The business value of being product led
•Download as PPTX, PDF•
0 likes•100 views
Presentation from How to Web Bucharest, offering some thoughts on the current economic landscale, some key pillars of the product led movement, and some tangible benefits to help product leaders build the business case for investment in product teams and tooling.
Recommended
Recommended
More Related Content
Similar to The business value of being product led
Similar to The business value of being product led (20)
More from James Mayes
More from James Mayes (10)
Recently uploaded
Recently uploaded (20)
The business value of being product led
- 1. The business value of being product led James Mayes September 2022
- 2. • Product managers have to answer questions like “what” and “how” • Product leaders have to show an impact and an outcome. • Business leaders want to know “how much”
- 4. Get some therapy How we make people feel is of crucial importance These events are as much about the talks from the stage as they are the peer therapy on offer “My CEO is insane and my engineers all hate me!”
- 5. Global macro-economic landscape Consumer & company cash has decreased buying power Stagflation Growth rates fall - new accounts, account expansions both suffer
- 6. Global macro-economic landscape Rising interest rates Capital becomes more expensive: pressure to do more with less VCs and banks are more conservative in both funding and credit supply
- 7. Global macro-economic landscape Global liquidity crunch IPOs delayed M&A focussed on fire sales and distress deals
- 8. “Consumers have changed more in the last two years than they have in the two decades”
- 9. Meet James! Cofounder and former CEO of Mind the Product • 300,000 product managers in the community • Meetups in 200+ cities • Training for banks, startups, streaming media and more • Exited to Pendo February 2022 VP & Evangelist for Pendo • The only complete product experience platform • Thousands of clients and data points|
- 13. Resource hub: https://www.pendo.io/product-led/ Key elements of the product led movement Business product as the driving force at the heart of all things, empowering teams to engage users and accelerate customer journeys Align around Product Extensive use of data to inform decision making, identify opportunities, inform the roadmap Data driven decisions Free trials, freemium plans and self guided tours. In app messaging to drive upsell, cross- sell, customer expansion Product leveraged for marketing Polished and scalable onboarding, intuitive, and unlocking customer value early in the journey. Use of analytics to drive custom guide creation Stellar onboarding & empowerment Capture the voice of the customer, inform the roadmap, iterate n the experience to drive loyalty and advocacy Feedback & communication
- 14. Resource hub: https://www.pendo.io/product-led/ Key elements of the product led movement Business product as the driving force at the heart of all things, empowering teams to engage users and accelerate customer journeys Align around Product Extensive use of data to inform decision making, identify opportunities, inform the roadmap Data driven decisions Free trials, freemium plans and self guided tours. In app messaging to drive upsell, cross- sell, customer expansion Product leveraged for marketing Polished and scalable onboarding, intuitive, and unlocking customer value early in the journey. Use of analytics to drive custom guide creation Stellar onboarding & empowerment Capture the voice of the customer, inform the roadmap, iterate n the experience to drive loyalty and advocacy Feedback & communication
- 15. Resource hub: https://www.pendo.io/product-led/ Key elements of the product led movement Business product as the driving force at the heart of all things, empowering teams to engage users and accelerate customer journeys Align around Product Extensive use of data to inform decision making, identify opportunities, inform the roadmap Data driven decisions Free trials, freemium plans and self guided tours. In app messaging to drive upsell, cross- sell, customer expansion Product leveraged for marketing Polished and scalable onboarding, intuitive, and unlocking customer value early in the journey. Use of analytics to drive custom guide creation Stellar onboarding & empowerment Capture the voice of the customer, inform the roadmap, iterate n the experience to drive loyalty and advocacy Feedback & communication
- 16. Resource hub: https://www.pendo.io/product-led/ Key elements of the product led movement Business product as the driving force at the heart of all things, empowering teams to engage users and accelerate customer journeys Align around Product Extensive use of data to inform decision making, identify opportunities, inform the roadmap Data driven decisions Free trials, freemium plans and self guided tours. In app messaging to drive upsell, cross- sell, customer expansion Product leveraged for marketing Polished and scalable onboarding, intuitive, and unlocking customer value early in the journey. Use of analytics to drive custom guide creation Stellar onboarding & empowerment Capture the voice of the customer, inform the roadmap, iterate n the experience to drive loyalty and advocacy Feedback & communication
- 18. How roadmap decisions are made: 2021 vs 2022 Search: Pendo State of Product Leadership 2022 – download the full report
- 19. How roadmap decisions are made: 2021 vs 2022 Search: Pendo State of Product Leadership 2022 – download the full report
- 20. Average reported results Capital efficiency 30% increase qualified leads 28% increase TAU 27% reduction onboarding time 5% churn reduction 15% increase NRR 30% faster realisation of ROI Search: Pendo business value of being product led – download the full report
- 21. Average reported results Capital efficiency 30% increase qualified leads 28% increase TAU 27% reduction onboarding time 5% churn reduction 15% increase NRR 30% faster realisation of ROI Search: Pendo business value of being product led – download the full report
- 22. Average reported results Capital efficiency 30% increase qualified leads 28% increase TAU 27% reduction onboarding time 5% churn reduction 15% increase NRR 30% faster realisation of ROI Search: Pendo business value of being product led – download the full report
- 23. What are my options?
