Why is Product Marketing so Important?
Despite the ubiquity of Customer-centricity, Product Marketing has suffered from a lack of defined KPIs and a minimal budget. Product Marketing is not new. Prior to the rise of customer-centricity, technology products were typically sold through executive relationships, field sales teams, and customer support staff. New customers would be referred to the sales team and then be handed off to the onboarding/training and support teams to complete the transaction. Sales remained king, while Product Marketing served as a stepping stone to sales.
One of the most important aspects of product marketing is the ability to build a brand’s reputation through customer-centricity. While this concept has been around for years, it has only become more popular in recent years. Companies that understand their customers and their needs will see better results across the entire customer journey, increasing retention and revenue. Listed below are some benefits of customer-centricity. Read on to learn more about the benefits of customer-centricity for your company.
A company’s customer base is the most valuable asset. As a result, a company that values its customers more will have a longer term goal for the business and shorter time horizons. To measure customer satisfaction, companies can look at net promoter scores and other metrics. The more Promoters a company has, the healthier it will be. But to truly build a customer-centric company, you have to be willing to spend time analyzing and acting on feedback channels.
When it comes to building a customer-centric culture, it is crucial to understand what customers want and how they want to use your products. This is possible by empowering individual customers and select groups to find innovative solutions to problems. Regardless of whether you’re selling a consumer-facing product or a professional one, it’s important to understand the needs of your customers so you can tailor your offerings to meet their needs.
As technology continues to improve, a business can focus more on customer-centricity. By gathering a vast variety of customer data, marketers can segment their audiences more effectively. And by leveraging artificial intelligence (AI), marketers can even create individualized experiences for each customer. In short, a customer-centric business model helps companies gain a competitive advantage. So how can you start building a customer-centric strategy?
Customer-centric companies build their growth strategy around the needs of their customers. Customer success teams collect valuable customer insights that are subsequently shared with other teams. In contrast, a product-centric company depends on the product itself to promote its brand. This strategy builds customer loyalty and advocacy by focusing on its value. However, it can take a while to implement. Customers want to know that a business is focused on them and is doing everything possible to meet their needs.
Influence on product development
The influence of product marketing on product development is important when developing technical products that must meet strict requirements. In the semiconductor industry, the manufacturing process limits the capabilities of the company must balance the technical and marketing needs. In addition, product marketing helps identify the products that would be most appealing given a fixed manufacturing capability. The product team then attempts to match market needs and wants with a product. This approach benefits both the company and the consumer.
The process of product development must consider the entire customer value proposition. A study of consumer needs, preferences, and behavior will inform the product development process and make sure that it meets customer expectations. Market research also reveals unmet needs and the opportunities for new product development. If these needs are unmet, the product development process may include improvements to the product itself. If a product is perceived as meeting a customer’s needs, it is likely to be successful.
The influence of product marketing on the development process can be a powerful tool to improve company performance. Salespeople can provide direct feedback to the product development team regarding consumer needs and wants. Face-to-face communication allows them to understand what customers are looking for and where current products fall short of delivering on their promises. Salespeople also work closely with the marketing team to create consistent brand messaging. Salespeople are intimately familiar with the customer, and they know what needs to be changed or improved in order to increase sales. By combining their insights, salespeople can develop new products that satisfy common customer requests.
The influence of product marketing on product development begins in the product strategy phase. It starts with the initial vision for the product and ends with the final analysis of its success. Product strategy involves analyzing customer needs and competing products, as well as developing user personas. By incorporating the voice of the customer into every decision, the product strategy phase can help the company achieve its goals. For organizations with multiple products, product development is typically organized by product strategy, and the role of the product manager is to deliver on the product strategy defined in the first phase. They should ensure that all work relates to the overall product development goals.
Contribution to go-to-market strategy
Product marketing is a vital element of a successful go-to-market strategy. It sits at the intersection of product, marketing, and sales and is vital to success. For many companies, product marketing has many benefits including enhancing customer value and supporting sales enablement. Product marketing team members include Kristin Roberts, Director of Product Marketing at Phreesia. Prior to joining Phreesia, Roberts worked as a management consultant for Booz & Company, leading product launch engagements for life sciences clients. She has also worked as a consultant for ZS Associates, specializing in quantitative physician market research.
The go-to-market strategy is a short-term product-driven strategy focused on bringing new products to market. A good GTM strategy will focus on generating demand and increasing adoption. Ultimately, product marketing can also lead to account expansion. A key component of any product marketing plan is the use of sales collateral, which can be both print and visual. Examples of product marketing collateral include white papers, buyer guides, datasheets, and newsletters.
A product marketing team should be responsible for developing documents that define the company’s positioning, messaging, competitive differentiation, and go-to-market strategy. The product marketing team should also work closely with internal teams to launch new products and educate sales and marketing teams about the benefits of each product. Data sheets, white papers, and copywriting are also vital components of a product marketing team. And, of course, they should collaborate with other departments to create integrated marketing campaigns that promote the product.
Impact on sales
Product marketing sits at the intersection of product, marketing, and sales. Its job is to enhance the value of a product while supporting sales enablement. In the Phreesia case, marketing is focused on positioning products for customers. Kristin Roberts, Phreesia’s director of marketing, previously worked as a management consultant at Booz & Company where she led product launch engagements for life science clients. She also worked as a consultant with ZS Associates, where she specialized in quantitative physician market research. She holds a BA in public health studies from Johns Hopkins University.
One way to measure the impact of product marketing is to look at metrics that relate to product usage and sales. Product usage is a customer-specific metric, and product marketing should influence that metric. In addition to customer satisfaction, product marketing can also influence the use of other metrics that determine customer loyalty, like repeat purchases and lifetime value. These metrics are the most important factors in determining the success of marketing programs. By understanding how each of these metrics is measured, product marketing can help companies better allocate their resources.