Category posts
Product

All about the product: product/market fit, Retention, metrics, unit economics, LTV, cohort analysis, added value, etc. Find out about the basics or go deeper and explore nuanced topics.
Author:
Editorial
The product manager’s guide to North Star Metrics
The product manager’s guide to North Star Metrics

Different metrics can gauge various facets of a product’s success. But one metric is the quintessential indicator of the product’s value generation—the North Star Metric (NSM). This pivotal metric not only encapsulates the core value that the product delivers to its users but also serves as a unifying beacon for the team developing the product.

The NSM clarifies the “why” behind the team’s efforts and aligns separate teams under a single, overarching goal. The NSM helps develop a cohesive strategy to bolster the organization’s primary mission. It also helps product teams detect when changes to the product are detracting them from their main mission.

Sustained growth in this key metric is a sign of the product’s—and by extension, the company’s—trajectory towards generating more value and, by extension, success.

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Author:
Editorial
Everything you need to know about network effects
Everything you need to know about network effects

Some products, like word processors and photo editors, are oriented around functionality. People use them because they have good features. Other products, like messenger apps and social networks, draw their value from their audience. People come to them because that is the other people that use them. 

When a product’s value increases as more people use it, it is said to have “network effects.” Network effects are the silent growth engines behind some of the most successful products, from Facebook to Uber, and from Airbnb to WhatsApp.

Network effects act as a multiplier, where the value of a product or service increases exponentially as more people use it, creating a powerful incentive for new users to join and stay engaged. Understanding network effects is not only beneficial but also crucial for product managers who want to turn a good idea into a lasting business.

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Author:
Editorial
Solving the “Cold Start Problem”: expert tips and advice
Solving the “Cold Start Problem”: expert tips and advice

Starting a business from scratch and attracting your first paying customers is a sizable challenge. Things become more complex when your business or product also needs to recruit suppliers to meet customer demand. Creating a sustainable balance between the supply and demand sides of a network is notoriously difficult–and the reality for many platform-based businesses, especially two-sided marketplaces. This conundrum is commonly known as the “cold start problem”.

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Author:
Editorial
How do you avoid adding unnecessary features to your product?
How do you avoid adding unnecessary features to your product?

Most products are bound to evolve over time, but not every new addition translates into value for the user. 

New features may encourage growth in one customer segment while alienating another. This tension is common within the field of product management, and striking the right balance between innovation and simplicity is a crucial skill for product managers to learn.

To avoid adding unnecessary features to their products, PMs should take a multi-pronged approach. Firstly, the development of a solid product strategy can prevent individual stakeholders from exerting unearned influence on a product’s roadmap. Secondly, smart prioritization and development processes can ensure that product managers are focusing on the right inputs while taking the guesswork out of decision-making. Lastly, product managers can leverage different types of data at each point in the customer lifecycle to ensure that their efforts are serving customers effectively (and are primed to do so in the future).

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Author:
Editorial
How to calculate unit economics for your business
How to calculate unit economics for your business

Discussions of unit economics sometimes get sidetracked by formulas and business jargon. But you shouldn’t need a special course just to get a handle on this critical concept. Unit economics can actually be easy and even intuitive.

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Author:
Editorial
Retention: how to understand, calculate, and improve it
Retention: how to understand, calculate, and improve it

Retention (also referred to as “retention rate” or “RR”) is one of any product’s most vital metrics. Good retention means users keep coming back. People use your product again and again because they find sufficient value in it for accomplishing their jobs-to-be-done.

In this article, we will look closely at retention and see why it’s so essential for your product and business.

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Author:
Oleg Yakubenkov
How product teams get the “aha moment” wrong
How product teams get the “aha moment” wrong

People switch their way of getting a job done when they find a product that does this better than the existing alternatives. But just creating a more effective solution isn’t enough. Teams have to learn how to articulate and deliver this value to target users.

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Author:
Oleg Yakubenkov
How well do you articulate value during user activation? Check with the value communication framework
How well do you articulate value during user activation? Check with the value communication framework

When plowing ahead with product creation, it’s easy to start talking about a product from the viewpoint of the people who make it. But then we risk overlooking how the product actually creates value and helps users. If this happens, activation takes a turn for the worse.

Here we’ll be demonstrating the value communication framework. This is a way to imagine yourself as the user. With their job-to-be-done in mind, you analyze the key headers, texts, visuals, sales scripts, and other elements to see whether they articulate value as seen by the user.

You will be able to discover where communication issues lurk and then fix them to articulate value in language that resonates with users.

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Author:
Oleg Yakubenkov
Tax/benefit framework for analyzing user activation
Tax/benefit framework for analyzing user activation

We have discussed in the previous articles why it’s important to reduce friction and strengthen motivation for users throughout the activation flow.

Here we will go into depth with what we call the “tax/benefit framework”. This is a way of conceptualizing changes in motivation over time as the user goes through the activation flow. By performing this kind of analysis, you can better structure activation, motivate new users as you guide them to an “aha moment”, and turn “tax” steps into “benefit” steps.

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Author:
Oleg Yakubenkov
How to improve user activation by obtaining and leveraging additional user data
How to improve user activation by obtaining and leveraging additional user data

A product’s added value depends on context: the use case, alternative products known and available to the user, current method for performing the job-to-be-done, and user’s personal preferences and tastes.

By getting additional information about the user, product teams can tailor activation for a better fit. The result is a stronger activation process with improved outcomes.

In this material, we will discuss where you can get additional data about the user and how you can use this for improving the activation flow.

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