Glossary Archive | ProdPad https://www.prodpad.com/glossary/ Product Management Software Fri, 20 Dec 2024 15:49:20 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://www.prodpad.com/wp-content/uploads/2020/09/192x192-48x48.png Glossary Archive | ProdPad https://www.prodpad.com/glossary/ 32 32 Cohort Analysis https://www.prodpad.com/glossary/cohort-analysis/ Thu, 26 Dec 2024 10:00:00 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83433 The post Cohort Analysis appeared first on ProdPad.

]]>

What is cohort analysis?

Cohort analysis is a method for evaluating user interactions with your product by grouping users into distinct cohorts based on shared characteristics and then tracking their behavior over time. By examining these groups, you can uncover how user behavior evolves over time, allowing you to identify problem areas and opportunities across the user journey and conversion funnel.

A cohort is simply a group of users who share a common trait, often tied to the time when they completed an action. For example, you might group users based on the month they first signed up for your product. 

This is similar to how you’d divide school classes based on the year they started. One cohort for the Class of 1996, another for the Class of 1997.

This time-based grouping enables you to analyze behavioral patterns and trends that develop over specific periods, offering valuable insights into the effectiveness of your onboarding, feature releases, or other major product changes.

Cohort analysis is like a time-lapse of your product data, revealing how user groups behave and adapt across their lifecycle. For instance, you might discover that users who signed up in January have lower retention rates than those who signed up in February. With this insight, you can investigate what might have impacted these behaviors (perhaps a feature change or a tweak to your onboarding process) and take corrective action.

It’s important to distinguish cohort analysis from segmentation, as the two are often confused. Segmentation groups users based on shared characteristics, such as their role or geographic location, but it typically provides a static snapshot of user behavior. For example, segment analysis might help you understand how certain stakeholders are using your product at a given moment in time. While useful for personalization or targeting, it doesn’t provide insights into how behaviors change over time.

Cohort analysis, on the other hand, adds a time dimension to segmentation. By slicing segments into time-based cohorts, you can observe how specific user groups respond to changes or progress through the customer journey. For instance, analyzing acquisition cohorts – who are users grouped by their signup date – can highlight shifts in user retention following a major product update or a new onboarding flow.

This dynamic view of your user base is invaluable for uncovering actionable insights. It allows you to understand how behaviors evolve, pinpoint challenges, and identify what’s driving success or failure in specific groups. In short, cohort analysis is a powerful tool for tracking user behavior over time, helping you make data-driven decisions to improve your product and keep users engaged.

A quick word on customer cohort analysis

When going about your day as a Product Manager, you may often see cohort analysis described as customer cohort analysis. If you’re going to be a stickler for the rules, you need to be aware that this isn’t correct. These two terms shouldn’t be used interchangeably, as there are subtle differences between the two. 

Cohort analysis is a general approach to grouping your users into a time-based cohort. Here, EVERYONE who uses your product is eligible to be grouped into different cohorts. This means people who are on a trial, reverse trial, freemium users, and long-term customers. If they’ve adopted your product, they’re included in cohort analysis.

Customer cohort analysis is essentially a filter, where you have a more specified look at just the users who have become customers. This means people who are generating revenue for you and users who have been activated. In everyday talk – these are actual paying customers. 

Customer cohort analysis helps Product Teams learn how revenue-driving customers are using their product over their lifetime, and from those learnings, they can work out what to do to make the product better. 

It’s important to know the difference here, as the actions and behaviors of customers are going to be very different from all your other users. You’re going to be learning different things depending on what form of cohort analysis you’re doing. It’s like one is monitoring the behaviors of all the bugs in your backyard, while the other is just looking at butterflies. 

Got the difference? Sweet, let’s crack on.

Why use cohort analysis?

As a Product Manager, few things sting more than customer churn. It’s never nice to watch the users you’ve worked so hard to acquire and nurture start to drop off. Cohort analysis is one method that gives you the chance to learn why this is happening and how you might fix it. It’s your detective toolkit for getting answers. 

By grouping users based on shared traits or behaviors – like when they signed up or how they interacted with a feature – you can pinpoint where engagement drops off. Is the onboarding process letting you down? Is a specific feature failing to deliver on the value proposition? Cohort analysis reveals the weak links in your product experience.

But cohort analysis does more than simply spot problems, it can also show you opportunities. By dividing users by their actions and measuring retention over time, you’ll be able to see the stickiest areas of your product and the specific actions users are taking that are leading to long-term loyalty.

Cohort analysis is particularly useful when you launch a new feature, make changes to a user flow, alter the UI – or any other significant changes that you want to understand the impact of. For example, you can compare pre-change cohorts who signed up without the new experience to post-change cohorts and analyze differences in behavior. This comparison can provide valuable feedback on the success of your updates and guide further improvements.

With this data in hand, you’ll be able to make targeted improvements to get more users to perform this certain action, improving the performance of your product. 

If the thought of customer churn is keeping you up at night, cohort analysis can be that nightlight that helps you dream sweetly. 

Benefits of cohort analysis

To fully understand why you should give cohort analysis a go, let’s explore some of the key benefits of this analysis framework. Cohort analysis lets you dig deep, giving you the insight to make smart, data-driven Product Management decisions. Here’s why it can be a game-changer:

  • Identify what drives (or hinders) retention: By tracking when and why users drop off, you can pinpoint areas for improvement. Whether it’s an onboarding glitch or an underwhelming feature, this method will let you know where to focus your efforts.
  • Understand user behavior over time: Cohort analysis highlights patterns in user engagement, offering insights beyond vanity metrics. It helps you see how user interactions evolve and which behaviors signal loyalty – making them the behaviors you want to cultivate and encourage.
  • Spot your most valuable customers: By comparing cohorts, you can identify which groups contribute the most revenue or stick around the longest. This insight helps you tailor marketing efforts and upselling opportunities.
  • Fine-tune your product: Knowing which features boost retention means you can prioritize impactful changes. This helps you put resources into ideas that will make the biggest difference.
  • Plan for growth with confidence: Cohort analysis gives clear, data-backed insights to guide strategic decisions. From retention strategies to feature rollouts, you’ll have the numbers to back up your moves.
  • Tailor marketing efforts: By filtering cohorts by behavior or demographics, you can create more targeted campaigns that speak directly to your audience’s needs.

What are the different types of cohort analysis?

Cohort analysis comes in two main flavors – let’s give you a taste of both. The one that you choose all depends on what you’re trying to learn from your cohorts. Want to see how well you’re retaining users from a specific launch or campaign? One type has your back. Need to pinpoint which actions keep users coming back for more? The other type is your go-to. Let’s break them down:

Acquisition cohort analysis

This type of cohort analysis is all focused on seeing how users behave based on the dates that you first acquired them. By examining users who joined during the same period – whether it’s a specific week, month, or campaign – you can uncover trends in retention, engagement, and churn.

For example, say you have one marketing campaign that ran for a couple of weeks, and then rolled out a completely different one straight after. Acquisition cohort analysis can help you see if users from a certain marketing campaign stick around longer than others. It’s ideal for figuring out how differently users are engaging with your product based on when they first arrived. 

The insights from acquisition cohorts allow you to fine-tune onboarding experiences, measure the impact of new feature launches on user retention, and even gauge how seasonal trends affect your user base.

Behavioral cohort analysis

Behavioral cohort analysis organizes users based on specific actions or behaviors they’ve taken during specific timeframes. This could include completing a tutorial, subscribing to a premium plan, or interacting with a particular feature.

It’s essentially a step up from acquisition cohort analysis. Here, you’re taking your previously made timebound cohorts, and then dividing them up again based on what they did during that period. Going back to our school analogy, it’s like taking the Class of 1996 and then creating cohorts based on what subjects they decided to study.

This type of analysis helps you figure out what actions lead to better retention rates, and uncover what features hold the most influence over long-term engagement. 

By focusing on these user behaviors, you’ll be able to pinpoint the successful areas of your product and refine features or your onboarding process to better encourage new users to stay around. Like putting all the popular rides by the entrance of a theme park so that users engage with your best parts first.

How do you do cohort analysis? 

Cohort analysis is a superb tool for understanding user behavior, but how on earth do you do it right? Here’s a step-by-step process to help you get to grips with the process. 

Let’s go! 

Step 1: Define your goals

Before jumping in, be clear about what you want to learn. This will dictate the type of cohort analysis you do. Are you looking to figure out what behavior indicates a churn risk, analyze feature stickiness, or understand what onboarding experience resulted in a better 90-day retention?

Knowing what you want to learn tells you where you need to look. A clear objective will guide what type of cohort you want to use. 

Step 2: Create your cohorts

Once you have a grasp of what you want to find out, start making your cohorts. 

The way you go about crafting a cohort is a bit different depending on the type you choose. Let’s break it down for you: 

Acquisition cohort analysis

If you’re using acquisition cohorts, first decide on how you want to split the cohorts. Do you want to separate them by the initial signup date, the date they reached user activation, or something else? This step is important, as it will give you different insights. 

Following that, you then need to work out by what timeframes you want to split up your cohorts. Will it be weekly, monthly, or quarterly? Will you split them up based on the duration of specific marketing campaigns? Again, the way you decide to slice things up will give you different results.

You also want to be clear with how long you want to measure these cohorts for. Are you looking to see how their metrics changed after a short period of time, or follow their progression for the long term?

Finally, work out what you actually want to measure with these newly defined cohorts. Is it retention rates you’re after, engagement rates, or other product adoption metrics

Behavioral cohort analysis 

For behavioral cohort analysis, you want to take the acquisition cohorts you’ve made and then identify the different actions you want to measure and the cohorts you want to create from that. 

For example, you could take an interesting acquisition cohort – such as one that has lower retention metrics than the others – and then split these guys into fresh behavioral cohorts dividing them up by those who completed user onboarding, another for those who interacted with a certain feature, and one more for those who made a purchase. 

Once you’ve pinpointed this, you can then group your users into these cohorts and start comparing thier behavior over time. 

Step 3: Create your cohort chart

To properly analyze your cohorts, you need to create a cohort chart. This lets you plot the change in the chosen metric you want to track, making it easier to see any changes and differences between your cohorts. 

To make your cohort chart, you plot your different cohorts into different rows and then track the change in your chosen metric in each column. 

For example, if you’re plotting an acquisition cohort chart, looking at how retention rates changed over the course of two weeks for monthly cohorts who started a free trial, the process of creating your cohort chart will look something like this:

how to make a cohort analysis chart

First, you’ll plot the change in retention rates for your first cohort, in this example the cohort from January. This data shows how the retention rate has fallen over a week, showing you how many of the entire cohort are still using your product by day 7. 

From this, you then plot out the data for the other cohorts you want to look at, in this example, February and March: 

Fully completed cohort analysis chart

With this data, you’ll be able to see how different cohorts performed and compare how they behaved differently from each other. 

In this example, you’ll be able to see that the February cohort saw a much larger drop in retention on day 4 compared to the other cohorts in this table. 

This information can then help you figure out why. What did the February cohort do (or not do) on the fourth day that led to this behavior? To find out, you can then create a behavioral cohort analysis on this specific cohort to help you dive even deeper into the data. 

Step 4: Analyze and form your hypothesis

As trends emerge from your cohort analysis, use them to formulate hypotheses about user behavior. For example, if you notice users tend to churn after a free trial, it might suggest they aren’t grasping the product’s value. Similarly, sharp declines in retention following the introduction of a particular feature could point to a usability issue or misaligned user expectations.

Look for patterns that identify which features contribute to user stickiness. If users who engage with a reporting tool tend to stay longer, consider it a retention driver worth promoting. These insights will form the foundation of hypotheses that guide your next steps.

Of course, these are only hypotheses – they’re not facts, even after this type of analysis. Instead, they’re just ideas, potential solutions that you’ll need to do product validation on and explore further to make sure they’re the right solution. 

Step 5: Implement targeted changes

Once you’ve validated the insights gained from your cohort analysis, you can then make changes to tackle these issues and improve the performance of your product. Often, knowing the problem to solve points you in the right direction for the solution you need.

If early drop-offs are a problem, improving onboarding through a product tour can help guide users through your product’s most valuable features. For trial-period churn, you might focus on showcasing the wow moment earlier or by offering incentives to keep users engaged.

Similarly, double down on sticky features by making them more prominent within the product. Tutorials, in-app messages, or gamified rewards can encourage users to explore and adopt these high-retention features. These strategies will vary depending on what your cohort analysis reveals about user behavior.

Step 6: Monitor and iterate 

Cohort analysis isn’t a one-and-done trick, and the changes you make from it aren’t going to solve all your problems forever. You need to treat cohort analysis as an iterative process, and continuously track how new, fresh cohorts behave after you’ve made your changes.

Compare this new data with your old ones to make sure that the changes you’ve made are having a positive impact on your product, and more importantly, your users.

Experimentation is key. Adjust onboarding flows, introduce new features, or test through A/B testing. Use these experiments to validate your hypotheses and fine-tune your strategies based on real user data. Over time, repeated analysis and iteration will help you refine your product experience and improve retention.

A group understanding 

Cohort analysis is a powerful tool that helps Product Managers move beyond surface-level metrics to uncover actionable insights about user behavior. By analyzing cohorts – whether based on acquisition or behavior – you gain a clearer picture of how users engage with your product over time. 

This can highlight everything from where users drop off to what features drive long-term loyalty. Armed with this knowledge, you can refine onboarding processes, prioritize impactful features, and create targeted strategies to boost retention and reduce churn.

But cohort analysis isn’t just about solving problems, it’s also about identifying opportunities. For example, it can help you pinpoint the actions and behaviors that create your most valuable users. With a better understanding of these dynamics, you can steer your product’s development toward delivering the experiences that matter most. Whether you’re running a SaaS business, a marketplace, or a consumer app, this type of analysis is indispensable for making data-informed decisions that drive product-led growth.

Understanding your customers is a key part of good Product Management. With ProdPad, you can really get to know them – and tie their pain points and goals into your roadmap and validation process. With ProdPad, you can build customer personas directly in the tool, and leverage AI-powered customer feedback analysis to get to the root of what your users need. 

With best practices built-in, you’re empowered to be the best Product Manager you can be. See what else ProdPad can do with a free trial. 

Try ProdPad for free

The post Cohort Analysis appeared first on ProdPad.

]]>
Product Redesign https://www.prodpad.com/glossary/product-redesign/ Tue, 24 Dec 2024 10:00:00 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83432 The post Product Redesign appeared first on ProdPad.

]]>

What is a product redesign?

A product redesign is where you completely overhaul your product and make sweeping changes to its UX, functionality, and product architecture. It goes beyond an everyday update of your product, instead reshaping the product into something that’s almost unrecognizable from the previous iteration. 

A product redesign is like giving your product a complete makeover. It’s not just a lick of paint, it’s a full-on renovation, changing things that the user will see (like the design and functionality) as well as things they won’t (like the code and strategy). 

The whole purpose of a product redesign is to update your product so that it matches user needs and keeps up with the changing expectations of your industry. 

A product redesign can touch on things like the user interface and functionality and also often comes with a reshaping of the overall product vision. It’s all about doing what it takes to keep up with changing technology, trends, and ever-changing user needs. 

Of course, a product redesign is a huge undertaking with many steps along the way. The process all starts with analyzing what’s working (and what’s not), and then from there, teams brainstorm, design prototypes, and test, test, and test again. 

