Introduction
We all know that, Creating a product strategy is a complex endeavour that requires deep insight, meticulous planning, and adaptive execution. Moreover, even the best of intentions can result in strategic errors that may cost companies time, money, and market position. The road to a successful product is fraught with challenges, and one of the most critical aspects of that journey is crafting a robust product strategy.
In my previous article, Continuous Product Discovery, I have had expressed my thoughts on Myths of Continuous Product Discovery and why CPD is important.
A strategy serves as a roadmap, providing direction and focus for your product's development, launch, and ongoing refinement.
When it comes to developing a product, having a well-defined strategy is essential for success. However, not all product strategies lead to triumph; in fact, some can steer an organization into a series of unfortunate decisions and missed opportunities.
Understanding where things can go wrong is crucial for avoiding pitfalls and setting the course right. In this article, we'll explore the top mistakes that organizations often make in crafting a product strategy and we will explore some of the most common reasons why product strategies has pitfalls.
What is Product Strategy?
A product strategy is a high-level plan that outlines the vision, objectives, and activities needed to successfully bring a product to market or sustain its lifecycle. It serves as a roadmap that guides product development, marketing, and business operations. It helps to align all aspects of a product – from its conception, design, and development to its launch, growth, and eventual retirement – with the company's overarching business goals and customer needs.
I would like to share and call out - Do not miss to know where you are in the PLC [Product Life Cycle] and TAC [Technology Adoption Curve] while working on your Product.
Image 2 - Know your Desire+Ability, Viable+Ability, Feasible+Ability and Sustain+Ability
Image 3 - Know about your Product and map where you are in the PLC and TAC
Possible mistakes that people make while Crafting a Product Strategy
Misaligned Goals and Objectives
One of the earliest places where a product strategy can falter is in the establishment of its goals and objectives. If these are not aligned with the broader business goals, or if they're too vague, too ambitious, or not measurable, the entire strategy can be set up for failure. How to Avoid: Establish clear, measurable objectives aligned with the company's broader goals. These objectives should act as a guiding light for all the subsequent strategic decisions.
Lack of Market Research
The importance of market research cannot be overstated. Failing to understand customer needs, market demands, and competitive landscape can result in a product strategy that's fundamentally flawed.
How to Avoid: Always start your product strategy with thorough market research. Utilize both qualitative and quantitative methods to get a rounded view of what your target market truly needs.
Ignoring Existing Customers
Focusing too much on acquiring new users while neglecting existing ones can lead to high churn rates.
How to Avoid: Regularly collect feedback from existing customers. Not only does this show that you value their opinion, but it also provides invaluable data for refining your product strategy.
Not Adapting to Market Changes
A rigid strategy can be disastrous, especially in fast-moving industries.
How to Avoid: Create a flexible strategy that allows room for adjustments. Regularly review key performance indicators (KPIs) to gauge whether your product is meeting its objectives and make adjustments as needed.
Neglecting Distribution Channel
You may have a great product, but without a solid go-to-market strategy, it's unlikely to succeed.
How to Avoid: Identify and leverage the most effective distribution channels for your product. Consider partnerships, online marketing, and direct sales as part of a multi-channel approach.
Misjudging Competition
Ignoring or underestimating your competition can leave you blindsided by their moves.
How to Avoid: Conduct a thorough competitive analysis as part of your strategy planning and update it regularly.
Overcomplicating the Product
Adding too many features or making the product too complex can confuse users and increase development time and costs.
How to Avoid: Stick to the KISS (Keep It Simple, Stupid) principle. Focus on a core set of features that deliver real value.
Lack of Communication / Poor Communication
Lack of clear communication can result in a disjointed team and misaligned efforts, which can drastically affect the success of a product.
How to Avoid: Establish clear lines of communication and regularly update all stakeholders about progress, changes, and setbacks.
Ignoring the User Experience
Many products fail because they don't deliver a satisfactory user experience, irrespective of how innovative they may be.
How to Avoid: Invest in UI/UX design and usability testing from the get-go.
Stakeholder Misalignment
Last but not least, failing to get buy-in from critical stakeholders can impede even the most solid strategy. Whether it’s the C-suite, the development team, or key partners, if stakeholders aren’t aligned, your product strategy has slim chances of success.
Understanding these common pitfalls can help organizations preemptively address them, paving the way for a more cohesive, realistic, and effective product strategy. The key is to remain vigilant, adaptable, and always focused on delivering value.
Conclusion
Crafting a winning product strategy requires a balanced approach that takes into consideration market demand, focused objectives, and efficient execution. By being aware of these common mistakes and knowing how to avoid them, you put yourself in a strong position to navigate the complex landscape of product development successfully.
Working on Product Strategy requires alignment, collaboration, common goals and a good amount of time to come with preparedness to spend time together while working on a Product Strategy Canvas.
PS: By using a Product Strategy Canvas, product teams can ensure that all stakeholders have a shared understanding of what the product aims to achieve and how it will do so. This tool is particularly useful for aligning various departments, gaining executive buy-in, and serving as a reference throughout the product development process.
About the Author
Anubhav Sinha is a Co-founder of Product Capability Uplift and he is a contributing as a Course Developer for the PCU courses. In this role, Anubhav leads the Capability Building of the Product Academy as well as works as the Product Thinker of the Product Capability Uplift Product Academy.
Anubhav Sinha is a product coach, a product management practitioner and technology product geek with around one and half decade of the product management and development experience that ranges widely in the B2B and B2IB product space. He is known for contributing and creating products majorly in the start-up space, helping start-ups in their early stages and contributing industry product organisations as user-experience flow optimiser. He had served industry as Principal Product Owner [co-founder], Product and Design Thinking Coach, Product Owner and Transformation Coach.
Anubhav holds a Post-Graduation in Marketing - IB and Bachelor of Engineering in Electrical and Electronics.
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