Have you ever wondered about the secret sauce to the success of seven companies like Amazon, Ikea, Microsoft, or Coca-Cola? The common denominator in achieving their global ambitions is their product strategy. A survey conducted across top organizations shows that nearly 70% factor in their product strategy when making critical decisions, such as the marketing strategy for a new product, research and development, and customer use cases. Startups and Small and Medium businesses can learn from these organizations to develop a winning product strategy for their products and services. But what is a product strategy, and why is it essential for an organization to develop a great product strategy? We discuss this and the best framework to create a successful product strategy.
What is A Product Strategy?
A product strategy is a series of steps to help companies bring the envisioned product/service to life. Essentially, the product strategy is a road map that helps employees understand what the company wants to achieve with its products and the steps involved in accomplishing it. A product strategy helps identify how a company’s product first into the market, the target customers who’ll benefit from it, and how it complements the other products and services in the company’s portfolio. A well-thought-out product strategy can help position the product right, clearly differentiating it from available offerings in the market and identifying why it will be the preferred choice for the customers.
Why Should You Employ a Product Strategy?
There are several benefits to developing a successful product strategy. When a clear and well-thought-out plan is in place, teams at the company will be in a better position to work together to deliver their best and achieve the set targets. In addition, the sales and marketing teams in the organization will be able to identify better and articulate their unique selling propositions. Customer success teams will also determine the use cases for their products to better help their customers deal with support. The product strategy helps the development team keep true to the drafted vision and stay focused.
In addition to helping employees better understand the product and their roles, the product strategy also helps prioritize the roadmap. Building a compelling roadmap with a high-level action plan will help management prioritize the straightforward tasks that will help advance the vision to get the product to market. In the absence of a roadmap, the likelihood of misaligned prioritizations, measurement metrics and allocation of time and resources is a given, resulting in delays and many mishaps – a product strategy fixes this, making product development streamlined & result oriented, saving both cost & time.
Check out this article for more information on how to develop a successful product strategy.