A product redesign is iterative, collaborative, and sometimes messy, but it’s all part of getting the final product right.

A product redesign might involve:

  • UI/UX overhauls: Think slicker layouts, streamlined workflows, and intuitive navigation.
  • New features: Be it adding what you’re lacking, or introducing completely new concepts. 
  • Performance upgrades: Faster, better, and smoother functionality to keep frustrations at bay.
  • Branding refresh: Aligning the product’s look and feel with your company’s evolving story.

But remember – a product redesign is more than just the visuals. Strategy is involved here too. A well-executed redesign involves mapping out a clear roadmap, making sense of user feedback, and collaborating with stakeholders to ensure every change serves a purpose.

Product redesigns can be daunting. Juggling user demands, technical limitations, and time constraints isn’t for the faint of heart. But with a solid game plan, you’re not just updating a product; you’re reimagining its future. 

Ready to dive in? Let’s explore how to do it right.

Product redesign vs. product design refresh

Let’s clear things up before these two terms cause any confusion. You may see product redesign and product design refresh used interchangeably, but these are not the same thing, even if they often get lumped together.

A product design refresh is like updating your wardrobe – new colors, modern cuts, and maybe a fresh accessory or two. It focuses on visual tweaks, like rebranding, changing the position of a CTA button on a page layout, or updating your color palette. The product’s functionality is mostly untouched, and the underlying code sees little action.

On the other hand, a product redesign is a full transformation. It’s like updating your wardrobe while also getting a new hairdo, spray tan, maybe some work done, and a new personality to the point where you’re unrecognizable. It reimagines both how the product looks and works, often rewriting significant chunks of code to simplify workflows, add features, or revamp the user experience from the ground up.

Although different, these lines can blur. A simple refresh can spiral into a redesign if changes start impacting functionality. So, if your updates alter how the product feels and functions, you’ve crossed into redesign territory.

How do you know when it’s time for a product redesign?

Redesigning your product isn’t a decision you should take lightly. It’s a time-intensive process that should only be done when the time is right and the warning signs are there. 

Once your product is showing signs that it needs to be reborn and refreshed, only then should you move ahead with this process. A product redesign can breathe new life into your product and keep it competitive. So, how do you know it’s time? Here are the tell-tale signs.

You have an outdated look and feel

If your product’s design feels like it’s stuck in a time warp, it’s probably time for a product redesign. A dated interface can signal to users that the rest of your product might not be up to modern standards – even if that’s not the case. 

Freshening up your design keeps your current users engaged and helps make the right first impression on new ones. A good product redesign can help you cement your product positioning within your market.

You’re struggling with low performance metrics

Struggling to convert new users or keep existing ones around? Poor performance metrics like user retention and adoption rates may signal that a redesign should be in your future.

Dropping numbers could mean your product no longer meets user expectations or needs, making it time to reimagine the experience.

You get negative customer feedback

When users take the time to tell you your design isn’t cutting it, listen up. 

Getting useful customer feedback is really powerful for Product Managers. Negative feedback on usability and design is direct evidence that your product may need to be reworked. But this isn’t just criticism, it’s a blueprint for improvement. 

Redesigning your product based on user insights can rebuild trust and satisfaction, and lead you to a version of your product that more users enjoy and see value in.

You’re expanding into new markets

Tapping into new audiences often requires more than just a translation. Expanding into global markets may mean adapting your design to suit different languages, cultures, and user behaviors. 

This may mean you’ll need to go through a major product redesign.

You’re adding new features or product upgrades

Adding new features or tackling technical debt can quickly outgrow your current design, depending on the product architecture you’re using. A redesign helps accommodate these changes while keeping your product scalable and user-friendly.

What are the benefits of a product redesign?

A product redesign is more than just a facelift – it’s a real opportunity to enhance your product and drive growth. By undergoing a product redesign properly, you’re making your product better. Here are some of the key benefits:

Improved usability

A redesign can make your product more intuitive and user-friendly, helping customers accomplish their goals more efficiently. This improved usability translates to a better overall user experience.

Higher customer satisfaction

By addressing pain points and incorporating user feedback, a redesign shows your customers that their needs matter. This not only increases satisfaction but fosters loyalty and trust in your brand.

Increased market competitiveness

A modern, well-designed product stands out in a crowded market. By staying relevant and innovative, you can attract new users and keep existing ones engaged.

Boosted conversion and retention rates

An improved design can directly impact your bottom line by encouraging more users to convert and stick around. Smoother onboarding and better functionality keep users coming back for more.

Stronger brand image

Investing in redesigning your product signals to users that you value quality and continuous improvement. This enhances your brand’s reputation and encourages customers to become advocates for your product.

What are the main types of product redesign?

When it comes to product redesign, there are two main approaches you can take: 

Evolutionary redesign and revolutionary redesign.

Both serve a different purpose and suit different scenarios depending on your product’s needs and goals. Here’s a breakdown:

Revolutionary product redesign

A revolutionary redesign is a complete overhaul. Think of it as hitting the reset button on your product. This approach involves replacing the old design with an entirely new one, often making the product feel brand-new. It’s typically used when the current design is too outdated or misaligned with user expectations and needs a significant transformation to stay relevant.

The transition can be immediate, where the old version is replaced outright, or gradual, where users can try the new design while still having access to the old one before the full switch. While revolutionary redesigns can be risky due to their scale, they’re impactful when done right, breathing fresh life into your product and making a bold statement in the market.

Evolutionary product redesign

An evolutionary redesign, on the other hand, is a more gradual approach. Here, changes are introduced incrementally – one feature or section at a time – without disrupting the entire product. This method is less jarring for users, as they adapt to updates naturally over time.

Evolutionary redesigns are perfect for products needing frequent updates to address user feedback or evolving demands. They allow teams to test changes in real-world scenarios, reducing risks and enabling continuous improvement without overhauling the entire product at once.

Both approaches have their merits, and the right one depends on the scope of change and the challenges your product faces.

How to do a successful product redesign

Redesigning a product is hard. And it’s also risky. A lot of time, effort, and money goes into a product redesign, so it’s not something that you’d want to get wrong. 

To oversee a successful product redesign, you need a structured approach that balances strategy, user insights, and execution. Here’s a step-by-step process to guide Product Managers through a successful product redesign:

Steps to follow in a Product Redesign

1. Define your goals and objectives

Every redesign must begin with a clear purpose. Identify what you aim to achieve: be that addressing user pain points, boosting engagement, improving performance, or staying ahead of competitors. 

These objectives should align with your overall business strategy. Use frameworks like SMART Goals to ensure your goals are actionable and focused. This clarity will guide decisions throughout the redesign process.

2. Analyze the current product

Before jumping into solutions, you first need to know your problems. 

Take a detailed look at the product as it exists today. Assess its features, usability, and performance. Identify areas where it’s falling short or no longer aligns with user needs. 

You’re going to have to do a hell of a lot of product research in this step, to get a full understanding of where your current product is letting you down. This step creates a baseline for measuring the impact of your redesign and ensures you’re addressing the right problems.

3. Conduct user research

Gather insights from your users to understand their experiences, needs, and pain points. Use surveys, interviews, and analytics tools to collect both qualitative and quantitative data. 

This research will help you pinpoint areas for improvement and prioritize changes that resonate most with your audience. Remember, user input is the foundation of an effective redesign.

4. Pair research with usage analytics

Users don’t always articulate their challenges very well, so complement their feedback with data from product usage analytics. Tools like heatmaps, session replays, funnel analysis, and cohort analysis can reveal hidden friction points and highlight opportunities for improvement. 

Together, user research and analytics provide a comprehensive picture of how your product is used and where it needs to evolve.

5. Ideate and prototype

Translate your insights into actionable solutions. Begin with brainstorming sessions to generate ideas that address the identified issues. Create prototypes and an MVP for initial feedback and high-fidelity versions as concepts take shape. Prototyping allows you to test your ideas quickly without committing to full development, minimizing risks and saving time.

Invite users to provide feedback through user testing or beta programs. Use their input to refine your designs, ensuring they meet both user expectations and business goals.

6. Communicate the redesign to stakeholders and users

Transparency is key when introducing significant changes to your product. Communicate with internal stakeholders to ensure alignment and with users to prepare them for the redesign.

Use email campaigns, release notes, in-app messages, and social media to highlight how the changes will improve their experience. Build excitement while addressing potential concerns to ease the transition.

Once the redesign is finalized, roll it out thoughtfully. Depending on the scale, consider a phased release or beta testing to mitigate risks. A well-executed launch sets the tone for user adoption and satisfaction.

7. Monitor performance post-launch

The product redesign doesn’t end at launch. You still have work to do. Track key metrics like engagement, retention, and conversion rates to measure their impact. Keep an eye on various Product Management KPIs and metrics to identify areas that may still need tweaking. Collect user feedback to understand their reactions and address any lingering concerns.

Need a hand on what metrics to keep an eye on? We’ve got an ebook covering all the best ones.

KPI template eBook button

8. Iterate and improve

No redesign is ever truly finished. Use the data and feedback collected post-launch to identify opportunities for continuous improvement. There are always ways to make things better. 

Of course, you don’t want to do another product redesign right after the first. Instead, prioritize incremental updates to fine-tune the user experience and stay responsive to evolving needs. By adopting an iterative mindset, you make sure your product remains relevant and valuable over time.

What are the risks of a product redesign?

Embarking on a product redesign isn’t a decision to be taken lightly. While a successful redesign can reinvigorate your product and delight users, the risks of rushing the process or skipping critical steps can be substantial – and often costly. Here’s what can go wrong:

Alienating existing users

Your loyal user base is your product’s backbone. A poorly executed redesign risks driving them away, especially if it disrupts their workflows or removes features they depend on. Users don’t want to feel like guinea pigs for untested changes, so failing to validate your ideas through user testing or ignoring feedback can lead to frustration, customer churn, and negative reviews.

Missed business goals

A redesign without clear objectives is like wandering in a fog. If you don’t define measurable goals upfront – whether it’s improving retention, driving revenue, or solving specific pain points – you risk wasting resources on changes that look good but don’t deliver value to you or your customers. Worse, you might solve the wrong problems altogether.

Make sure your product redesign helps you achieve your business goals and is aligned with the same North Star metric.

Overlooking user needs

Designing in a vacuum – or worse, making redesign decisions based on assumptions – can result in a product that looks polished but doesn’t actually address user pain points. Neglecting thorough research and testing can introduce new issues while failing to resolve the old ones.

Negative market perception

A botched redesign risks damaging your reputation. If users and competitors perceive your product as inconsistent or unreliable, it can erode trust and market share, which takes years to rebuild.

A fresh start

Embarking on a product redesign is both a challenge and an opportunity. It’s a chance to address user needs, modernize your offering, and differentiate yourself in a competitive market. Whether you’re tackling outdated designs, low-performance metrics, or planning for growth, a thoughtful redesign can redefine your product’s future. 

From the initial goal-setting to analyzing data, gathering user insights, and iterating through prototypes, every step builds towards a product that aligns with user expectations and business objectives.

Choosing the right approach – be it evolutionary or revolutionary redesign – depends on your specific goals and the scale of transformation required. Both methods come with unique advantages, and balancing user needs with strategic foresight ensures you’re creating a product that resonates with your audience. While the process may be demanding, the payoff is worth it.Redesigning goes deeper than pure aesthetics; it’s about making your product work better for your users and your team. Tools like ProdPad simplify that process by tying your validation and research directly to your product roadmap. Centralize your efforts and turn insights into action.

Try ProdPad for free and create a roadmap that leads to success.

Try ProdPad for free

The post Product Redesign appeared first on ProdPad.

]]>
Data Product Manager https://www.prodpad.com/glossary/data-product-manager/ Fri, 20 Dec 2024 10:00:00 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83359 The post Data Product Manager appeared first on ProdPad.

]]>

What is a Data Product Manager? 

A Data Product Manager is a specialized role that lives within an organization’s Product Team structure. They focus on data; be that collecting it, organizing it, or implementing systems to improve how they gather and analyze it. A Data Product Manager will have an eye on anything data-related, making sure it flows smoothly and that it’s used correctly to influence product decisions. 

A Data Product Manager is like a detective in your Product Team, solving data puzzles and piecing it all together so that the information from the data can be effectively used in product development, feature refinement, or any other step in the product life cycle

As more specialized roles become increasingly popular in Product Management, such as the Growth Product Manager, it’s no surprise that Data Product Managers are carving out their own niche. The need for this role is a direct response to the sheer volume of data that many companies have access to. As the amount of available data exponentially grows, you increasingly need a dedicated conductor to orchestrate how it’s used.

Businesses of all sizes are now starting to grasp the value of having a Data Product Manager, as these specialists ensure data isn’t just a byproduct of the process but a key driver. Plus, as AI and machine learning depend on vast, well-organized data, companies need professionals like Data Product Managers to oversee the management, structure, and flow of this data. As AI adoption grows, the demand for these roles will continue to rise to ensure data is effectively utilized for building and refining AI models.

How is a Data Product Manager different from a Core Product Manager? 

At first glance, it might seem that a Data PM is just a regular Product Manager with a longer  job title. After all, data is a staple of any PM’s toolkit. We use it pretty much every day to drive decisions, shape our product roadmap, and set KPIs. 

So, aren’t all Product Managers technically Data Product Managers in hiding? 

Not quite. 

Even if you’re a data-driven Product Manager using data to validate every choice, you’re not necessarily a Data Product Manager. The difference lies in your relationship with data. 

For a traditional PM, data is just one of the many tools and responsibilities used to refine the product. For a Data Product Manager, the data is their main focus. For them, the data is the product. 

Here’s what sets them apart: 

  • Traditional PMs: The focus is building a product that solves user problems. They’re generalists and navigate the broader scope of what it takes to bring a product to life. 
  • Data PMs: These are the specialists, handling the nitty-gritty of things like data governance, data accuracy, and data science. Instead of making the product better, the Data PM is locked in on making the data better, so that it’s as effective as possible for the wider team.

A Data PM isn’t going to replace a core Product Manager, they instead work alongside them, supercharging the data used to drive better product development. As data becomes a bigger beast to tame, businesses need experts who can treat data like a product in its own right. The Data Product Manager role evolved to meet this demand, ensuring every byte of data works toward building smarter, more effective products.

Yes, all Product Managers deal with data, but not all PMs are Data Product Managers. Think of it as the difference between being a waiter at a fancy restaurant and being a sommelier. You’ll know white wine goes with fish and red wine goes with red meat, but a sommelier knows exactly what aromas and tasting notes work best.

Data Product Manager vs Product Manager

Data Product Manager vs Data Analyst

Let’s clear the confusion between the Data Product Manager and another data-focused role you’ll find within a Product Team. Like the Data PM, a Data Analyst will be swimming in numbers and data, but the reasons for getting in the water will be different. 

A Data Analyst is a data explorer. As a key role in Product Operations, they’re in there answering specific questions, extracting insights, and running reports to uncover trends and offer recommendations based on that data. 

A Data Product Manager goes beyond analyzing data and actually manages it. They oversee the systems that collect the data, store the data, and choose the tools that present the findings. They’re more strategic with the data, constantly thinking about how it can be used to improve the Product Management lifecycle and how it can be leveraged to improve the next feature. 

In short, a Data Analyst is about insights, while a Data Product Manager has a focus on the infrastructure. Think of a Data Analyst as someone reporting on the weather and the Data PM being the person who puts together the radar system that predicts it. 

