Navigating the Future: Product Management in 2024
The landscape of product management is evolving rapidly. In ‘Product Vision in 2024,’ we explore key trends shaping product management and how they’ll impact our work. We’ll look at how to be innovative and make our products successful in a world that keeps changing.
Exploring Content
- How product management is changing?
- Top 3 Product Trends in 2024
- What is the Product-Led Growth ? Why do we need to use PLG?
The Rise of the Chief Product Officer
In the last ten years, product management has changed a lot and become really important for companies. One big change is how many companies now have a Chief Product Officer (CPO). A CPO is a top boss who looks after a company’s product strategies. Right now, over a third of the biggest 100 companies have a CPO. By the end of 2024, we expect more than half will have one. This shows that product management is getting more important in companies and that being a leader in this area is valued more and more.
Companies are evolving because of several factors coming together right now, and I’ll explain how the rise of the Chief Product Officer (CPO) role is one of these key changes:
- Education: There’s a lot of support for learning about product management, with many online platforms like Product School making a significant contribution. Universities are launching more product management programs, and these topics are being included in MBA courses. Some companies even start their own product management schools.
- Tools and Awareness: As the role of product management becomes better understood, the demand for specialized tools increases. Gone are the days when tools like Photoshop were enough. Now, designers use tools like Figma and Zeplin. Product managers no longer need to know SQL or how to code; there are tools available that provide direct insights. For tasks like testing, prototyping, roadmapping, and user research, there are tools specifically designed for these functions, such as Mixpanel, GA (Google Analytics), and Hotjar.
- Revenue Source: Today, product management is recognized as a key revenue generator. Consider the example of Apple’s iPhone. Product managers there analyze user needs and technological trends to shape the design and features of the iPhone. Innovative features added to each new model (like enhanced camera technologies or facial recognition) and improvements in user experience not only retain existing customers but also attract new ones. This strategic product management significantly boosts revenue from iPhone sales and plays a crucial role in Apple’s financial growth.
Most popular 3 Product Trends in 2024
According to the “The Future of Product” report published every year by Product School, there are three main topics for 2024. These trends show how product management is taking on a more strategic role and how this change can affect you and your teams’ careers.
Trend 1 : Product is accountable for growing revenue
The main trend in product management is that products are not just about providing value and a good experience to users anymore. Now, they are also directly responsible for increasing revenue. This shift represents a significant evolution in how product management is approached.
Chief Product Officers (CPOs) are now responsible for profit and loss statements (P&L). This change shows how important product management has become in making sure a company is successful and makes money.
How can you use the Product Features as Distribution Channels?
Nowadays, it’s possible to make money from products directly through websites or mobile apps, without needing any human interaction. Besides just getting new customers, you can also make current customers more loyal and turn them into regular users.
A concrete example is Dropbox. At first, Dropbox offered just a cloud storage service with a simple interface that let users easily store and share their files. Users started sharing Dropbox links with friends or colleagues to share files, naturally spreading the word about Dropbox. The file-sharing feature became a way for users to promote the product organically, leading new users to try the service.
This approach highlights the importance of designing product features that can serve dual purposes: attracting new customers while keeping the existing ones engaged. It’s a win-win strategy that maximizes the value of product functionalities as distribution channels.
What is the Product-Led Growth ? Why do you need to use PLG on your business projects ?
Product-Led Growth (PLG) is a way of growing a business where the product itself grabs the attention of customers and gets them to engage, instead of relying heavily on marketing and sales efforts.
For example, Slack lets users try its basic features for free. During this trial, users can see how effective Slack is for communication. The product encourages users to pay for more features and functionality. Slack’s user-friendly interface and features that make work flow smoother help new users quickly adopt and spread the word about the product. This way, Slack successfully uses a product-led, organic growth model.
Research by the venture capital firm OpenView shows that among their B2B SaaS companies, those using a PLG strategy perform 13% better in revenue than those that don’t.
This approach emphasizes how important it is for products to be designed in a way that naturally draws in users and encourages them to explore more, leading to growth driven directly by the product itself.
