The product supervisor’s position at every stage of the product lifecycle

On this information, we’ll outline the 5 phases of the product lifecycle (improvement, introduction, progress, maturity, decline), and discover the position of the product supervisor at every stage.

Desk of contents

What’s the product lifecycle?

The product lifecycle refers back to the phases a product goes by from the second it’s launched to customers to when it’s faraway from the market.

Earlier than a product is launched to the market, it goes by a improvement cycle, which consists of 4 phases:

1. Ideation
2. Growth
3. Testing
4. Launch

Following the product improvement cycle, the product is launched to the market, then (ideally) undergoes a interval of progress earlier than reaching maturity and, finally, declining from prominence out there.

What are the 5 phases of the product lifecycle?

The 5 phases of the product lifecycle are:

1. Growth
2. Introduction
3. Development
4. Maturity
5. Decline

Some think about solely the latter 4 phases (introduction by decline) to be a part of the product lifecycle. However in my view, improvement is an equally necessary stage within the product lifecycle as a result of it lays the muse for the next phases.

These 5 phases full the lifecycle of the product.

What’s the product supervisor’s position at every stage of the product lifecycle?

The product supervisor performs a serious position all through the complete product lifecycle. Every stage requires a special ability set and mindset to steer the crew to success and steer the product in the fitting path.

At every stage, the product supervisor has to consider KPIs and metrics to help a variety of necessary choices.

1. Growth

The method of creating a brand new product consists of many steps, from concept technology, to prototyping, constructing, and testing, to product launch.

All through these phases, the product supervisor acts because the voice of the client, conducts market analysis and surveys, understands the consumer’s ache factors, and determines options to handle them.

Product managers outline the product imaginative and prescient and technique to assist the product crew perceive why and the way they’re to construct what they’re constructing.

At this stage, the aim is to construct the fitting product to draw early adopters. At every stage of the product improvement course of, product managers make sure the crew’s choices revolve across the buyer’s ache factors.

4 phases of product improvement

Let’s break down the product improvement stage even additional and discover the position of a product supervisor at every step:

1. Thought technology and screening — Product managers brainstorm with the crew to guage numerous options the product can provide to resolve consumer ache factors. It’s the PM’s job to survey all of the out there concepts after which finalize what options to be constructed
2. Design and discovery — The product supervisor defines the consumer personas, conducts market analysis, and analyzes competitor merchandise. They work with designers to outline the consumer journey and methods to construct a top-notch consumer expertise
3. Growth and testing — As soon as the crew has decided which options to construct, the product supervisor works with the event crew to assist them perceive the options intimately and make clear any doubts. The PM additionally works with the QA crew to make sure that the function carried out is delivering worth to the consumer
4. Product launch — With the assistance of the product advertising and marketing supervisor, the PM endeavors to create a buzz out there forward of the product launch

Metrics to watch pre-launch

It’s exhausting to measure efficiency throughout this stage as a result of the product continues to be beneath improvement. Nevertheless, the product supervisor would possibly conduct focus teams or surveys to get extra details about consumer ache factors and validate their assumptions.

Earlier than launch, the product supervisor would possibly think about trying on the following:

Market dimension

It’s good to know concerning the potential goal market dimension and set a bar on how a lot the product can faucet the market upon launch.

Potential sign-ups

If there’s a web site or a minimal viable product (MVP) launched, you’ll be able to measure the variety of potential signups. Extra signups point out excessive curiosity and better probability of success.

Social media engagement

Throughout the pre-launch stage, the advertising and marketing crew usually tried to generate buzz on social media to draw early adopters. Engagement price may also help you observe customers’ ongoing curiosity in your product.

Product improvement

Holding observe of the progress of options and whether or not they’re being tailor-made to consumer wants is a key duty of the product supervisor.

2. Introduction

The introduction stage refers back to the interval when a product is launched to the market, whether or not it’s the first of its variety otherwise you’re introducing a product into a brand new market. Throughout this part, the gross sales quantity is low and demand is constructed step by step.

The product supervisor works with the advertising and marketing crew and helps educate early adopters about the advantages of utilizing the product. Product managers are subject material specialists on the product, so they need to be capable of clarify its core values to inside groups corresponding to advertising and marketing, engineering, help, gross sales, and design.

Normally, sufficient knowledge is gathered to help the product launch and the hole it’ll fill out there, however product managers validate the necessity of the product out there after its launch.

To summarize, the position of the product supervisor throughout this stage is to:

• Work with the advertising and marketing, gross sales, help, and design groups to assist them perceive the product’s core values
• Validate assumptions earlier than launch and consider how prepared prospects are to purchase the product
• Analyze the consumer personas and add any new personas primarily based on the adoption of the product
• Monitor utilization metrics and validate the consumer journey flows
• Drive the product towards product-market match
• Strategize to enhance the product per evolving consumer wants

Measuring product efficiency

As soon as the product is launched, the product supervisor should measure its efficiency. Some key product metrics to maintain a watch at this stage embody:

Product activation price

The activation price is the ratio of customers who’ve reached the activation level versus the full variety of customers who signed up. The activation level refers to a consumer motion that signifies engagement with the function.