- 24. What are my options?
- 25. What are my options?
- 26. What are my options? james@mindtheproduct.com @james_mayes
- 27. Onboard 100,000 new users to a new platform Product led tactics – analytics informing which guides and prompts to build, contextually delivered to users New users onboarded overnight, 30% reduction in support tickets, $2m cost savings Challenge Product CASE STUDY FS example Results
- 28. Resources Business Value of Being Product Led - report State of Product Leadership 2022 - report Pendo product-led resource hub
- 29. Get Product Led Certified! https://www.productledcertified.com/ Discount code: goproductled = 100% discount!
- 30. Connect – my network is yours Get your therapy Go product led for outsize returns @james_mayes or james@mindtheproduct.com
- 31. Bonus point - Align all the things! @james_mayes or james@mindtheproduct.com
Editor's Notes
- The shift of businesses to a product led mindset has been gathering pace recently. We’ll see more hard data that can be used to take our execs on this journey This can unlock budgets for both the tools and the resources necessary for this paradigm shift. I wanted to deliver a session on the commercial aspects today for a few reasons, and we’re going to do with a mix of personal stories, and some solid data. Y’all ok with that? Let’s GO.
- This is the common picture. We need to fix the disconnect and build commercial awareness across the organisation. Hands up if you’re a product person? PM sessions focus on the more on the technical product aspects - how to build a roadmap, do customer discovery, manage your backlog, and so on. Few talk about the business aspects of becoming a truly great product led organisations, and if we don’t understand the benefits and the potential numbers, it’s tough to sell that journey (and the investment needed) to your execs.
- As a refresher of where Product sits, I’ll remind you of my cofounder, Martin Eriksson’s seminal post. So many Product people are amazing at both customer understanding and technology possibilities – but miss that third circle. In so many ways, Product Management truly is decision making as a service
- Based on my own experiences over the last year, I want to call back to one aspect of Matt’s session before we go deeper here. A theme that stood out strongly for me is that much of that we do is about how we make people FEEL. With that in mind, a quick story and a word of advice for your time at How to Web. First ProductTank? “My CEO is insane and my engineers all hate me!” Make the time to make meaningful connections. They may save you in the hard times ahead.
- Product people need to be more aware of today’s changing economic landscape. Why? Recession or even stagflation in some regions will see reduced buying power, falling growth rates, new and expansion sales suffering. For the next few years, EFFICIENT GROWTH will be the phrase on the lips of every business leader – not growth at any cost
- We can no longer buy growth in the way we once did Marketing spend will be under pressure to be ever more effective Whether you rely on revenue earned, VC funding, or maybe bank loans, every single source is becoming more conservative
- IPOs are already being delayed – that impacts the release of funds to those early rockstar employees who often become the next round of angel investors M&A activity will be focussed on those firms who can’t earn their way out of trouble, or find their VCs no longer willing to follow on Winter is coming, and it’s going to be brutal. We ALL need to demonstrate greater efficiency with every resource we have
- Before we get into the detail here, let’s just check the context in which the research I’m sharing has been done. There’s no doubt of the huge shift in every customer behaviour over the last couple of years. Our working lives, our travel, our groceries, our children’s schooling, even our pet care. Everything has changed - and there’s a greater sense of distance between us, our teams, and indeed our customers than ever before. – but we have better data tooling than ever!
- Why am I the right person to share this? Firstly, I have a wider view across the global product scene than most Secondly, I work in the abstract. I’ve not worked at the battlefront of product, and I won’t pretend I have. I will tell you to pay close attention to Bruce McCarthy, coming up soon!
- STOP! We also cannot talk PLG without mentioning this seismic deal! Adobe just entered an agreement to acquire Figma, for a whopping $20billion This is one aspect of the business value ;)
- As you can see here, Figma did an amazing job of putting the Product at the heart of the growth experience. One of the key differentiators was thinking cloud and collaboration first, as opposed to Adobe’s major limiting factor – locked to the PSD format to ensure backwards compatibility Figma enabled their users to do the marketing and sales FOR them, a core of product led approaches
- Astonishing growth, right? Left axis/ purple = valuation growth Right axis / red = ARR growth Can you spot the point where the product led strategies really started to activate? Was Adobe’s purchase powered by fear? Maybe!
- These five pillars represent the core of the product led movement These techniques will help deliver a delightful product experience, encouraging meaningful adoption, deeper engagement, and as a result, sustained retention. In this turbulent economic landscape, I think we all see the value in a little churn reduction!
