’ll also drive engagement and build trust with your users, encourage accountability within your teams, and it’s a very effective way to validate your ideas. Just a few perks, then!

By embracing outcome-focused roadmaps like Now-Next-Later, and making the roadmap you’ve come up with public, you’ll go a long way toward maximizing the positive impacts it has on your SaaS business.

Incidentally, ProdPad makes it easy to publish and maintain your public roadmap. Both your internal and public roadmap are the same document, you just need to filter out the more inwardly-focused initiatives, and keep it focused on what will interest your external stakeholders. Check out ours to see what we mean!

Final thoughts

Whether your SaaS product roadmap is a bunch of Post-its being moved around a whiteboard, or is itself being handled by a SaaS product like ProdPad, hopefully you now know what makes it unique, and why you really need to get on top of yours.

It’s an important thing to master for any product manager who wants to keep innovating, stay flexible, and have a user base that trusts them and their team to build the right solutions at the right time.

The post How to Create a Great SaaS Product Roadmap appeared first on ProdPad.

What is technical debt?

Simply put, technical debt is the accumulating price you pay for taking shortcuts and making short-term trade-offs during the product development process.

It can build up when your development team prioritizes speed over quality, as a result of changing requirements and time pressures. It can also accumulate if you have less experienced team members who aren’t up to speed with best practice and your coding standards. 

Ultimately it slows down the work you’re doing now and bakes in problems for your dev work in the future. And, just like financial debt, technical debt incurs interest over time. The more it builds up, the more work will be needed to maintain and improve your codebase.

With all of that said, technical debt is not inherently bad. It can even be a prudent short-term strategic compromise when you’ve got to get something shipped quickly or you need to test the market and can’t hang about. But recklessly letting your tech debt build up without having a plan in place to deal with it is a recipe for disaster.

For a more detailed breakdown of what technical debt is, including the different types and causes, as well as the differences between prudent and reckless tech debt, take a look at our Glossary page.

Why does tech debt matter?

You might still be wondering why technical debt is a concern for product managers. After all, isn’t it the developers’ job to deal with code quality and architecture?

While the devs of course play a crucial role in preventing and managing technical debt, you as a product manager also have an important stake in managing it for several reasons:

1. Impact on speed: Tech debt can slow down development over time. As debt accumulates, it becomes increasingly challenging to add new features or make changes to your product.
2. Reduced productivity: Developers can end up spending more time fixing bugs and addressing technical debt than they do building new features.
3. Reduced quality and reliability: Accumulated tech debt can result in a less reliable product with more frequent outages and issues. This can harm your reputation and customer satisfaction.
4. Increased costs: As technical debt builds up, the cost of maintaining and improving your product rises with it. It can become more expensive to address technical debt later than to address it as it arises, or, ideally, to try to prevent it from increasing in the first place.
5. Risk management challenges: Unaddressed technical debt poses risks to the long-term viability of your product. It can make it difficult to adapt to market changes or respond to competitive pressures.
6. Stakeholder expectations: Stakeholders, including both your customers and executives, expect a product to evolve and improve over time. Failing to manage tech debt can lead to dissatisfaction and loss of trust.

Clearly, then, given all of the things that can go wrong if you don’t deal with it, you have a vested interest in making sure you’re managing your product’s technical debt effectively.

How to prevent technical debt as a product manager

What’s the best way to deal with tech debt? Prevent it from occurring in the first place!

By being aware of the causes and risks associated with it, you can make sure you’re minimizing the build-up of tech debt before it becomes a problem.

The first thing you need to do is to give your dev team space and time to build high-quality code. Instead of insisting that a feature is shipped, and shipped yesterday, understand that iterating takes time. Remember that failure is part of the process.

After all, building a product is more art than science. You’re making something that no one else has ever done before, and that takes experimentation to get right. That’s why we’re always eager to tell people about the Now-Next-Later roadmap. It helps you to get things done without forcing your teams to work to deadlines.

Ensure that your developers are working to agreed coding standards as early as possible. It’s one of the best ways to nip tech debt build-up in the bud. Consistency and best practices will go a long way toward reducing future problems with managing technical debt.

