How organizations can get caught napping …

If you the product manager is thinking:

1) We are the market leaders and the well known brand and we set the tone in this market or

2) I fully understand the market segment that will be interested in buying this product or

3) We have the marketing muscle to push new products out  or

4) We have the best feature set in the industry

then you must read the latest Wired Magazine’s article on how cheap little laptops hit the big time NOW – not tomorrow, not later, but NOW. And then recalibrate your thinking.

Here are my key takeaways:

1) Customers (especially the vociferous ones) could ask for more, but a vast majority of them actually want less.

2) Your product can open up new markets and market segments that you did not even dream off. Be ready to be suprised. No focus group or research is going to reveal this because you tend to do these with the potential market segment you have in mind. Do you think the netbook folks would have interviewed middle class consumers about their laptop needs?

3) Beware of the Davids, not the Goliaths. You will not see their attacks coming. It is easy to pooh pooh them.

4) Beware of the ecosystem changes happening in your industry – it is not usually one thing that upends an industry, it is the combination of things that create the perfect storm.

Understand why your customers buy

I had written a previous post on making it easy for customers to buy your product. If your pricing structure is complex, Product Management - Customer reasons to buya customer who was about to hand over the money to you is going to walk away. I call this the “last mile problem” in selling a product. Pricing structures sometimes are very complex that even sales people have trouble understanding them.

If your folks cannot understand them, do you think customers will get it? It is your responsibility as a product manager to make sure this is executed well. Do you have too many SKU’s that are interdependent on each other with complex discounting structures that your price book looks like a bowl of spaghetti? Time to take action.

But this is the last step. It is even more important to understand all the reasons why your customers buy – what are the rationale and emotional reasons they are looking for a product like yours. Susan Oakes on her M4B Marketing Blog has a very good blog post on the importance of understanding your customer’s buying reasons.

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Image: Courtesy of  Lewes District Council, UK.

Businesses are not ready for social media, unless ….

By now, you all have heard enough about social media this, social media that – folks in your office saying we need to create a business account on Facebook, LinkedIn, Twitter and the other zillion social media sites out there.

But are businesses ready for this. My answer is No. Vast majority of businesses are not ready for it, period.

What businesses should actually be spending their time first is on an  SEO and content strategy first (SEO = search engine optimization) before they start worrying about social media. Here is a simple diagram that I use to explain this to anyone who would listen – yes I do get drowned by all those voices who say – but we can do that later, why don’t we create a business page on Facebook in the mean time. If we build it, they will come. NO THEY WON’T COME, unless they FIND YOU on the internet.

Social Media

Starting from the left, you have your products/services. On your website, you need to have information on these products/services. The first question a business needs to ask itself is the following:

Is our content (easy to read product brochures, white papers, case studies etc.) useful for our target audience? Is it written in a language our target base uses? If yes, is it Search Engine friendly so that they will find it?

If no, forget about social media and  spend the time getting this in order.

Now how do you do that? First of all, understand what your target audience is searching for and then determine which of these search keywords are relevant to you and the content you currently have – the free Google keywords tool is a good place to start. You may not necessarily have to go after the high search volume keywords,  since they will be highly competitive and you would likely be competing against those who have larger wallets than you do. I am not an expert on all the SEO tips, but there is a ton of good content on SEO on the web.

If you do not have enough content that will be useful to your audience, then create it and optimize it for the selected keywords. One way to generate content is to start a company blog and create Google juice – new fresh, relevant content.

Once you have created the necessary content and your site is getting found by the search engines for the keywords you have chosen to compete for (give it 4-6 weeks to see results), then start spreading the word on the social media outposts. As you create new content, post it on the social media outposts. Yes, you need to use social media to listen to your prospects, but without SEO friendly, relevant content, IMHO you don’t have a prayer.

So here are the steps as I see it:

1. Create an SEO strategy – why do I need SEO? (increase awareness, get more visitors to my site, convert a percentage of them to customers etc. – what do you really want to achieve?)

2. Figure out the keywords you want to optimize for.

3. Repurpose or create content that will be useful to your audience based on the selected keywords. If you have no content and have no idea of what your audience may be interested in, interview your customers or prospects and understand the problems for which they turn to the internet to find answers. These problems may not necessarily have anything to do with your products/servies. But if you make your customers successful at what they do, you will build trust with them. Once they get to your site, you can think of ways of getting them to look at what you have to offer. It is similar to how you go to say Home Depot to buy the one thing you wanted and you end up buying other stuff that would solve other problems you have. OK, B2B technology purchases are not that implusive, but you get the idea.

4. Get it on your website

5. Evaluate progress over 6-8 weeks to see where you stand in the search engine results for the selected keywords. If you are not moving up, iterate your SEO effort. It is not do it once and forget it.

7. Once you are ready, now start building a presence on social media sites like LinkedIn, Facebook etc.

8. Use these media to lightly promote your content – this will create traffic to your site. Keep mining these channels to search for what your customers may be saying – what problems have they had, are they bad mouthing you and/or your competition. Reach out to them, make connections, help them solve their problems and then create more content on your website that addresses these issues so that other folks who have these issues can find you.

