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Growth Strategies Across the Product Lifecycle

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Understanding strategies and tactics to create growth opportunities is critical to become a differentiator and enable your product to have a long and successful part in your overall company strategy. Paul Morgan & Kamal Tahir presented this deck at the Product Management, Innovation and User Experience Conference in June 2014, Chicago, IL.

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Growth Strategies Across the Product Lifecycle

  1. 1. Growth Strategies Across the Product Lifecycle STRATEGIES TO MAXIMIZE THE POTENTIAL OF YOUR PRODUCT DISCLAIMER : THIS PRESENTATION, THE VIEWS AND ASSERTIONS MADE ARE THOSE OF THE PRESENTERS AND IN NO WAY REPRESENT THOSE OF THEIR RESPECTIVE EMPLOYERS. CONFERENCE ATTENDEES ARE SOLELY RESPONSIBLE FOR DETERMINING THE VALIDITY, ADEQUACY AND FITNESS OF ANY INFORMATION, MATERIALS, PRODUCTS OR ANYTHING ELSE PRESENTED FOR ANY AND ALL USES
  2. 2. Introductions THE PRESENTERS & TOPIC
  3. 3. Paul Morgan @paulmorgan | linkedin.com/in/paulmorgan o Director of Trade Analytics, Nielsen o Past: Senior Product Manager, Global IT Program Leader, Software Architecture, UX o Industries: Banking, Finance, Automotive & Consumer Packaged Goods Kamal Tahir @kamaltahir | linkedin.com/in/kamaltahir o Senior Strategist o Past: Senior Product Manager, Global Product Leader, Global Marketing Manager, IT Consultant o Insurance, Finance, Automotive, Retail & Consumer Packaged Goods
  4. 4. Our actionable outcome for today : Inspire & enable you to create realistic growth strategies Agenda Introduction to presenters and the topic The traditional Product Lifecycle growth opportunities Hacking the Product Lifecycle Q&A Wrap-up
  5. 5. What is Product Growth? Market Share Revenue Capacity Diversification Capability Users / Subscription Human Skill / Capability Emotional Attachment
  6. 6. What is a Growth Strategy? Product Influence and Changes that lead to an increase in growth  Broad Spectrum Coverage  Team Effort – Product, Marketing, Data, Engineering, etc. are all required to engage growth strategies  Growth Rate is the Measure Awareness of the Product Acquisition of users / companies Activation of Purchase Retention of Customers Revenue / Financial Referral Usability Partnerships / Mergers Types of Growth Strategy Usability
  7. 7. The Traditional Product Lifecycle GROWTH STRATEGIES
  8. 8. Traditional Product Lifecycle Stages 1. Product Development 2. Market Introduction 3. Growth 4. Maturity 5. Decline / Retirement Strategies using a linear trajectory is a self-fulfilling prophesy; each of these stages can create new opportunities for revisiting prior stages.ProductDev Introduction Growth Maturity Decline& Retirement Innovators Early Adopters Early Majority Late Majority Laggards Sales Time
  9. 9. Why You Need A Product Roadmap Enhances Emotional Attachment
  10. 10. It Really Happened!  Written for everyone – Sales, Marketing, Communications, IT, Support  Stated and Answered “Why are we doing this?”  Graphic rich with examples / contextual samples  Future-proofing statement derived from the Product Roadmap Marketing Requirements Document Result: Clarity, Enthusiasm, Engagement, Collaboration, Emotional Attachment
  11. 11. 1. Product Development  Innovation  Process (Redfin), Product (Wii), Market Research  Growth Strategies (Ansoff’s Matrix)  Market Penetration  Market Development  Product Development  Market Diversification  Low Cost Product Development
  12. 12. Low Cost Product Development (1. Product Development)  Voice of the Customer Insights  Outsourcing Development / Engineering to Suppliers  No-frills, Low-cost Engineering – Flexible Development Process  Agile / XP / Lean Development w/ Open Architecture  Global Marketing template with local market customization  Emerging Market R&D Office LowCostProductDevelopmentPrinciples Strategy Process People
