Since I recently joined a startup, I’ve noticed a pattern where our CPO and tenured PMs shipping products without or before any user research or testing. Based on what I understand to be best practices in product content I have studied and previous companies, this worries me.
When I joined, I chose an app function and began interviewing existing users to get to know them better and obtain their input on our suggested designs. I discovered that the corporation had not conducted any user research prior to this since the year 2020. Surprising.
Even if we could move quickly and deploy things, I’m tempted to continue conducting user interviews and user research to guide product and design decisions.
I want to know if I’m being too adamant about this or if there is something wrong with the workplace culture on this.
– Damian Marshall
Discussion
A] It’s definitely concerning to hear that the company is not prioritizing user research and testing before shipping products. User research and testing are critical components of the product development process, as they help to ensure that the product is meeting the needs and expectations of the target users.
If you feel strongly about this issue, it might be worth bringing up your concerns with your manager or the CPO directly. You could also suggest incorporating user research and testing into the development process, and providing data and examples to support the importance of these practices.
Ultimately, the decision to prioritize user research and testing is up to the company’s leadership, but by advocating for these best practices, you may be able to positively impact the company’s product development process.
– Tina Greist
B] That is surprising indeed. User research is a crucial part of the product development process, as it provides valuable insights into the needs and wants of the target users, which can then be used to inform and improve product design and development. Without user research, there is a risk of developing products that do not meet the needs of the target users, leading to poor adoption and ultimately, failure.
It’s great that you took initiative to conduct user research for the app feature you are working on. Your actions demonstrate the importance of user research and the positive impact it can have on the product development process.
It may be worth sharing your findings with the CPO and other members of the leadership team to highlight the benefits of user research. You could also suggest incorporating user research into the company’s development process more systematically and provide resources or help in setting up a user research program.
– Michael Yoffe
C] It’s true that in some cases, PMs may have a good understanding of the needs and wants of the target users without conducting formal user research. However, it’s important to keep in mind that user research can uncover hidden needs, pain points, and opportunities that might not be immediately obvious.
User research can also help validate assumptions and hypotheses and can provide a more comprehensive and nuanced understanding of the target users and their needs. While conducting user research can be time-consuming and expensive, the benefits it provides can far outweigh the costs.
User research can help inform product and design decisions, increase user satisfaction and adoption, and reduce the risk of developing products that do not meet the needs of the target users. In cases where the solution may seem obvious or the results of a user study may only result in small changes, it’s still important to validate these assumptions through user research.
This can help to ensure that the solution being developed is well-aligned with the needs of the target users and can help to identify any potential roadblocks or challenges that may arise.
Interested in suggestions for a product pricing strategy? What procedures are followed at your company? is there a set way or strategy? Would you mind explaining step-by-step for clarity? By the way, I’m referring to pricing competitive analysis. Thanks!!!
– Maire Hamilton
Discussion
A] Hey Marie, a very interesting query/post/thread. Here’s my little knowledge I gained with experience over the years.
Product pricing strategy is a key aspect of a company’s marketing plan that involves determining the optimal price for a product to maximize revenue and profits. There are several pricing strategies that companies can adopt, including:
Cost-plus pricing: This involves adding a markup to the cost of the product to determine the price.
Value-based pricing: This involves setting the price based on the perceived value of the product to the customer.
Penetration pricing: This involves setting a low initial price to quickly attract a large number of customers and gain market share.
Premium pricing: This involves setting a high price for a product to reflect its quality and exclusivity.
Psychological pricing: This involves using pricing techniques such as odd pricing or anchoring to influence a customer’s perception of the value of a product.
When determining a pricing strategy, companies should consider factors such as the target market, competition, production costs, and the value that the product provides to customers. I hope that helps.
– Kane Morgan
B] Sure. Putting it simply, in competitive analysis pricing, a company compares its prices to those of its competitors to determine the optimal price for its product.
Identify competitors: Identify the main competitors in the market that offer similar products to the one being considered.
Gather information: Collect information on the prices, product features, and target market of each competitor. This can be done through online research, market surveys, or direct contact with the competitor.
Analyze the information: Compare the prices and features of the competitors’ products to the company’s own product, and determine any pricing gaps or opportunities.
Consider the target market: Consider the target market and determine how price sensitive they are, and what factors influence their purchasing decisions.
