As we discussed previously, there are any number of approaches to product strategy, but good strategies have these five principles in common:
Focus on one target market or persona at a time. Don't try to please everyone in a single release. Focus on one new target market, or one new target persona, for each release. You'll find that the product will still likely be useful to others, but at least it will be loved by some, and that's key.
Product strategy needs to be aligned with business strategy. The vision is meant to inspire the organization, but the organization ultimately is there to come up with solutions that deliver on the business strategy. So, for example, if that business strategy involves a change in monetization strategy or business model, then the product strategy needs to be aligned with this.
Product strategy needs to be aligned with sales and go‐to‐market strategy. Similarly, if we have a new sales and marketing channel, we need to ensure that our product strategy is aligned with that new channel. A new sales channel or go-to-market strategy can have far-reaching impact on a product.
Obsess over customers, not over competitors.
Obsess over customers, not over competitors. Too many companies completely forget about their product strategy once they encounter a serious competitor. They panic and then find themselves chasing their competitor's actions and no longer focusing on their customers. We can't ignore the market, but remember that customers rarely leave us for our competitors. They leave us because we stop taking care of them.
Communicate the strategy across the organization. This is part of evangelizing the vision. It's important that all key business partners in the company know the customers we're focused on now and which are planned for later. Stay especially closely synced with sales, marketing, finance, and service.