So why do you as a software product manager need to care about this? Should’nt this be done by product marketing?

Yes, product marketing should own this, but …. guess who in a company knows (or is supposed to know) customers and prospects the best – you the software Product Manager!.  Product Marketing usually does not. So if you have established customer/prospect relationships, then take the lead to help marketing find answers to what customers might be interested in. If marketing does a poor job of this and fills up your website with marketing buzzwords and other gobbledygook that your target audience does not understand or if your target audience cannot find you, then your product is not going to sell. I have seen marketing stats that say 92% of B2B businesses use the internet to look for solutions. Product managers can no longer sit on the side and not have a say in how their products are messaged and marketed on the web. In many smaller companies, a marketing person may not even exist and the Product Manager may have to step in and take the lead.

All of this takes time and commitment. But then nothing fruitful and lasting gets done without effort. Remember Rome was not build in a day!

Understand the reason for the madness, before you imitate it

Have you had the instance where someone in your product development team says during a product discussion – make it like the Google home page, or make it work like Amazon does it, or see how well IBM’s website does it. If they are doing it, they should be right.

It is easy to fall into this trap – because it is easy to look at someone else’s art work and try to imitate it. But resist the temptation. Take a long breath, step back and ask your selves the following questions:

1) Are my users the same as Google, Amazon, IBM,…..?

2) Are my users trying to achieve the same objectives on my website as the shoppers are on Amazon?

3) Do I have the same web authority as these sites that I am being referenced to? For example, Google does not have to worry about Search Engine Optimization, they are the search engine. They can afford to have a simple white home page with a few minimal links and a large search box. If you or I do this for our home pages, we will not exist as far as search engines are concerned and hence for our prospects and customers.

So before you copy or imitate someone else’s madness, make sure you find out if the madness even applies to you and even if it does,  do you understand the reason behind the madness? Why are they doing what they are doing? Do you really know if it will work for your users? And then after all this, if you think what the Googles or the Amazons or the IBM’s of the world are doing is what will work best for your users, go for it, imitate it (as long as you don’t violate patents and copyright laws – remember the Amazon lawsuit about 1-click ordering?).

All these personal opinions can be put to rest by doing a simple usability testing on these reference sites with a small sample of your users (say 5-10). Or mockup your site using the UI principles shown on these sites and then see if it will work – data will not lie. And people with strong personal opinions often disappear when presented with real user data.

Become a software product manager only if …..

Here is a question I received the other day – “I am a business analyst now in product management team and my boss identified me as a candidate for Product management. I am excited about the opportunity, but don’t want to accept something just t0 fail. Can you please answer the below for me?
1. Challenges in PM
2. What interests you in PM?
3. What are the risks in this profession?
4. Do you think Business analysis has more opportunities than PM? “

I will admit that the title of “Business Analyst” and “Software Product Manager” are challenging by itself because there are a myriad definitions and job responsibilities that come with it depending on the company you work for. I have worked for companies where product managers were “spec monkeys” – nothing else – they were expected to write detailed specs and nothing else – they never talked to customers, but just wrote these documents based on “in-house expert thinking”. In other companies software product managers ran the business for their product line from figuring out unmet needs, what products/features to build, to getting the product out into the market. This to me is the right job description for a software product manager. I will base my answers based on this description.

1. Challenges in Product Management - Biggest challenge is that no one works for you – you need to win the trust and confidence of your team by influence and not authority. You need to win them over by proving that you know more about the painpoints in your target market than any of them combined – you need to provide solid evidence – show them the “customer capital” you have earned. Your team has to start believing that you are expressing opinions grounded in the market research you have done and not based on personal opinions. Personal opinion is a losing proposition – your opinion not grounded in market needs is as good as some one else’s in your company. Once you have won them over, you have to act as a cheer leader to the team – you have to keep their spirits high during the lows of the product development cycle, keep them informed of how well the product is doing in the market etc.

2. What interests you in Product Management? - There is no other position in a company that is more cross functional than that of a Software Product Manager. As a software product manager, you deal with customers, engineering, QA, order management, sales channels, finance and most other departments in the company. You are required to make sure that everyone responsible to get the product in front of the customer is working together to win. It allows you to build “leadership” skills where you have the exposure to all faces of the business.

3. What are the risks in this profession? - Depends on your capabilities. If you are NOT comfortable talking to customers, this one is not for you. If you are NOT comfortable leading a group of people none of whom report to you, this one is not for you. If you are NOT comfortable where “you are always guilty of being wrong unless you prove yourself right”, this one is not for you. Everyone from executives to individual contributors have their own egos and personal opinions that they think is right and it is your job to make sure that product decisions are grounded in market realities than someone’s personal opinions. It is a fine line to walk and you will lose some and win some. You should be ready to take some on the chin.

4. Do you think Business analysis has more opportunities than PM?- Depends. If all you want to do is write specs, business analyst might be the best job for you. But just being a business analyst is not going to take you far. Think about it, have you seen titles such as VP of Business Analysis in companies? Compare that to titles of VPs of Product Management, Chief Product Officers, VPs of Products etc.

These are my two cents based on my experience. What do others think?

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