4 Crucial Product Management Insights I Wish I Knew Sooner
I wish I could have shared this with myself early in my product career
Today, we dive into the fundamental skills and knowledge that set the stage for a successful career in product management.
Let’s look at some of the essentials I wish I knew when starting my product management career. I include examples for each to really make sure I stay true to my promise of a tactical weekly product management newsletter.
1) Understanding Market Needs
The core of product management isn't just about managing products—it's about solving real problems. Start by understanding the needs of your market. Dive deep. Talk to your users. Analyze the data. Remember, a solution isn't valuable unless it genuinely addresses a user's pain points. Reflect on every feature, every update, and ask yourself—does this or did this solve a problem for someone?
Let’s look at some examples…
Good Example: Proactive Problem Solving in Password Management #UnderstandingMarketNeets
Imagine a product manager, let’s call her Angela. Angela oversees the user experience for a popular mobile banking app. Through analyzing support tickets, conducting surveys, and reviewing user session data, Angela realizes that a significant number of users frequently forget their passwords, leading to a high volume of support calls and user frustration.
Angela decides to address this issue head-on. She organizes a pitch deck to highlight this problem to stakeholders, using data to show how this issue impacts customer satisfaction and operational costs. Angela then drafts a roadmap proposing three incremental solutions to reduce this friction:
Biometric Authentication: Introduce fingerprint scanning and facial recognition for app login, providing users with a quick and secure way to access their accounts without remembering complex passwords.
Third-Party Login Integration: Implement sign-in options via Google and Apple accounts, leveraging existing trusted systems to ease the login process.
SMS Passcode as a Backup: For users unable or unwilling to use biometric or third-party logins, introduce a system to send a one-time SMS passcode, allowing them to bypass traditional password inputs while maintaining security.
By prioritizing user needs and integrating modern authentication methods, Angela not only improves user satisfaction but also potentially reduces the volume of support requests related to password recovery.
Bad Example: Misguided Search Optimization #UnderstandingMarketNeets
Now, consider a product manager named Brian who is responsible for the search functionality of an e-commerce platform. Brian observes that the search feature has a high bounce rate and hypothesizes that users are overwhelmed by too many search results. Without further investigation into user behavior or feedback, Brian decides to revamp the search feature.
His "solution" involves developing an algorithm that guesses which product a user is likely to purchase based on their search terms and automatically directs them to that product’s detail page, bypassing the search results page entirely.
This change results in immediate negative feedback from users, who find themselves frustrated and confused when they are taken directly to a product page that often does not match their intentions. The lack of options and autonomy in the search process leads to an increase in user dissatisfaction and an even higher bounce rate. Brian’s approach shows a clear lack of understanding of market needs and user behavior, as he implemented a feature based on assumptions rather than actual user feedback or data.
These examples highlight the importance of deeply understanding user behaviors, needs, and pain points before attempting to solve perceived problems. Angela’s approach of using data-driven insights and incremental improvements contrasts sharply with Brian’s assumption-driven strategy, underscoring the important nature of aligning product features with real user requirements in product management.
2) Crafting Business-Aligned Strategies
Once you've grasped the market needs, align your product strategy with your business goals. This isn't about ticking off features on a list; it's about ensuring that every product decision supports the broader objectives of your organization. How does your product contribute to the company’s bottom line? Can you articulate this alignment clearly to your king KPI? This clarity will not only guide your product development but also communicate its value to stakeholders effectively.
Let’s look at some examples…
Good Example: Strategic Alignment in SaaS Product Expansion #BusinessAlignedStrategy
Consider a product manager named Ashley who manages a SaaS platform designed for small businesses. Recognizing the growing demand for workflow features in surveys they send to existing customers, Ashley proposes an expansion of the platform's features to include automated invoicing and payment tracking—services her market research shows are highly sought after by her current user base.
Ashley aligns this expansion with her company's strategic goal to increase user retention and upsell premium features. She presents a clear business case to her stakeholders, outlining how the new features will not only meet market needs but also drive increased subscription upgrades, thus increasing the company's recurring revenue. She supports her proposal with data on user requests for such features and competitive analysis showing a gap in the market.
By connecting the feature build out directly to key business metrics like retention rates and revenue growth, Ashley ensures her product strategy directly supports the company’s broader objectives and communicates this alignment effectively, gaining strong support from both her team and the executive board.
At any point in her communication, she could have taken the pillars, guardrails, or themes of the companies strategy and the idea fit nicely within those strategic approaches.
Bad Example: Misaligned Feature Development in eCommerce #BusinessAlignedStrategy
Now, consider a product manager named Tom who oversees the digital interface of a large retail brand. Tom decides to implement a cutting-edge augmented reality (AR) feature that allows users to visualize products in their home environment before making a purchase. Tom notices in the news how AR is getting a lot of attention and decides that this would make him seem relevant with the market if he were to bring this idea to life. While technologically advanced, Tom rushes into development without a clear understanding of how this expensive feature aligns with the business's strategic goals.
The AR MVP goes live, and while it garners some initial excitement, the usage metrics remain low, the reviews question some of the decisions and produces a high number of enhancement requests but the high development costs do not justify the return on investment. The feature appeals to a tech-savvy demographic that is not the core customer base of the brand, which primarily targets budget-conscious families looking for practicality over innovation.
