Business leaders like to talk about product strategy, but not everyone understands how to evaluate a product strategy and decide if it is good or needs refinement.
How will we win?
At a high level, a product strategy is a plan for how your product will win. It helps diagnose real and potential problems and envisions solutions. It gives you a plan to execute, and guideposts on what you will do at certain stages of the product life cycle.
There are hundreds of offerings online about the four key components of a product strategy, the three levels of product strategy, the twelve steps to build effective product strategies, the four Ps of marketing, and so-on and so-on. What does it really mean? It is this wide variety of approaches, tools, and techniques that make it difficult to determine whether a product strategy is “good” or not. The strategy may have every template under the sun, and still not be good enough. Let’s look at how you, as a senior leader, can know.
Questions are key
If we start at the highest level, a product solves a customer problem or fills a customer need. It is priced for the market to willingly purchase it. It is available when and where they require it. And, the customer is aware of it.
This simple definition is then expanded into the various frameworks, strategy templates and structures product managers get paid to produce. If you are evaluating a product opportunity, keep these simple facets in mind:
Does this product strategy or plan tell me what issue we are solving for the customer?
Is it a problem customers actually have? How do we know?
Is this a concern that they are willing to pay to solve? How do we know?
Does the pricing, place, and promotion ensure the customer will be aware of, have access to, and be willing to pay for our solution? How do we know?
How do we know that we know?
If a product strategy does not answer enough “How do we know” questions, you should push back and make your product team get answers. If the strategy does have answers, make sure it includes a feedback loop or listening mechanism to ensure the “how do we know” questions are getting answers throughout the product life-cycle, not just when the strategy was set.
Define “winning”
If your strategy does not define what “winning” looks like, and does not have metrics to show you are winning across the lifecycle, your team has more thought work to do as well. In brief, ”How do we know we are winning?”
Additionally, It is critical that your business aligns to the metric of “winning”. Is it marketshare? Is it a share of market profits? This definitional choice of what is winning will create dramatically different products and strategies.
Rigor
Finally, many people will tell you creating a product strategy is hard. Don’t let them confuse effort with the rigor needed to have a “good” strategy. It may be difficult to get the data you need to make an effective strategy. Perhaps it’s challenging to design a product that can deliver on the customer need at the price-point they are willing to pay. It may be difficult to connect your solution with customers' wants and needs. However, if you have these rigorous data points and insights, crafting the strategy is straightforward. In short, if you are rigorous in getting answers for ”How do we know” questions, creating your strategy is simple. If you have these answers, you will have the luxury of picking and choosing your strategic options to make a successful product.
Start using the simple questions mentioned here as you look at your plans and strategies for products going forward.
Do you require urgent help?
If you’re still not sure if you have a wining product strategy, and make some quick decisions, let’s connect. My extensive background in business, technology, product, and program delivery uniquely positions me to help you rationalize product lines, right-size sales teams, and increase sales with expanded offerings. Connect with me today and ask for a free problem assessment and evaluation.