Memorandum: Product-led

Certificate
MTM

Student: Ignacio Ruiz

Professor: Ricardo Dorado
28/09/2022
MODULE 1

Put the product at the center of everything the business does.

What is a product-led organization?

A business that makes its products the vehicle for acquiring and retaining customer,
driving growth, and influencing organizational priorities.

Product-led growth: Companies view their product as a vehicle to drive growth.

Product-led organization: Everything the company does should lead back to the product,
the product becomes the nexus of the Cx.

Product-led strategies lead to: Increased efficiency, greater collaboration, faster

innovation and higher revenues.

What does a product-led organization look like?

Tesla: Creates a product experience, considers customer needs, sells directly to
consumers, delivers product updates as simply as updating an app, analyzes usage data
and collect feedback from customers.

For a product-led company, success requires focusing every part of an organization on the
product.

At the end of the course you will know: Leverage your product to solve key challenge
across every part of the business, use product insights to inform strategy, drive growth by
putting your product at the center of the Cx and employing product-led growth tactics to
empower sales, marketing, and Cx teams.

MODULE 2

The fundamentals of being product-led, at the end I will explain the characteristics of a
product-led organization and describe the benefits of a product-led strategies for a
company's key functions.

Why become a product-led, why not?

85% of business buyers say that the experience a company provides is as important as its
products and services. 76% expect the companies and brands they work with to
understand their unique product needs and expectations.
Less than 31% of business users report having a high-quality product experience. 44% of
customers think there is a need for a major improvement in the technologies used by the
companies they interact with.
Software has a direct impact on business outcomes: How quickly and how well users
adopt the product, how much it impacts users’ productivity, whether or not they decide to
remain your customers and how loyal they are to your company and brand.

The product is surrounded by sales, customer success, engineering, support, marketing

and design.

When the product experience is good, customers gain more value from lower cost sale,
greater product usage and adoption and greater retention. Employees are happier and
more productive with process excellence, faster business transformation, and increased
adoption of digital technologies.

6 characteristics of product-led companies

Being a product-led organization means every department thinks about how they can
leverage the product in different ways. The product isn’t just a part f the overall customer
experience, it is central to how every function performs their roles.

Product-led organization align each function around the product, make decisions with data
over gut feel, use the product as a marketing channel, have amazing onboarding, help
users help themselves y collect and use feedback from customers.

Product-led strategies in action

Product-led marketing: Costumers want hard proof of how a product will deliver value.
They identify key activation points that drive usage and conversion and use these insight
to improve messaging and strategy within the product.

As the costumers hook up the: Product led marketers leverage custer usage and
sentiment to identify power users and potential advocates.

Example: Choozle’s product marketing team noticed users would often miss out on one or
more of their new features and occasionally a customer churned on the assumption that a
feature they needed wasn’t offered

How they solved this, using analytics to identify costumers that were not leveraging certain
high value features, generated the following: this improved feature usage by 154% and
increase the revenue associoted with the featured they promoted in 35%. (+demo)

Product-led sales: They use costumer engage data to identify cohorts for prospects for
target outreach, cross sell, and up sell opportunities. They also collect feedback on what
users love about the product and what they want to improve.

If the product team lacked insight into how its own platform was being used and made
product planning challenge, because they didn’t know which features customers valued
most it can be solved by using analytics to understand how users navigated the platform
and which features of the platform they used the most. They also used analytics and in-
app messaging to promote the new features.

Product-led customer succes: This represents the eyes, ears and heart of a product led
organization.

Example: Despite NAVEX’s email communications they support ticket still came in during
update times and planned outages from users trying to log in and only a very small
percentage of the companys more than 500.000 monthly active users opened the emails.
They resolved this by instead of mail, they moved it to the platform (in-app).

The benefits of becoming a product led

Product led organization base product decision on what user behavior, sentiment, and
direct feedback say matters, they also leverage usage dato to help anticipate where in the
product journey users are likely to get stuck.

Product led organizations use the product itself to drive growth and view the product as a
means to make the customer lives better.

The benefits of becoming product led are greater flexibilty, increased responsiveness,
efficiency of revenue and higher-quality product experiencie.

In product led companies, growth has been seen in: 30% increase in qualified leads and
28% increase in total active users. Reduction of 27% in user onboarding time and 30%
faster collection of product engagement and usage data. 5% decrease in customer churn
and 15% increase in revenue retention. 30% reduction in feature roadmapping time and
30% faster realization of product ROI.

How to take a product led approach to deliver on customer needs.

Main jobs to be done: funcional aspects and emotional aspects (personal dimension and
social dimension) same for related job to be done.

