Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Focus on the User
5 Keys to Successful Product Management
in the New Era of Business
Presentation
2015 Insights
There’s one resoundingly simple reason for why most
products fail: no one wants them.
So how are the world’s most innovati...
In a time with nearly perfect user metrics and lower
barriers to entry, focusing on your customers and their
experience us...
Zappos, Southwest Airlines, Uber, and Chipotle are all
great examples of companies that have adapted to this new
landscape...
Zappos calculated that the lifetime value of satisfied
customers far outweighed the shipping costs to return
disliked good...
There is no 100% foolproof way to build an organizational
culture adept at launching products that are guaranteed to
succe...
We’ve compiled a list of 5 key strategies for
product managers to build successful products in
the new era of business:
Li...
There is no such thing as talking to your customers too much.
Running surveys, hosting in-person interviews, and simply pi...
James Surowiecki’s “Wisdom of the Crowds” notes that what emerges
from a critical mass of feedback tends to be as close as...
Tests we’ve run for clients consistently show that what people say
they would do and they actually do with a live product ...
2. Your job is to learn by building, not
just to build
If a typical product manager were to define her job, a description
...
Learning by building
“Little Bets: How Breakthrough Ideas Emerge from Small
Discoveries” by Peter Sims illustrates how thi...
3. Never settle for good enough
In the modern digital word, products are forced to change
quickly to avoid becoming outdat...
What Steve Jobs can teach us
Look no further than the evolution of the iPhone to be
reminded of the pace of product change...
How to stay relevant
The most effective way to ensure your products stay relevant
is to adopt an iterative approach to bui...
4. Redefine your metrics for success
A lot of companies make internal decisions to be more customer-
centric. But at the e...
Case study: eBay
After laying off 10% of his company during his first year as
CEO of eBay, John Donahoe realized that if h...
Jony Ive, the renowned designer of Apple’s most successful products,
admitted once that he was unaware of revenue figures....
5. Consider the entire user experience –
in and out of the product
18
A customer’s interaction with your organization does...
David vs Goliath
19
When it comes to customer service and support, startups consistently
outperform larger organizations.
...
Key takeaways & additional resources
20
Great change doesn’t happen overnight. Setting realistic expectations and
deadline...
Upcoming SlideShare
Loading in …5
×

Focus on the User: 5 Keys to Successful Product Management in the New Era of Business

1,134 views

Published on

There’s one resoundingly simple reason for why most products fail: no one wants them.

So how are the world’s most innovative companies able to continuously produce winning products?

Our research and experience show that it has to do with adapting to the rapidly evolving mindset of consumers.

Whereas efficiency and scale once determined the fate of products and companies, customer satisfaction is now the driving force.

We’ve compiled a list of 5 key strategies for product managers to build successful products in the new era of business. Learn more at alpha-ux.co.

Published in: Business

Focus on the User: 5 Keys to Successful Product Management in the New Era of Business