In short, a Data Product Manager is a combination of a Data Analyst and a Product Manager. They’re tackling data-oriented tasks that both these roles would have performed – like organizing usage data to learn what customers want or diving into product data to see where the product can be improved. 

The key difference is that a Data Product Manager goes beyond this and governs this data and manages the processes to make it more efficient. 

Yes, they’re using the data, but what sets this role apart is that they’re working out the structure and ecosystem around the data so that it can be used more efficiently. For them, data is the product that they’re looking to improve. 

Why does a Product Team need a Data Product Manager?

Today, there’s a huge emphasis on data. Most teams want to be data-driven, using the facts and information learned to drive their decision process, not to mention that data is a huge factor in Product-led growth. Companies thrive off data, and it’s become the cornerstone of strategic decisions. Ultimately, these companies need someone to focus on the data and help it reach its full potential. 

But managing data is hard, especially if you have a lot of it and if you’re a core PM who has other responsibilities demanding their attention. 

Data is a huge commitment. A traditional PM may become overwhelmed by all this and struggle to effectively manage this data while also cracking on with their other Product Management tasks

Getting a Data Product Manager to focus on this area helps relieve the pressure, while also allowing someone to interact with the data on a deeper level. 

Adding a Data Product Manager reduces the burden of managing data silos, helping to centralize the data for every team. Instead of each department fumbling around with its own datasets, a Data Product Manager can make it more accessible and reliable for all. This means fewer errors and more informed decisions. 

A Data Product Manager doesn’t just manage data – they empower teams to drive product-led growth while staying focused on their core expertise.

What are the key responsibilities of a Data Product Manager? 

A Data Product Manager focuses on the data – but there are many different facets of that. Their days can look pretty different, depending on the responsibilities they need to focus on. 

Here’s a look at some of the key things a Data Product Manager will be doing: 

1. Define data-driven goals

Data Product Managers establish clear, measurable objectives that align with broader business goals. They develop frameworks and processes for tracking various KPIs and OKRs, ensuring that the time spent working with the data is strategically focused.

2. Translate complex data initiatives into actionable plans

Large-scale data projects can be daunting, but Data Product Managers bridge the gap by breaking them into smaller, actionable tasks. It’s kind of like chunking when agile sprint planning. They manage the tasks to make massive initiatives manageable and ensure efficient execution.

3. Build and maintain data infrastructure

Having a strong data foundation is super important. Data Product Managers oversee the design of data pipelines, storage solutions, and platforms that support reliable and high-quality data access across the organization.

4. Promote data literacy and drive adoption

Data is only useful if people understand and use it. Data Product Managers champion data literacy, often finding ways to present data in understandable dashboards, empowering teams to leverage analytics effectively, and fostering a data-driven culture across the organization.

5. Help create and enhance products using data

Data Product Managers analyze data to pinpoint insights to support the design of new products or refine existing ones. This involves everything from your customer feedback strategy to market trends, ensuring products stay competitive and meet user needs.

6. Lead cross-functional collaboration

As facilitators, Data Product Managers align data across Engineering, Design, Marketing, and Product Teams. They ensure everyone is on the same page and that data initiatives integrate seamlessly with overall product strategies.

7. Analyze and interpret data to inform decisions

Data PMs turn raw data into actionable insights by performing analyses, conducting A/B testing, and identifying trends. This insight informs prioritization, feature development, and long-term strategy.

8. Monitor and evaluate data product performance

Once data products are live, Data Product Managers track performance metrics, identify improvement areas, and suggest ways to iterate to ensure the products continually deliver value to the business and its users.

What does a Data Product Manager not do? 

The last thing you want to do as a Data Product Manager is to overstep the line and meddle with other team members’ responsibilities. Of course, it’s always good to have a vision of what others are working on (you don’t want to be in a silo), but it’s important to stick to the responsibilities of your job. 

As a newer role, it can be tough to know what’s in your jurisdiction and what belongs to someone else. To excel as a Data Product Manager, it’s useful to know your responsibilities and what falls outside your scope. 

While specifics depend on the company and team setup, here are some tasks you won’t typically handle:

  • Gathering customer feedback through direct interviews.
  • Setting the product vision, long-term strategy, or product pricing strategy (instead you find the data that suggests what to do).
  • Developing go-to-market plans and executing marketing strategies.
  • Providing technical or customer support and training on product features.
  • Developing machine learning models or other advanced AI systems.
  • Writing software code or managing IT infrastructure and networks.
  • Creating detailed user experiences or interface designs.

The majority of these responsibilities will fall to a Product Manager, with a few others being the responsibility of Customer Success, Designers, Developers and AI specialists. 

As an overarching rule of thumb, a Data Product Manager will likely not make any product decisions. Instead, you’re optimizing the data to help facilitate better decisions. You can suggest, but the final choice is often down to other stakeholders.

Instead, you’re making choices about the data such as how it is collected, and how you measure the data. Things like what features to prioritize are something you suggest and collaborate with the Product Manager.

How to become a Data Product Manager? 

The Data Product Manager role combines regular old Product Management with data science, so to step into the role you need a good base understanding of both. Here’s a look at some of the things you’ll need to tick off to give you the foundations you need to grasp this role. 

1. Gain experience in Product Management

You can’t get a role in Data Product Management without developing a strong understanding of Product Management first. When looking at the Product Management career path, it’s a role that many existing PMs specialize in. 

To help you put together the foundational skills of Product Management, you could study a Product Management course to develop key skills like defining product requirements, creating roadmaps, and managing product lifecycles. 

It’ll also be worth familiarizing yourself with Agile methodologies, as these are commonly used in data-driven companies to build cross-functional solutions.

2. Learn about data governance

As a Data Product Manager, you’ll be responsible for maintaining data quality, security, and privacy. You’ll need a good understanding of data governance to do this properly. Things like how to ensure accurate, secure, and compliant data practices. 

You can begin with books and articles on the topic, followed by online courses. Additionally, hands-on practice organizing and managing data will give you real-world experience that you can take into the role.

3. Build data and technical skills

Bit of a no-brainer, but to effectively manage data products, you need to be comfortable working with data. This may not be the career for you if that’s not the case. 

Focus on developing your technical skills by learning database management, and ETL processes. Proficiency in tools will also help you analyze data, visualize insights, and collaborate with technical teams like Engineers and Designers.

4. Understand the business context

A core aspect of being a Data Product Manager is aligning data products with business goals. Build business acumen by learning about market research, competitive analysis, and customer needs. 

Practical experience is going to be far more valuable here. Immerse yourself in real-world business scenarios and use data to drive value for your organization. Understanding the connection between data and business outcomes will position you as a strategic thinker.

5. Consider internships or entry-level roles

People aren’t going to be handing these jobs out to any old Joe Blow. You need to put the work in to stand out, and that may mean an internship if you’re new to the field.

These roles provide valuable hands-on experience and can help you build a strong portfolio that demonstrates your skills. 

If you can’t find an opportunity right away, take the initiative by working on personal data projects. It won’t hurt your chances.

What skills do you need as a Data Product Manager?

To do well as a Data Product Manager, you need a balanced mix of technical expertise and strong interpersonal skills. Here’s a list of the key skills you should work on if you’re set on the role:

Skills needed to become a Data Product Manager
  • Technical background: Knowledge in Data Science, Data Engineering, Data Analysis, or Product Management is essential.
  • Documentation writing: Ability to document data and product-related information clearly and concisely.
  • Communication skills: Like any Product Management role, you’ll need strong verbal and written communication to manage stakeholders and executive teams.
  • Data industry knowledge: Understanding of data trends, tools, best practices, and technologies.
  • Agile methodologies: Experience in Agile environments and an understanding of Agile practices will serve you well in this role
  • Data analytics & visualization: Proficiency in various tools for analyzing and presenting data insights.
  • Problem-solving: Strong analytical thinking and the ability to solve complex data-related problems.
  • Business acumen: Understanding how data can drive business decisions and product development.

As you advance in your career, soft skills like leadership, interpersonal communication, and consumer analysis become even more important, especially as you lead teams and collaborate across departments. However, mastering both hard and soft skills is going to set you up for a successful career as a Data Product Manager.

The data whisperer

Data dominates many industries. With this backdrop, the role of the Data Product Manager has emerged as a cornerstone of modern Product Management. 

Data Product Managers are those tasked with straightening out the tangled threads of raw data and weaving them into actionable insights, strategic roadmaps, and measurable business outcomes. This role isn’t just about understanding data; it’s about mastering the art of making data work for everyone else. The Data Product Manager ensures every byte is used to its maximum potential.

While traditional Product Managers focus on delivering exceptional user experiences and solving customer pain points, the Data Product Manager is the architect behind the scenes, ensuring the data pipeline is flawless, the insights are robust, and the teams have the tools they need to make informed decisions. 

Their work not only enhances the product but also drives the organization toward smarter, more efficient growth. As businesses increasingly rely on data to maintain their competitive edge, the Data Product Manager will continue to grow in importance, cementing their place as a vital player in the product ecosystem. 

To build a quality product ecosystem, you’ll need a centralized Product Management tool that’s up to the task. With ProdPad, you can easily conduct data research to help optimize and improve your roadmap and prioritization. 

Dig into Customer Feedback Signals to find common trends on what your users want, or track your OKRs and product performance right alongside your roadmap so you can stay focused on solving the right problems. 

Learn more about what ProdPad can do in our interactive, free-to-explore Sandbox environment.

See what ProdPad can do

The post Data Product Manager appeared first on ProdPad.

]]>
Product Research https://www.prodpad.com/glossary/product-research/ Fri, 13 Dec 2024 15:15:38 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83340 The post Product Research appeared first on ProdPad.

]]>

What is product research?

Product research is all about building an understanding. Understanding a problem. Understanding the people you want to solve the problem for. And understanding what potential solutions suit the problem best. As a Product Manager, research should be a big part of your role, helping you build confidence in your approach and drive data-driven Product Management

Remember college and those big thousand-word essays you had to write? I bet the person with the highest grades in your class spent more time gathering resources and information than they did actually writing the thing. 

This speaks to how important research is. You’re not going to create anything good, anything of value, without learning about the subject area. This is the same when it comes to your product. Product research improves your understanding of crucial things like your customers, competitors, market, and even your own product performance. 

With product research, you can act with more certainty that your approach through your product development process is validated. 

There are a million and one ways to do product research, and multiple times during the Product Management lifecycle where you’re going to want to whip out the test tubes to do some testing and product research. We’ll touch on that in more detail later on.

To be a good Product Manager who operates based on data and insight instead of hunches and guestimations, you need to embed product research into every aspect of your workflow. It needs to be part of your daily routine as a Product Manager

Research isn’t just something you do once and then forget about it. As a PM, every day needs to be a school day. So get learning. 

Product research vs product discovery

Product research and product discovery can often get confused with one another. With both, you’re finding something out, you’re learning something new, but they focus on different things. 

Product research is all about finding the truth. Information about your product, customers, market – whatever it may be – that can guide future decision-making. 

Product discovery is more focused on the activities that help you decide what to create next. Product discovery is about validating ideas and testing hypotheses to work out what customer problems are worth solving and the solutions that are worth building. It focuses on reducing uncertainty and ensuring the product delivers real value.

Product discovery is mainly done during the discovery stage of the Product Management Lifecycle, right at the beginning when you’re still figuring out what the best approach is. It’s all about validating your ideas to figure out what’s going to delight your users the most. 

The key thing here is that product discovery is bound to this stage of the lifecycle. 

Product research is far broader and encompasses all the other learning you’ll do during the development process – and trust us, you’ll be doing a lot of testing and learning. Product research is all about answering questions. 

Why are users churning? Finding that out is product research. 

What feature should we build next? Working out that answer is product discovery. 

There’s a lot more to know about product discovery if you want to master it. Learn more about it to better understand how it differs from product research:

Why is product research important? 

Why is breathing important? Product research is the backbone of Product Management. If we’re not out there finding out things about our customers and our own product performance, what’s the point? 

If you don’t know the things users in your target market like, how on earth are you going to build a good product for them? If you don’t know what features are working and not working, how on earth do you expect to improve things? 

Product research is the cornerstone of building a good product – a product that drives growth. It gets your head out of the sand and lets you see things much more clearly. 

Let’s shine a light on some of the benefits of product research: 

  1. You’ll understand user needs and pain points
    Your product exists to solve problems – but if you don’t know what those problems are, even the best ideas could miss the mark. Product research uncovers the challenges your customers face, helping you design solutions that truly matter.
  2. You can align user needs with business goals
    Great products strike a balance between customer satisfaction and business objectives. Research bridges the gap, ensuring that your roadmap supports user needs while being tied to the greater product strategy.
  3. You can drive better innovation
    When you understand what customers want, you can think creatively about how to meet their needs. This clarity inspires innovative ideas and ensures that every feature or iteration hits the mark, and everything you do is customer-centric.
  4. You’ll gain a competitive edge
    Product research lets you learn more about your competitors. Knowing their strengths and weaknesses helps you spot a market gap that you can fill to get your product to stand out.
  5. You’ll streamline things
    With research-backed insights, prioritizing features and initiatives becomes a team effort grounded in customer value. This added knowledge makes it easier to refine your backlog and keep everyone focused on what matters most. 
  6. You can challenge assumptions
    You may have a hunch or a preconceived idea that may not actually be true. Product research sorts the facts from fiction letting you make choices based on reality. 
  7. You’ll boost performance
    Turning your attention to researching performance metrics can help you identify opportunities where you can improve and capitalize. Spending time to learn about your own product and how it’s being used can open the door to innovations that transform your product.

Simply put, product research gives you knowledge, and knowledge is power. Knowing your customers, competitors, market trends, and product feasibility gives you an omniscient point of view to make impactful decisions. 

What are the different types of product research?

There are soooo many different ways to do product research. That’s because there’s a lot of different things you can choose to find out that’s going to empower you as a product person. Every nugget of information gained about your product is a goldmine, and whatever way you find that out can be considered product research. 

Let’s crack this nut a bit more, and explore the different types of product research available to you:

Different types of Product Research

Customer research

Customer research is all about getting into the minds of the people who use – or more crucially could use – your product. This process uncovers their needs, frustrations, and desires, providing the foundation for designing features, experiences, and marketing strategies that resonate. 

By understanding who your customers are and what they want, you can create a product that genuinely solves their problems and keeps them coming back.

Some of the best customer research methods include: 

  • Customer interviews and surveys:
    Dive deeper into personal experiences, uncovering motivations, and pain points. You can use simple surveys embedded in your product, or invite certain customers for one-on-one interviews. Or, leverage your Customer Advisory Board and schedule a CAB meeting to interview a cross-section of your customers at once.
  • User personas:
    Create detailed user persona profiles that represent your user base to better understand each user segment so that you can create products that resonate with them.
  • Usability testing:
    Evaluate how easily users can navigate and accomplish tasks within your product by observing their interactions, identifying pain points, and gathering feedback to improve the overall user experience.

Market research 

Market research focuses on understanding the broader environment in which your product exists. This includes analyzing competitors, identifying trends, and spotting gaps or opportunities in the market. It helps ensure that your product fits into the landscape and remains competitive over time.

