Talking to customers to uncover unmet needs is the most critical part of product strategy. The key to growth is a deep understanding of your target customers. Simply relying on internal ideas is not enough, nor is it enough to just look at google analytics and product usage data. You actually have to talk to the market.
Read my article The Complete Guide to Customer Interviews That Drive Product-Market Fit. When you get to the customer interview, take heed of these crucial guidelines!
Now that you've read the The Complete Guide to Customer Research Interviews, you know that gathering intelligence from customer interviews, market analysis, online research, win/loss analysis, is critical to developing a strategy that drives product-market fit and growth. But once you have accumulated all your customer and market insights, what do you actually do with it? Here are 5 immediate steps to infuse your strategy with intelligence in practice.
Product leaders know they need to tailor their roadmap to customer demand. They base these decisions on market intelligence from the usual sources:
These sources are important, but are often indirect and lagging information, not to mention other biases. For those that just want to appease their boss, this may be enough. What you release next may or may not be successful, but at least you can show that you based your roadmap on sources. But for those that really care about a product that sells and users love, you need to balance this with more direct and predictive sources of intelligence.
Product and service offerings follow a growth lifecycle:
Once you hit Flatline and Decline, it is very hard to bounce back. Stories of flatlining businesses that suddenly take off again are rare indeed. While there are ways to resuscitate a flatlining business, the ideal is to NEVER GET THERE IN THE FIRST PLACE and instead take the right actions to ensure continuous growth.
"How would you feel if you couldn't use the product anymore?" According to growth hacking pioneer Sean Ellis, this is the question to ask to determine your level of product-market fit. In response, you are looking for at least 40% of your customer base who say they would be "very disappointed". This represents user passion.