  1. 1. Focus on the User 5 Keys to Successful Product Management in the New Era of Business Presentation 2015 Insights
  2. 2. There’s one resoundingly simple reason for why most products fail: no one wants them. So how are the world’s most innovative companies able to continuously produce winning products? Our research and experience show that it has to do with adapting to the rapidly evolving mindset of consumers. Whereas efficiency and scale once determined the fate of products and companies, customer satisfaction is now the driving force. A new era | Alpha-UX.co 1
  3. 3. In a time with nearly perfect user metrics and lower barriers to entry, focusing on your customers and their experience using your product and working with your organization are essential to long-term success. But it’s not as simple as generating user feedback before building products. Excessive user testing and product validation is not always the right solution. Focus on the user | Alpha-UX.co 2
  4. 4. Zappos, Southwest Airlines, Uber, and Chipotle are all great examples of companies that have adapted to this new landscape by bucking conventional wisdom. There were existing leaders in each of these industries, yet the aforementioned new entrants were able to flourish. The reasons why are not hard to discern: these are customer-centric businesses competing in spaces where margins and efficiency were the hallmarks of success. By focusing on satisfying the customer and innovating to meet their needs, each of these businesses was able to achieve success against the odds. The new innovators | Alpha-UX.co 3
  5. 5. Zappos calculated that the lifetime value of satisfied customers far outweighed the shipping costs to return disliked goods. By offering an unprecedented 365-day free return policy, Zappos captured the hearts of their budding consumer base and rode the trend all the way to become the top online seller of shoes. Zappos conquered a competitive market, not just through business model innovation, but through customer centric innovation. Case study: Zappos | Alpha-UX.co 4
  6. 6. There is no 100% foolproof way to build an organizational culture adept at launching products that are guaranteed to succeed. However, there are several integral steps that can be taken to increase the likelihood of success. These steps involve a change in mindset, activity, and engagement with your target customer. Based on this understanding, we’ve compiled a list of 5 key strategies for product managers to build successful products in the new era of business.... How to build products users love | Alpha-UX.co 5
  7. 7. We’ve compiled a list of 5 key strategies for product managers to build successful products in the new era of business: Listen to what customers say, but, more importantly, watch what they do Your job is to learn by building, not just to build Never settle for good enough Redefine your metrics for success Consider the entire user experience – in and out of the product 1. 2. 3. 4. 5. 6| Alpha-UX.co
  8. 8. There is no such thing as talking to your customers too much. Running surveys, hosting in-person interviews, and simply picking up the phone to talk to your customers are effective ways to start the process of soliciting feedback. Though it can be time-consuming to do all of this work yourself, the learning is invaluable. You should constantly be seeking the input of your target market on current products and new product concepts to understand what pain points and challenges they have. 1. Listen to what customers say, but, more importantly, watch what they do 7| Alpha-UX.co
  9. 9. James Surowiecki’s “Wisdom of the Crowds” notes that what emerges from a critical mass of feedback tends to be as close as one can get to the absolute truth. Surowiecki would be correct if you’re only tool was listening, but we’ve found that observing user behavior is even more critical and informative. Oftentimes, there is a massive divide between what people say and what they actually do. Malcolm Gladwell’s book, “Blink” and his TED Talk on “Spaghetti Sauce” illustrate this reality. In response to the idea that customers should provide input on their preferences, he says “The mind knows not what the tongue wants.” Only by putting together actual usage tests and monitoring and measuring behavior will you get real insight into what problems exist and how to solve them. Actions speak louder than words 8| Alpha-UX.co
  10. 10. Tests we’ve run for clients consistently show that what people say they would do and they actually do with a live product is very different. Listening to customers is very important and can provide a lot of incredibly valuable insight. However, unless you augment listening with observing, you’ll likely have blind spots and misinformation about what users want. Feedback from users needs to be put in the context of behavioral data to provide a complete picture. 9| Alpha-UX.co
  11. 11. 2. Your job is to learn by building, not just to build If a typical product manager were to define her job, a description would likely include words like “developing” and “launching.” In our experience, the most successful product managers focus on an end goal of learning. By reframing deliverables a experiments, you can transform launching into learning, while also meeting tactical goals. 10| Alpha-UX.co
  12. 12. Learning by building “Little Bets: How Breakthrough Ideas Emerge from Small Discoveries” by Peter Sims illustrates how this strategy was used by companies like Pixar and Apple. On our blog, we discuss how building up to a minimum viable product through experiments can limit your risk as you optimize product concepts to meet user needs leading up to a launch. In addition to making a habit of experimenting, it’s important to cultivate multiple sources of customer insight outside of product department. From the feedback customer success teams get from current customers to the objections sales people hear from prospects, getting out the door is critical to learning. 11| Alpha-UX.co
  13. 13. 3. Never settle for good enough In the modern digital word, products are forced to change quickly to avoid becoming outdated overnight. Sometimes they’re even outdated before they launch. Based on a survey of product managers at Fortune 500 companies, the average product development process takes more than a year. That means that by the time you release an app, you already have to get started on a replacement or upgrade to stay relevant. 12| Alpha-UX.co
  14. 14. What Steve Jobs can teach us Look no further than the evolution of the iPhone to be reminded of the pace of product change. The devices customers use and their capabilities (from gestures to speed to integrations) are constantly evolving. The pace of change has never been faster, so your product development process had better catch up! 13| Alpha-UX.co
  15. 15. How to stay relevant The most effective way to ensure your products stay relevant is to adopt an iterative approach to building and improving products. Treat each product launch as an opportunity to collect data. You’ll learn what’s working and what’s not working and can plan accordingly. Budget multiple iterations into your product roadmap. While an iterative approach does require more frequent releases of products and the necessity of keeping your finger on the pulse of industry change, you’ll save more time in the long run by building and adjusting instead of building with a more traditional product release cycle. 14| Alpha-UX.co
  16. 16. 4. Redefine your metrics for success A lot of companies make internal decisions to be more customer- centric. But at the end of the day, the top and bottom lines are how people are held accountable and decisions are made. Developing metrics based on how satisfied your customers are and holding people accountable for improving them can change an organization overnight. Revenue per customer and profit margins are important, but in the modern age, long-term success is tied to metrics like Net Promoter Score, in-product engagement, and retention. 15| Alpha-UX.co
  17. 17. Case study: eBay After laying off 10% of his company during his first year as CEO of eBay, John Donahoe realized that if he wanted to avoid a 10-year spiral the likes of Yahoo or AOL, he had to make aggressive changes. He tied 10% of senior management’s pay to changes in the Net Promoter Scores of customers using their products. Just a short while later, eBay recorded its biggest quarterly growth in more than a half decade. 16| Alpha-UX.co
  18. 18. Jony Ive, the renowned designer of Apple’s most successful products, admitted once that he was unaware of revenue figures. TechCrunch remarked: “...the celebrated designer is known for his focus on product design, and the fact that he doesn’t pay much attention to the company’s fiscal performance is a credit to the company’s long-stated belief of putting product before a desire to make money, with the argument being that customers will reward top-quality device design.” Ignoring revenue altogether is probably too extreme, but the philosophy is noteworthy. 17| Alpha-UX.co
  19. 19. 5. Consider the entire user experience – in and out of the product 18 A customer’s interaction with your organization does not begin and end entirely inside your products. If you don’t consider the entire customer journey -- from when they learn about your product all the way through dealing with customer support -- you’re not positioning yourself to succeed over the long term. In the modern age, social proof and online reputation can make or break a company and its product. | Alpha-UX.co
  20. 20. David vs Goliath 19 When it comes to customer service and support, startups consistently outperform larger organizations. Giving users an easy way to chat with a live person will not only increase their likelihood of becoming a customer, you’ll keep your finger on the pulse of what users are thinking and how your product and marketing can be improved. The user experience begins with marketing and sales and continues through to customer service and tech support. | Alpha-UX.co
  21. 21. Key takeaways & additional resources 20 Great change doesn’t happen overnight. Setting realistic expectations and deadlines is key when it comes to adapting an organization’s culture to be more responsive to the modern consumer. We hope this presentation gave you insight into the strategies and philosophies adhered to by customer-driven companies. For more resources, click the links below. Alpha UX Blog Infographic: The tools and services lean organizations use to build better products | Alpha-UX.co

×