In the world of Product-Led Growth (PLG), customer experience takes center stage. PLG is a strategy where the product itself drives growth, pulling in users with its features and user experience. But why is customer experience so crucial in PLG?
- Loyalty: A good experience keeps users coming back. If they like using your product, they’ll stick around and tell their friends.
- Marketing: In PLG, the product sells itself. A great user experience means users will promote it for you.
- Improvement: Listening to user feedback makes your product better and keeps users happy.
Take Spotify as an example. It’s a software product that offers an excellent customer experience. By providing personalized playlists and recommendations that match users’ music tastes, Spotify creates a unique user experience. Features like “Discover Weekly” and “Daily Mix” that adapt to users’ listening habits offer chances to discover new music and artists.
So, in PLG, a great customer experience isn’t just nice; it’s necessary for growth and success.
Trend 2: Product is at the junction of everything
The second big trend is that products are becoming the central point where everything meets. In simpler terms, products are not just items or services anymore. They’re where all parts of a business — like design, user experience, marketing, technology, design, finance and sales — come together. This means when we create or improve products, we’re not just thinking about what the product does. We’re also thinking about how it fits into our users’ lives, how we tell people about it, and how it stands out in the market.
This trend shows us that a good product is more than its features. It’s about creating something that connects with people on different levels. For example, a smartphone is not just about making calls or sending messages. It’s also about the experience of using it, how it helps us in our daily lives, and how it connects us with the world.
Climbing the Product Career Ladder: More Steps Than Ever Before
Product management career paths are expanding, moving beyond just product managers to include a variety of roles. Companies are adopting “competency models” to structure career progression from assistant product manager up through product manager, senior product manager, group director, VP, and even CPO. Not all companies will have every role, but tailoring a model to fit specific needs is key.
This shift reflects the growing specialization within product teams and the recognition of diverse skills needed at each career stage. It’s about more than job titles — it’s about acknowledging the wide range of expertise required to innovate and lead in product development. By clearly defining career paths, companies not only support their team’s growth but also build a strong foundation for future success.
Trend 3: Acquiring top product talent is increasingly difficult.
Finding and hiring the best people for product roles is getting harder. This is a big trend we’re seeing now. More and more, businesses are looking for skilled product managers, designers, and others who work on making products. These roles are very important because they help create things that people want to use.
Why Is This Happening?
There are a few reasons. First, as technology gets better and changes, the way we make and use products changes too. This means we need people who understand the new technologies and what customers want. Second, as more businesses focus on their digital products, like apps or websites, they need more people to help make these products great.
What Does This Mean?
For companies, it means they need to work harder to find and keep good product people. They might need to offer better pay, more chances to learn new things, or a nicer place to work. For people who work in product roles or want to, it means there are a lot of opportunities out there. But, it also means they need to keep learning and getting better at what they do.
In short, as the demand for top product talent grows, both companies and workers need to adapt. Companies have to make themselves attractive to the best people, and those in product roles need to keep their skills sharp and up-to-date.
Embracing the Future: A Conclusion on Product Vision in 2024
To wrap up our discussion on the Product Vision for 2024, here’s a brief summary of the three key trends we’ve explored:
- Revenue Responsibility: Products are increasingly seen as the main drivers of revenue growth. This highlights the critical role of product strategy in financial success.
- Intersection Hub: Products have become the central point where all aspects of a business converge. This includes design, development, marketing, and sales, emphasizing the product’s role in unifying various business functions.
- Talent Acquisition Challenges: It’s becoming tougher to find and retain top talent in the product field. As the demand for skilled product professionals grows, companies face more challenges in attracting the right talent.
These trends underscore the evolving landscape of product management and the importance of strategic planning and talent management in shaping the future of businesses in 2024.
To dive deeper into this topic, I want to mention a great talk given by the CEO of Product School. The ideas shared there are the basis of this article today and help us understand where our industry is heading. This talk gives us valuable insights and shows us what experts are thinking about the future of product management.