Identify your “Jobs to be Done”

Job to be done might shift as your customer need change over time

Being proudct led means: aligning every business funtion aroun the product, using the
priduct to solve key challenges, leveraging data to make decisions, using the producto as
a marketing channel, etc.

Product led companies see ROI across the areas: Growth, user productivity, customer
health and product development

MODULE 3

Leveraging data to build great products

How do product led organizations measure and deliver value?
Product teams need to know what users want, what users say and what user do.

Trying the product experience to business value we need to ask: How sticky is my product,
is my feature adoption rate what it should be, are my customer using enough of my
product and am I uilding what my customer want or am I building what I think they want.

How to decide what to measure

Prioritize which metrics are most important: Identiffy the questions you need to anser
about your product, find the metrics that answer your questions, each department should
have its own product led KPIs

Categories of KPIs: Business outcomes, product usage and product quality.

10 KPIs prodcut led teams can use: Net Revenue Retention (how much revenue is my
product retaining from existing customers), Adoption (are users adoptin my product and
key features within it), Stickiness (do users keep coming back to my product), Growth (is
my product acquiring an retaining new users faster than existing users are abandoning it),
Product Engagement Score (how are users enganing with the product overall), Retention
(are users building enduring habits inside the product), Time to value (how long does it
take for users to find value in my product), Net promoter score (are users and customer
happy with the product), Top feature request (what do users want from my product) and
Product performance (is my prodcut performing efficiently and without bugs).

Defining your data stack

First, identifiy and categorize your teams data sources, the indetify the metrics from there
sources you can use to make decisions and finally rank these metric based on how they
help you measure progres towards your goal.

MODULE 4
Delivering products differently

Why product success depends on feature adoption

Baking too many assumption up front makes it difficult to iterate and change over time.

Communicating new features

The way we educate and enable users has to evolve into effective customer feedback,
appropriate measurements and ability to drive awareness around new updates. Customer
education need to be ingrained into the fabric of how you launch. Releasing updates 50x a
day doesn’t mean you should announce updates 50x a day.

The best way to deliver product announcements is to place them directly in your product,
relevance to tailor the communication to the appropriate users and desired action to align
your announcement to the desired action.

Exercise: Design a launch plan that accelerates adoption

Determine what a successful launch looks like, determine how you will communicate the
launch and how will you engage customers around the launch.

Beyond the launch: Measuring feature adoption

3 dimension for measuring feature adoption after a launch: breadth of adoption, time to
adopt and duration of adoption.

The importance of feedback

Listen to customers, invest in scalable feedback processes and close the loop with
stakeholders.
You can’t be every customer, learn from customers experiences with your current
offerings, and learn from prospect feedback or why they went with a competitor.

Use customer feedback to validate or pivot work that’s in flight.

How to create a customer feedback process

Product feedback policy to explain how to submit feedback, how often its reviewed, and
how updates are communicated back.

Products teams know exactly where to go to access the customer insight they need.

To launch a simple repeatable, and effective feedback process we need to pick one place
for customer feedback, create a transparent review process, communicate back and get
the teams on board.
Exercise: Create a customer feedback policy

First your approach to product feedback, how customer can give their feedback, what
happens to feedback after it is submitted, frequently asked questions and how the policy
will be shared.

An introduction to product operations

Product ops work to tighten product feedback loops, systematize product development and
launches and scale product knowledge across the company.

Product operation is focused on wrangling data in support of better product decisions,

managing release schedules and go to market readiness, coordinating internal and
external launches and communications and orchestrating the right messages and
experience inside the product.

96% of companies with more than $1 billion in revenue have a product ops function.

3 models for product ops: outcomes drive, efficiency focused and customer centric,

How to stand up a product ops function

Discovery: Take stock of the current landscape across the organization, meet with various
department leader and their teams, learn as much as you can about team structures,
workflows, and processes, ask about pain points and where teams believe there are
inefficiencies and log everything.

Narrow the scope: Identify key questions or items from the discovery phase, determine
what’s needed from other departments to prevent or mitigate each issue and propose a go
forward process to all stakeholders.

Open up communication: Think about which items from the previous phases should be
surfaced widely, identify breakdowns in communication and initiate dialogue between team
leaders or entire teams.

How to get started with product ops: Research different departments, ask questions,
foster communication between apartments, listen, and be respectful of people space and
sensitivities and lean into your role as the glue in your product led organization.

MODULE 5

Introduction to product-led strategies for customer success

What is product-led customer success?

Product led customer succes teams put the product at the center of the customer
experience and leverage product usage data to guide their strategy. Its important to use
product analyitics to measure customer health, monitor user behaviors, and assess
customer sentiment.

