product-strategy-flashcards-2
Monetization Model Components
Four key decisions: 1) Who gets charged (ads, transaction, subscription) 2) What they’re charged for (contacts, API calls, features) 3) When they’re charged (upfront, free trial, freemium) 4) How much they’re charged (pricing)
Three Categories of Acquisition Loops
1) Viral: Word of mouth and referrals 2) Content: User or company generated content 3) Paid: Advertising, sales, and integrations
Viral Coefficient (K)
Measure of viral growth where K = number of new invites × percentage of invites that convert. Examined on cohort basis to track performance over time
Tech Debt Categories
1) Systematic: Prevents reaching key milestones 2) Extinction: Causes major user problems, resolve immediately 3) Papercut: Low harm, occurs sporadically
Process Scaling Strategies
1) Standardize 2) Delegate 3) Hire/outsource 4) Augment 5) Redesign - Focus on lightweight, incremental improvements over large redesigns
Value Stream Mapping Bottlenecks
Three types: 1) Throughput - limited volume and velocity 2) Quality - low quality outputs affect future inputs 3) Single Point of Failure - knowledge/capability limited to one person
Bad Behavior Mitigation Levers
Three escalating steps: 1) Establish and enforce policies 2) Moderate content (passive or active) 3) Redesign product to increase positive friction
Saturation Causes
1) Market Saturation: Large portion of target market captured 2) Product Saturation: Fully optimized with few improvement opportunities 3) PMF Degradation: Red Queen Effect or over-optimization for power users
Platform Types
1) Developer - linking developers to end users 2) Marketplace - connecting supply to demand 3) Ad Platform - adding an ad network
Geographic Expansion Considerations
Key factors: 1) Language localization 2) Local needs and preferences 3) Reach (distribution channels, network effects)
Minto Pyramid Principle
Four key questions: 1) What is the current situation? 2) What is the complication? 3) What is the solution? 4) How do we achieve this solution?
Feature Removal Strategy Reasons
1) Obsolete: Problem no longer important 2) Redundant: Problem solved elsewhere in product 3) Incompatible: Feature doesn’t fit product’s value proposition
Content Loop Constraints
Two primary constraints: 1) Cost to create content 2) Volume of content created. Success depends on who generates (user vs company) and who distributes
Sales Loop Types
1) Outbound: SDRs prospect new leads 2) Channel/VAR: Partners resell 3) Inbound: Content/digital generates leads 4) Product-Driven: Product generates leads
Horizontal vs Vertical PMF Expansion
Horizontal: New separate product serving complementary function (e.g., Shopify fulfillment). Vertical: New feature/service within existing product (e.g., Taskrabbit adding delivery)
Types of User Value Analysis
1) User Problem Description 2) Problem Frequency (“When was the last time?”) 3) Problem Severity (importance to target users)
Business Value Categories
1) Offensive: Proactively drives KPIs 2) Defensive: Prevents KPI decrease or meets minimum market requirements (MMRs)
Retention Curve Analysis
Key aspects: 1) Define natural frequency 2) Plot core action over time 3) Identify stabilization point 4) Compare to benchmarks (>50% for high importance, 10-20% for low)
Model:Channel Fit
Match between monetization model and GTM strategy. Low friction models work best with low cost/influence channels. High friction requires high cost/influence channels
Feature Strategy Definition
Approach to optimize your feature bundle by maximizing value delivery to users while ensuring each feature earns its keep in terms of product surface area and user mindshare
Company Archetypes
1) PMF Discovery: Finding market-problem fit 2) Traction: MVP achieved but cash constrained 3) Growth: Achieving business objectives, cash not constrained 4) Mature: Established with strict processes
Strategic Importance Indicators
Features have larger strategic value when they: 1) Target larger segments 2) Address severe problems 3) Directly contribute to product’s value proposition
Sources of Strategic Insight
1) Strategic: Impact if problem solved 2) User: Customer research showing what/why of problems 3) Data: Usage metrics showing how many affected
Feature Prioritization Principles
1) Solve multiple problems with single feature 2) Push for broadly applicable features 3) Create recurring vs one-time value 4) Create value over capturing value
