New Series! Situational Product Management - Episode 1
Navigating the Crossroads: Mobile App vs. mWeb in Product Management
Greetings, Product Enthusiasts!
Welcome to the first edition of our Situational Product Management series. Here, we'll unpack real-world scenarios faced by product managers, offering a lens into the intricate decision-making processes that shape our digital landscapes. Let's dive into our first scenario, a classic conundrum I faced as a young product manager: "To build or not to build a mobile app?"
The Mobile App Temptation
In an era where mobile apps were the new frontier, the pressure to jump on the bandwagon was intense. As a young, ambitious product manager, my initial reaction was an enthusiastic yes. Building an app seemed like a career-defining move and a way to strategically build my resume to open up more doors. But then, my training kicked in. I had to peel back the layers, examining market trends, customer feedback, and cost implications – a process echoed in the Product Protégé Guide.
Customer Insights: The Turning Point
For some context, we already had a presence on the mobile phone, it was our mobile website. We had a responsive site that changed experience based on the device dimensions, but we didn’t do much when it came to the mobile experience.
Our data analysis revealed that while 40% of our customers browsed our mobile site, the conversion rate was a mere 1.4% compared to 3% on desktop.
Delving deeper, customer feedback indicated that while mobile shopping was desired, our mobile site's poor experience was the barrier, not the absence of an app. The insights were clear: customers were not clamoring for an app, especially one that didn't promise significant added value. We made sure survey or in person participants understood how the app could send push notifications on deals and loyalty status, to consider how bio-authentication could help reduce friction to sign in, and also the ability to scan UPC barcodes to get ratings and reviews for the products. While the UPC barcode scanner and tie into loyalty was somewhat received with interest, the overwhelming feedback was more about the poor mobile website experience than it was the need for an app.
It was clear the enhancements of app specific features for this particular market were not as desirable as in other markets.
Our market data showed that customers typically shopped our brand 3 times a year. With low visit rates, a lot of the upside of having real estate on their mobile device didn’t seem as appealing.
One person even mentioned “if I downloaded the app, I’d forget I had it and would go to the mobile website anyway”
Cost vs. Value: The Hard Numbers
The financials were stark. Building and maintaining an app would cost upwards of $350k in the first year, with ongoing costs in the following years. Was this investment justifiable given the lukewarm customer interest and our current mobile site's underperformance? The numbers didn't add up. Especially when you add the required marketing budget to drive customers to change habits as well as the hidden costs like lost revenue from a possible sub par experience out the gate, additional QA cycles required to test a new channel as well as ensure that as new features are added to the website, we also most likely had to add them to the mobile app to have parity.
The Strategic Pivot: Enhancing mobile Web
The path forward became clear. Instead of diverting resources to a new channel with uncertain returns, we decided to double down on improving our existing mobile website. This approach aligned with our customers' expressed needs and promised a better return on investment by potentially increasing our mobile conversion rates significantly.
Making the Case: Data-Driven Decisions
Presenting this alternative to my SVP, who was initially pro-app, was challenging. It required a blend of hard data, customer insights, and cost-benefit analysis – all strategies detailed in the Product Protégé Guide.
The decision ultimately rested on what was best for the customer and the business, not personal career advancement. My job was not to make the decision, but to provide a perspective on the market, our business, our customer, and how I would push forward.
While I had the intent on pushing us one direction, fixing mobile web, I was not attached to the outcome. I would have gladly built the app if everything I mention was overridden by other factors I did not consider. Luckily, the data was strong enough for us to pursue a better mobile experience, fix the areas our customers already shop vs. trying to shift them into a different channel.
The Outcome: A Lesson in Thoughtful Decision-Making
The decision to enhance our mWeb experience paid off. It was a testament to the power of data-driven decision-making and understanding the true needs of your customers. It also highlighted the importance of weighing the cost against the potential value – a fundamental principle in product management.
Value vs. Cost Prioritization: mWeb Build-Out vs. Mobile App
When faced with such dilemmas, the Product Protégé Guide offers a framework (one of many!) for value vs. cost prioritization:
Assess Customer Usage and Preferences: Look at how often and in what ways customers interact with your current platforms.
Calculate Potential ROI: Estimate the return on investment for each option, considering both direct revenue and indirect benefits like customer satisfaction and engagement.
Resource Allocation: Consider your team's bandwidth and the cost of external resources. Weigh these against the potential gains from each project.
In Conclusion
As product managers, our journey is often a balancing act between innovation and pragmatism, career aspirations, and what’s best for our customers. These real-world situations serve as vital learning opportunities, guiding us to make decisions that align with both customer needs and business objectives.
Join me next week as we unravel another scenario from the trenches of product management. Until then, remember – every decision you make shapes the product's journey. Navigate wisely!
Until next week protégés!
P.S. What challenging decisions have you faced in your product management journey? Share your experiences and how you navigated them!
