Growth Strategies Across the Product Lifecycle
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Transcript of Growth Strategies Across the Product Lifecycle
Growth Strategies Across the Product LifecycleSTRATEGIES 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
IntroductionsTHE PRESENTERS & TOPIC
Paul Morgan@paulmorgan | linkedin.com/in/paulmorgan
o Director of Trade Analytics, Nielseno 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
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&AWrap-up
What is Product Growth?
Market Share Revenue
Capacity Diversification
Capability Users / Subscription
Human Skill / Capability
Emotional Attachment
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
The Traditional Product LifecycleGROWTH STRATEGIES
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.
Prod
uct D
ev
Intr
oduc
tion
Gro
wth
Mat
urity
Dec
line
&
Retir
emen
t
Innovators Early Adopters
Early Majority
LateMajority
Laggards
Sale
s
Time
Why You Need A Product Roadmap
o Central focus for all stakeholderso Demonstrates longevity & valueo Invites innovation & ideationo Not a one-time deal
Enhances Emotional Attachment
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
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
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 OfficeLo
w C
ost P
rodu
ct D
evel
opm
ent P
rinci
ples
Strategy
Process
People
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
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
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
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
3. Growth PhaseInitially 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
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 WelchNike (went from Sports to Leisure Clothes), Coke (Soft Drink to Beverage market), AT&T (Long distance calling to voice, image, text, data, cellular)
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.
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
Hacking the Product LifecycleGROWTH STRATEGIES
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
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
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
User Experience
Goals Ease of Use Meets Expectations Aligns to Business Objectives
Creates Longevity of Value Key to Retention ROI
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
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
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
White Label
Build out Product Capability Portfolio Increase Distribution Examples:
Firestone Walker produces Trader Joe’s Mission St. BeerMajor Brand Coffee is white labeled in Grocery Stores“Private Label” Grocery items made by mainstream
manufacturersSoftware companies create SDKs for others to re-label and sell
as their own solution
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
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
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/
Viral Marketing Can Go Wrong
Recapping Today’s Discussion
The traditional Product Lifecycle
growth opportunities
Hacking the Product Lifecycle
Q&AWrap-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
Q&A / THANK YOU
Paul Morgan@paulmorgan | linkedin.com/in/paulmorgan
Kamal Tahir@kamaltahir | linkedin.com/in/kamaltahir