Product growth strategy methodology!

Product strategy is not based on features, but on data. There is actually not much difference in product growth strategy for To B or To C products, and the underlying ideas are also the same. Therefore, students who are To B or To C can discuss this article together. However, there will be some gaps in the corresponding product operations , which will also be discussed in this article.

1. Set a North Star Goal

It is not easy to set the phased goals for the entire product. A slight mistake can lead to a huge error. For example, the North Star target set by a food delivery platform may be [average user spending of 20 yuan], [10 million new users], [local merchant coverage of more than 70%], etc. Behind each target is the focus of the entire company or team at that stage. All KPIs are based on this. If it is set incorrectly, it will be a waste of effort and you will either make no progress or regress.

So how do we set this goal? Let me talk about my views on goals based on practice:

1. It must be measurable and quantifiable, not qualitative

I would like to mention one point here. Quantification refers to the data that can be obtained and monitored, not all quantifiable indicators can be used. Some may be due to technical reasons, and if the data cannot be obtained, it cannot be quantified.

2. Each stage has different goals, but it is best to have one

Set the goals for this phase based on the stage of the product. There is no need to set a very big goal and think that you won’t have to change it in the future. This is often too empty and lacks clear guidance.

3. Think clearly about the most influential indicator of strategic value at this stage, which is often

User value is the foundation of a product, but at this point user value can be said to be strategic value. The business world is like a battlefield, with unpredictable circumstances. Sometimes some influences may be temporarily more important than pure user value, such as the impact on the entire market, future commercialization strategies, and so on. In short, thinking deeply and grasping the strategy is the key.

4. How much?

Many products are still in the exploratory stage, and the goals for future products are not clear at all. At this time, you can only decide on a goal based on your imagination, even if you have to think hard. But it’s not random shooting. It’s based on previous experience. Before shooting, you should have some ways to achieve 80% of the goals in mind, and the remaining 20% ​​is left for team innovation.

If it is really difficult to shoot, then I think you should leave this difficult problem to your boss. Sometimes we see that the boss also makes decisions based on his own ideas, but the final result is pretty close to that number. This is experience.

2. Column formula

List the goals in a formula, and the underlying idea is to break down the goals. Every value broken down must be measurable and quantifiable. For example, the GMV commonly used in the e-commerce industry = average order value * number of users * purchase frequency. These are formulas that have been iterated many times by industry predecessors. When listing the formulas, you should pay attention to the following:

1. Break it down to the smallest quantifiable factor

Break down the large goal into smaller parts until it can no longer be broken down, and the final smallest factor must be quantifiable. Make a data table with the minimum factor and record the relevant data. Just keep an eye on this data during the product iteration phase.

2. What to do if it is difficult to disassemble

Some students work in relatively niche or new industries and do not have good decomposition formulas left by predecessors. At this time, we need to explore on our own and try to put the equation together. If the business logic is more complex, then find factors that are related to the goal and can be quantified, and list them exhaustively without duplication. Then break it down according to these quantifiable factors until it is as small as possible.

3. Accumulating User Value

Based on the broken down minimum factor and the increase in the factor data, the corresponding user value is continuously increased, and iteration and improvement are carried out. The difficulty here lies in how to find a balance between the true value of users and data indicators.

1. What is the real value of users?

Finding out what the most important points are for users is usually very clear in business scenarios. In the e-commerce scenario, it is to buy the same product at the cheapest price; in the recruitment scenario, companies want to see more qualified talents; it is these most essential attractions that can impress our users. Some small favors are often given for free.

2. Balance between data indicators

My understanding is that it depends on the impact on the North Star target. The formulas are all very rational. In actual business, the two indicators are often in conflict. For example, between the number of new employees and ROI, an increase in one will often lead to a decrease in the other. At this time, it is OK to calculate whether the North Star indicator is increasing or decreasing.

4. Find a gripper

Based on the data accumulated during product iterations, we need to slowly find a magic number and a handle. For example, on a certain social platform, as long as the number of friends exceeds 7, the user retention rate will become very high, and so on. In data monitoring, we should strive to find out what the magic number is for our own business in terms of retention, and use this handle to cooperate with the guidance of our product functions or activities to keep new traffic.

5. Growth strategy for To B operations

In terms of operations, there are essential differences between B and C. As mentioned in the user section, although both are people, the scenarios are different and the user's mental model will also become very different.

1. Build a brand and find the points of difference to amplify and promote them.
2. Pay attention to content operation, and use typical ABM marketing on the B side to build a user pool. After that, you have to "slowly smoke" to reach out in multiple dimensions to get the final transaction.
3. Create concepts, create models, and create best practical cases. To B users often buy a new practical strategy to help them achieve better performance. Therefore, when promoting, the packaging should also be more upscale, and the theory should be used to give users a strong impact first.
4. Pay attention to the refined operation of 1V1 users, maintain them one by one, reach them one by one, and defeat them one by one.
5. Pay attention to product operation. This is a point that many B-side operations in the circle tend to underestimate. Because the B-side transaction process is long, many companies focus on business, but operations that tend to be marketing-oriented often find it difficult to break the circle. They find that after all the maintenance, they are still stuck in their existing user circle and it is difficult to attract a large number of new users. Whether it is combined with product operational activities or product functions that can achieve fission, these are the fission nature of the Internet. Therefore, as a To B operation or product, if you want to break the circle, you must think about the product.

What we discussed this time was more on the high-level methodological level. For specific implementation in actual business, we must continue to practice and form our own things. This methodology is a shift in thinking for me, and I continue to use it to formulate strategies for product growth.

In the next issue, we will talk about the strategic understanding of product design. There will generally not be much deviation when making demands and setting priorities based on the strategy.

Author: Zhong Wei

Source: Interpretation Memorandum