- Product led is a strong growth strategy - Acquiring new customers with trials - Driving upsell with freemium conversation - Expansion within existing paid accounts.
- Improved efficiency is unlocked by making data informed decisions the norm, and ensuring the voice of the customer is heard early and often It’s now possible to make decisions faster and more accurately, speeding innovation, increasing operational agility, and reducing the time to return on investment
- In-app enablement drives users to greater productivity while also making your internal processes more efficient. Not only does this help with the churn reduction we’ve already mentioned, but it’s also been shown to drive down support tickets and deliver significant cost savings. There’s a case study later on this!
- So we’re agreed, product led approaches have a lot to offer. It requires investment though – time to change, maybe hires to make, and almost certainly better tooling Let’s give you some actual data!
- So where do we get that data? By becoming truly product led, placing the product at the heart of the customer experience AND providing your teams with the appropriate tooling, you can track interaction data throughout the product. Let’s democratise that data and deliver intel back to people who can USE it.
- What is compelling right now is the increasing rate of adoption and strategic use. Our research shows the percentage of data driven companies using quantitative insights nigh on DOUBLED in the last year, up from just 37% in 2021 to 71% this year. Which bracket is your organisation in? Leading companies are 6x more likely than mainstream firms to lead with data in making strategic decisions.
- I said I’d share some numbers to help build a business case for investment. Feel free to take a photo, make a note of the search term, or email me after for a link. This report by Pendo surveyed hundreds of customers around the world and all the data is available to you at no cost.
- As the economy started it’s downward slide earlier this year, capital efficiency was the phrase in every VC warning note I saw. “Move array from growth at any cost, move towards capital efficient growth”, we kept hearing
- Do more with less – and we’ve all seen the lay-offs, right? Been asked to extend your runway? You’ve got three options: - Go for another raise. Uncomfortable right now! - Increase revenue - Cut costs You want the happiest execs around? Propose solutions which can support these second two – and then when you do raise again, it’ll be with a stronger deck!
- The product management landscape has exploded over the last decade. Endless options! This is from 2020. While some of these are no longer around, new entrants have emerged – change is the only constant!
- Going forward, we’ll see two major things occurring over the next couple of years, maybe even before 2022 closes out More firms vying to be the “product experience platform” and moving away from point solutions as customers become more demanding (this means you) and look for stronger data stories. Rise of Product operations teams A frenzy of M&A activity as some firms come to the end of their runway, struggle to unlock growth and fail to gain follow-on funding
- To be truly product led, you need to enable your teams to - Assess the health of your customer relationships through analytics - Build guides and prompts to optimise usage and drive adoption - You need to create playbooks to identify at-risk accounts and drive down churn - Build contextual guidance to prioritise user outcomes and truly drive customer advocacy – delivering product led growth BE MORE DEMANDING
- Help! Who did I miss? Take 30 seconds right now – help me to help you, let’s crowdsource these tools! Email me, I’ll compile the full list of contributions, and I’ll share it with y’all when done.
- OK, let’s do more numbers. We started with Figma, a startup with astonishing growth. Hands up those not in a startup? Let’s go to the other extreme, and do cost savings for a major bank. Being product led has more than just growth to offer - would any of your execs turn down a cost saving of $2m?
- I mentioned data from both these report earlier. Both came out earlier this year, so they have validity in this post pandemic world They cover datapoints from hundreds of customers, both startup and enterprise, from around the world In addition, there’s a massive resource library on the site on how various different customers are making progress with moving to product led approaches Whether you’re a Pendo user of not, these case studies will show you exactly how your competitors are addressing these challenges right now. Get inspired.
- Final resource to offer you: Mind the Product have been sharing the best product mgmt content for over a decade With our new Pendo family, we have access to more resources than ever before, and we’ve been able to build this resource to help you get started. Launched earlier this month. 7,000 sign ups in the first week Free, but for a limited time only
- I’m easily found across LinkedIn, Twitter or plain old email. I’ve spent a decade building my network in Product, every market, every country. If you need help, if you need connecting to a tool, a service or an expert – please come ask me. My role now isn’t to close deals, it’s to help others build amazing product led businesses! Get your peer therapy and build YOUR network here. You’re in the right place Go product led. It’s more than just growth.
- When I heard the legendary Bruce McCarthy was up next, I had to add one short story to set this next session up. At a previous startup I worked with, we attended a careers event to hire engineers. A candidate comes over to our booth, and starts chatting to one of the junior devs. “I’ve checked your site” he says, “I like the look of what you’re trying to do here. One question though” he asks: “How do you plan to make money?” Our junior dev looks stunned for a second, look shaken, but makes an attempt: “Uh, investors?” No-one had taken the time to explain the core business model to the whole team. The people who were building the product had no idea how it was actually planning to monitise.