SaaS businesses consider customer retention and minimized churn rate to be a life or death matter. In my last post, I wrote about the importance of the Product itself to that retention metric–making sure that once a customer is onboarded, the product actually meets their core needs.
While that is true, Product can have just as strong of an impact on customer acquisition as it does on customer retention.
In SaaS, Customer Success is Literally Life or Death
As you may already know, SaaS business success requires a growing amount of recurring revenue. Steady and predictable revenue, most frequently measured as Monthly Recurring Revenue (MRR), is a business asset that makes a liquidity “event” possible.
Once you launch a product, you have to gain and retain clients.
You are reading the very first installment of Peltier’s Product Digest!
In this occasional series, I will be sharing interesting articles I’ve found related to product management and its related disciplines. I’ll be adding my own analysis, insight and critique on the industry, on practices described in other sources, as well as occasionally on software products.
Starting with Digest #2, this will be an email-only publication. Please sign up on the mailing list today so that you don’t miss any!
As just a taste of what’s to come, here’s the first edition….
How important is the competition?
Are you in a competitive market, or bravely going where no startup has gone before?
If you are actually creating your own market, you may not have to pay as close attention to competition as the rest of us. If you’re successful–and I’m positive you plan to be–you’ll have competition soon. Get ahead of the game and consider a framework for analyzing your competition.
I’m convinced that there are as many definitions of what product management is as there are product managers. There are certainly as many definitions as there are companies.
This is one of the struggles of our line of work — it is difficult to gain agreement on its scope, its deliverables, its very purpose. This leads to difficulties in evaluating whether it’s being done well, what should be done, and what kind of skills are necessary in filling an open position.
Readers of this blog already know that I’ve written about the product manager vs product owner roles before.
This month, as an Aha! Ambassador, I have contributed a post on the topic that includes a breakdown of the duties of each of those roles.
Product teams exist to assess opportunity and capitalize.
Product managers are tasked with finding market problems that are pervasive within a certain target market, and that people are willing to pay to remedy. Then, once found, to guide the development of a profitable solution to those problems.
Market problems can be solved with new service offerings; new features; new partnerships; or new products. Given limited resources, however, product teams can’t pursue every opportunity. They must prioritize.
Product management teams have traditionally been responsible for delivering documents full of requirements: Market Requirements Documents (MRDs) that define problems experienced by some segment(s) of the market, and Product Requirements Documents (PRDs) that define a solution to be built.
Traditional software efforts–perhaps coincidentally–have been notoriously unsuccessful. Many of the software efforts surveyed were internal technology projects, but commercial software products haven’t had a dramatically different outcome.