Various types of market research include: 

  • SWOT Analysis: Identify your product’s strengths, weaknesses, opportunities, and threats in the market, and see how it compares with your competitors. A SWOT analysis lets you better understand your competitors in the context of your product.
  • Product Benchmarking: Analyze competitors’ offerings to understand your differentiation points. External product benchmarking lets you see how you’re against the standards in your industry.
  • Trend Analysis: Monitor shifts in customer preferences, emerging technologies, or market conditions.

Product analysis 

Product analytics provide real-time data on how users interact with your product, helping you understand what’s working and where improvements are needed. It bridges the gap between assumptions and reality by showing patterns in user behavior and usage.

Product Analysis can include things like:

  • Cohort Analysis: Study groups of users over time to evaluate retention and behavior trends.
  • Funnel Analysis: Identify stages in the user journey where drop-offs occur, and optimize them.
  • Heatmaps: Visualize user interaction with your product to highlight high- and low-engagement areas, helping to understand the most popular features of your product.
  • Session Recordings: Replay user sessions to see firsthand how your product is navigated and experienced, allowing you to improve its usability.

Metrics and KPI tracking 

You don’t immediately think of metrics and KPI tracking as product research, but actually studying your performance against KPIs can be pretty useful knowledge to learn. Tracking metrics and KPIs ensures you’re measuring the success of your product against predefined goals. This data-driven approach provides insights into growth, engagement, and retention, helping you identify what’s working and what needs adjustment.

Some of the best metrics to track that can provide illuminating insights include:

Make sure you’re using the most effective KPIs by picking from the ultimate list you can download below: 

KPI template eBook button

Product pricing research

Researching around your pricing strategy is an important way to see if you’re pitching your product right. This helps with product positioning, aligning the perceived value of your product with what customers are willing to pay. It will help you ensure that your pricing strategy supports profitability while remaining competitive.

Some great ways to research your product pricing are through:

  • Van Westendorp Price Sensitivity Analysis: A framework to determine the optimal price point for your target audience.
  • Conjoint Analysis: A Product Management framework that identifies which product features customers value most to guide tiered pricing.

Learn more about these price-related product research methods – and more 👇 

Product Price Testing: How to Know When the Price is Right

When should you do product research?

Product research is a continuous responsibility. It’s like owning a dog, you can’t decide not to feed it one day. You’ve got to be committed to product research from day one. 

There are many times during the product development process and product lifecycle when product research is ESSENTIAL. 

Here are some moments when product research needs to be at the forefront of your mind: 

1. At the start: During idea validation

Before diving into the build phase, you need to validate your initial ideas to check that they’ll work. You don’t want to find out too late that the ideas actually suck.

Conduct research early on to help you refine your product concept and align it with user needs so that your product has a solid foundation from the very beginning.

2. When defining your product roadmap

Once you’ve figured out the core concept of your product, you next need to do product research when prioritizing feature ideas.

You need to understand what your users value most, which problems need solving, and how your product can evolve to meet those needs over time. This helps you focus on actions that will drive the best results and stops you from wasting time on things that won’t move the needle.

3. During product development

Throughout the development process, research should be used to test hypotheses and refine your approach.

Usability testing, A/B testing, and feedback loops help confirm that each iteration of your product or feature is meeting user expectations. This ongoing research prevents costly mistakes and allows for early adjustments. You want to encourage a culture of continuous improvement

4. When preparing for a launch

As you get closer to launch, product research helps you fine-tune your offering. Product research at this stage might include building a Minimum Viable Product (MVP) to see how your product idea fairs in the real world. Feedback from this will help you make tweaks to improve what you’re offering and double-check that you’re backing the right solution.

5. After launch

Don’t think that product research stops once your product is in users’ hands. After launch, you’ll learn the most by monitoring how users are engaging with your product.

Post-launch research helps you find areas for improvement, track user satisfaction, and uncover any bugs or features that need attention. It also informs future iterations and helps keep your product aligned with evolving user needs.

Who does product research? 

Do you think that one person does all the product research, sat there handling all the data and insight for the entire Product Team? Nah, product research is something that everyone is involved in and should have a hand in. It’s a collaborative effort. 

Yeah, okay, some folk may take the lead, but it’s a task that spans multiple roles within the organization. It relies on input from various stakeholders. So who are the main players? 

Product Managers

I bet you saw this coming. As the custodian of product strategy and product vision, it’s no surprise that the PM will be deep in product research. 

They define what needs to be researched, prioritize research initiatives based on business goals, and ensure that the findings are integrated into the product roadmap. Product Managers act as the bridge between the user insights gathered from research and the development of the product.

Data Analysts

Data Analysts bring the power of numbers to the product research process. As a role within the Product Operations function, they analyze large datasets and tidy them all up so that Product Managers have clear data that they can act on and make decisions on. By identifying patterns, trends, and anomalies, they offer interesting insights into how users engage with the product.

Product Operations is a function normally reserved for larger businesses with multiple PMs, so this role tends to be seen in enterprise companies. If you’re a bit smaller, nine times out of ten,  PM will be doing data analysis themselves. 

Still, their work is essential for answering questions like: Which features are most used? Where do users drop off? What metrics signal success or failure? Data Analysts play a big role in making research data-driven and optimizing the Product Management process.  

How do I do product research well? 

Let’s explore the key principles of good product research. We don’t just want to tell you how to do it, we want to tell you how to do it well so you’ve got useful, actionable data and insight that can drive amazing results. 

Here are some product research best practices to help you nail this vital part of Product Management: 

1. Start with clear goals

Before diving into research, define your purpose. What are you trying to learn? Are you exploring new opportunities, validating an idea, or refining an existing product? This helps make sure that you’re using the right product research methods for what you’re trying to do.

As already explored, there are a lot of things you can learn with product research. Having clear objectives keeps you from getting lost in data and ensures your findings directly influence your product’s development.

2. Deeply understand your customers

Product research is customer-first, always. Be obsessive about your users when doing product research. Dive into their pain points and find out what keeps them up at night and what makes them excited about similar products.

The best way to find this stuff out is to ask them directly. Some PMs can try and be too clever and use other methods to learn about their customers. Engaging directly with users is the best way and will reveal what they value most, ensuring your product solves real problems. There’s no substitute for a customer interview or survey, so make use of these options in your product research.

3. Combine qualitative and quantitative research

It’s easy to fall into the trap of relying too much on numbers and data and quantitative stuff. Many PMs swear by this – but reality isn’t just spreadsheets and graphs, you need a touch of real life. 

That’s why it’s important to supplement quantitative research with qualitative research. This can give context to the numbers, and help build a clearer picture of what’s going on.

Confused between the two options? 

  • Qualitative methods = interviews, focus groups, etc. Understanding user motivations, emotions, and behaviors.
  • Quantitative methods = Metrics, A/B tests, analytics: Gathering statistically significant data to validate your hypotheses.

Sometimes what customers SAY and what they actually DO are different things. You shouldn’t rely on qualitative research alone for that reason. And, on the flip side, you cannot get a full understanding of motivations, emotional reactions, and frustrations from looking at the quantitative stuff alone. 

You need both together. Looking at both quantitative and qualitative product research provides a 360 view of your target audience and ensures you’re making decisions based on robust evidence.

4. Research relentlessly

Turn insights into action by testing your product ideas early and often. Start with small, low-stakes experiments, and just keep building, and testing throughout the lifecycle. Each bit of research you do is a step closer to the perfect product, so make sure you maintain the appetite for product testing at all times. 

You don’t do one bit of research and then base your entire product idea on that. You need to keep learning and keep checking to make sure you’re onto a winner. 

Research is Knowledge. Knowledge is Power.

At the heart of every great product is great product research. It’s what transforms ideas from hazy concepts into something tangible, meaningful, and valuable. Product research doesn’t just give you an answer – it gives you confidence that you are taking the right steps. Confidence that you’re prioritizing the right features, meeting your customers’ needs, and creating a roadmap grounded in reality, not guesswork.

At ProdPad, we understand the power of product research, which is why we’ve built tools to make it part of your everyday workflow. With features like customer feedback tracking, user persona creation, and our iconic Now-Next-Later roadmapping, ProdPad empowers you to ask the right questions, uncover actionable insights, and continuously improve. Product research isn’t one-and-done, and it isn’t something you do separately: it’s a long-term commitment tied to your Product Management process that helps you create a better product.

Try ProdPad and see how research-driven Product Management leads to stronger, more successful products.

Try ProdPad for free

The post Product Research appeared first on ProdPad.

]]>
Product Mindset https://www.prodpad.com/glossary/product-mindset/ Fri, 06 Dec 2024 11:10:56 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83307 The post Product Mindset appeared first on ProdPad.

]]>

What is a Product Mindset? 

The product mindset is a way of thinking about Product Management that focuses on solving problems holistically while delivering meaningful impact to both users and the business. It’s about prioritizing the problem to solve and viewing solutions as stepping stones toward continuous improvement, rather than treating products and features as one-and-done tasks.

Your product lives forever: it’s not something with a defined endpoint. Adopting a product mindset means embracing the idea that your product is never finished, there’s always potential to make it better. 

Instead of seeing a product launch as the finish line, you’re seeing it as a mile marker in a longer, ultra marathon-like race. As Product Management practices and product-led growth strategies have gained prominence over the last 10–15 years, so too has this approach, reshaping how teams think about development and growth.

Now, a product mindset isn’t a set of tactics. It’s a perspective, not a playbook. There’s no list of rules you need to follow to have a product mindset. It’s a philosophy that encourages you to approach your work with the understanding that a product is never truly “done.” 

Achieving greatness means leaning into experimentation, conducting market research, creating a customer feedback loop, and iterating through a build-measure-learn cycle. It’s about staying adaptable, aware, and committed to long-term improvement.

Product Mindset vs Project Mindset

If you’re planning to adopt a product mindset, you’re likely going to be moving there from a pre-existing project mindset. A project mindset is rooted in rigidity, focusing on completing predefined scopes within set timescales and budgets. Success is measured by output: how many features are shipped and how quickly tasks are checked off. Volume is the driving force. When it’s done, it’s done, time to move on to the next project. 

The product mindset forces a shift in perspective where you embrace the idea that a product, or even feature, is never truly finished. It needs to evolve and improve continuously. This perspective is about delivering ongoing value and making decisions that align with long-term goals for both the customer and the business.

Where the project mindset prioritizes execution, the product mindset thrives on strategy. It’s not just about doing things right but also about doing the right things. With a product mindset, you consider the bigger picture: How will this feature grow the product? What value does it bring to users? How can we improve and adapt over time? 

Going from project to product mindset shifts the focus from output to outcomes, fostering a culture of continuous improvement and innovation.

Product mindset vs Project mindset

What are the three principles of product mindset? 

At the core of the product mindset are three guiding principles that define what success looks like when implementing this frame of mind inside your business. Together, these driving principles ensure that your product doesn’t just exist – it thrives and provides value. 

As long as you keep these three pillars in mind, you’ll be able to create solutions that delight users, drive business success, and adapt seamlessly to the ever-changing landscape of customer expectations and market demands. Let’s break down each principle and what it means in practice.

Minimizing time to value

At the heart of the product mindset is the drive to deliver value as quickly as possible. Time to value is the period between when a user first interacts with your product and when they experience its intended benefits. This moment is called the wow moment. A shorter time to value means your product is solving problems faster, delighting users sooner, and building trust along the way.

This principle pushes teams to prioritize the most impactful changes and eliminate anything that slows down delivery. It’s not about rushing work; it’s about being laser-focused on what matters most to the user. By shipping smaller, high-value increments, you can gather feedback early, iterate effectively, and keep delivering solutions that resonate.

Solving for need

A product mindset is rooted in addressing real user needs, not just ticking off feature requests or following trends. It’s about understanding the core problem your users face and crafting solutions that create meaningful impact. 

Teams with this mindset are relentless in asking ‘why’ until they reach the heart of the issue. Kind of like a bored five-year-old, asking ‘why’ to every one of your answers! 

This principle ensures that your product remains relevant and valuable over time. Instead of blindly adding things to your product, operating like a feature factory, you’re aligning every decision with your users’ goals and your business objectives. By focusing on solving the right problems, you ensure that your product isn’t just a collection of features but a deliberate solution.

Being good at change

Change is the only constant in product development, and excelling at it is essential for long-term success. Markets evolve, user needs shift, and technology advances. The product mindset embraces these changes, seeing them not as disruptions but as opportunities to improve and grow.

To excel at change, teams must adopt a culture of adaptability and continuous learning. This means being open to feedback, iterating on the fly, and rethinking strategies as needed. By staying nimble and responsive, you ensure that your product stays ahead of the curve and continues to deliver value no matter what challenges arise.

Why is the Product Mindset important? 

Adopting a Product Mindset is really important, but here’s the catch: it’s not a solo endeavor. If you are the only one adopting this frame of mind, you’re going to clash with the rest of the team who are entrenched in a different approach. 

For the product mindset to really shine, It’s important that it becomes woven into the fabric of your entire company culture. The benefits of doing this are huge. 

You break free from the illusion of progress

See, you’re probably operating in a Project mindset for one main reason: the project mindset feels safer because it’s easier to measure output. You can report on product velocity, count the features shipped, and build a picture of productivity that looks great on paper. But here’s the problem, this approach often results in a pile of disjointed, low-value work that doesn’t align with strategic goals. It’s progress without purpose.

A product mindset flips the script by prioritizing outcomes over output. It ensures that your team’s time and resources are spent creating meaningful, optimized solutions that align with both customer needs and business objectives. It’s not about doing more – it’s about doing what matters.

You unlock efficiency

The product mindset doesn’t just improve what you build; it transforms how you build it. Traditional project planning wastes time on elaborate timelines and exhaustive scoping exercises only for those plans to fall apart when reality hits. 

Be honest, how often do you meet development deadlines? You’re wasting so much time planning cycles just to present this ambitious timeline that you’re going to miss anyway. With a product mindset, you cut through the noise.

Instead of rigid plans, you work iteratively, breaking tasks into manageable chunks and adapting as you go. You can test ideas, gather feedback, and pivot without being bogged down by the weight of “the plan.” This makes your team more agile, flexible, and efficient, unlocking a flow of continuous improvement and innovation.

You build a collaborative culture

Perhaps the biggest impact of adopting a product mindset is the cultural shift it creates. It encourages cross-functional collaboration, where every team from Engineering to Marketing to Customer Support rallies around shared goals. It fosters curiosity, experimentation, and a focus on long-term success.

In the end, the product mindset isn’t just about delivering better products; it’s about creating a stronger, more aligned team. By embedding this way of thinking into your organization, you’ll unlock a more innovative, adaptive, and effective way of working. And that’s the kind of progress that truly matters.

How do you create a product mindset? 

Shifting to a product mindset isn’t easy. For many, especially stakeholders higher up in your organization, the comfort of seeing a product meticulously planned out, no matter how unrealistic that plan may be, can feel reassuring. 

But the reality is, that time and energy spent on building that rigid framework often results in wasted effort when the plan inevitably falls apart.

Creating a product mindset is a big shift. You and your entire team need to embrace the change. To help you make this transition, here are the key actions you need to take to build a product mindset within your team and company.

List of attributes that create a product mindset

Have an experimentation mindset

A product mindset thrives on experimentation. Instead of sticking to the traditional “launch and forget” approach, embrace small, iterative tests to understand what works and what doesn’t. 

Use product launch metrics to monitor performance and encourage a culture where experimentation is welcomed – not feared. This helps teams learn faster and adapt to what users really want and reduces the risk of long development cycles that end in failure.