A product led customer success strategy helps CS teams to: Reduce support ticket
volumes, improve long term product and feature adoption, predict at risk accounts and
increase retention and long term customer loyalty.

Product led customer success teams when: Share a unified view of customer, use
qualitative and quantitative data, leverage the product as commucation tool, use
segmention to personalize their outreach, support paying customer and freemium users
and shape the future of the product.

Customer onboarding for product-led organizations

Onboarding is the process wherein new users become proficient and star finding value in
your product.

Tradition onboarding consume time and resources: It involves multiple teams,

including product, enablement and marketing. Its delivered through traditional channels
like email, PDF and webinars.

Product led onboarding: The process of helping new users become proficient in your
product by leveraging the product itself as introductory enablement channel.

This gives users a personalized experience, is immersive, so users stay focuses, lets
users self-serve and craters to a variety of learning styles.

Organizations can leverage human and product led onboarding strategies to from their
own hybrid approach.

Discovering “aha” moments

If you show users exactly what is they want to do in the fastest, simplest way, users will
find value and stick around. Famous aha moments Facebook and slack.
Designing an onboarding experience

Sell the value of the features, link features together and help users learn by doing.

Walkthroughs can be triggered by user behavior and can be targeted to particular user
segment, accounts, or individual visitors.

Empowering users through ongoing education

We need to consider users learn at different speeds, meet your users where they are,
illustrate your products functionality and walk users through step by step.
How to evaluate the effectiveness of ongoing customer education: Engagement with
training content, support ticket volume and long term retention

MODULE 6

Introduction to product-led strategies to drive growth

Elements of product led marketing: Freemium, in-app messaging, customer health and
sentiment data and letting product market itself.

Marketing Qualified Lead: Leads that marketing teams deem to be adequately qualified
or primed for the sales cycle.

Product Qualified Lead: Users who are not yet paying customers but have experienced
value from the product.

Using PQLs as the standard for qualifying deal drives efficiency across the business.

How to leverage a free version of your product to drive growth: Freemium and free
trial.

Best practices: Set usage limits and set expectation up front, monitor heavy usage to
target your upsell, create advanced features worth paying for and show results.

Metrics to look for: Logging in multiple times over a period of time, spending multiple
hours with the product, using all of the features available multiple times and installing add-
ons.

Building awareness through social proof

It is any form of evidence collected from users and customers about their experience with
your organization or your products, which is then used to market product. This can be
reviews, testimonial, social media, customer success stories, product ratings, quotes and
endorsements.

Soliciting feedback in product means a customer immediate experience with the product is
likely to influence what they say about it because it’s top of mind.

Product-led strategies to drive renewal and expansion

The best product leaders know which usage patterns correlate to account growth and
renewal.
It’s important to measure retention over time to see if onboarding is yielding temporary
changes in user behavior or habits that stick.

For retention data to be actionable, we need to understand these: Initial metrics

(product adoption, support experience and purchasing behavior), Medium metrics (CSM
input, CSM interactions and NPS) and Long metrics (IT ecosystem, security maturity and
product certifications).

Some unhealthy customer may already be lost, healthy customers are the best cross sell
candidates, neutral customer can become your biggest advocates and creating a customer
health score model require s a lot of trial and error.

How to take action on customer health scores: Use data to better inform interaction
with customers, leverage health scores to automate in-app interactions and help existing
users do more inside the product.

Exercise: Create a customer health scoring model

First, write down every metric you can think of that might provide a signal to a customer
health, think about how you might group your metrics, prioritize the components by time
frame, think about values to assign to each of the initial components, brainstorm palns of
action to address each type of customer.

MODULE 7

Introduction to implementing product-led strategies

Inspiring teams to align around your product

For product led companies, the product isn’t just on part of the customer experience, it’s
the experience.

Reorganizing your company around your product: Increase communication, brings

you closer to your customers and improve collaboration.

Questions to do: Am I ready for a product led strategy, how can my product deliver a
better quality experience and are other department supportive.

3 signs you’re ready to take on a product led approach: Your customers engage with
you digitally, your measure product usage and your focused on the long term.

Building your product-led tech stack

Challenges: Your need a unified view of the Cx, understanding how people use software
and what they think and getting the business to put the Cx first.

Building a product led tech stack needs: Analytics, in-app guidance and user feedback.

To build a product led organization, you need: Shared goals and cross functional
metrics for what measures and why to connect al your systems and integrations to
understand how your product deliver value and to who, data about how people are using
your product and where they’re struggling to collect and act on feedback from your users
at scale to bring a data informed approach to your customer engagement and product
development efforts.