This blog is all about unpacking how to grow our product once we establish our product-market fit. Expanding our market depends on a few variables, including user engagement, word of mouth, and creative marketing, which we will be discussing further in this blog.
In a single utility product, if the user returns back to use the product, that is a good sign. In multiple utility products, if users are retained, it is a good sign. Whichever category the product might fall in, it is crucial to have users landing back to your product. Growth starts with the product-market fit, and retention of the user is one of the variables affecting the product-market fit.
Once you have reached the product market fits its time to think about product growth. We will discuss below a few of the essential tactics that can help your product grow.
- Developing features to promote word of mouth
People like to talk about new products which provide them value. Product growth is gained by harnessing the power of word-of-mouth into your product. Features that let you invite people to use the app is a good idea when you want to attract more users to your product. For instance, Slack allows sending invitations to outsiders to join the company Slack. The feature enables the users to invite other people to join in the company profile that in turn, benefits Slack. Products like LinkedIn, Facebook also has this feature, which made it easier for them to gain users in the early stages.
- Building a marketing and sales team
Another strategy to implement is to build a sales team. Your team then can reach out to the right users and generate leads for the products. However, investing in a sales team can be expensive. You need to consider unit economics when it comes to deciding about building the team. If you can earn $10000 by selling a product, it would be wise to invest in a sales team. But if your per unit earning is low, this strategy might fireback in early phases. So, it is totally up to you to decide how much are you willing to spend and whether you have the budget to do so.
In an enterprise setting, partnering with suitable companies can help you achieve product growth. For instance, Jira and Slack are partnering. One thing you need to note here is the fact that both these companies have achieved their respective product-market fit. By partnering, they are looking to grow their products. Thus, companies must have reached product-market fit before they partner for growth.
- Channel Partnership
Channel partnership is finding the right channels to market your products. Suppose your product is a plugin for Hospital staff management software. If hospital associations are partnering with them can help you market your products to reach out to your target audience. They become your channel partners to reach out to your target market.
Furthermore, growth can be achieved through marketing channels, including spending on ads, developing features like Slack’s invitation outside the organization or Uber’s promo code features. Even by meeting with clients personally. However, the channel you choose will depend upon the unit economics of the company, and the fact that the product has achieved the product-market fit.
To steer product owners in the right direction, development partners need to figure out the channel that suits their unit economics. That is if you sell one license worth 100 dollars, what is the right channel to sell more, grow more? Investing in a sales team can be costly for them. Instead, they can act on other alternatives as paid ads or sales through phone calls. Based on unit economics, focus on the growth channel. You’re selling 100 products, you need to sell them in large quantities, the cost will differ on how you distribute and sell it.
For a small company jumping to a medium or large scale, it is possible to grow in small size by cultivating the community. If you are targeting fiction writers, build a community around them. Engage with them, and identify champions, start creating content which will generate leads for your company. With physical or digital colocation, it is easier to build a community and acquire the customers. Once the city starts talking about your product, growth is inevitable.
Therefore, have an eye on your unit economics from day 1 and choose the right sales channels to grow your product. Choose what works best for your product as per the unit economics. And always keep in mind- Product market fit is a prerequisite for growth.
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