Mastering the Core Principles of Product Management: Understanding Customers
Understand your Customer
This is the second article in the series, ‘Mastering the Core Principles of Product Management’. To learn more about the essence of product management, check out the article here
As a Product Manager (PM), your primary responsibility is to create a product/feature that solves a customer's problem.
To do this successfully, you need to listen effectively and create a customer persona that answers the following questions:
What is the customer's problem?
What does the customer need?
What does the customer want? (Heaven or ideal scenario for the customer)
What are their current alternatives?
What are their personal identifiers? (Demographics to make the customer relatable)
In this article, I will dive deeper into why and how to approach each of the above questions
Identifying the customer problem
A PM needs to understand the pain point that a customer is facing. This gives you a clear understanding of the challenge the customer is facing.
At the initial stages of identifying the problem, it’s essential to not be in a hurry but to ask as many open-ended questions as possible. This gives you a solid understanding and depth of the customer's problems.
1. Identifying the Customer Problem
The first step in the process of understanding your customers is to pinpoint the exact problem they are encountering. This step is crucial because it provides clarity on the challenges your customers face. During this stage, it's essential not to rush; instead, take your time to ask open-ended questions. This approach will help you gain a deeper insight into the customer's problems, ensuring a solid foundation for further product development.
2. Identifying the Customer's Needs
After identifying the customer's problem, the next logical step is to brainstorm possible solutions. As a PM, you have a critical role in generating these solutions, even when customers offer their own suggestions. This creative aspect of your role is where innovation thrives, and it's what sets your product apart from others in the market.
3. The Ideal Scenario for the Customer
Understanding the ideal scenario that your customer envisions when using your product is a game-changer. This insight informs the customer's long-term goals and desires. By comprehending the customer's mindset and aspirations, you'll be better equipped to steer your product in a direction that aligns with their ultimate expectations.
4. Current Alternatives for the Customer
It's imperative to grasp the current alternatives or solutions your customers are employing to address their pain points. By doing so, you achieve two crucial objectives:
A deeper insight into the issues your customers are grappling with.
Awareness of the competition – how other products or services are solving the same problem. This knowledge can serve as a source of inspiration and differentiation.
5. Personal Identifiers
To truly relate to your customers, it's vital to personify them. Personal identifiers encompass demographic information such as age, location, and education level. These details allow you to create a more relatable and tailored customer persona, fostering a stronger connection with your target audience.
Bonus tips
As a Product Manager, the journey to understand your customers doesn't end with the five core elements mentioned above. Here are some bonus tips to enhance your approach:
Seek firsthand information: Strive to have face-to-face conversations with customers, or even observe them using your product. These interactions provide unfiltered insights into their challenges and the solutions your product can offer.
Avoid asking customers about possible solutions: Your primary role as a PM is to grasp the challenges your customers face and develop solutions for them. While customer input is valuable, avoid soliciting their suggestions for solutions, as it may steer your product off course.
Conclusion
As a PM your primary objective is to create a product that solves the customer’s problem. To do so you must know the problem, needs, ideal scenario, current alternatives, and personal details about your customers.