There’s one resoundingly simple reason for why most products fail: no one wants them. So how are the world’s most innovative companies able to continuously produce winning products? Our research and experience show that it has to do with adapting to the rapidly evolving mindset of consumers. Whereas efficiency and scale once determined the fate of products and companies, customer satisfaction is now the driving force. We’ve compiled a list of 5 key strategies for product managers to build successful products in the new era of business. Learn more at alpha-ux.co.

1. Focus on the User
5 Keys to Successful Product Management
in the New Era of Business
Presentation
2015 Insights

2. There’s one resoundingly simple reason for why most
products fail: no one wants them.
So how are the world’s most innovative companies able to
continuously produce winning products?
Our research and experience show that it has to do with
adapting to the rapidly evolving mindset of consumers.
Whereas efficiency and scale once determined the fate of
products and companies, customer satisfaction is now the
driving force.
A new era
| Alpha-UX.co 1

3. In a time with nearly perfect user metrics and lower
barriers to entry, focusing on your customers and their
experience using your product and working with your
organization are essential to long-term success.
But it’s not as simple as generating user feedback before
building products. Excessive user testing and product
validation is not always the right solution.
Focus on the user
| Alpha-UX.co 2

4. Zappos, Southwest Airlines, Uber, and Chipotle are all
great examples of companies that have adapted to this new
landscape by bucking conventional wisdom. There were
existing leaders in each of these industries, yet the
aforementioned new entrants were able to flourish.
The reasons why are not hard to discern: these are
customer-centric businesses competing in spaces where
margins and efficiency were the hallmarks of success.
By focusing on satisfying the customer and innovating to
meet their needs, each of these businesses was able to
achieve success against the odds.
The new innovators
| Alpha-UX.co 3

5. Zappos calculated that the lifetime value of satisfied
customers far outweighed the shipping costs to return
disliked goods.
By offering an unprecedented 365-day free return policy,
Zappos captured the hearts of their budding consumer base
and rode the trend all the way to become the top online
seller of shoes.
Zappos conquered a competitive market, not just through
business model innovation, but through customer centric
innovation.
Case study: Zappos
| Alpha-UX.co 4

6. There is no 100% foolproof way to build an organizational
culture adept at launching products that are guaranteed to
succeed.
However, there are several integral steps that can be taken
to increase the likelihood of success. These steps involve a
change in mindset, activity, and engagement with your
target customer.
Based on this understanding, we’ve compiled a list of 5 key
strategies for product managers to build successful
products in the new era of business....
How to build products users love
| Alpha-UX.co 5

7. We’ve compiled a list of 5 key strategies for
product managers to build successful products in
the new era of business:
Listen to what customers say, but, more
importantly, watch what they do
Your job is to learn by building, not just to
build
Never settle for good enough
Redefine your metrics for success
Consider the entire user experience – in and
out of the product
1.
2.
3.
4.
5.
6| Alpha-UX.co

8. There is no such thing as talking to your customers too much.
Running surveys, hosting in-person interviews, and simply picking up
the phone to talk to your customers are effective ways to start the
process of soliciting feedback. Though it can be time-consuming to
do all of this work yourself, the learning is invaluable.
You should constantly be seeking the input of your target market on
current products and new product concepts to understand what
pain points and challenges they have.
1. Listen to what customers say, but,
more importantly, watch what they do
7| Alpha-UX.co

9. James Surowiecki’s “Wisdom of the Crowds” notes that what emerges
from a critical mass of feedback tends to be as close as one can get to the
absolute truth. Surowiecki would be correct if you’re only tool was
listening, but we’ve found that observing user behavior is even more
critical and informative.
Oftentimes, there is a massive divide between what people say and
what they actually do.
Malcolm Gladwell’s book, “Blink” and his TED Talk on “Spaghetti Sauce”
illustrate this reality. In response to the idea that customers should provide
input on their preferences, he says “The mind knows not what the
tongue wants.” Only by putting together actual usage tests and
monitoring and measuring behavior will you get real insight into what
problems exist and how to solve them.
Actions speak louder than words
8| Alpha-UX.co

10. Tests we’ve run for clients consistently show that what people say
they would do and they actually do with a live product is very
different.
Listening to customers is very important and can provide a lot of
incredibly valuable insight. However, unless you augment listening
with observing, you’ll likely have blind spots and misinformation
about what users want.
Feedback from users needs to be put in the context of behavioral
data to provide a complete picture.
9| Alpha-UX.co