Build in space between releases for general code maintenance. That way the code base can be improved bit by bit, rather than letting it stack up so much that it needs a scary refactor down the line.

Code reviews will help too – ensure you’ve got multiple eyes on the code before it goes out the door. There’s a much better chance it’ll be high-quality (tools like SonarCloud can help to review code for issues like duplication before it’s released). This will help to keep new code congruent with the way the rest of your codebase works.

Proper documentation is also key to making sure that vital knowledge isn’t lost when members of your team move on. There are few things more frustrating and time-consuming than trying to untangle spaghetti code that only (barely) made sense to the person who wrote it in the first place. 

One last tip is to encourage your devs to follow the Scouts’ principle of tidying up the area you’ve been working in, even if it’s not your mess. You need to make sure you balance this, as you don’t want over-enthusiastic devs totally re-engineering each other’s work. Done right, it can be a useful way to mitigate the impact of newer or less experienced devs who are less familiar with the coding standards you put in place.

How to manage technical debt as a product manager

As a product manager, managing your technical debt is crucial to ensuring the success of your product. Tech debt can impede the product development process, impact your product’s performance, and have some significant and nasty consequences.

Again, this isn’t going to be the most fun part of your day-to-day. But getting it right now will save you a pile of trouble down the road. It’s also not actually that difficult, once you know what you’re doing!

Let’s dive in and discover the best ways methods for managing technical debt as a product manager.

1. Acknowledge that it exists

Admitting you have technical debt is the first step to dealing with it. By recognizing your technical debt, you can make informed decisions regarding your development roadmap. Then you can prioritize any necessary changes to your strategy.

Ignoring or neglecting your tech debt can lead to some real problems, both short- and long-term. You could end up with a slower rate of development velocity, poor code quality, a tougher job for your devs, and a general drop in productivity. Sticking your head in the sand won’t make the problem go away.

2. Prioritize how you’ll deal with it

Assess which elements of your tech debt impact the development of your product. You’ll need to factor in:

• how it impacts your product’s performance
• how it impacts the customer experience
• your dev team’s capacity to work on it
• the potential impact on:
  • financial costs due to increased maintenance costs and lower productivity
  • the opportunity cost of reducing your tech debt instead of working on something new

For loads of really helpful prioritization frameworks to help you identify what you need to work on now, next, and later, download our free guide here, or click the image below.

3. Consider including tech debt in your roadmap

It’s not always the best idea to include your tech debt-solving initiatives on your roadmap. It depends on both the scale of the work it’ll take to manage it, and your team’s day-to-day processes.

If it’s part of the strategy to tackle a particular chunk of tech debt, include it in the roadmap. If it’s business-as-usual code maintenance for your devs to continually put work into paying down tech debt, you don’t need to crowd your roadmap with all the intricate details. 

However, If it is a relatively large project that will impact things your users are interacting with, then it needs to be worked into your public roadmap.

At the end of the day, though, you should use your best judgment. Ask yourself: do the stakeholders reading the roadmap need to know about the work in question?

4. Talk with your devs

Making sure you have open and honest conversations with your development team is vital. After all, they’re the ones who know exactly what the problems are, and what it will take to fix them.

They’re also the ones most liable to burn out if you’re not managing your technical debt. Losing members of your team is a prime way to compound your problems. Your devs will probably be happier knowing that steps are being taken to improve the code, and that their opinions on the best way to deal with it are being listened to.

You might benefit from incorporating discussions about technical debt into your team’s retrospectives. Encourage team members to share their experiences and observations related to technical debt. Use retrospectives as a forum for identifying and addressing debt.

You could suggest they institute “platform days” (if they haven’t already). That’s when your dev team takes one day per cycle, month, or sprint to take on bite-sized pieces, either to gradually eat away at the debt, or to generally maintain the good code you already have. And, as mentioned above, regular code reviews can help make sure you’re adding less to your debt.

5. Monitor and measure

You need to know the scale of what you’re dealing with if you’re going to have a chance of taking it on. You’ll need to implement metrics to track technical debt over time.