Be open to pivoting

Flexibility is key. When the data or user feedback suggests a different direction, be ready to deploy a pivot strategy

Adopting a product mindset means embracing change and understanding that your initial plans are rarely set in stone. The ability to pivot quickly helps your team stay aligned with evolving needs and trends. 

You don’t have to be wedded to a plan. If data tells you to go the other way, you need a mindset where you’re happy to do that.

Iterate based on market changes

Markets and customer expectations are constantly shifting, and a product mindset ensures you’re always responsive to these changes. Instead of delivering a product and moving on, the focus is on continuous refinement. 

Regular iterations based on market feedback allow you to stay relevant and competitive, ensuring your product evolves with the times and remains a good option alongside your competitors.

Prioritize based on feedback

With a product mindset, feedback isn’t just a formality, it’s the guiding force behind decision-making. Prioritizing based on real-time feedback ensures you’re solving the most pressing problems for users. 

By gathering insights from customers, internal teams, and data, you can make smarter, more informed choices that truly move the needle.

Focus on users

The product mindset always keeps users at the center of the process. Instead of building for the sake of features or speed, you’re crafting solutions based on what will bring the most value to users. 

This user-centric approach ensures that your product not only meets market demands but also delights those who use it.

Focus on outcomes

Don’t measure success by how many features are shipped, focus on the outcomes those features deliver. A product mindset is about understanding the bigger picture. It’s about aligning your team’s efforts with long-term goals and ensuring that every action has a clear, measurable impact.

By embedding these principles into your daily workflow and organizational culture, you’ll gradually shift your team’s focus from short-term tasks to long-term, sustainable product growth. 

It’s a process, but the results, being greater alignment, higher user satisfaction, and continuous improvement, are well worth the effort.

What if only a single team adopts a product mindset?

So you’ve decided to adopt a product mindset. You’ve even got some support from your product trio. Things are looking up, right? Wrong. You’ve forgotten about all the other stakeholders above, below, and beside you who don’t want to budge and are set to continue with their rigid old ways. What now? 

Well, the good news is that you can still continue to operate with your product mindset, but just be aware, you’re going to be sticking your neck out doing so. Without company-wide buy-in, it can be a bit like swimming against the tide. 

But here’s the silver lining: one of the most effective ways to convince others of the value of a new approach is to show that it works. If you’re going to make the jump to a product mindset, you need to make it count. You need to become the case study for the rest of your organization.

Being the lone ranger with a product mindset can be risky, but it can also be incredibly rewarding. The best way to convince others to get on board is to demonstrate results. If you can deliver real, measurable success – whether through improved customer satisfaction, faster iteration, or higher product adoption rates  – others will start to take notice. You’ll start to make the case that this “new way of working” is more than just a buzzword. It’s effective, and it’s making a tangible difference.

But by doing this, there’s a risk of misalignment. Others are going to keep doing their own thing, meaning that even though you’re working your tail off, your results may not be fully recognized if others aren’t operating the same way. 

The risk is that you’re operating in a vacuum, and while you’re making strides, you may face roadblocks that are beyond your control, creating friction. 

But imagine if you outperform every other team. You adopting the product mindset could show the way and be transformational for the business. But of course, it’s crucial to be smart about how you go about this. Choose your own battles, and assess the workplace environment you’re in. Some places may see you’re trying to upset the applecart, and may not take kindly to this mutiny. 

In the end, adopting a product mindset without full buy-in is definitely a challenge, but it’s also an opportunity to lead by example. Take the risk, prove it works, and you might just transform not only your team’s way of working but also the future of your organization.

Free your mind

Adopting a product mindset is a transformative shift that empowers teams to prioritize long-term value over short-term outputs, ensuring that products continually evolve to meet user needs and market demands. 

By embracing experimentation, flexibility, and ongoing iteration, businesses can deliver products that not only meet but exceed expectations. The result is a more agile, user-focused approach to development, where outcomes matter more than outputs, and every decision is aligned with a strategic vision for growth.

To truly harness the power of the product mindset, tools like ProdPad can play a crucial role in helping teams stay consistent and aligned. With its outcome focus, ProdPad helps teams implement the best practices of a product-centric approach. 

With ProdPad you will be structuring your product roadmap around problems to solve with multiple ‘Ideas’ within each Initiative to encourage experimentation and discovery to find the best solutions. 

ProdPad also ensures Product Teams set clear goals and outcomes for everything on the roadmap, and see it through to measurement and subsequent improvements. This is achieved with target outcome fields, measuring success workflow stages, alongside a full OKR management tool.

ProdPad also acts as a robust feedback management tool, linking all product decisions back to the evidence from customers.  By integrating a tool that emphasizes continuous learning, feedback, and iteration, you can ensure that your products remain adaptable and positioned for long-term success.

See what ProdPad can do for yourself. Book your personal demo and let us show you how ProdPad can help you establish a company-wide product mindset.

See what ProdPad can do

The post Product Mindset appeared first on ProdPad.

]]>
Product Operations Manager https://www.prodpad.com/glossary/product-operations-manager/ Fri, 29 Nov 2024 13:43:47 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83263 The post Product Operations Manager appeared first on ProdPad.

]]>

What is a Product Operations Manager? 

A Product Operations Manager supports the wider Product Management function by handling the practical, operational work of the product process, taking it off the plate of the PM so they can focus on crucial product-orientated tasks. A Product Operations Manager takes ownership of ‘bitty’ administrative tasks while introducing ways to improve collaboration and streamline processes. This makes the entire Product Team more efficient and facilitates smarter decision-making. 

A Product Operations Manager is becoming an increasingly sought-after role for scaling Product Teams. As Product Teams grow, Product Managers often find themselves bogged down by operational hurdles such as choosing tools, organizing workflows, and gathering data. These responsibilities, while critical, pull PMs away from their primary focus: building and improving products. 

Enter the Product Operations Manager: a dedicated problem-solver who steps in to manage these complexities.

By taking on this operational load, Product Operations Managers empower Product Teams to work smarter, make better decisions, and achieve more throughout the entire Product Management lifecycle.

Although a Product Operations Manager holds no influence over product development, their work helps improve product discovery, data analysis, and facilitates data-driven Product Management. The role helps Product Teams build better products. 

Product Manager vs Product Operations Manager 

Think of Product Managers and Product Operations Managers as two gears in a finely tuned machine. They both need to ‘click’ to get things moving properly.

While Product Managers set the direction – crafting the product vision, defining priorities, and steering execution – Product Operations Managers ensure the engine runs smoothly. These roles work in a partnership alongside each other, where one role clears the path for the other to thrive.

If Product Managers are racecar drivers, Product Operations Managers are those clearing the track of any debris or oil spills so that they can have a smooth race. Product Managers lead customer discovery, craft strategies, and set the product roadmap. Meanwhile, Product Operations Managers ensure those strategies can be executed effectively by overseeing and selecting the right tools, managing cross-functional coordination, maintaining customer feedback loops, and providing actionable, clean data.

Without a Product Operations Manager, PMs risk being pulled into time-intensive operational tasks, leaving less room for strategic work. With a Product Operations Manager in place, Product Managers can concentrate on high-impact activities like market analysis, prioritization, and delivering meaningful customer outcomes.

product operations manager vs product manager

What does a Product Operations Manager do? 

The main goal of a Product Operations Manager is to streamline and optimize the operational processes in the Product Management function. Now, the way they do this can vary depending on what each organization needs.

At the end of the day, a Product Operations Manager is designed to make the life of a Product Manager easier and allow them to do better work. They eliminate the distractions. Here are some of the common responsibilities a Product Operations Manager will handle on a day-to-day basis:

Streamline processes

One of the main responsibilities of a Product Operations Manager is identifying and optimizing processes within the Product Team structure. This could involve standardizing workflows for sprint planning, backlog grooming, or roadmap updates. If there’s a bottleneck or a blocker, a Product Operations Manager should be on hand to work out a solution that helps teams deliver value.

Managing tools and systems

The most effective Product Teams have a sophisticated stack of tools empowering their work and supporting their processes. That Product Management tool stack usually looks something like this:

The best product management software tool stack

Evaluating, testing, and implementing the best Product Management software is a serious, and important job. A Product Operations Manager takes ownership of this process, assessing these tools, running procurement, rolling out onboarding and training across the team, and owning the ongoing adoption and relationship with the vendor. All of this is done with an understanding of the Product Team’s needs and the objective of achieving maximum efficiency. 

Collecting and analyzing metrics

To drive data-informed decisions, a Product Operations Manager is tasked with collecting and analyzing metrics that reveal team performance, process efficiency, and customer feedback trends. They then transform this raw data into actionable insights, enabling Product Managers to refine strategies and improve outcomes. 

Facilitating cross-functional communication

Collaboration across teams is critical in product development, especially in a product-led company. Product Operations Managers act as the glue, ensuring seamless communication between Product, Engineering, Design, and other key stakeholders. They establish clear communication channels, schedule alignment meetings, and make sure that updates are shared consistently. This prevents anyone from working within a silo. 

Driving continuous improvement

Product Operations Managers are always on the lookout for opportunities to enhance team performance. Whether it’s identifying inefficiencies in workflows or introducing best practices, they proactively suggest and implement changes to ensure the team operates at its best.

Managing Feedback Loops

Customer and stakeholder feedback is vital for product success. A Product Operations Manager ensures that this feedback is collected, organized, and routed to the right people within the Product Team. Without this, feedback can be messy and hard to decipher. By managing these loops, they help teams prioritize improvements, easily work out the next steps, and maintain alignment with customer needs.

Onboarding new team members

A smooth onboarding process means new hires can hit the ground running. Product Operations Managers take responsibility for creating and executing onboarding plans that familiarize new team members with tools, processes, and expectations, accelerating their integration into the team.

roles of as product operations manager

Does this list include things you’re consistently doing as a Product Manager?

If so, and if your company can cover it, it might be time to suggest that a Product Operations Manager is brought in to cut you some slack and help you focus on core Product Management work.

Why is a Product Operations Manager important? 

Simply put, without someone focused on operational efficiency, there’s a chance you end up creating chaos. Teams become siloed, processes become inconsistent, and decisions take longer. A Product Operations Manager steps in to smooth out these growing pains and ensure the organization can scale without losing clarity. 

As teams grow, the cracks in your operational foundation can become glaring. Without someone to align workflows, streamline tools, and ensure consistency across teams, Product Managers (PMs) can find themselves buried in low-value operational tasks. The stage setting before the show can start. 

By introducing a Product Operations Manager to take responsibility for these tasks, you create bandwidth for your PMs to focus on what is most important in that role: delivering value to customers.

But bringing in a Product Operations Manager isn’t about t offloading the work PMs don’t want to do. Don’t think that a Product Operations Manager does all your donkey work. They are with you to supercharge the entire product function, adding some spark to how things are done. Here are the key benefits they bring to the table:

  • Efficiency gains: With a Product Operations Manager handling administrative and operational tasks, Product Managers can regain time to dedicate to strategically impactful work.
  • Better insights: Product Operations Managers are your data collectors. They collect triage metrics, customer feedback, and more to give you freshly backed insights that can help a Product Team improve their product. 
  • Consistency across teams: A Product Operations Manager ensures standardized processes are followed so that every team operates in the same way to foster efficiency and professionalism.
  • Improved communication: A Product Operations Manager acts as a bridge between Product, Engineering, and other departments, keeping everyone aligned and ensuring critical information flows seamlessly across teams.

When will you need a Product Operations Manager? 

A Product Operations Manager isn’t going to work for all companies. In short, Product Operations, and therefore a Product Operations Manager, is something that you bring in when you’re starting to scale, and when your pre-existing Product Team is starting to show signs of struggle. 

Say you’re a team with one Product Manager. They’re spending 10% of their time on Product Ops work, but the rest blasting through impactful Product Management tasks. There’s no point bringing in a Product Operations Manager or team, as there’s not a lot to be done to keep them busy. 

But say you have an amazing few years, and grow to a team of 10 Product Managers who are spending 15% of their time on Product Ops. Now’s when you can start to ask the question and bring in a Product Operations Manager, as they’ll be able to pick up the slack of all these PMs and help improve your overall focus. 

If your PMs are spending more time coordinating meetings, managing tools, or chasing down metrics than driving product strategy, it’s time for help.

You’ll also find that as teams get bigger, they start to work in their little bubbles, nearly oblivious to what’s happening in this other area of your organization. This can lead to efficiency taking a hit, and a Product Operations Manager is necessary to come in and realign your teams. 

Ultimately, if your Product Team is spending more time managing the process than delivering outcomes, it’s a strong indicator that a Product Operations Manager is not just helpful: it’s essential. 

How does a Product Operations Manager fit into a Product Team structure? 

A Product Operations Manager is far from one of the first hires your organization makes, so you’re going to have an established team and hierarchy by the time you call on one. So where do they slot in?

Well, a Product Operations Manager is a supporting role that usually comes in alongside the Product Manager to complement them, not oversee. After all, Product Ops was once a hat a PM wore before it got too heavy, so it makes sense for it to be an adjacent role. 

A Product Operations Manager will typically report to the same Product Leader as their adjacent PM, but due to the nature of the role as being a ‘bridge’ between departments, Product Ops Managers will be heavily involved with loads of other stakeholders and departments. 

How do you become a Product Operations Manager? 

Becoming a Product Operations Manager is a path that combines a deep understanding of Product Management with a passion for optimizing processes to help teams succeed. There are multiple ways into this role, but a common route is for a single existing Product Manager to step up to the plate and morph into this Product Operations focused role. 

You’ll find that when Product Ops work needs to be done, a more organized or process-oriented PM will take it on. These people naturally become good candidates for a dedicated Product Operations Manager role. Those who enjoy fine-tuning processes and tools to improve product development will have a particularly good time in this position. 

If you want to become a Product Operations Manager, a background in Business Operations or Data Analysis will also be highly relevant. If you’ve worked in roles that involve optimizing business processes, analyzing data for actionable insights, or streamlining workflows, you’ll bring valuable problem-solving skills to the table. Data Analysts, for example, can leverage their ability to interpret data to optimize operational decisions in Product Teams, ensuring that metrics drive efficient workflows.

You don’t particularly need formal qualifications to enter this role, but certain credentials can set you apart. A degree in business, management, or a technical field provides a solid foundation for understanding business operations, team dynamics, and product development.

What skills do you need to become a Product Operations Manager?

To thrive as a Product Operations Manager, you’ll need a diverse skill set that blends technical expertise, analytical thinking, and strong interpersonal communication.