Tom's failure to align the product strategy with the company’s main market segment and company KPIs leads to a costly misstep. The resource allocation for the AR feature could have been better spent on enhancements that addressed the primary needs of their core customers, such as improving mobile checkout processes or enhancing the loyalty program, which would directly contribute to increasing sales and customer retention.
These examples illustrate the importance of ensuring that every product decision not only meets user needs but is also strategically aligned with the business's core goals and financial targets. Effective product managers like Ashley ensure their strategies contribute to the bottom line and are clearly articulated, whereas missteps like Tom's occur when features are developed in isolation from these broader objectives.
3) Effective Communication
Being able to convey your vision clearly to stakeholders, teams, and users is an indispensable skill. Remember, the best product managers are also great storytellers. Whether it's through a product roadmap presentation or a casual chat by the coffee machine, your ability to communicate the 'why' behind your product decisions builds trust and clarity.
Let’s look at some examples…
Good Example: Clear Communication During Product Relaunch #EffectiveCommunication
Imagine a product manager named Laura who is overseeing the relaunch of an existing digital media platform. Laura recognizes that for the relaunch to be successful, every team member, from developers to marketing, must understand the reasons behind the changes and the benefits these changes bring.
Laura organizes a series of presentations and workshops for all departments, where she articulates the vision and strategic objectives of the relaunch. She uses clear, language and visual aids to illustrate how the new features will attract a broader audience and increase user engagement (shared KPIs across the organization). She also details how this aligns with the company’s goal of increasing market share in the digital media space.
Throughout the relaunch process, Laura maintains open lines of communication, setting up regular check-ins with team leads to gauge progress and address any concerns. Her ability to clearly communicate the vision and strategy not only motivates the team but also ensures that everyone is aligned with the product’s goals, contributing to a smoother rollout and better reception of the new platform.
Bad Example: Poor Communication in Product Feature Update #EffectiveCommunication
Contrast this with a product manager named Derek who is responsible for rolling out a major update to a project management tool. Derek assumes that the update’s benefits are obvious and doesn’t invest time in explaining the ‘why’ behind the changes, particularly the introduction of a complex new feature that significantly changes the user interface.
When the update is released, there is considerable confusion and dissatisfaction among users. Internally, the customer service team is overwhelmed with customer service requests because they were not adequately briefed on the feature’s use cases and benefits. The development team is also caught off guard by the negative feedback, as they were not fully aware of how the feature was supposed to enhance user experience.
Derek’s failure to consider change management and effectively communicate the reasons for the update and its intended benefits results in a lack of preparedness across the organization, damaging user trust and internal morale.
These examples highlight the critical role that effective communication plays in product management. Laura’s proactive and clear communication strategy ensures team alignment and user acceptance, while Derek’s oversight underlines how poor communication can lead to operational inefficiencies and a disconnect with users. Effective communication is not just about sharing information; it’s about ensuring understanding and buy-in from all stakeholders involved.
4) Setting Clear Expectations
Set realistic expectations—not just with your teams and stakeholders but also with yourself. Understand the scope of what you're proposing, know the resources at your disposal, and plan accordingly. Overpromising leads to underdelivering, and that’s a quick way to lose trust. Be honest about what can be achieved and when.
Let’s look at some examples…
Good Example: Transparent Project Planning in Software Development #ClearExpectations
Meet Emma, a product manager for a software development company. Emma is tasked with overseeing the development of a new client management tool. Understanding the project's scope and the resources available, she sets a realistic timeline with the help of her co-creators and carefully considers the capabilities of her team.
Before initiating the project, Emma holds a kickoff meeting where she presents a detailed project roadmap, including clear milestones and expected deliverables for each phase. She openly discusses potential challenges with her team and stakeholders, ensuring everyone is aware of possible hurdles and the strategies in place to mitigate them.
Throughout the project, Emma provides regular updates, maintaining transparency about the progress and any adjustments to the timeline or scope based on real-time findings. Her clear communication and realistic planning foster trust and respect among her team and clients, leading to a successful project delivery that meets the initial expectations.
Emma clearly has worked with great project managers in the past and utilizes what she has learned from those folks in her day to day approach.
Bad Example: Overpromising in a Product Launch #ClearExpectations
Contrastingly, meet Dan, a product manager at a consumer electronics company. Dan is excited about a new wearable device his team is developing, which he believes will outperform all current market offerings. Dan is extremely positive and also facing pressure from marketing, so then Dan announces a launch date and a set of ambitious features in an upcoming press release without confirming the feasibility with his development team.
As the project progresses, it becomes apparent that several of the promised features are not technically feasible within the set timeline due to current technology limitations and resource constraints. The development team struggles to meet the unrealistic expectations, leading to significant delays and a product launch that lacks the promised features.
The result is a wave of negative customer feedback and a impact on brand reputation. Dan’s failure to set realistic expectations and his decision to overpromise features not only upset customers but also demoralized his team, who felt set up to fail from the start.
These examples underline the importance of setting clear and achievable expectations in product management. While Emma’s approach demonstrates how transparency and realistic ambitions can lead to trust and successful project execution, Dan’s example serves as a cautionary tale about the risks of overpromising and underdelivering.
This was a fun exercise to consider some of the more critical pieces I wish I could have shared with my younger self when starting my product management journey.
Until next week, consider this…Are you truly tuned into your market's needs? Are your strategies in line with your business goals?
Keep pushing forward,
Jason
