Effective Leaders in Digital Product Development: Identifying Three Crucial Factors
In the current scenario, we're experiencing two massive trends: Every product is transitioning into a digital one, and every digital product is becoming AI-centric. Various product categories are being transformed in real-time, and I've recognized three fundamental aspects that digital product leaders should incorporate to thrive in the upcoming era of category leaders.
1. The head of product assumes the role of the head of support.
The conventional strategy dictated that product teams focus on development, while support teams resolved issues. However, the modern approach suggests that, if you're in charge of product, you also lead support.
Why? Your customers do not differentiate between teams responsible for their problems; they simply seek solutions. Every support ticket provides real-time information on what's problematic, what's puzzling, and what's frustrating the users. This is not mere noise—it's invaluable insight.
Winning teams recognize this. They utilize support feedback to rectify usability issues, squash bugs, and improve the product. Support is no longer a cost; it's your product's report card in the wild.
Key Takeaway: If you're neglecting your support team's wisdom like they're your QA team, you're missing the point—and your customers might be footing the bill.
2. Revenue becomes the new metric for product success.
It's crucial to acknowledge that no one cares about how numerous features you released last quarter, unless they generate revenue, boost retention, or fuel growth.
More product teams in 2024 will be evaluated based on metrics such as net revenue retention (NRR), customer expansion, and lifetime value. This is because linking product success to revenue fosters harmony within the organization. Plans become more precise, priorities more apparent, and teams more focused.
The catch is: When product teams control revenue metrics, they shift their focus from "features" to impact. The transition from feature factories to value creators isn't merely transformative; it's mandatory.
Final Thoughts: Product is no longer a solitary concern; it's a growth engine. Recognize and reward your product teams accordingly because they should be driving revenue.
3. Customer feedback becomes a dataset, not a methodology.
Stop treating the voice of the customer (VoC) as a subjective, qualitative process. Today, VoC is a dataset, and it's your most valuable asset. Every interaction, every survey, every Slack message, every Zendesk ticket—this is gold.
This matters because opinions are subjective, while data isn't. Quantifying VoC creates a single source of truth for your team. Instead of debating what customers might want, you'll have a clear view of what they need.
Successful teams leverage this dataset to create action. They align on ground truth, identify patterns, and swiftly tackle real-world issues at scale—no bullsh*t, no wild guesses—just facts.
Candidate Assessment: If your VoC strategy leans on anecdotes instead of actionable data, it's time to reassess your approach and prioritize quantifiable insights.
Additional Insights
In this period of profound change, adaptability is a vital virtue. The guidelines from the past are being revised, and the future belongs to teams that embrace these shifts with clarity and intent. Whether it's breaking down walls, tying product outcomes to business expansion, or transforming customer feedback into a competitive advantage, the need to innovate to remain relevant is apparent. Are you prepared to step up?
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- Varun Sharma, as a digital product leader, recognizes the importance of leveraging support feedback to improve products.
- In the future, product teams led by Varun Sharma will be evaluated based on revenue metrics such as net revenue retention and customer expansion.