This could include code quality, coverage and complexity metrics, bug counts, and the percentage of development time spent on addressing technical debt. Regularly review these metrics to assess your team’s progress, so you can adjust your approach as needed.

Automated testing can also help catch bugs early and prevent new technical debt from piling up. Ensure that your development team has all the tools and resources they need to implement robust testing processes.

6. Celebrate when your team reduces the debt

Acknowledge and celebrate your team’s successes in dealing with your tech debt. Credit where it’s due is always a good way to go. Everyone likes to know their hard work is appreciated!

It’s not just a morale booster though. It also highlights to the rest of your business the importance you place on dealing with tech debt. They might not even realize it’s a thing, let alone that it’s possibly one of the biggest challenges standing between your product and success.

Pay back your tech debt the smart way

Technical debt is like an ingrown toenail (sorry for the mental image!) – it cuts deeper and deeper, but does so slowly enough that you don’t really notice the pain. Then, suddenly, you realize your toe is big and red and gross-looking, and you’ve got to deal with a painful removal process.

So file and trim your nails before they become a problem, and keep an eye on how they grow. Prevention is always better than cure.

The post The Product Manager’s Guide to Managing Technical Debt appeared first on ProdPad.

You’re probably here because you’re trying to get your head around how specific product management KPIs can help you. You want to improve your processes, your understanding, your finances, and your user experience. Good move, friend. When it comes to KPIs, ignorance is absolutely not bliss.

Of course, KPIs by themselves aren’t the be-all and end-all. They’re part of a larger system of product management metrics and goals, and tie in to your Objectives and Key Results. But if you’re not tracking the right KPIs, you’re not going to know everything you need to be properly on top of your product. And that means you’re a lot less likely to meet your business goals and product vision.

We’ve put together the details, and all the nitty gritty on how to really nail your product management KPIs in our eBook, The Complete List of Product Management KPIs. It’s absolutely worth your time to read it, as it’ll give you the full picture that other product management teams are already working with.

For now though, if you want to have a handy checklist of all the KPIs you’ll need to know and a basic outline of how each one works, you’re in the right place.

Why product management KPIs are important to your product’s success

Understanding how your product is being used, how it is perceived, how efficient your processes are, what your average revenue is… if any of these things sound like they might be useful to know, then I’ve already pretty much explained why you need them. Nice work, everyone, let’s call it a day there.

Jokes momentarily aside, those are just the tip of the iceberg in terms of the key metrics you’ll want to be tracking to ensure both product success and a loyal customer base. Your product isn’t going to be meeting your business goals if you don’t know what’s happening or why.

Ensuring that you have your key product management KPIs worked out will help you to:

• Measure progress toward goals.
• Identify opportunities for improvement.
• Enhance decision-making.
• Align teams around goals.
• Monitor trends over time.

Clearly identified product KPIs will help you to make data-driven decisions rather than relying on instinct and intuition. It will make it easier for you to explain your progress to your stakeholders, and provide you with very useful insights into how your product is performing and where there is room to improve.

It will help you to identify potential process improvements and to target which product features your users want to be implemented or fixed. Using tools like Google Analytics, you can track the success of your marketing channels and more accurately target your advertising efforts.

In short, having the right product metrics in place can mean the difference between achieving your product vision and being mired in confusion as to what the hell went wrong.

The different types of Product KPIs

The specific KPIs that are right for your product team will depend on exactly what it is you are creating. A financial SaaS product is going to have different requirements than a subscription-based gaming service.

Some might not be relevant unless you’re developing a digital product, and others might not fit your current business model. Even so, it can still help to know what you could be tracking if you change your approach.

There are five types of product management metrics to be aware of: 

• Product Usage KPIs
• Commercial KPIs
• Customer Satisfaction KPIs
• Velocity KPIs
• System KPIs

Product Usage KPIs

If you understand how your product is being used,  you can make more informed decisions about your product’s key functionality, learn more about customer behavior, and better target your marketing efforts. 

