×

Receive our FREE PowerPoint Toolkit

The Flevy PowerPoint Toolkit contains over 50+ slides worth of diagrams, shapes, charts, tables, and icons for you to use in your business presentations.



Flevy is the marketplace for premium business documents.
Buy and sell PowerPoint templates, business frameworks, presentation templates, and more.

Currently viewing the tag: "Product Development"

PD3Product Managers are responsible for defining the features or functions of a Product and for overseeing the development of the Product.  The role of Product Managers spans many activities from developing Product Strategy to tactical plan and can vary based on the organizational structure of the organization.

Typically, Product Leaders are involved with the entire Product Lifecycle.  However, the Product Management’s primary focus is on driving New Product Development.  To successfully execute these roles, it’s important for Product Management to collect and synthesize proper, relevant data to make informed Product decisions.

Product Managers need to evaluate 10 categories of Key Performance Indicators (KPIs) to determine the most appropriate KPIs relevant to their work:

  1. Product Stickiness
  2. Product Usage
  3. Feature Adoption
  4. Feature Retention
  5. Net Promoter Score (NPS)
  6. Leading Indicators
  7. Top Feature Requests
  8. Product Delivery Predictability
  9. Product Bugs
  10. Product Speed and Reliability

Let’s discuss these Product Management KPIs in a bit detail.

Product Stickiness

KPIs around Product Stickiness determine whether users are re-engaging with our product.  If a product is successful, it exhibit “stickiness.”  That means users don’t just sign up and forget about it.  They continuously live inside the product, such that it becomes part of their daily routine.  A good product should not long attract new users, but to also continuously re-engage with its users.

Product Stickiness is often measured by taking the ratio of our Daily Active Users (DAU) to Monthly Active Users (MAU): i.e., DAU/MAU.  This metric calculates the percentage of our monthly users who engage with our product on a daily basis.

Product Usage

It is inevitable that not all features of a product will be utilized the same.  Some features are more heavily used, whereas others are not.  The only way to know what product features are important to users is by measuring how our product is being used.  Measuring user engagement across the product allows us to answer what features should we enhance, which ones to eliminate, and which features to promote to increase users awareness of the product functionality.

Product usage is measured by using 3 key metrics—Breadth: refers to the number of active users for a given client within the last 90 days.  Depth: Captures whether users are using key features that make the product sticky.  Frequency: e.g., number of logins across all devices within the last 90 days.

Feature Adoption

These KPIs seek to understand and set feature adoption goals.  Key question to clarify these KPIs is whether users are adopting the newly released features.  Feature adoption data of recent feature launches is critical to determine appropriate feature adoption goals.  It is important to look at feature adoption at both the user level and account level.  For instance, different customer groups with an account may exhibit different levels of adoption for different feature sets.

The key metric to measure feature adoption is the percentage of users using the feature.  This should be evaluated across multiple features on a timescale (typically for at least 30 days following the feature release).

Feature Retention

Feature retention KPIs reveal true adoption of features vs. the initial promotion-driven adoption.  Feature Adoption seeks to measure initial use of a feature, whereas Feature Retention seeks to measure the long-term, persistent usage of a feature.  Measuring feature retention helps us identify at-risk users who have started to disengage from the product after the initial promotion is over.  We can then take action to re-engage these users.

Feature retention can be measured across different customer segments, e.g., by pricing (Free vs. Paid), by organization size (Startups vs. Enterprises), by position (Analyst vs. Manager).

Interested in learning more about the other KPIs critical to manage and develop a Product Portfolio?  You can download an editable PowerPoint presentation on Product Management KPIs here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

assorted-variety-of-fruits-2255903The decision for pricing a product or service isn’t as simple as it seems.  It is a key consideration for executives.  Pricing way above the rival products risks not attracting the required customers while charging way below the competitor products could be equally detrimental.

Manufacturers can utilize research to have a better understanding on what consumers are willing to pay for a product.  There are a host of research-based pricing approaches available—e.g., Monadic, Sequential Monadic, Conjoint Analysis, Van Westendorp Price Sensitivity Meter etc.—however, researchers often get confused on which one to use in a given product development phase.  Let’s discuss the Van Westendorp Price Sensitivity Meter approach for now.

The Price Sensitivity Meter (PSM) is an easy-to-use method of evaluating price of a new product.  The method was developed by Peter Van Westendorp in 1976.  Through the PSM approach, consumers undergo a short survey where they answer 4 questions about their price expectations.  These answers are used to determine the maximum amount a consumer is willing to pay for a particular product and how higher the price be set for the customer to still buy the product.

The approach offers a ball-park figure for the price of a product, is easy to administer, requires less effort from the consumers, and the PSM results are communicated in the form of simple diagrams.  The approach, however, surveys only the “willingness to pay” attribute of a product, and is more appropriate for innovative products—as it is not easy to determine prices with competing products using this approach.  PSM analysis should be a part of your Pricing Strategy process.

The PSM approach encompasses the following key phases:

  1. Plan and Execute Market Research Survey
  2. Analyze Data
  3. Evaluate Intersections to Determine Price

Let’s discuss the first 2 phases of the approach.

Plan and Execute Market Research Survey

The initial phase of the PSM research entails deciding on the medium of the study and planning the logistics, design, resources, guidelines, and governance protocols for the survey.  More specifically, the phase involves:

  • Preparing the field research plans.
  • Determining whether the survey should be conducted online, telephonically, or face-to-face.
  • Identifying the consumers (respondents).
  • Assigning the required resources to the survey.
  • Getting the data collection tools and research instrument (questionnaire) ready.
  • The questionnaire includes the following questions:
    • At what price the product would become so expensive for you to even consider buying it?
    • Indicate the price that is expensive for you but you would still buy the product?
    • What would be the price that is too cheap for the product where you would start doubting its quality and not buy it?
    • Indicate the price of the product where you would consider it a great value for money (a bargain)?
  • Gathering data from the survey participants.

Analyze Data

The second phase pertains to analyzing the respondents’ data from the field survey.  This is done once the field data has been validated and cleansed of any inconsistent errors.  The steps taken in this phase include:

  • Ordering the 4 questions in a manner that it ranks prices as “Too Cheap,” “Bargain,” “Getting Expensive,” and “Too Expensive.”  The values of these ranks should be kept in numeric dollar values.
  • Plotting the responses of the survey participants on a graph.
  • Depicting the prices on the X-axis.
  • Representing the percentage of consumers who quoted the respective price (i.e. the cumulative frequency) on the Y-axis.
  • Reversing the values of the two curves.
    • The curves with the values “Too Cheap” and “Too Expensive” are drawn with inverse values. This creates two other curves.  These curves show the percentage of consumers who regard prices as “Getting Expensive” and “Bargain”.

Interested in learning more about the other phase of the Van Westendorp Price Sensitivity Meter?  You can download an editable PowerPoint on the Price Sensitivity Meter (PSM) here on the Flevy documents marketplace.

Are you a Management Consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.