  13. 13. It Really Happened!  Global need - Environmentally compliant product validation  Approach - disassemble each product down to base material and test and certify  Complexity - volume by region, speed to market, volume by season by industry, build labs, hire people  Solution – license labs, partner with BOM software, make it a data and analytics supported information - Product Best in Class Lost Cost Product Development Result: Winning solution for all parties; cost reduction was pervasive
  14. 14. 2. Market introduction  Advertising – Message, Channel, Timing  Price, Promotion  Freemium – use judiciously  Value statements  Early Adopter Programs – e.g. Google Glass  “Trade” Buzz – trade articles, social, industry analysts (e.g. Gartner, Forrester), viral
  15. 15. It Really Happened!  AMR rating generated interest from a major networking equipment manufacturer in US, largest wire and cable manufacturer in Asia  Magazine article generated a call from VP of one of the largest companies in US to do a pilot ASAP  Outbound sales numbers were sub 50% of revenue from the major clients coming from analyst endorsements Industry Analyst Review Result: Accelerated Organic growth of sales through pull demand
  16. 16. It Really Happened!  Global Vehicle Manufacturer (US based) introducing a new model  Prior had used translated English Marketing Messages  Switched to marketing messages contextually to the locale (e.g. Spanish) Context Leads to Growth Result: Marketing messages were “stickier” with target markets, creating growth in brand awareness
  17. 17. 3. Growth Phase Initially rapid sales leading to stabilization  Core Strategies:  Price  Promotion  Place (Distribution)  Product – value through differentiation  People – the 5th “P”  Hacker Strategies  Predictive  Personalized  Permissive  Peer Reviewed  Proactive / Prescriptive
  18. 18. 4. Maturity  Price, Promotion efficiency  Create occasion use velocity  Integration – own brand or third party services  Look for unmet needs  Efficiencies  Diversification  Finer Segmentation  Channels & Geographies  Customers  Usage (e.g. WD40, duct tape),  Reselling programs – e.g. Amazon Cloud, Credit Reports “Redefine your market to one in which your current share is no more than 10%.” – Jack Welch Nike (went from Sports to Leisure Clothes), Coke (Soft Drink to Beverage market), AT&T (Long distance calling to voice, image, text, data, cellular)
  19. 19. It Really Happened!  Competitor was aggressively pricing on contract renewals  Their services were positioned as equal  Professional relationships, Industry knowledge and Quality of Results revealed that there was a non-monetary cost incurred to client Value over Pricing Result: Clients stayed or returned; value was in the quality of service and the results seen. New clients, previously from competitor, also moved.
  20. 20. 5. Retirement Typical causes : Sales decline over threshold, competition, unsupportable components, cost of ownership, market/channel shrinkage  Resale e.g. IBM ThinkPad purchased by Levono  Componentize  Create strategic pathways to your other products  Use frameworks, e.g. “Porter’s Five Forces”, to help analyze your exit strategy Threat of New Entrants Bargaining Power of Suppliers Threat of Substitution Bargaining Power of Buyers Rivalry of Competitors http://bit.ly/5_forces
  21. 21. Hacking the Product Lifecycle GROWTH STRATEGIES
  22. 22. Brand Development  Youngme Moon : “Idea Brands” – Cirque du Soleil, Dove Soap, Harley Davidson, Dyson “Idea brands are not perfect brands…they are polarizing brands… are lopsided… devoted to the skew …They may not make much sense on paper, but they make perfect sense to us.”*  Brand Differentiation Hierarchy – e.g. Ford >> Lincoln; VW >> Audi, Scion << Toyota >> Lexus  Strong Brand Message >> Brand Equity *Source: Youngme Moon and Why Being Different Makes All the Difference http://bit.ly/ideabrands
  23. 23. Obsess over data  Know Your Customer – measure everything  Web Analytics, Helpdesk Usage, CRM, Contextual Product Access, Heat Tracking, User profiling, Automated Telephone system  Valuable currency to support change and growth, build context and segmentation  Create value-models  Maximize the Business Opportunity >> Create measurable ROI  Create Value-centric Products >> Benefits Customer & Stakeholders  Deep Relationships >> Retention / Loyalty