Daily Active Users (DAU) or Monthly Active Users (MAU)

These product management KPIs track how many unique users have been using your product in the last day or month. They’re useful for understanding user engagement and tracking user behavior over time.

Traffic

This is a measure of how many people have visited your website or used your digital product. You can break it down into total, new, and returning traffic, as well as by the source (i.e. Google or Facebook). This can be important for optimizing your customer acquisition channels.

Bounce Rate

If someone leaves your site or product after looking at just one page, then they’ve “bounced” off without engaging further. Being aware of where people are bouncing off can help you to understand where you’re not meeting expectations or effectively capturing your users’ further interest.

Average Sessions Per User (ASPU)

Another key metric for user engagement, ASPU tracks the average number of times your users are actively using your product over a given time period.

Session Duration

How long people use your product for is a good way of telling how much they are engaging with it, and how much they are getting from it. Session duration is usually measured in seconds or minutes – the longer the better.

Time to Value (TTV)

This product management KPI is about how long it takes your average user to realize the value of your product after they first start using it. The quicker your users get to this valuable outcome, the more likely it is they’ll favor your product over your competitors.

Commercial KPIs

These KPIs aren’t going to be the ones that move the needle… they are the needle. Essentially, if your product doesn’t have an average revenue that’s in the black, it’s going to be difficult to justify its existence to your stakeholders. So, effectively tracking your commercial KPIs is vital.

Monthly Recurring Revenue (MRR)

One of the more important metrics for product managers. If you run a subscription model, then your MRR measures the average revenue you can expect each month.

Annual Recurring Revenue (ARR)

Simply put, this is your MRR times 12. It’s how much money you will make from monthly and yearly subscriptions if your users stay signed up for the whole year.

Revenue

If your business is more about single purchases rather than subscription-based, then this should be your most important commercial KPI. It’s a measure of your product’s revenue generation over a set time frame.

Average Revenue Per User (ARPU)

This KPI tells you how much each user is worth to you, and is a simple calculation. Divide your total monthly revenue by how many customers you had in that month, and you can finally turn your customers into currency.

Customer Lifetime Value (CLV or LTV)

How much is an individual user worth to your business over the whole time they use your product? Increasing this KPI is a path to sustainable growth, as each customer will bring you more and more revenue.

Customer Acquisition Cost (CAC)

The other side of the coin to CLV, this is how much it costs you to pick up new customers. It generally takes into account all of the costs, from marketing spend and salaries to your general overheads.

New Users

This is how many users you gain over a set period of time, either daily, weekly, monthly, or annual.

% of Users who are New

How many of your current customers have signed up in the past month or year is a good indicator of your product’s growth.

% User Growth

This is the percentage of users you’ve gained in the course of a day, week, month, or year.

Cost Per Lead (CPL)

This tracks how much it costs you to acquire a new lead, which is an important metric for your marketing team.

Lead to Sale Conversion Rate

This will help you to understand your product’s appeal to potential customers, and how successful you are at turning prospects into sales. Breaking it down by channel helps you to see where your efforts are effective and where you need to make changes.

Average Conversion Time

Measuring how long it takes you to turn a lead into a paying customer is an important way to track your sales cycle and can help to assess your efforts to speed the process up.

Net Profit Margin

This is the main way of determining how well you are doing at generating a profit. It’s the percentage of revenue you have left after all of your expenses have been taken from it.

Share of Wallet (SOW)

This is a measure of how much of your customer’s budget is being spent on your product, which helps to understand how well you are competing with other options.

Market Penetration (MPR)

This is the percentage of all the possible customers that are using your product instead of a competitor’s. It’s important to know how well-positioned and saturated you are in the market.

Customer Satisfaction KPIs

Having a clear idea of how happy your customers are can make all the difference. You’ll gain valuable insights into how to improve your retention strategy, ways to build on customer loyalty, and what areas of your product or service need improvement to ensure a longer average customer lifetime.

Customer Retention Rate (CRR)

This metric is a percentage of customers that continue to use your product over a given period of time. It shows how good you are at keeping your customers interested and engaged with your product.