The role is both strategic and tactical, requiring you to optimize processes, manage tools, and ensure seamless cross-functional collaboration. Here’s a deeper dive into the essential skills that will set you up to smash this role:

  • Process optimization: Being able to spot inefficiencies in workflows from a mile away and develop streamlined processes is critical. You’ll need to be a process guru; skilled at identifying bottlenecks, improving team collaboration, and standardizing operations to boost productivity. 
  • Tool proficiency: Familiarity with Product Roadmap tools and collaboration platforms is key to managing the technical aspects of the role. You’ll also need experience with data analytics tools to track metrics and gain insights into team performance. 
  • Data analysis: A strong grasp of data analysis is essential for turning raw data into actionable insights. This means tracking Product Management KPIs, analyzing trends, and using that data to improve team performance and decision-making. 
  • Communication: As the bridge between various teams your communication skills need to be top-notch. You’ll be responsible for aligning stakeholders, writing clear reports, presenting findings, and ensuring everyone is on the same page.
  • Problem-solving: Challenges are bound to arise in any product environment, and your ability to solve problems quickly and effectively will be one of your greatest assets. 
  • Project management: Product Operations Managers often juggle multiple projects at once. From coordinating cross-functional teams to ensuring deadlines are met, strong project management skills are a must. 
  • Empathy and collaboration: Understanding the needs of different teams and fostering collaboration is super important in this role. You’ll be working with a range of stakeholders, each with different goals and priorities. The ability to empathize, listen, and mediate between teams will be pretty handy if you want to maintain harmony. 
  • Attention to detail: Ensuring that every task is executed to a high standard requires a keen eye for detail. Whether you’re documenting processes, reviewing project timelines, or analyzing data, your attention to the finer points will ensure that operations run without a hitch and nothing slips through the cracks.

How much does a Product Operations Manager earn? 

According to Talent.com, a Product Operations Manager can expect to earn an average salary of around $138,00 on average in the United States. This competitive compensation highlights the growing demand for the role and its increasing importance in helping businesses scale effectively. As organizations prioritize efficiency and streamlined operations, the value of a skilled Product Operations Manager has never been clearer.

At the time of writing, these salaries are comparable to those of Product Managers – again according to Talent.com – and in some cases, they may even edge higher. This shows the equal importance of both roles within the product development ecosystem, each playing a unique yet complementary part in driving product success.

Of course, take that salary average with a pinch of salt. Individual pay varies based on things like experience, company size, and job location. Salaries in major tech hubs, for instance, are often significantly higher than in other regions. Still, this data reflects a thriving career path.

Product Operations is emerging as a distinct and essential discipline, evolving from traditional Product Manager responsibilities and carving out its own niche in modern organizations. As businesses continue to scale and mature, expect this role to become even more prevalent and indispensable.

Managing your operations

A Product Operations Manager is the hero of scaling Product Teams. By managing tools, streamlining processes, and enhancing cross-functional collaboration, they empower Product Managers to focus on delivering customer value.

As organizations grow, the cracks in operational efficiency can widen, leading to inefficiencies and burnout. A Product Operations Manager bridges those gaps, ensuring that the entire product function runs like a well-oiled machine. Whether it’s implementing consistent workflows, collecting actionable insights, or fostering seamless communication, their work adds value at every stage of the product lifecycle.

So, if your Product Team is starting to feel stretched, it might be time to bring in a Product Operations Manager. They’re not just there to lighten the load, they’re there to elevate the entire product function, helping your team scale with confidence and clarity.

Looking to set your Product Team up for success. Check out ProdPad to power seamless collaboration, smarter workflows, and a roadmap for delivering exceptional results. Our tool is for everyone in the Product Team and beyond – Product Managers, Product Operations Managers, Engineers, and more. Check out what ProdPad can do today. 

Try ProdPad for free today.

The post Product Operations Manager appeared first on ProdPad.

]]>
Product Validation https://www.prodpad.com/glossary/product-validation/ Fri, 22 Nov 2024 14:42:50 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83249 The post Product Validation appeared first on ProdPad.

]]>

What is product validation?

Product validation is the process of checking if a product or product idea meets its intended purpose, achieves specific requirements, and addresses the needs of its target audience. It’s a check to make sure that the product is suitable before you go and blow a whole load of money developing and launching it to the market. 

In simple terms, it’s your safety net – your way of confirming you’re on the right track before committing significant resources to build, launch, or scale the product. 

At its root, product validation makes sure you’re not guessing about what your customer needs, but are instead building your solution based on evidence. It’s about asking: Is this product solving a real problem? Is it suitable for the market? Will it deliver the value it promises?

Product validation is a key stage in the Product Management lifecycle. It sits between your product discovery phase (when you identify the problem) and the build phase (where you execute the solution). It’s the phase when you’re testing out your possible solutions to make sure you land on the right one. 

product validation in the Product Management lifecycle

Think of product validation as a scientist testing a hypothesis. Imagine you’re designing a rocket to go to space but don’t know which fuel will safely get it there without causing an explosion. Would you risk building a full-scale rocket just to find out? Of course not! You’d conduct smaller, controlled experiments to identify the best solution. The same principle applies to product validation: small-scale tests to verify ideas before taking them to the next level.

While there’s a spotlight on product validation after the discovery phase, it doesn’t end there. The truth is that you’re going to be validating your product multiple times during your development process. It’s not a one-and-done deal. You should be validating at: 

  • The idea stage: To confirm the problem exists and the solution is viable.
  • The pre-launch stage: To fine-tune features or messaging.
  • The post-launch stage: To validate updates or new features.

Why is product validation important? 

If you want to be a data-driven Product Manager, you need to be validating your ideas. You can’t always rely on a hunch, so product validation gives you a chance to check and see if your idea is actually any good and if it’s resonating. 

You don’t want to be doing expensive and time-consuming things without research and evidence that proves it’s worth your time and money. It’s like throwing a dart in the dark from 10 yards away. Yeah, you might hit a bullseye if you’re lucky, but you’re more likely to miss the board completely. Product validation turns the lights on and allows you to stand a bit closer to the target before making your throw.  

For Product Management, validation is critical to success. Here’s a look at all the key benefits that make product validation a key part of your overall process:

Reducing risks

Product validation makes things less risky. Studies show that over 35% of startups fail because there’s no market need for their product. That’s a staggering number and something that could have been avoided with reasonable validation. It’s better to not make a product at all than a product that doesn’t work. 

By validating early, you ensure your idea solves a real problem that people actually care about. Think of it as your insurance policy against wasting time, money, and resources on something that doesn’t hit the mark.

Validation also reduces technical and execution risks. By testing ideas on a smaller scale, you catch issues before they become costly development disasters.

Building user-centered products

Remember: everything you do to your product is for your users. Product validation helps ensure that you’re constantly thinking of them when making new features. By stepping into their shoes and assessing your product from their perspective, you get a clearer view of whether things are working. 

By gathering insights through interviews, prototypes, and customer feedback loops, you’ll uncover their real needs and pain points – things you might not catch in a brainstorming session. Insights from validation can reveal surprising opportunities and stop you from becoming a feature factory.

Saves time and money

You probably know this already, but developing products is expensive, and marketing isn’t cheap either. By doing product validation, you’re making sure that you’re spending resources on ideas that have an increased chance of success. 

By validating bad ideas, you’re prevented from pouring time, budget, and energy into something that might fall flat on its face. 

Improving stakeholder buy-In

Some stakeholders can be a bit frustrating to deal with. One day they may ask you to drop everything and prioritize a feature idea of theirs just because it came to them in a dream, then the next they’re demanding more evidence before moving ahead with something you proposed. 

Whenever you want to convince others that your ideas are worth focusing on, you’re going to want to present hard data to back you up. A validated concept can turn skeptics into supporters, aligning everyone around a shared vision. 

It can also help you strengthen your relationships. If stakeholders consistently see validated ideas based on evidence from your customers, it gives you a hell of a lot more credit in the bank.

Product validation can also be your friend when it comes to saying no to those stakeholders who have great confidence in their new idea. If you put their bright idea through product validation and the data shows it not to be a worthwhile project, then you can go back to them with that evidence. Suddenly your ‘no’ is far less likely to be taken personally and you can maintain a good relationship with that stakeholder. 

Fostering innovation 

You always want to be learning as a Product Manager, and innovating and improving your product and understanding of your customers. Validation is great for this, as it not only confirms assumptions but also challenges them. 

When going through the product validation process – which we’ll get into in a bit – you may unearth some insight that you’ve never considered that knocks your socks off. By focusing on validation, you often end up with more creative and impactful outcomes, helping you stay ahead of your competitors. 

What is the Product Validation Process?

A solid product validation process isn’t just throwing a customer survey into the wind and calling it a day. It’s methodical, data-driven, and user-focused, and there are a lot more steps and things to consider to get it right. 

Follow this process to make sure that you’re validating your product properly and gaining insights to help ensure that your solutions work and that you’re creating something that is valuable, and frankly, wanted by your audience. 

Product validation process

Step 1: Define your product idea and customer needs

You can’t really validate a product idea if you don’t know what it is. Take a second to seriously define your idea with as much detail as possible. Include things like its purpose, the problem it’s addressing, the problem it should be addressing (you may find that these are two different things), and its benefits. 

Ask yourself: 

  • What is the product? 
  • Who is it for?
  • What pain points does it solve? 
  • How does it align with your product goals?

While doing this, think about what customers actually need. At this stage, this is based on your assumptions to form a hypothesis. The next stages involve you testing this. 

Step 2: Conduct market research and audience analysis

Dive into market research to understand your industry landscape and confirm demand for your product. There are many ways you can gather information, but some standout options include using tools like Google Trends, industry reports, and competitor reviews to gather insights.

Evaluate your:

  • Market size and demand.
  • Competitor strengths and weaknesses.
  • Pricing strategies and opportunities for differentiation.

This helps you validate your solution and ensure that it’s a good fit for your market. Simultaneously, profile your target audience. Create detailed user personas that include demographics, behaviors, pain points, and potential use cases. Start small by focusing on a specific segment – like a particular profession or age group – to narrow your scope. This focused approach helps uncover the audience with the highest potential interest and purchase intent.

Step 3: Engage with potential customers 

Steps 1 and 2 lay the groundwork and help you understand the problem your customers have and the solution your product is trying to address. Now comes the start of finding out if it’s actually doing that. 

Validation begins with talking to your audience. Conduct interviews, surveys, or focus groups to understand their needs and get early feedback on your product idea.

Popular methods include:

  • Surveys: Great for gathering insights at scale.
  • Interviews: Ideal for detailed discussions on challenges and expectations.
  • Focus Groups: Useful for testing ideas and gathering group perspectives.

Even if you don’t have an audience yet, leverage social media, online communities, or similar platforms to connect with potential users. The goal is to gain actionable insights and refine your product idea based on real-world input.

Step 4: Create a minimum viable product

Turn your idea into something tangible by creating a prototype or minimum viable product (MVP). An MVP should include only the core features necessary to solve the main problem and provide value. With this MVP, you then test it with an audience base to see if it’s catching fire. If not, it’s time to tweak it.

Why build an MVP?

  • It’s cost-effective and faster than full product development.
  • It allows for direct user testing and feedback collection.
  • It minimizes the risk of creating features no one wants.

Release the MVP to a select group of users and measure adoption rate, engagement, and feedback. This will help validate both the product’s appeal and usability.

Step 5: Refine through iteration

Use the feedback and data from your MVP to refine your product. Analyze qualitative and quantitative insights to identify areas for improvement. This could mean enhancing usability, fixing bugs, or even pivoting to a different direction if user responses indicate a need.

This approach keeps your product aligned with user needs and reduces the risk of investing in features or changes that don’t add value.

Step 6: Align validation with business goals

At this stage, you should have a validated product and have a better sense of if it’s going to land or not. The last thing you need to do is ensure your validated product aligns with your business objectives. Compare the feedback, usage data, and market trends with your overall strategy. Ask yourself:

  • Is the product financially viable and scalable?
  • Does it align with your brand and market positioning?
  • Can it integrate seamlessly into your business model?

If there are misalignments, revisit earlier steps to adjust your product or positioning. Product validation isn’t just about proving the product works  – it’s about confirming its long-term potential within your business context. There’s little benefit in shipping out a profit if it doesn’t align with your product vision

What product validation methods are there? 

You know the process to follow, but what specific things should you be doing when conducting product validation Well, it turns out, there’s a lot that you can get up to. We’ve mentioned a couple already, like testing an MVP and using surveys for customer feedback, but your options are endless when it comes to validating your product or feature idea. 

Here’s the rundown of some core methods you can adopt, and how to add them to your product validation process. 

Market research

Think of market research as your product’s first reality check to understand the playground you’re stepping into. This is all about figuring out your product positioning. How big is the market size, and is there a slice for you? You’ll need to gauge demand for your solution to see if there’s room for your product to thrive. 

You’ll also want to understand your competitors and learn what they’re doing well and what gaps they’re leaving out. Does the market have a major player that’s going to be impossible to usurp unless you do something different? SWOT analysis is a great approach to learning this.

Surveys and interviews

When it comes to getting into the heads of your target audience, surveys and interviews are unbeatable. Use survey tools or embedded forms in your product to ask your users pointed questions about their preferences, challenges, or habits. Keep the questions concise and structured to get quantitative data that’s easy to analyze. You could even incentivize participation with a discount or freebie.

If you want deeper insights, nothing beats a good old-fashioned chat. One-on-one interviews let you dig into user motivations, pain points, and workarounds. Keep the conversation open-ended and let your users steer – sometimes the best insights come from unexpected tangents. If you have a good group of early adopters who believe in your product, it might be a good idea to invite them to become part of your Customer Advisory Board. From there, you can organize CAB meetings to better understand their thoughts and feelings that can guide product development. Learn how to unlock the power of a CAB below:

Prototyping

A prototype is like your product’s rough draft – it doesn’t need to be perfect, but it should give users something to react to. Prototypes can come in two types:

  • Low-fidelity: Sketches or wireframes are great for testing the basic flow or concept without sinking time into design.
  • High-fidelity: Ready to test usability? Tools like Figma or InVision let you create interactive prototypes that mimic the real deal. Share these with potential users or stakeholders and ask for detailed feedback on usability, design, and functionality.

This prototype is a great way to get a proof of concept. Here, you want to build your prototype, test it, and analyze and evaluate what you’ve learned to come up with the next steps.

MVP Testing

Your Minimum Viable Product (MVP) is the initial version of your product that offers just enough features to solve the core problem and test the waters. It’s like building a car with just a frame, engine, motor, and steering wheel – the essential things needed to get it moving. All the other supplementary features can come later.

Focus on the one thing your product must deliver to prove its value. Strip away all the extras for now. Once you have one, put the MVP out there to a small, targeted audience. Watch how users interact with it, track metrics like sign-ups or retention, and pay close attention to their feedback. Use what you learn to refine and add features incrementally. MVPs are all about validating the core idea without blowing your budget.

Beta Testing

Beta testing is where your product or feature gets out of the lab and into the hands of real users. This is where you throw the product out of the nest to see if it knows how to fly. 

You want to use real users for your beta testing. Invite a mix of loyal customers, potential users, and people who fit your ideal customer profile (ICP) Offer them early access in exchange for honest feedback.

Decide what you want to learn – are you testing for bugs, usability, or overall satisfaction? Make sure testers know what to look out for. From there, you want to collect feedback: Use surveys, interviews, or even analytics to understand how beta users interact with your product. Your beta testing program is your last chance to fix issues and polish the experience before the main launch day.

A/B Testing

Sometimes you’re torn between two options. A/B testing is the way to settle it with data and see which solution works best.

Focus on just one variable to test at a time. Testing too much at once will make it hard to actually know what was the driving factor for the results you’ve gotten.

When A/B testing, you want to do it to a small proportion of your total user base, usually 10%. Split this chosen audience into two groups. Show version A to one and version B to the other. Use analytics tools to track which version performs better. The winning option becomes your go-to, and you can keep iterating from there.

Usability Testing

Usability testing, or user testing, isn’t just about spotting bugs – it’s about understanding how real people use your product. By seeing how users engage with your product, you may be able to spot issues in the user journey and bottlenecks that cause users to bounce off without seeing your value proposition.