11. 2. Your job is to learn by building, not
just to build
If a typical product manager were to define her job, a description
would likely include words like “developing” and “launching.”
In our experience, the most successful product managers focus on
an end goal of learning.
By reframing deliverables a experiments, you can transform
launching into learning, while also meeting tactical goals.
10| Alpha-UX.co

12. Learning by building
“Little Bets: How Breakthrough Ideas Emerge from Small
Discoveries” by Peter Sims illustrates how this strategy was used by
companies like Pixar and Apple.
On our blog, we discuss how building up to a minimum viable product
through experiments can limit your risk as you optimize product
concepts to meet user needs leading up to a launch.
In addition to making a habit of experimenting, it’s important to
cultivate multiple sources of customer insight outside of product
department. From the feedback customer success teams get from
current customers to the objections sales people hear from
prospects, getting out the door is critical to learning.
11| Alpha-UX.co

13. 3. Never settle for good enough
In the modern digital word, products are forced to change
quickly to avoid becoming outdated overnight.
Sometimes they’re even outdated before they launch.
Based on a survey of product managers at Fortune 500
companies, the average product development process takes
more than a year. That means that by the time you release an
app, you already have to get started on a replacement or
upgrade to stay relevant.
12| Alpha-UX.co

14. What Steve Jobs can teach us
Look no further than the evolution of the iPhone to be
reminded of the pace of product change.
The devices customers use and their capabilities (from
gestures to speed to integrations) are constantly evolving.
The pace of change has never been faster, so your product
development process had better catch up!
13| Alpha-UX.co

15. How to stay relevant
The most effective way to ensure your products stay relevant
is to adopt an iterative approach to building and
improving products. Treat each product launch as an
opportunity to collect data. You’ll learn what’s working and
what’s not working and can plan accordingly. Budget multiple
iterations into your product roadmap.
While an iterative approach does require more frequent
releases of products and the necessity of keeping your finger
on the pulse of industry change, you’ll save more time in the
long run by building and adjusting instead of building with a
more traditional product release cycle.
14| Alpha-UX.co

16. 4. Redefine your metrics for success
A lot of companies make internal decisions to be more customer-
centric. But at the end of the day, the top and bottom lines are how
people are held accountable and decisions are made.
Developing metrics based on how satisfied your customers are
and holding people accountable for improving them can change an
organization overnight.
Revenue per customer and profit margins are important, but in the
modern age, long-term success is tied to metrics like Net Promoter
Score, in-product engagement, and retention.
15| Alpha-UX.co

17. Case study: eBay
After laying off 10% of his company during his first year as
CEO of eBay, John Donahoe realized that if he wanted to
avoid a 10-year spiral the likes of Yahoo or AOL, he had to
make aggressive changes. He tied 10% of senior
management’s pay to changes in the Net Promoter Scores
of customers using their products.
Just a short while later, eBay recorded its biggest quarterly
growth in more than a half decade.
16| Alpha-UX.co

18. Jony Ive, the renowned designer of Apple’s most successful products,
admitted once that he was unaware of revenue figures. TechCrunch
remarked:
“...the celebrated designer is known for his focus on product design, and
the fact that he doesn’t pay much attention to the company’s fiscal
performance is a credit to the company’s long-stated belief of putting
product before a desire to make money, with the argument being that
customers will reward top-quality device design.”
Ignoring revenue altogether is probably too extreme, but the philosophy is
noteworthy.
17| Alpha-UX.co

19. 5. Consider the entire user experience –
in and out of the product
18
A customer’s interaction with your organization does not begin and
end entirely inside your products.
If you don’t consider the entire customer journey -- from when they
learn about your product all the way through dealing with customer
support -- you’re not positioning yourself to succeed over the long
term.
In the modern age, social proof and online reputation can make or
break a company and its product.
| Alpha-UX.co

20. David vs Goliath
19
When it comes to customer service and support, startups consistently
outperform larger organizations.
Giving users an easy way to chat with a live person will not only
increase their likelihood of becoming a customer, you’ll keep your
finger on the pulse of what users are thinking and how your
product and marketing can be improved.
The user experience begins with marketing and sales and continues
through to customer service and tech support.
| Alpha-UX.co

21. Key takeaways & additional resources
20
Great change doesn’t happen overnight. Setting realistic expectations and
deadlines is key when it comes to adapting an organization’s culture to be more
responsive to the modern consumer.
We hope this presentation gave you insight into the strategies and philosophies
adhered to by customer-driven companies. For more resources, click the links
below.
Alpha UX Blog
Infographic: The tools and services lean
organizations use to build better products
| Alpha-UX.co