What are the key elements to a successful Product Strategy?
Product strategy is all about imagining the future of your product. Getting a new product ready and out of the door can be quite overwhelming and a good product strategy should describe everything from target, need, features, and core reason for launching the product.
Here are a few key elements to a successful product strategy.
Needs of the Market
Who is the product targeting? And why would people buy and use it? The needs of the market comprises of what is the main problem that your product solves or the primary benefit it provides.
Once you determine the problem that your users/customers are trying to solve, they will buy what you have created, and you have understood the need of the market. Amazon made buying and selling easier, Google solves the problem of finding and searching for information online, Uber/Ola makes on-demand car simpler and Facebook helps you stay in touch.
If people have problems, they will search for solutions. What you need to do is recognise these problems.
Key features and differentiators
What are the 3-4 features that differentiates your product? If your product has unique features that is not offered by your competitors, then you’re on the right track. It is those differentiators that make your product unique and gives you a perceived advantage.
Be it quality and craftsmanship, Product or Service Superiority or being a low-cost competitor, what you offer has to be different. This will ensure that these differentiators are converted to strategic brand choices and tangible results will be the final outcome.
Alignment to Business Goal
Ensure that the product is aligned to the business goal of your organization. Clarity here will help select the right key performance indicators (KPIs) and to measure your product’s performance. Alignment to the business goals is a direct indicator of how your product is going to benefit the organization.
Will it be the primary focus for revenue generation, or is it going to help the organisation in another manner? Google’s Chrome browser may not generate revenue, however, it gives the company control over people’s internet access and it has even brought down Google’s dependency on third-party browsers.
Therefore an alignment to the larger goal of the business ensures success in the long run.
Product Life cycle
The strategy of a product changes as the product grows. The life cycle of the product begins at the launch and one has to ensure that it does not reach the end. Product strategy must be used to ensure that the growth is sustained. One must understand that the product needs change.
If Apple Inc. had decided in 2007 that the phone they launched needs no improvement, the competitors would have eaten up the market. Understanding the cycle of a product and innovating accordingly is the only way to stay current.
What is the reason for launching the product? Nothing is possible without a vision. A great vision is a short and clear account of what value the company will bring to its customers now and in the future. The strategy is a path to the vision and the vision guides the strategy.
The product must fit into the company strategy and then fill a logical spot in the product portfolio in order to be successful. Connected to the vision is also the value of the organisation. Values are what help companies make decisions.
A successful product cannot be created without adequate attention to the details.