Unlocking New Growth Opportunities: A Framework for Product-Market Fit
In today’s fast-paced business landscape, finding new ways to monetize products and drive growth is crucial for companies to stay ahead of the curve. Mykola (“Myk”) Konrad, SVP, Head of Product at iconectiv, shares his expertise on how to identify and capitalize on untapped customer segments, even in stagnant markets.
The Path to Growth
Myk emphasizes that finding the right products and targeting the right market segments is key to driving growth. He outlines a framework for thinking about growth in companies that are past the startup stage:
- Business as usual: Sell the same product to the same customer segment, focusing on reducing churn by identifying features that meet the segment’s evolving needs.
- Same product, new segment: Introduce the same product to new customer segments, tailoring it to their specific requirements.
- New product, same segment: Develop new products for the same customer segment, addressing unmet needs and expanding the product portfolio.
- Disruptive innovation: Introduce new products into new segments, driving growth through innovation and disruption.
Understanding Customer Journeys
To break into new segments, Myk stresses the importance of understanding the customer journey and identifying areas of product growth. He uses the example of private equity firms, where Allvue Systems launched an investor portal to provide a 24/7 communication channel for investors. By understanding the flow of the customer’s business, Allvue was able to identify opportunities for product growth and expansion.
Design Thinking and Customer Intimacy
Myk advocates for design thinking as a methodology to understand customer needs and develop new features. This involves spending time with customers, understanding their pain points, and validating product hypotheses through demos and feedback. To incentivize customers to participate, Myk suggests offering financial incentives or early access to new products.
Scaling through Stakeholder Buy-in
When proposing a new growth strategy, Myk emphasizes the importance of getting stakeholder buy-in. This involves working closely with marketing, sales, and finance teams to develop a business case, go-to-market strategy, and value proposition. By securing buy-in from key stakeholders, companies can ensure a successful launch and drive growth.
Measuring Success
Myk believes that revenue is the ultimate measure of success, but also emphasizes the importance of tracking user engagement, demo resonance, and pipeline growth. By analyzing these metrics, companies can assess the effectiveness of their growth strategies and make data-driven decisions.
Competitive Landscape Analysis
When conducting market analysis, Myk recommends a two-pronged approach: product-centric and segment-centric. This involves identifying direct competitors and understanding the broader ecosystem of adjacent products and value propositions selling into the same segment.
Personal Favorite
Myk’s personal favorite approach is introducing the same product into new segments, which he believes offers the highest return for the lowest investment. By tweaking the product to meet the needs of new segments, companies can drive growth without requiring significant architectural changes or investments.
By following Myk’s framework and strategies, companies can unlock new growth opportunities, drive revenue, and stay ahead of the competition in today’s fast-paced business landscape.