Give users specific scenarios to complete, like using a certain feature or reaching a particular output. You want to see how users go about doing this and if your product is intuitive and easy enough to use. Observe quietly. Resist the urge to help – they’ll show you what’s intuitive and what’s frustrating.

Use what you learn to refine workflows, improve designs, and make the experience seamless.

Product validation best practices

Product validation only works when you do it correctly. Here are the golden rules you need to follow to make sure you’re completing this process properly:

  • Set clear goals: Validation without purpose is like a map without a destination. Define measurable outcomes, such as user engagement rates, willingness to pay, or pre-determined interest levels, so you know when you’ve hit the mark.
  • Engage real users: Your investors and stakeholders might be great cheerleaders, but they aren’t your target market. Get validation from actual users who represent your audience to ensure your insights are grounded in reality.
  • Iterate relentlessly: Validation isn’t a single step – it’s a cycle. Test, collect feedback, refine, and repeat. Each iteration brings you closer to a product your users will love.
  • Foster cross-functional collaboration: Don’t validate in a silo. Involve team members from beyond your product team structure, like Marketing and Customer Support, to bring diverse perspectives to the table. You’ll uncover insights that a single team might miss.
  • Stay adaptable: Validation might reveal surprises and flaws you didn’t anticipate or opportunities you hadn’t considered. Embrace flexibility and adapt quickly to build something that truly resonates.
  • Focus on solving problems: Don’t just validate ideas for the sake of it. Validate against real user problems. Make sure your product addresses pain points and delivers tangible value.
  • Track metrics religiously: Pay attention to quantitative data during validation. Whether it’s click-through rates, time-on-task, or sign-up conversions, numbers provide clear evidence of what’s working and what’s not.
  • Don’t fear rejection: Negative feedback is a goldmine. It tells you where your idea might miss the mark, giving you the chance to refine it before launch.
  • Communicate outcomes clearly: Share validation findings with your team and stakeholders in a way that highlights the actionable insights. Clear communication ensures alignment and drives smarter decisions.

Validate or fail

Product validation isn’t a step in the Product Management lifecycle you can ignore; it’s the strategic edge that separates successful products from the rest. 

By investing the time to validate your ideas, you’re making sure it solves real user problems, aligns with your business objectives, and can stand the test of market demand. This step not only saves time and money but also builds confidence in the choices you make throughout your product development.

Whether you’re shaping a new idea, refining features, or enhancing a product post-launch, product validation keeps you grounded in the needs of your customers. It’s a constant check-in, making sure you’re on the right track to create solutions that truly hit the mark. The insights gained from validation can be transformative, ensuring every decision moves you closer to delivering value that stands out.

If you’re ready to take the guesswork out of product development, ProdPad has your back. With tools designed for collaborative validation and a smarter way to refine your backlog, you can confidently create features and products that land perfectly with your customers. Start building with confidence, because when your ideas are validated, your success is inevitable.

Give ProdPad a go to see what you can. 

Try ProdPad for free today.

The post Product Validation appeared first on ProdPad.

]]>
Growth Product Manager https://www.prodpad.com/glossary/growth-product-manager/ Fri, 15 Nov 2024 11:08:06 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83216 The post Growth Product Manager appeared first on ProdPad.

]]>

What is a Growth Product Manager?

A Growth Product Manager (GPM) has a distinct goal: don’t just build products, but fuel their growth. Sometimes called a Product Growth Manager, this role centers around tackling specific business objectives like boosting acquisition, user activation, retention, referral, or revenue in order to grow the company.

Unlike a traditional Product Manager who juggles a bit of everything, the Growth PM has a laser focus on removing barriers to customer value. In other words, they’re obsessed with unblocking users on their journey to product success – and making sure that success drives measurable impact for the business.

Growth PMs and core PMs share a common goal: solving customer problems. But while a core PM might be overseeing everything in the Product Management lifecycle from development to launch, the Growth PM zeroes in on product-led growth initiatives with the highest potential to impact key metrics. For them, it’s not just about launching new features; it’s about ensuring every change accelerates growth, often by experimenting, iterating, and relentlessly tracking results within a build-measure-learn approach.

Growth Product Management is a data-driven discipline. Where traditional Product Management of old might have once emphasized shipping products, Growth PMs are all about optimizing them. By studying user data, user journeys, customer feedback loops, and performance metrics, Growth PMs make evidence-based adjustments that remove friction points and boost engagement, often without needing a massive redesign. They’re the people who look at what’s working, amplify it, and cut what isn’t.

In short, where traditional Product Managers might bring the product to market, Growth Product Managers make sure it keeps climbing once it’s there. They turn great products into unstoppable growth engines, focusing less on building and more on unleashing.

What are the responsibilities of a Growth Product Manager? 

A Growth Product Manager (GPM) wears many hats, but every one of them is geared toward driving measurable growth. Unlike standard Product Managers, who oversee the broader vision and product strategy, Growth PMs zero in on specific, high-impact business metrics like acquisition, retention, and revenue growth. Their role is all about unearthing ways to amplify a product’s reach and enhance its value without reinventing the wheel.

Here’s a breakdown of the core responsibilities of a Growth Product Manager:

  1. Analyze user behavior: Growth PMs dive deep into data to uncover patterns in user behavior, surfacing insights that could point to growth opportunities. They’re always searching for the data that can lead to actionable strategies.
  2. Identify opportunities for growth: By keeping a close eye on user data, GPMs pinpoint ways to expand the user base or boost existing user retention and engagement. This might mean finding new markets, enhancing product features, or spotting untapped opportunities for revenue growth.
  3. Run experiments: A/B testing and experimentation are key tools in the Growth PM’s toolkit. They’ll test hypotheses on selected user segments, analyzing feedback to refine approaches in things like user journeys or come up with a pivot strategy if needed. This continuous loop of testing and learning helps a Growth Product Manager to optimize the product’s growth trajectory.
  4. Make recommendations for improvements: Growth PMs use the data from experiments and analysis to make concrete, data-driven recommendations for product improvements. Whether it’s adding features, streamlining UX, or adjusting pricing models, these recommendations are always aimed at pushing growth forward.
  5. Collaborate with cross-functional teams: Growth PMs work with teams across Marketing, Sales, Design, and Engineering to make sure the product roadmap aligns with growth goals. This cross-functional collaboration ensures that product-led growth strategies are practical, scalable, and integrated across all areas of the business.

Lets not beat around the bush here. You’re probably thinking that these tasks are something any Product Manager could (and often does) perform. So what’s going on here? Why does the Growth Product Manager job role exist if we already have core Product Managers doing this stuff, and potentially more?

Well, the difference lies in the focus: while core PMs manage every aspect of a product’s lifecycle, Growth PMs concentrate solely on scaling that product, prioritizing strategies that yield direct business outcomes. It’s a role that exists to ensure growth doesn’t just happen by accident – it’s engineered.

A Product Manager might spread themselves a bit too thin across all these responsibilities. Introducing a Growth Product Manager to the mix makes sure these crucial growth-related tasks aren’t missed. 

Why does the Growth Product Manager role exist?

The Growth Product Manager role is relatively new in the field of Product Management, but its fast rise speaks volumes about where SaaS and tech companies are focusing right now. In the wake of the turbulence of recent years – layoffs, budget cuts, and significant losses across tech – there’s been a shift.

Many companies that once prioritized “big-picture” product development are now sharpening their focus on growth and revenue generation. It’s a shift that’s driving companies to create specialized roles to achieve targeted growth rather than assuming growth will simply follow great products.

The economic pressures of recent years have effectively planted the idea that Product Managers need to prioritize business growth and not just build a product pipeline. From that need sprang the Growth Product Manager role.

Growth PMs are all about using data and experimentation to identify and amplify what works while removing friction for users. They don’t just build; they tweak, test, and amplify until the product is a steady engine for growth.

And it’s catching on fast. According to research from Lenny Rachitsky, Since Q1 of 2022, growth-focused roles, including Growth Product Managers, have surged by 117%, outpacing the more traditional PM roles, which rose by 103% in comparison. This growth trend is backed by companies’ increasing need to scale up quickly, get to market faster, and drive metrics that show measurable, bottom-line impact.

A Growth PM’s job, therefore, isn’t just a niche focus – it’s a critical response to a tech landscape where steady growth has become non-negotiable. Growth PMs are now the hot ticket for companies aiming to bounce back from tough times and find scalable ways to expand their user base and revenue.

The Growth Product Manager role exists to ensure companies don’t just have great products—they have growing ones.

🏞 Source 👇: Lenny’s Newsletter, Jul 23, 2024

A graph from Lenny Rachitsky showing that Growth Product Manager and related roles are the fast growing position in the industry

Growth Product Manager vs Product Manager 

Here’s the thing with the Growth Product Manager role. It’s essentially a Product Manager with a very specific spotlight on driving growth and generating revenue. While both roles focus on solving customer problems and improving the product, the Growth Product Manager’s responsibilities come with an extra emphasis. Growth is built right into the title as a constant reminder that their top priority isn’t just product excellence – it’s measurable growth.

See, we think that all the stuff the Growth Product Manager role focuses on is stuff that should have been on the Product Manager’s shoulders already. If you think about it, shouldn’t every Product Manager be striving for growth anyway? 

Growth Product Managers do what Product Managers are expected to do already. The difference here is that companies have made growth so central to their business goals that they’ve created an entire role dedicated to ensuring it doesn’t get lost in the shuffle.  It kind of serves as a reminder of what your main, numero uno priority is. 

Let’s explain this by looking outside Product Management at a different example: Content Writing.

Now as a Content Writer, your aim is to write quality material that engages the reader and converts them down the funnel. That kind of goes without saying. But say a Content Writer isn’t doing a good enough job. There are spelling mistakes, the articles are too short, and people aren’t reading or liking them, so the Content Writer gets fired. 

After a while, the company realizes pretty quickly that they still really need a Content Writer – just a really good one that drives conversions. To make sure that they don’t have the same problem again, they might post an opening for a “Conversion Content Writer.” The addition of “Conversion” is there to ram home that the company’s priority isn’t just words on a page; it’s writing that drives real results.

This is kind of what ‘Growth’ means in the Growth Product Manager role. Companies want to ensure the product actively drives revenue and user engagement, so they slap the “Growth” label on the PM role. It’s a way to reemphasize what’s at the heart of their commercial goals: growth.

Now, before you get your pitchforks out, this is not an attack on either Product Managers or Growth Product Managers. In fact, it’s not about picking sides at all. It’s about recognizing that both roles ultimately aim for growth; it’s just that Growth PMs are laser-focused on commercial outcomes.

Traditionally, Product Managers may have focused more on customer needs and feature development, prioritizing what’s best for users. Growth PMs, however, might make calls based on what benefits the business most, like choosing to build features that increase revenue rather than solely meet specific customer requests.

Regardless of title, growth is a priority for any Product Manager today, especially in product-led businesses where scaling is essential. Whether you’re a PM or a Growth PM, demonstrating growth has become the name of the game. So, how do you do that? 

Well, you can find out in our webinar with ProdPad Co-Founder Janna Bastow. Here, you’ll learn how to ‘do’ Growth Product Management. Register below:

[Webinar] How to ‘Do’ Growth Product Management


How Do You Become a Growth Product Manager?

If you’re already a Product Manager, chances are you’re handling growth tasks as part of your day in the life of a Product Manager, so in a sense, you’re halfway to becoming a Growth Product Manager. That said, with many companies viewing this as a step up (and often offering a higher average salary) moving into an official Growth PM role can be an attractive goal.

To make this leap, you’ll need to prove that growth is more than just a part of your responsibilities; it’s a driving focus. Show that you’re actively generating measurable results, whether it’s through user acquisition, retention, or revenue expansion. You’ll need to illustrate a track record of growth-centric achievements, demonstrating that you understand what actions drive business impact and that you’re already bringing this growth mindset into your current role.

Transitioning to Growth Product Manager typically involves a deep understanding of what makes a business tick. You need to be well-versed in engagement strategies, and the kinds of initiatives that ultimately boost the bottom line. In other words, if you want to step into this role, start by making growth the heart of your approach to Product Management.

Skills needed to become a Growth Product Manager

To build a foundation for this role, you’ll want to develop a few core skills. Most Growth Product Managers come from core PM or Business Analyst backgrounds, so if you’re in one of these positions, it’s a great place to start. From there, aim to gain expertise in growth-focused areas like data analysis, customer lifecycle management, and experimentation methods (e.g., A/B testing).

Because Growth Product Management is a newer role, what you’ll do may vary between organizations. But a few core traits and skills set successful Growth PMs apart. Here’s a look at what you’ll need to excel:

Curiosity and experimentation: Be eager to experiment, measure impact, and learn from outcomes. Growth PMs thrive on testing assumptions and exploring new ways to reach users and drive conversions.

Analytical skills: Growth PMs live by the data. Strong analytical skills and a methodical approach are essential, as you’ll be making data-driven Product Management decisions about which features and initiatives have the most growth potential.

Customer-centric insight: Understanding your customer is critical. You’ll need a clear grasp of their motivations, user pain points, and barriers to realizing the product’s value. Growth PMs constantly think about how to reduce friction in the user experience and spend time creating documentation like user stories and user personas.

Cross-functional collaboration: Growth initiatives often require buy-in across multiple departments. Growth Product Managers need diplomacy to work with diverse Product Teams, Engineering, and Marketing teams, and align everyone on growth-oriented goals. Stakeholder management is a very important skill to have.

Effective communication: Communicating your product vision and making a compelling business case for initiatives is crucial. Growth PMs need to advocate for their priorities, explain the “why” behind their experiments, and rally growth teams around these goals.

Ultimately, a Growth Product Manager is intensely focused on results, prioritizing efforts that maximize business impact. While these skills are valuable for any Product Manager, they’re essential for Growth PMs, where every decision is rooted in the drive to scale the business.

What are your main KPIs as a Growth Product Manager? 

When you’re in the driver’s seat as a Growth Product Manager, you live and breathe key performance indicators (KPIs). These metrics are your guiding lights, letting you know if you’re being successful or not. Here’s a rundown of the key KPIs that every Growth Product Manager should have on their radar:

1. User activation

User activation measures how quickly and effectively users are discovering and experiencing value in your product. It’s often defined by the user completing a core action or reaching a certain milestone – like setting up an account, completing a profile, or creating their first project.

The faster users experience your product’s wow moment, the more likely they are to stick around and become loyal customers. A Growth Product Manager is laser-focused on reducing the friction that stands in the way of achieving a good activation rate.

2. Daily active users (DAU)

Daily Active Users (DAU) is a core metric for gauging engagement. It tells you how many people are using your product daily, giving you insight into its relevance and stickiness. Growth Product Managers track DAU closely to ensure users are not only onboarded successfully but are also consistently engaged.

Spikes or dips in DAU can reveal a lot about the product experience, and Growth PMs use this data to fine-tune features, implement retention strategies, or introduce new value-driving elements.

3. Customer lifetime value (CLV)

Customer Lifetime Value (CLV) is all about understanding how much revenue an average customer will generate over the entire time they use your product. Growth Product Managers focus on maximizing CLV by driving retention and expanding the ways customers find value in the product. Higher CLV often means more loyal users and a steady stream of revenue – essential metrics that indicate long-term growth potential.

