Andrew Chen writes about how building a great product is not enough -- a sobering look. Quoting Chris Dixon, now a partner at Andreessen Horowitz, he says in 2013 numbers, 10 million users is the new 1 million to raise funds.
This situation is not unique to startups.
If, for example, you build mobile apps for corporations you should take a look at the return on investment. The product you propose building may not get enough traction within the customer base to warrant the investment vs. another type of digital asset or marketing program that allows the firm to attract new customers.
Just because a company has a budget, it doesn't mean it should be wasted on a shiny object. People get fired for that kind of stuff.
This underscores the importance of a sound, fact- and data-based product strategy roadmap that looks at what matters and the extent of its impact on the business. A good strategy recognizes the nature of the challenge, coordinates resources appropriately to leverage advantage and may also create new strengths in the process.
Chen's post also highlights the importance of a strong product launch. You may create the best product or service ever, yet if people do not know about it, they will not use it. Dig a little behind successful product companies, and what you find is good marketing strategy at work.
Let's build an app because our competitors have one is a tactic -- one that could prove quite expensive.
[image courtesy Tony Newell]
Valeria is an experienced listener. She designs service and product experiences to help businesses rediscover the value of promises and its effects on relationships and culture. She is also frequent speaker at conferences and companies on a variety of topics. Book her to speak here.