Growth

Product Growth: What You Need to Know

Seb

Seb

— 4 min read

What is growth product management exactly? It’s not just about building products; it’s about growing them strategically. This concept is like a secret sauce for scaling your business. Let’s dive in and explore how growth product management fits into your company’s strategy and how it can be a game-changer for your business.

What is Product Growth?

Product growth or growth product management is a unique blend of product management and growth/marketing strategies focused on driving business growth. It’s not just about creating a great product; it’s about ensuring that the product gets users, traction and ultimately drives revenue. Think of it as a continuous journey of product evolution tailored to meet changing customer needs and market trends.

How Does Product Growth Fit into a Company’s Organisation and Strategy?

In most organisations, growth product management sits at the crossroads of product teams, marketing, and sales. It’s a role that demands a holistic view of the product lifecycle, from conception to market success. The strategy involves:

  • Identifying market opportunities and customer needs.
  • Developing products that meet these needs.
  • Implementing strategies to maximise product adoption and retention.

Typical Responsibilities of a Growth Product Manager

A growth PM wears many hats. Here are some of their key responsibilities:

  1. Market Research: Understanding market trends and identifying opportunities.
  2. Product Development: Collaborating with product teams to ensure the product meets market needs.
  3. Marketing Strategy: Working with the marketing team on executing marketing strategies.
  4. Data Analysis: Using data to inform decisions and measure product performance.
  5. User Experience: Ensuring the product provides a great user experience.
  6. Stakeholder Management: Communicating with different teams and aligning them with the growth vision.

What Does a Product Growth Strategy Consist Of?

A robust product growth strategy is vital for any business aiming to scale. It typically includes:

  1. Goal Setting: Defining clear, measurable objectives for product growth.
  2. Target Market Analysis: Identifying and understanding your ideal customers.
  3. Product Positioning: Crafting a unique value proposition.
  4. Growth Channels: Leveraging various channels like SEO, social media, email marketing, etc. Check out our article Acquisition Channel & Strategies to Boost Customer Growth for a comprehensive overview of growth channels
  5. Experimentation: Testing different strategies and iterating based on feedback and data.
  6. Performance Metrics: Regularly tracking and analysing key performance indicators (KPIs).

The Role in Different Types of Businesses

For Small Businesses and Startups

In small businesses or startups, growth PMs often wear multiple hats. Here, the focus is on quickly finding product-market fit and cost-effectively scaling the product.

For Medium-Sized Businesses

In medium-sized businesses, growth product management becomes more specialised. The role often involves deeper data analysis and a more strategic approach to scaling the product in a competitive market.

For Large Corporations

Growth product managers in large corporations might lead teams dedicated to specific products. The role involves long-term strategic planning and collaboration across various departments. There often are dedicated growth PMs for every touchpoint of the customer journey (e.g. acquisition or retention).

The Phases of the Growth Journey

  1. Awareness: This is where it all begins. Potential customers discover your product. Maybe they’ve seen an ad, heard about it through word-of-mouth, or stumbled upon it while browsing online. Your goal here is to make a strong first impression.
  2. Consideration: Now, they’re interested. They’re researching, comparing your product with others, and pondering if it meets their needs. This is where detailed information, positive reviews, and compelling content play a crucial role.
  3. Acquisition: Congratulations, they’ve chosen your product! This phase is about making the purchasing process as smooth as possible. A good onboarding experience can set the tone for the entire customer relationship.
  4. Retention: This phase is often overlooked but incredibly important. Retaining customers is about ensuring they find continuous value in your product. Regular updates, excellent customer support, and engagement strategies are key.
  5. Loyalty: When customers not only stick with your product but also become its champions, you’ve hit the loyalty phase. They recommend your product to others, contribute to community forums, and are more likely to try your other products.
  6. Advocacy: The ultimate goal. Advocates are loyal customers who actively promote your product. They’re your unofficial spokespersons, bringing in new customers and thus completing the cycle.

As a growth product manager, your job is to optimise each phase of this journey:

  • In the Awareness Phase: Leverage SEO, social media, and targeted advertising to reach potential customers.
  • During Consideration: Provide comprehensive, easily accessible information about your product.
  • For Acquisition: Streamline the buying process and offer a seamless onboarding experience.
  • In Retention: Continuously update and improve your product based on customer feedback.
  • To Foster Loyalty: Create loyalty programs, offer exclusive content, or build a community around your product.
  • Encouraging Advocacy: Recognise and reward your advocates. Their word-of-mouth promotion is priceless.

Product Growth Examples

Example: An E-commerce Platform

For an e-commerce platform, a growth product manager might analyse shopping trends, work on enhancing the user experience, and develop strategies to increase repeat purchases and customer loyalty. Therefore, a growth PM has very business-focused KPIs such as revenue, order size or retention. This for me is the main difference to a core PM.

Conclusion

Growth product management is not just a role; it’s a mindset. It’s about looking at your product through a growth lens and constantly seeking ways to improve and scale. By integrating this approach into your business strategy, you can ensure that your product not only survives but thrives in today’s competitive market.

So, are you ready to take your product to the next level with growth product management? Remember, it’s a journey of continuous improvement and adaptation. Embrace it, and watch your business take off! 🚀

Read more