Characteristic adoption

The adoption metric signifies whether or not customers are literally utilizing a function or product. It may be calculated utilizing the next formulation:

Adoption price = function MAU / month-to-month logins * 100

The next function adoption price signifies that customers just like the function and are deriving worth from it.

Buyer acquisition value

Buyer acquisition value represents the fee spent by the group to accumulate a consumer. This may be calculated by dividing the full quantity spent on advertising and marketing and gross sales by complete acquired prospects throughout a given time interval. The main target needs to be to lower this quantity going ahead so you’ll be able to purchase extra customers with much less expenditure.

Income

In case your product is saleable, income is a vital metric. It’s essential to measure the income generated month-to-month and yearly, together with the income progress price.

3. Development

The expansion stage is when the product has confirmed that it has a market and its demand begins to rise. With larger gross sales quantity, different rivals sometimes enter the market. Elevated consciousness, revenue, market share, and competitors are indicators {that a} product is in its progress stage.

Advertising and marketing campaigns goal to determine model worth to achieve an edge over the competitors. As a product supervisor, you have to direct the trail of the product towards progress.

Throughout the progress stage, product managers ought to:

• Preserve or enhance buyer satisfaction by including new options and providers
• Collaborate with advertising and marketing and gross sales to make sure the product is competitively priced
• Work towards maximizing income and market share whereas establishing model worth

Measuring progress and attain

Throughout this stage, as gross sales improve, it’s necessary to maintain observe of metrics that measure progress and attain of the product.

Some metrics to deal with throughout this stage embody:

Income progress price

Clearly, income grows as gross sales improve, however it is very important observe the speed at which income is rising. A declining income progress price is regarding and should point out that the product is coming into its maturity stage.

Enlargement income

Enlargement income is the extra income that may be gained by upselling to present customers. It is a nice approach to develop income with the present consumer base.

Referrals

Referrals from lively customers might be actually useful to extend the consumer base. You could possibly increase referrals by offering small incentives to present customers, which might result in extra progress.

Buyer satisfaction

The probability of a consumer to stay together with your product depends upon how pleased it makes them. It’s essential to gauge the client satisfaction degree by amassing common suggestions from customers. Internet Promoter Rating is one other metric that measures buyer happiness and loyalty.

Stickiness

Stickiness is your product’s potential to retain customers due to the worth it provides.

Stickiness is calculated with the next formulation:

Stickiness = DAU / MAU

Excessive stickiness means the product has the ability to have interaction customers repeatedly.

4. Maturity

There comes a time within the lifetime of a product when gross sales have peaked, you’ve maximized your pool of shoppers, and earnings is fixed. It is a good time to take inventory of previous errors to enhance the product and increase retainment.

Stagnant gross sales, declining buyer progress, and heightened competitors are all indicators of product maturity. Throughout this stage, the main target of product managers is to retain the present market share. This may be carried out by differentiating the product from the competitors.

The target is at all times to steer the product again towards the expansion stage, for instance, by trying to enter new markets. Retaining prospects and sustaining excessive buyer satisfaction is a key to prolonging this stage.

Each product goes by the maturity stage. The trick is to reduce the time it spends there.

Measuring maturity

The maturity stage focuses on sustaining what has been achieved and determining new methods to maneuver the product again to the expansion stage. To perform this, product managers ought to observe the next metrics:

Churn price

Churn price is the speed at which customers cease utilizing the product — for instance, canceling a subscription. Churn might be calculated by dividing the purchasers misplaced throughout the earlier quarter by the variety of prospects acquired throughout that quarter. The aim needs to be to decrease the churn price and retain present customers.

Retention price

Retention price measures what number of customers proceed utilizing the product over a given time frame. The upper the retention price, the extra glad customers are with the product.

Churn price and retention price go hand-in-hand. The upper the retention price, the decrease the churn price.

5. Decline

Inevitably, for any multitude of causes, all merchandise attain a interval of decline. This could occur as a result of emergence of latest expertise, elevated competitors, the provision of cheaper options, and all kinds of different elements.

Basic indicators of decline embody lowering market share, lowering gross sales, and waning buyer curiosity. The product supervisor should consider the reasoning behind the decline.

Managing a product in decline

A technique to answer decline is to aim to leverage the present model worth and enter a brand new market. This is called the pivot strategy. Alternatively, you might shift the main target to reengaging inactive customers by working carefully with the advertising and marketing crew.

If the product’s decline is inevitable, the ultimate duty of the product supervisor is to facilitate a clean offboarding for present prospects. If you’ve exhausted all different choices to revive the product, circumstances might require that you simply take the product off the market.

The least you are able to do throughout this stage is to reduce buyer complaints and handle them as quickly as doable. It is likely to be helpful to trace the client criticism depend and collaborate with the help crew to resolve points.

Conclusion

Creating a brand new product and bringing it to market is a curler coaster: everybody is happy earlier than and after the launch, momentum reaches a crescendo throughout the progress and maturity phases, and adrenaline ranges begin to normalize throughout decline.

Every stage of the product lifecycle has its personal set of challenges and necessities. The product supervisor performs an necessary position throughout every stage, offering path and help and measuring progress all alongside the way in which.