  24. 24. Data Drives Context – Which Drives Growth Strategies http://bit.ly/marketingbrain  Data Driven Approach  Strategy – Data improves Marketing Performance  Application – Data helps improve ROI  Analysis – Enables understanding & fine tuning  Context Driven Approach  Alignment – Content <> Persona mapping creates better response to Marketing  Distribution – Using multiple channels of communication Data + Context creates actionable strategies related to growth activities
  25. 25. User Experience Goals  Ease of Use  Meets Expectations  Aligns to Business Objectives Creates  Longevity of Value  Key to Retention  ROI
  26. 26. User Experience Should be Pervasive Throughout the Product Lifecycle  Every year US$1 Trillion+ Worldwide IT Project Spend  15% (~US$150BN) Projects failed  Cost of IT re-work is 100 X cost vs. cost before production  Estimated 50% of developers time is spent fixing issues Source: IEEE - http://bit.ly/whysoftwarefails | also see http://bit.ly/ROIofUX  Top Reasons for Failure:  Failed to meet requirements  Poor communication end-to-end  Stakeholder Politics
  27. 27. Voice of the customer  Focuses attention on real needs  Great forum to socialize concepts  Creates Emotional Attachment to the Product with your customers  Important to get variety of input – different groups within your user base (current or potential/future)  Direct – through interviews, feedback mechanisms, online surveys  Indirect – Sales team, Customer Services, Helpdesk, Training
  28. 28. It Really Happened!  Onboarding clients required a standard industry reports  Conducted “VOC” sessions to understand business purpose / need  Created a collaborative concept model with enhanced analytics  Delivered high impact visualizations w/ ease of use; sold itself within the clients From How? To Wow! Result: High impact capability driven through client collaboration created strong emotional attachment leading to “what else can you do?” conversations
  29. 29. White Label  Build out Product Capability Portfolio  Increase Distribution  Examples:  Firestone Walker produces Trader Joe’s Mission St. Beer  Major Brand Coffee is white labeled in Grocery Stores  “Private Label” Grocery items made by mainstream manufacturers  Software companies create SDKs for others to re-label and sell as their own solution
  30. 30. Prototyping  Think outside the box – blue sky  Create “what if” scenarios  Get Buy-In – both internally and externally (as part of “Voice of the Customer”)  Potential pre-sales, pre-launch tool to generate lead growth  Avoids making expensive mistakes
  31. 31. Beta / Pilot - “Start small build fast”  Don’t boil the ocean  Iterate / Agile Sprints  Still an opportunity to correct mistakes  Rapid deployment  Listen to your supporters  Have a roadmap to go beyond launch “Google first showcased the product … 80-minute video on YouTube…watched more than 4m times... The buzz about the collaboration tool soon became deafening. Some have claimed that Google Wave is just an "email and instant messaging on steroids", but it could change the way web users collaborate.” – The Guardian Online http://www.theguardian.com/media/pda /2009/sep/30/google-wave-beta-testing
  32. 32. Viral Marketing  Requires Emotional Response  Incentivize your market  Dropbox – every referral = 250mb additional free storage – went from 100k to 4M users in 15 months (35% from referrals)*  Uber – refer a friend = $20 credit to you  Not for every product – needs value to be obvious to new and/or existing clients/users  Caution – Consumers are more than willing to “out” a brand based off their personal & emotional experiences… *Dropbox growth numbers: http://www.referralsaasquatch.com/dropbox-customer-referral-program-by-the-numbers/
  33. 33. Viral Marketing Can Go Wrong
  34. 34. Recapping Today’s Discussion The traditional Product Lifecycle growth opportunities Hacking the Product Lifecycle Q&A Wrap-up • Define Strategy Types • Define Product Growth • 5 Stages of the Product Lifecycle • Brand Development • Obsess over Data • User Experience • Voice of the Customer • White Label • Prototyping / Beta • Viral
  35. 35. Q&A / THANK YOU Paul Morgan @paulmorgan | linkedin.com/in/paulmorgan Kamal Tahir @kamaltahir | linkedin.com/in/kamaltahir

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