You can take the assessment below and see how you score on the various product dimensions. Watch the video for more instructions on what this means for your organization:
š° Revenue
š¤ Customer interaction
š Scalability
š ļø Operations
ā»ļø Repeatability
If you answer (a) to a question, you are service-led in that dimension.
If you answer (b) to a question, you are more product-leaning in that dimension.
Count the number of a)ās as you go!
% product revenue is the primary indicator of being product led
Question to ask: What % of your revenue comes from customized services vs standardized products?
a. Over 50% customized services
b. Under 50%
The way you interact with your customers shows whether they see you as a product company or a service provider.
Question to ask: How do you interact with your customers?
a. Primarily through direct personalized service interactions
b. Primarily through automated or self-service products
Being a product company means you can grow without your costs rising as fast as your revenue.
Question to ask: Do you feel your hitting a glass ceiling in terms of how many clients you can service?
a. Yes - my team cannot service and retain more clients
b. No - I could scale and take on many more clients!
Effective operations are a key baseline to making customers happy and to deliver scalable products on top of that
Question to ask: How much of your operational processes are manual?
a. Processes are mostly manual
b. Processes are mostly automated
Repeatable services are a sign that you can scale your business more easily.
Question to ask: How consistent are your offerings?
a. Fairly customized for each client
b. Consistent across clients
Some dimensions are more fundamental than others to get right. But any dimension can be improved on by having a more product-led approach
Donāt worry, most businesses are, even in the tech world!
This means your organization primarily offers customized services that require significant human involvement and lack standardization.
The good news is, there are a lot of ways to boost the value of your business leveraging software! So upwards from here.
Recommendation: To transition to a product-led model, consider the following steps:
Identify Key Areas for Automation: Look for repetitive tasks and processes that can be automated using AI and software solutions. Ensure your operations are in order before building software over it!
Develop Scalable Products: Start developing product offerings that can be standardized and scaled across multiple clients.
Leverage AI and other tech: Use AI to enhance your product features and streamline operations, reducing the need for extensive human intervention.
We can work together to develop a strategic roadmap tailored to your organization's needs. Schedule a discovery call with me to discuss how we can begin this transformation together.
Remember, becoming product-led is a journey. Use these insights to guide your next steps and enhance your business strategy.
Schedule a call below with me if you want to discuss your situation further!
Congratulations!
Being product-led means your organization focuses on creating and delivering standardized products that users can interact with directly, with minimal human intervention.
Recommendation:
Optimize Product Offerings: Continuously improve your products based on user feedback and emerging market trends.
Leverage new technologies: Leverage AI or no code tools to introduce new features and enhance existing ones, ensuring your product remains competitive.
Explore New Growth Opportunities: Look for new markets and customer segments where your product can provide value.
Keep up the great work! If youāre looking for ways to further enhance your product strategy, scale processes or explore new growth opportunities, feel free to book a call with me.
āStartups should first build things that doesnāt scaleā
Your organization is in the early stages of development, if you:
Have not yet raised a seed round
Have under 10 employees
Have under 200k ARR
Have not yet hired your first developer
Have not yet found your product-market-fit at all, and are truly exploring various services and customer segments
This makes it difficult to determine your current stance between service-led and product-led. Sometimes companies need to do things that donāt scale, before baking in technology. Some companies however are tech natives! It all depends.
Recommendation:
Build a Strong Foundation: Focus on developing a clear product vision and clear company objectives over a 24 month horizon.
Adopt a Product Mindset: Start thinking about how you can create scalable products right from the beginning.
Find a product-market fit: Implement it first as a service you can repeat, and extract the recipe that we can then bring to product. Remember for software to be implemented, first you need the people, then the process, and only then comes the technology!
As you grow, itās crucial to build a strong foundation that supports a product-led approach. When youāre ready, Iād be happy to help you navigate this journey.
I recommend subscribing to my substack, so you can really prep on how to scale your impact business and we can get in touch when
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