Launching a new product is not a bed of roses. It calls for detailed probing, intricate planning, and timely interpretation. Only then can you expect a successful product launch. Though you are expected to be super-excited to launch the product, you should never hasten the process. This is primarily because 95% of the products don’t convert according to the expectations or business launching it. To maximize the chances of the product launch, you should plan well. The first thing that you should research in this regard should be what is product strategy.
What Do You Understand By a Product Strategy?
A product strategy happens to be an intricate plan that describes what a business aspires to realize with its products and how you plan to go for it. The strategy should be able to answer the questions like who the product is going to serve, how it will be advantageous to the personas, and the company’s goals for the product through the lifecycle. It includes:
- Goals – The product approach should lead to high-level strategic goals. The goals will influence what the team prioritizes.
- Product Visions – The long-term mission for the product is the product vision. These are written as inspirational and concise statements to articulate the hopes of the company regarding this product.
- Initiatives – These are the strategic themes needed from the product goals, and then they are placed on the roadmap. They are complex and large objectives that the team should break down into tasks to be performed.
Key Components of a Product Strategy
The product strategy should contain three key elements –
- The market for the product and the specific needs to be addressed.
- The product’s USP or key differentiators
- The business goals of the product
Now let’s understand why you need a product strategy.
Why Do You Need a Strategy?
The product strategy serves 3 primary business purposes. They are –
a) It Offers Clarity for the Company – The team will be in a much better position to deliver their best work when you draft and communicate a well-thought-out and clear product strategy to the organization.
Your developers will know how the product components that they work on contribute to the company’s largerstrategic goals. At times, the developers can feel lost amidst all the details and lose sight of the all-encompassing purpose beyond all their work. The product strategy simplifies that. The sales and marketing team will be able to articulate the benefits of the products and the USPs.
Selling becomes difficult without a defined strategy. Additionally, the customer success team will understand the products’ used cases and provide better support for the frustrations of the users.
b) It Assists in Prioritizing Any Product Roadmap – After earning the proposal, you have to translate the strategy into a high-level plan of action. Without a product strategy, the team can focus on the wrong items and misuse the limited resources and time. The product strategy can assist in translating to a more strategic, sound roadmap.
c) It Improves the Team’s Tactical Decisions – No company can deliver a product to the market following the exact initial plan. There are lots of things that change along the way. This is where a good product manager comes into play, as it is their job to help the team adjust their plans and priorities to ensure smooth operations regardless of how the initial plan changes.
With the help of a clear strategy, you can refer back to it whenever you want. This also helps to make smarter decisions about adjusting the plans if you have to change the estimated timetables and lose resources.
Now that you have some information about what is product strategy and why it is necessary to create a robust plan that will help you strategize and achieve maximum conversions for your business.