Framework for product strategy
I’ve been doing a lot of thinking recently on product strategy and how to best articulate one. I found it very helpful to use frameworks to guide our thought process.
If you feel that your teams are not working in unison, or that there is not a clear path to winning, it’s likely that your product strategy is not articulated or communicated well enough (if you have one at all!).
Before jumping into the specifics of a product strategy, it is essential to understand the role of this strategy in the bigger picture — the pieces that make your organization move forward.
- Define your product vision and goals Defining your product vision and goals is critical for creating a product strategy that aligns with your company’s overall vision and goals. Your product vision should describe the future state of your product and its impact on the market, customers, and stakeholders. It should be inspiring, challenging, and focused on solving a specific problem. Your product goals should be SMART, measurable, and aligned with your vision. They should define the specific outcomes you want to achieve with your product and how you will measure success.
- Understand your customers and their needs Understanding your customers and their needs is the foundation of a successful product strategy. This involves identifying your target customers, their demographics, behaviors, and preferences. It also involves understanding their pain points, challenges, and unmet needs. You can use a variety of methods to gather customer insights, including surveys, focus groups, interviews, and analytics tools. By understanding your customers, you can create a product that meets their needs and solves their problems.
- Analyze your competitors Analyzing your competitors is essential for creating a product strategy that differentiates your product from others in the market. This involves identifying your direct and indirect competitors, analyzing their products and features, and understanding their strengths and weaknesses. You can use a variety of methods to gather competitive intelligence, including competitor analysis tools, market research, and customer feedback. By analyzing your competitors, you can identify gaps in the market and opportunities for differentiation.
- Develop your value proposition Developing a clear and compelling value proposition is essential for creating a product that resonates with your target customers. Your value proposition should define the unique value your product provides to your customers, and how it solves their pain points and challenges. It should be clear, concise, and memorable. You can use a variety of methods to develop your value proposition, including customer research, feedback, and testing. By developing a strong value proposition, you can differentiate your product from competitors and communicate its value to customers.
- Define your product roadmap Defining your product roadmap is critical for prioritizing product features and aligning your product development with your business goals. Your product roadmap should define the specific features and functionalities you plan to deliver over a specific period, and the milestones and timelines for each release. It should be flexible and adaptable to changes in the market and customer needs. You can use a variety of methods to define your product roadmap, including customer feedback, market research, and stakeholder input. By defining your product roadmap, you can ensure that your product development is aligned with your business goals and customer needs.
- Test and iterate Testing and iterating on your product releases is essential for improving your product’s features and usability over time. This involves releasing a minimum viable product (MVP) to a small group of customers, gathering feedback, and iterating based on that feedback. It also involves tracking key performance indicators (KPIs) and metrics to measure the success of your product. You can use a variety of methods to test and iterate on your product, including A/B testing, user testing, and analytics tools. By testing and iterating on your product, you can refine your product features and improve its usability over time.
In conclusion, a well-defined product strategy is essential for creating successful products that meet the needs of your customers and align with your business goals. By following this framework, companies can create a product strategy that aligns with their overall vision and goals, understands their customers and their needs, analyzes their competitors, defines their value proposition, prioritizes their product development, and iterates based on customer feedback.
I’m leaving you with some references if you want to read more on this topic:
- Good Strategy Bad Strategy: The Difference and Why It Matters by Richard P. Rumelt (Goodreads)
- The Product Book (Product School)
- Thinking, Fast and Slow by Daniel Kahneman (Goodreads)