The iPhone product is at the core of Apple, but what exactly
is the “product”? Is it a phone with a camera and a touch screen? Does it
include the experience of managing communications, music, and photos in iOS?
And, what about the friendly faces at the Apple Store that help us pick out,
get started with, and support our iPhone? Your definition of a product like the
iPhone has a big impact on how you go about building a product. So how do we
think differently about product development when we realize that products must
be created in the minds of people.
Working in an emerging growth business you quickly realize
that your product is central to your existence. In the case of a tech company,
your entire team is tied to the product.
- Your developers spend their days coding software for your product.
- Your sales team sells the product to customers and generates revenue for the business.
- The product team seeks to balance customer development with insights from your sales team and the efforts of your developers.
- Not to forget, your product is closely tied to your intellectual property.
In addition, when we speak about startups with other
founders, with investors, or in the media, we often refer to our products. For
the early stage company, we hang out and talk about how our products will
change the world. We speak about Minimum Viable Products (MVP) (read more about
the Lean Startup methodology) and how we are iterating and learning about our
product. Later, as we throw ourselves into fundraising, seed financing rounds
or a Series A round, we are faced with references to Product/Market Fit — this
alluring stage when a business takes off as a money-making machine for you and
the investors. Read Fred Wilson’s insightful posts on this.
Defining the “Product”
Yet, it is striking how little time we spend talking about
what a product actually is. The product is this imaginary creature that we all
know, identify, and sell, but that we never define. If we do try to explain
what we mean by “product,” we generalize, make assumptions, or simply talk in
circles.
For instance, sometimes, a product is referenced as a set of
features: “You get x, y, and z features with my product.” But which features
exactly relate to the product? Who decides? Is one feature enough or do we need
more? How many features? Also, does a product just comprise features or does it
include messaging or a customer’s experiences and use cases around the
features? Think ads, search result listings, or the work product stemming from
using the features. What about communications between your team and your
customers, the on-boarding process, the purchasing experience, or the process
of customers sharing experiences with other customers? Similar questions arise
when we talk about products as corresponding to a certain problem, or set of
problems.
Other times we define a product as a process. The Lean
Startup MVP is a process of iteration that results in a proof of your
hypothesis. But what are you really iterating? Is it the problem statement,
your solution, its presentation, or your team and its work product?
When we define a product in relation to a market we
frequently end up being circular. The concept Product/Market Fit is often used
to describe that there is some unsatisfied demand for a product on a market.
The unspoken assumption is that the product can exist and be conceptualized
separate from the market. But can a product exist without a market? Or does a
product with no demand still exist on a market?
The Social Product
For these and other reasons, I have started thinking about
products from an identity perspective. By identity perspective, I mean that a
product is a social construct. To use an analogy, I like Benedict Anderson’s
definition of a nation as an “imagined community” that is always limited and
sovereign (Imagined Communities: Reflections on the Origin and Spread of
Nationalism. Verso, 1991). Anderson states that the community is imagined,
because participants in the community will never meet. It is limited because
the community presupposes the existence of other communities. And it is
sovereign, since it seeks to govern itself. Notably, Anderson asserts that
nations emerged among people working with language. As they experienced a feeling
of community, they sought to identify history, internal similarities or outside
differences, and common goals.
Applied to products, the idea that a product is a social
construct opens some interesting possibilities. First, it helps explain the
importance of a story around your product. In this narrative you want to
explain how the founders have these certain experiences and qualities that make
your product special. You have identified a problem or set of problems that you
are solving and that other people may not even believe exist. Moreover, your
product is part of a larger vision of change that you want to share with
customers. Once your product has solved the problems you set out to solve, an
evolution will occur for your customers. Your product is the catalyst for this
change. A product encapsulates all these concepts and importantly invites
customers to share in the journey.
Second, a product can only exist in relation to other
products. For every product, you go through an exercise of branding. You start
by naming your product, getting a URL for your business where people can learn
about or experience your product, and then you create packaging — a physical or
digital representation of your product. These are identifiers for your products
unique characteristics and for what others are not.
Internal branding is important, but the true magic of
products occur when prospects, customers, competitors, or random people start
comparing your product to other products. “How are you different from x?” they
ask you. What they want to hear is that you are unique, cheaper, better, or,
ideally, all of the above. This is great since it means your product
potentially represents something of value to them. Put differently, the problem
your product solves is always already solved, knowingly or unknowingly, by someone,
in some fashion, and your product is valuable to the people that identify with
this problem. You could say that when compared to other products, your product
becomes real.
Third, the identity perspective indicates the key role of
customers to your product. Customers do not only pay for your product, but they
help conceptualize it. Customers share in your product — join in your imagined
community. Early adopters will buy the product in its rough shape because they
want to be part of the change that is coming. Customer references serve as
social proof that your product is trusted by others, while customer logos on
your website signal that you are part of other identities and they are part of
your identity. You can similarly convey to customers a feeling of
exceptionalism through limiting the availability of your product or, with
respect to consumer products, convey belongingness in a consumerist society.
Finally, where products are social constructs, someone
always creates them. This insight underlies the value of your team. Every day
you talk and share ideas that feed into your product. A brilliant team is
likely to create a brilliant product. A dysfunctional team will create a
dysfunctional product. When you add the dimensions of marketing, customer success,
and customer feedback and ratings to your product, it takes on a life its own.
You understand the importance of managing how people speak about your product
and why it is helpful engaging users before you change your terms of service,
packaging, or the color of your new “follow” button.
Conclusion
What does this all mean? Maybe next time you talk about your
product you will take a step back and try to see beyond features, problems, and
packaging. Try to think about how your product relates to other products, how
customers experience your product, and about how your team functions and how
you all speak about the product. Also, don’t make yourself blind by staring at
Mixpanel and KissMetrics. They have few answers to building successful
products — it is just raw data without qualitative context. To really
understand your product, you need to share in your customers’ experience of
your product.
Credit: https://medium.com/@rgoksor/your-next-product-is-a-community-3a93ea5c14a8#.fa7syo7z0
Written By: Rasmus Goksor
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