Churn Rate

The opposite of the retention rate, your customer churn rate is how many customers have stopped using your product over a period of time. This metric is vital for product managers who run a subscription-based service.

It can be based on customer numbers (sometimes called Logo Churn) or on revenue in two different ways:

1. Net MRR Churn Rate

This tracks how much monthly revenue you have lost from customers who have canceled or downgraded their subscriptions.

2. Gross MRR Churn Rate

Similar to the Net MRR churn rate, but not including any revenue gained from customers who have paid for expansions or upgrades in the same period.

Net Promoter Score (NPS)

By asking your customers to rank on a scale from 0-10 how likely it is they will recommend your product to others, you can measure your customer loyalty and satisfaction.

Customer Satisfaction Score (CSAT)

Another way of tracking how happy your users are, your CSAT is also measured on a scale of 0-10, but the question is less about if they would promote your product, and more directly about how happy they are with it. You can use the insights gained from customer satisfaction surveys to target areas that need improvement.

Review Rating

If you run or are featured on an online marketplace, or are in the e-commerce industry, this is an important metric to be aware of. It’s a valuable source of customer feedback and another solid way of keeping tabs on your customer satisfaction.

Customer Support Tickets

If your support tickets are stacking up, that can be a good way of knowing what problems your users are having, and what issues you should look at fixing next.

Customer Effort Score

This helps you to understand your customer journey, and how easy it is for people to find, use, and purchase your product. It’s generally based on a simple survey that asks your customers to rate how easy or difficult it is to complete a certain task or goal on a scale of 1-5 (1 being very hard, 5 being very easy). A high average score is a good sign of customer engagement, while a low average score shows that people are struggling with your product and that you might lose their business.

Average Resolution Time

Keeping track of how long it takes for customer issues and support tickets to be resolved can be a helpful way to see how effectively your customer support teams are solving problems. A long average time could be a sign of future customer dissatisfaction while keeping it low can help improve their satisfaction.

Velocity KPIs

These product management KPIs are important for both you and your product team. You can use them to evaluate how quickly your development team is creating new features, fixing issues, and how much they can get done in a sprint.

They can help you to develop more accurate product roadmaps, and ensure you’re meeting your product goals by improving your speed of development, and accurately assessing your team’s capacity.

Sprint Velocity

This KPI helps you to measure how much work your teams are capable of producing during a development sprint. Understanding this metric can help you to manage your teams’ workloads and your stakeholders’ expectations, and to find ways to improve efficiency and productivity.

Lead Time

By understanding how long it takes for an issue to get fixed, from when it is flagged to when the fix is delivered, you will be able to determine if there are any bottlenecks in your development process or issues standing in the way of efficiently resolving your customers’ issues.

Release Time

This is an important metric for software development, as it is a primary indicator of how quick and efficient your release process is from start to finish. A low release time is a positive sign of an effective workflow, while a high release time is a warning that you might have some problems with your process.

System KPIs

There’s no use having the best digital product on the market if it’s never online. Tracking your system KPIs can highlight reliability issues that might otherwise negatively impact customer satisfaction and retention, which in term can hamper your long-term growth.

Uptime (aka System Availability)

This is a measure of the amount of time your product has been online and working properly during a certain time period. It doesn’t measure performance or response time, just if the system was available to use.

User Error Rates (UER)

If you know how many errors your users are making when they are using your app or product, then you can get an idea of how user-friendly and efficient your user experience is. You can also track the effectiveness of changes you make to your product design.

Product management KPIs and you – the new dream team

Congratulations, you made it. It’s quite the list when you have it all there in front of you, though like I said before, not all of them are going to be necessarily vital for your product. Don’t feel that you should be tracking every single one if you want to have a chance of success, but rather be excited!

Be excited about product management metrics? Really? Oh, yes! Because by using these KPIs properly, you’ll have all of the most important, useful, and actionable data you could possibly need at your fingertips.

Understanding your product management KPIS will mean you’ll be able to make better product decisions, improve your customer experience, reduce churn, and generally start getting proactive. It’s much better than being stuck trying to react to the market changes around you, and not knowing why things aren’t going the way you want them to.

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