4. Customer retention rate

Customer retention rate shows the percentage of users who continue to use the product over a specific period. It’s a critical indicator of user satisfaction and the product’s value in users’ lives. Growth Product Managers focus heavily on retention because acquiring new users is just one piece of the puzzle – keeping them engaged and coming back is where sustainable growth happens. Retention rate insights often fuel strategies for nurturing user loyalty and preventing churn.

5. Churn rate

Churn rate measures the percentage of users who leave or stop using the product over a given period. High customer churn can point to underlying issues like lack of engagement, dissatisfaction with features, or misalignment with user needs.

A Growth Product Manager closely monitors churn to identify when and why users are dropping off, so they can address the root causes, whether it’s through improving the customer experience, rolling out new features, or re-engaging lapsed users.

6. Revenue Growth Rate

Ultimately, Growth Product Managers are focused on driving revenue, so tracking the rate of revenue growth is essential. This KPI looks at the pace at which your revenue is increasing over time, providing a big-picture view of your product’s financial health.

Growth PMs pay close attention to this rate and work with cross-functional teams to launch initiatives that encourage users to upgrade, purchase add-ons, or renew subscriptions – anything that impacts the bottom line.

A downloadable ebook called The Complete List of Product Management KPIs

Ready, Set, Grow: Wrapping Up on Growth Product Managers

The Growth Product Manager role isn’t just a job – it speaks of a new way of thinking. Growth PMs are hyper-focused on outcomes that fuel user engagement and revenue, cutting through the noise to zero in on what really moves the needle. They’re like architects who don’t just design a building; they actively find ways to expand, strengthen, and continuously optimize it to keep the occupants (users) happy and invested.

Growth Product Managers bring an explicit focus on blending creative experimentation with a relentless pursuit of measurable impact. Where other PMs may juggle multiple hats, the Growth PM’s “hat” is growth itself, ensuring that every feature, tweak, and initiative is aligned with clear business goals. This role is essential as companies adapt to dynamic markets, where the difference between staying afloat and thriving often boils down to how quickly a product can grow and adapt.

ProdPad is the perfect Product Management tool to help you stay laser focused on driving growth outcomes. With Now-Next-Later roadmaps, linked to a full OKR management system, the entire platform is structured to align Product Teams around core business outcomes. 

Let one of our product experts show you around your new growth tool!

The post Growth Product Manager appeared first on ProdPad.

]]>
Product Strategist https://www.prodpad.com/glossary/product-strategist/ Tue, 05 Nov 2024 16:00:30 +0000 https://www.prodpad.com/?post_type=pp_glossary&p=83131 The post Product Strategist appeared first on ProdPad.

]]>

What is a Product Strategist? 

A Product Strategist is a role that focuses on developing the long-term vision of a product or product portfolio, making sure that it aligns with the overarching business goals of an organization. By setting a clear direction, a Product Strategist ensures that development efforts, marketing initiatives, and business objectives are in sync, paving the way for sustainable success and market relevance.

Being a Product Strategist is a high-level role, and usually sits above the Product Manager in a typical Product Team structure.  Instead of being involved in the day-to-day improvement and execution of Product Design and Development, a Product Strategist is one step removed, looking at the big picture stuff. 

The driving goal of a Product Strategist is to find new market opportunities for business growth while assessing the current performance of the product to uncover ways to improve it. They’ll have more involvement in creating the product strategy and overall plan. 

A Product Strategist plays a critical role in translating abstract, hard-to-define business objectives into actionable, high-level goals for the product. By creating a strong, market-oriented product vision, they ensure that development decisions are not only reactive to customer needs but also proactive in capturing growth opportunities and maintaining a competitive edge.

What are the key responsibilities of a Product Strategist?

The role of a Product Strategist is to drive growth. There are many things they have to do to achieve that. The core list of responsibilities includes: 

  1. Conducting market research: Product Strategists analyze market trends, competitor activity, and user behavior to identify new market opportunities and threats. This research forms the foundation for informed decision-making to help with data driven Product Management.
  2. Defining product strategy: The Product Strategist will translate market insights into a comprehensive product strategy, detailing key objectives, target market segments, value propositions, and product-led growth plans.
  3. Communicating product vision: Articulating the product strategy and vision to everyone else on the team is a key responsibility. You need to make sure everyone’s on the same page. This builds alignment and enthusiasm for the product.
  4. Prioritizing features and roadmap: A Product Strategist will collaborate with cross-functional product teams to prioritize product features based on the overall strategy. 
  5. Analyze product performance: A Product Strategist needs to look back to look forward. Monitoring and analyzing key performance indicators (KPIs) allows them to assess product success, identify areas for improvement, and make recommendations for optimization.

Product Strategist vs Product Manager 

If you’re a product person or practicing Product Manager, you may be reading our description of the responsibilities of a Product Strategist and thinking, ‘Hold on, I do some of that stuff already’. And yeah, you may well do. 

This is because the Product Strategist role isn’t one that you’re going to see in all organizations. In fact, it’s usually only reserved for large businesses. This means that for some, the tasks that a Product Strategist performs will fall onto the shoulders of a Product Manager. While developing the day-to-day improvement of a product, you should 100% also be thinking about the overall strategy and business goals. 

See the lines between a Product Strategist and a Product Manager are blurred when talking about start-ups, small, and even medium-sized businesses. Typically, one person will be performing all these tasks themselves, wearing different hats. 

However, if your business gets too big, or your product line gets too complicated, it can be a lot to ask a Product Manager to maintain the roadmap and follow the Product Management Lifecycle while also working on the strategy. It can get a bit too much. 

When that happens, it’s time to separate these roles and bring in a Product Strategist to dedicate time to strategy and long-term planning. This is where these roles start to separate and the blurred lines become more distinct. It’s in these large and complex businesses where the roles are defined and have separate responsibilities. 

A Product Strategist will take a broader view of the product, creating an overarching vision that meets business objectives. A Product Manager will be focused on executing the strategy. This means that a Product Strategist is more interested in the long term, looking ahead, while a PM looks at the now, addressing immediate product needs based on customer feedback and continuous discovery

So, a Product Strategist is like the Team Principle in Formula One. They’re determining what tires to use and what car parts are best to hit a faster lap and win the 24-race Championship, while the Product Manager is the driver, working out the fastest racing line one Grand Prix at a time.

product strategist vs product manager

What types of organizations need a Product Strategist?

Not every business is going to suit having a Product Strategist. In fact, it’s actually a pretty rare role among small and medium-sized companies. You’ll typically only find a Product Strategist in a large organization due to the scale of operations and amount of products across the entire portfolio. 

If you’re in a start-up or small business, now’s not the time to think about adding a Product Strategist to your roster. Hold off until you start to scale and when your current Product Managers begin to get stretched a bit too thin. At this earlier stage of a company, a Product Manager will take on the challenge of strategic planning, guiding the product’s vision and direction while ensuring alignment with overall business goals. As the organization grows and the product landscape becomes more intricate, bringing in a dedicated Product Strategist can be a game-changer for fostering innovation and enhancing market positioning.

Among the larger companies that suit a Product Strategist, the ones that get the most benefit are those who operate in a crowded and competitive market. Product Strategists come into their own when there are a lot of similar products that you’re competing against and need to work out a strategy to stand out, be different, and attract users in a competitive landscape. 

There may be a lot of fish in a pond, some massive, some small. A good Product Strategist will help you stand out in this pond by making your product into something more interesting and unique, like a crab, octopus, or eel – just something that’s not a fish like all the other guys.  

What are the advantages of having a Product Strategist? 

So you’re in a large enough business in a crowded marketplace that has the capital to bring in a Product Specialist. How’s that going to help? What tangible benefits should you expect to see? Well, there’s a lot of good that can come out of having a Product Strategist on your team. Here are some positive things that your whole organization will experience. 

Clear vision and direction

A Product Strategist will define the product vision and help everyone understand it. This creates a more synched-up product development process, as every department is striving for the same goals. This clarity nurtures alignment across all teams. When everyone is singing off the same song sheet, it reduces misunderstandings and misalignments, allowing teams to work more effectively toward common objectives. 

Better market insight

Understanding the market is crucial for product success, and a Product Strategist brings deep insights into market trends, user behaviors, and competitive dynamics. They conduct market research and competitive analysis to identify gaps and opportunities within the market, helping you know your competitors and potential customers inside and out. 

A successful product strategy allows the organization to anticipate shifts in customer preferences and react swiftly to competitive threats. By using these insights, a Product Strategist can inform Product Development and product positioning strategies, ensuring that the product resonates with target audiences and stands out.

A prioritized roadmap

Creating a well-structured Product Roadmap is essential for effective Product Management, and a successful Product Strategist can help to improve your roadmap. The insight they give helps teams prioritize features and enhancements based on strategic goals, customer feedback, and market demands, ensuring that the most critical initiatives receive the attention and resources they need. 

A well-prioritized roadmap helps teams focus on delivering high-value outcomes and prevents them from getting sidetracked by less impactful tasks. It also provides transparency to stakeholders, allowing everyone to understand the rationale behind decisions when sharing your roadmap presentation.

Measurement and analysis

A Product Strategist is instrumental in establishing the right key performance indicators (KPIs) to measure the product’s success and effectiveness. They define what success looks like and determine how to track it over time. 

This focus on measurement allows the team to make data-driven decisions, identify areas for improvement, and pivot strategies when necessary. Regular analysis of performance metrics helps the organization learn from successes and failures alike, fostering a culture of continuous improvement

By closely monitoring outcomes, a product strategist ensures that the product evolves in response to real-world feedback and changing market conditions.

How do you become a Product Strategist? 

There is no one way to become a Product Strategist. In fact, there’s no one route into any product role, and you’ll be surprised to hear about the backgrounds of some of the industry’s greatest Product Leaders. Every journey is different, but with that said, some roads into Product Strategy roles have been trodden more than others. 

You’ll find that a lot of Product Strategists have a background in business theory, so education or training in business management can help prepare you for the demands of the role. You could also get a certification specifically in Product Strategy to better prepare you and give you insight into some of the tasks and challenges you’ll face in the role. 

Another common avenue to becoming a Product Strategist is stepping up from a Product Manager role. As product strategy is firmly part of a Product Manager’s typical responsibilities – alongside everything else! – specializing in the strategic piece and going deeper in terms of market research and analysis is often an attractive career progression if you’re lucky enough to have that opportunity.

To progress from PM to Product Strategist, make sure you’re demonstrating a strong strategic focus as a Product Manager, being highly vocal and visible as the custodian of the product vision. 

The Product Strategist career path

Once you enter the world of Product Strategy, your career path may look like this as you improve your experience level:

product strategist career path
  • Associate Product Strategist: In this role, you collaborate with senior strategists to analyze market trends, gather customer insights, and develop product roadmaps. Progression comes from demonstrating strong analytical skills, strategic thinking, and the ability to translate insights into actionable recommendations.
  • Product Strategist: Here, you’ll conduct in-depth market and competitive analyses, identify growth opportunities, and shape the product strategy. You advance by consistently delivering data-driven strategies that drive product success and align with company objectives.
  • Senior Product Strategist: In this position, you lead a team of strategists, mentor junior members, and oversee the product development process of comprehensive product strategies. Progression is based on showcasing exceptional leadership, strategic vision, and the ability to navigate complex challenges.
  • Director of Product Strategy: As a director, you oversee the product strategy function, align strategies across multiple product lines, and ensure they jell with overall business goals. Advancement occurs when you drive significant improvements in strategy execution, foster cross-functional collaboration, and deliver measurable business impact.
  • VP of Product Strategy: A VP provides high-level executive guidance on Product Strategy, representing the strategic vision to stakeholders and influencing company-wide decisions. Progress is achieved by demonstrating a deep understanding of market dynamics, anticipating industry trends, and driving innovation that fuels business growth.
  • Chief Product Officer: In this top role, which may also be known as a Chief Product Strategist,  you are the highest-ranking executive responsible for shaping the company’s overall Product Strategy and ensuring alignment across all divisions. Advancement comes from consistently delivering visionary strategies that drive long-term success and position the company as a market leader.

Key Product Strategist skills

Fancy trying your hand as a Product Strategist? Trying to figure out what you need to improve on to be a great Product Strategist? Here are some of the core skills you need to excel in this role. 

Be entrepreneurial

As a Product Strategist, you’ll need to think big and develop innovative ideas. Identifying opportunities where others see obstacles is crucial, and you must have the ability to execute those ideas effectively. Essentially, you should think and function like an entrepreneur within your organization.

Data savvy

Effective Product Strategists use data to uncover insights and opportunities rather than relying solely on gut instinct. A significant part of your role will involve gathering and analyzing data on your company’s performance, user interactions with your products, and competitive benchmarks to inform strategic decisions.

Superb communication skills

To succeed, you must effectively communicate with various teams across your company and engage with external and organizational stakeholders. Building strong relationships with the development team, sales teams, and support teams is essential for gaining a deep understanding of the company’s products and users. Additionally, you’ll need to articulate proposals for new markets or products clearly to executives or investors, making outstanding communication skills vital.

Strategic thinking

The ability to think strategically is an essential skill for a Product Strategist – the clue is in the job title. You must have the analytical skills to track industry trends, assess competitive landscapes, and align product strategies with broader business objectives. This involves both short-term planning and long-term visioning to ensure that your product direction is sustainable and impactful.

Customer-centric mindset

Understanding your customers and their needs is paramount. A strong customer-centric mindset allows you to empathize with users and anticipate their preferences, ensuring that your product strategies are aligned with user expectations. Engaging with customers directly and conducting user research provides valuable insights should be the backbone of your strategic decision-making.

Leadership skills

As a Product Strategist, you may lead cross-functional teams and drive initiatives that require collaboration and coordination. Strong leadership skills enable you to inspire and motivate team members, facilitate discussions, and manage conflicts effectively to achieve product goals.

Adaptability and flexibility

The product landscape is constantly changing, and as a Product Strategist, you must be able to adapt to new information, market shifts, and emerging technologies. Embracing change and being flexible in your approach allows you to pivot strategies as needed while keeping the product vision intact.

Technical acumen

While not necessarily required to be a technical expert, having a solid understanding of technology and how it impacts your product development process is beneficial. This knowledge helps you communicate effectively with technical teams and make informed decisions about product feasibility and implementation.

Setting the Strategy 

The role of a Product Strategist can be instrumental in driving success for any large organization aiming to stay competitive in a dynamic and tough market. By setting a clear vision and aligning it with business goals, a Product Strategist helps teams see the bigger picture and make informed decisions. 

They play a key role in understanding market trends, pinpointing new opportunities, and ensuring that the product’s roadmap supports long-term success. For smaller companies, while the role might not be essential, having someone think strategically about the future can provide valuable insights that inform the product’s direction.

For businesses where the product line is complex or highly competitive, a Product Strategist is often the missing piece that connects customer needs with market positioning. They bring a structured approach to defining product goals, prioritizing features, and aligning cross-functional teams to build a product that truly resonates with users. 

As a product grows and user expectations evolve, a Product Strategist ensures that the product’s trajectory remains proactive and innovative, fostering a culture of continuous improvement.

If you’re ready to take your product strategy to the next level, a robust Product Management tool like ProdPad can make all the difference. With ProdPad, you’ll have the tools to map out your roadmap, prioritize features, and streamline collaboration across your team. Try ProdPad today to see how it can empower you to execute a compelling product vision and drive meaningful growth.

Try ProdPad today.

The post Product Strategist appeared first on ProdPad.

]]>