Set the price: Based on the competitive analysis, set the price for the company’s product to remain competitive and maximize revenue and profits.
Monitor and adjust the price: Continuously monitor the market and competitors’ prices and adjust the company’s price as needed to remain competitive and respond to changes in the market.
It’s important to keep in mind that the results of a competitive analysis can vary depending on the market and industry, and that the optimal price for a product can change over time.
– Bobby Duncan
C] I don’t have a lot of experience in particular pricing strategies, but I can tell you (just from school background, econ/business/engineering/entrepreneurship type classes) that pricing is often a trial and error game. What data do you have to make your decision? If you have quantitative data on how consumers respond to something, then use that to form a foundational strategy. If you only have qualitative data, try to find a way to transfer that into something quantitative and start learning by experimentation. Startup mentality would say don’t start with low prices, even if you don’t have a complete product I only have a MVP.
Of course, specific decisions on how you do it really depends on the product/industry/consumer. Without more info this is the best tip I can give. Again, don’t have professional experience on this specifically, but this was off the cuff stuff I’ve learned from classes.
We hear startup software engineers making a lot of money from IPOs. Does the same thing happen for PMs? Any personal experience or anecdotes from friends in the industry
– Shiyao Liu
Discussion
A] I’m a PM working for a VC fund’s AI investment engine (my hopeful exit will be to a Series B startup that my AI finds! lol- probably as a Sr. PM or Director one day).
If you go for a Series B company, then equity could be worth millions in a few years BUT I would check to see if most of the below is true before taking a product role.
revenue is >$6 million
revenue growth is at least 100% per year
NDR AND GDR >110%
Product led growth (I find these companies grow the bloody fastest when they hit true Product-market fit)
retention should be high (depends on which market vertical they operate in, customers etc.)
It is possible to make millions without joining startups- even beyond FAANG. Some funds will pay carry worth 7 figures with every fund they raise but the payout is after 7-10 years (the fund has to pay out their investors first).
– Mario Romero
B] Agree here. Scope for scope, a FAANG, or more accurately F/N/G will on average pay more.
A Senior PM at a Series C will probably make $175k base, and let’s just pretend have options that are worth enough to be 7figures on a good exit. Approx 1/10 series C will survive for those shares to be worth something. And let’s say 50% will strike it rich. So, 5% Chance of those shares being worth $1m-$10 in the next 5 years. That’s an expected value of 50k-$500k. So, let’s use the high end. That gives a 5-year expected compensation of $1.375m over those 5 years or an average of $275k/yr.
In terms of scope and size, that is probably equivalent to an L5/6 at Facebook/Google. Let’s assume L5. A low end L5 comp package here is 325k/year. But you’ll see stock growth as well, plus refreshers, plus promos. Those same 5 years you’re likely to see well north of $2m comp, and if you’re good, you can go from L5 to L8 in that time period and be rolling over 7 figures per year consistently.
– Angela Blue
C] Angela, your equation is predicated on the assumption that startups at Series C all have an equally likely chance of success, which is completely and utterly wrong.
Uber raised a nearly $300M Series C in 2013. If you picked 9 other random Series C companies from that year out of a hat and Uber and presented those options to 100 engineers and PMs in 2013 there would be a massively skewed distribution in favor of Uber because there was a large number of qualitative and quantitive signals of success including the fact they had close to a $4B valuation which is at minimum a strong vote of investor confidence.
You could also look at who was running the business, the quality of engineers and the leadership team, the growth rates, etc.
My point is that using expected value in this situation is nonsensical because the assumption that random chance plays a significant part in the success of a business at the Series C plus level is not true.
As a product manager, one of your key responsibilities is to ensure that your product is competitive in the market. One of the best ways to do this is through competitive analysis. In this article, we’ll take a look at what competitive analysis is, why it’s important, and how to conduct a competitive analysis for your product.
Measuring and analyzing product performance is a crucial task for product managers. It helps them understand how their product is being used, identify areas for improvement, and make data-driven decisions. In this article, we will discuss some key metrics and strategies for measuring and analyzing product performance.
In Product, we tend to split Product Vision and Product Strategy. But I feel convinced by Martin Roger — you need to define your vision (“Winning Aspiration”) together with the other elements of the Strategy, not one after another.
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