Joe Chernov - Product-led Startups: How to use your product to unify marketing, R&D and success (Turing Fest 2019)

Tech companies talk a lot about alignment. But in most cases, alignment means measuring complementary outputs, like marketing's lead goals being derived from sales' bookings targets. But dominant companies unify around something entirely different -- the product experience. When companies shift their thinking from outputs to outcomes, from being project led to being product led, the result is alignment around the product as cornerstone for growth, retention, expansion, and long term success.

This session will explore what it takes to become a product-led organization, and what impact that transformation can have on your business.

Transcript

1. Product-led startups: How to use your product to unify marketing, R&D and success Joe Chernov VP of Marketing at Pendo @jchernov
3. What if … marketing led?
4. We need a funny visual here. Ideally it would be an illustration depicting a bunch of people rushing toward a shiny thing. If this isn’t doable, than perhaps an empty gift box. Or an engagement ring box with no ring in it. Product-led startups
5. What if … sales led?
6. where F = features, C = customers Product-led startups nF = nC
7. What if … engineering led?
8. Engineering Product-led startups Customer It’d only take two years to build! Hello? Is anyone gonna talk to me? That’d be so cool!
9. What if … customer success led?
10. Product-led startups
11. PRODUCT LED (the future is)
12. Product led Product-led growth Product-led startups
14. Product-led startups Why? (and, more importantly, why now?)
15. Product-led companies mitigate risk "People expect quick and intuitive product experiences that take into account their context and needs implicitly, and companies who fail to deliver are at risk" GARTNER: 2019 CIO Agenda Ramneek Gupta Managing director and co-head of Venture Investing at Citi Ventures.
16. Product-led companies align with customer needs "86% of consumers are willing to pay more for an upgraded experience, and 55% are willing to pay for a guaranteed good experience" 50 Important Customer Experience Stats for Business Leaders, Huffington Post
17. Product-led companies enjoy better margins "Companies with best-in-class product & customer experience management practices recorded a 527 percent year-over-year customer profit margin spike compared to their peers" Aberdeen and SAP:
18. via Blake Bartlett, OpenView Ventures
19. By 2019, 47% of software purchases will be made by non-IT departments. Source: IDC Worldwide Semiannual IT Spending Guide: Line of Business, 2016 Product-led companies sell the way companies buy
20. “Software just shows up in the workplace unannounced.” - Blake Bartlett, OpenView Ventures Source: IDC Worldwide Semiannual IT Spending Guide: Line of Business, 2016
21. Available capital + Low technical barriers + Pervasive GTM playbooks Lookalike companies Product-led startups
22. It’s cheap to start a company, but expensive to grow one.
23. The “linear” customer journey 23 Marketing Sales Support / Services Product-led startups
24. 24 Product-led startups The “flywheel” customer journey
25. 25 Product Function & Design Lead Generation Trial Conversion Onboarding Education & Training Technical Support Customer Advocacy Renewal Cross-sell / Up-sell MARKETING SALES CUSTOMER SUCCESS SUPPORT & SERVICES All departments become stakeholders
26. So, if you’re going to do only one thing...
28. Product Engineering Customer Success Product Ops
29. Product Engineering Customer Success PRODUCT + CS Usage insights via feedback / research Identify onboarding optimizations Advise on in-app guidance PRODUCT + ENGINEERING Advise on roadmapping Surface voice of the customer ENGINEERING + CS Bridge divide between engineering & user ALL Reconcile usage data w/ qualitative feedback Advise, supply data for roadmapping Support broader product strategy Manage tech stack Supply product health data to exec team Partner with RevOps and DevOps
30. Product Engineering Customer Success Dev Ops Rev Ops
31. Product led & alignment
32. GTM steers the product toward becoming a: • channel • lens into the customer • communications medium • lead gen engine • sales entrypoint • sales optimization tool Product-led startups
33. Services/CS steers the product toward becoming a: • solution for onboarding • “quick win” for the user • map to high-value behaviors • lens into value and health • customer support vehicle • source of positive feedback for the customer Product-led startups
34. R&D steers the product toward becoming a: • tool for customer education • guide for roadmapping • communication tool Product-led startups
35. Product led: a practical view
36. Dilemma One: Underwhelmed Customer Product-led startups What they think they bought What they bought How they bought
37. Dilemma One: Underwhelmed Customer Issues: Friction in the buying process Product doesn’t do enough Expectations > reality Contributing factors: Sales/marketing leading Lack of PLG mindset Product / GTM misalignment Limited roadmap Outcomes: Pressure on CS Churn or renew down Friction in renewal process What they think they bought What they bought How they bought Product-led startups
38. Dilemma Two: Frustrated Customer Product-led startups What they think they bought What they bought How they bought
39. Dilemma Two: Frustrated Customer Product-led startups Issues: Friction in the buying process Product doesn’t solve *their* problem Contributing factors: Lack of buyer understanding GTM / CS / eng misalignment Wrong roadmap Outcomes: Pressure on CS Churn or renew down Friction in renewal process What they think they bought What they bought How they bought
40. Solutions: PLG tactics for new + renewal Feedback loops, CS/product/marketing Qual/quant roadmapping for gaps User guides in intersections In-app messaging Sentiment capture, routing Product-led startups
42. pendo.io Thank you!