How to Define Software Product Strategy

How to Define Software Product Strategy

Creating successful software products sometimes comes with a bit of lightning-bolt inspiration. You’re going about your day when an idea for a software product pops into your head. But without a well-thought-out software product strategy that ensures the product meets customer expectations, considers the market landscape, and is launched the right way, that product might never see the light of day. If it does, it might not be successful. 

The software product strategy is the full plan for the product a team is building. It factors in who will use it and why they will choose it over other products. The software product strategy must also take into account the personas the product is designed for, what benefits the product will provide to those personas, and how the product will benefit the company overall. A robust software product strategy should also address the company’s goals for the product for the duration of its use. 

Most software product strategies begin by defining the problem the product will solve and what effect the product will have on customers as well as the company overall. There are three components companies typically include in their software product strategy: the product vision, the product goals, and the product initiatives. 

1. Product vision:

The product vision outlines who will be using the product and how that opportunity affects the business. The product vision needs to determine your target customers, how you’ll frame your product to them, and how it might perform compared to competitors’ products in the same category. The software product vision should also include your go-to-market plan that outlines how you’ll offer a competitive product that meets your customers’ needs. 

2. Product goals:

The product goals are the key objectives you’ll be able to meet when you build and release your product. You’ll measure your company’s performance against these goals once the product is released to the public. Product goals should include time-based objectives that will push the team to complete the project with urgency. It can be helpful to engage in SMART goal setting, where the team ensures that each goal is specific, measurable, attainable, relevant, and time-bound. 

3. Product initiatives:

Finally, product initiatives are typically included in the software product strategy and involve conceptual, high-level ideas that will be influenced by the product you build and release. Product initiatives might include reducing churn, increasing mobile adoption, or improving customer satisfaction. 

Once these three components have been thoroughly defined in the holistic software product strategy, the team can move on to creating the product roadmap. This will determine the actionable tasks that will lead to a successful product build and launch.