What do you do if your product's market shifts unexpectedly?

New market technologies/trends will always appear and impact your product, so you need to keep yourself updated to follow those trends, anticipate what you could do to be a pioneer or present something very relevant with a differential aspect that benefits your users. When you encounter a shift in the market, the first step is to assess its impact on your offering. You can start this process by doing a comprehensive market analysis to ensure we understand the evolving landscape. This analysis should encompass the identification of nascent trends, the entry of new market players, and the evolving tastes and preferences of consumers. Differentiating between short-lived changes and enduring market transformations is crucial.

Ideally, the indicators of the market shift should be much understood during the product discovery itself, meaning it won't be happening overnight. These deviants are always expected given the dynamic nature of the market as well as the disruptions that are (Always) ongoing. The most effective way would be to have a data-driven approach to show the shift and co-relate with how it impacts the product. Through this approach, we'd be able to revisit the strategy as well as a roadmap to have a market capitalization way upfront and shape the product future.

1. Analyze market shifts to grasp new dynamics and customer preferences. Collect data via market research, customer surveys, interviews, and competitor analysis. 2. Reevaluate product strategy and positioning. Assess if the current product meets market needs or requires modification, repositioning, or discontinuation. Consider new product ideas or extensions. 3. Adapt marketing strategies to the evolving market conditions. Revise messaging, market entry strategies, channels, promotions, and pricing. 4. Investigate potential in adjacent markets or new customer segments that have emerged due to the market shift. The product might be more suitable in different areas.

When trends seem to change very abruptly, we have a knee-jerk reaction to pivoting the product. However, these trends can be a false positive in how the market will actually behave. Sometimes, making the decision to change strategy will only cost you more. Work with your data experts to understand what the market changes mean for your product. Use these questions to help explore: - Is short-term? - Is it long-term? - Will it actually meaningfully change your industry or is it noise? - What will it cost you to respond to these changes, and what do you gain as a result?

In assessing the impact, I don't think it is as the article suggests that an entire set of product dynamics have shifted. I think it is more often the case that a single new entrant invented something novel or a new technology is now widely available. Given this, you can do the analysis of what needs to be done quite quickly. A few years ago I trialed Drift. Chatbots were all the rage for B2B, so we wanted to give one a go. It was no miracle, & we didn't implement it. Sure they claimed having AI yada, yada, but it was nothing compared to what ChatGPT can do now. That generation of Chatbots in the market shift to LLMs are now understandably considering how they can get substantially better or get out. LLMs are clearly an obvious sea change.

When faced with an unexpected market shift, assess the impact by analyzing customer feedback, monitoring sales data, conducting market research, and evaluating competitor responses. Adapt the product strategy accordingly, possibly by pivoting features, adjusting marketing efforts, or targeting new customer segments to align with the evolving market demands.

When facing an unexpected market shift, gather data promptly. Engage customers for feedback, monitor social media sentiment, and analyze sales data. Qualitative insights from interviews are as crucial as quantitative analytics. Understanding user behavior and expectations is key to pivoting effectively in response to market changes.

Prioritize understanding and meeting the needs of your customers as you revisit goals. Collect qualitative insights through methods like customer interviews, focus groups, and user testing to grasp their pain points and preferences more comprehensively. Employ this customer-centric approach to guide decisions on goal adjustments, ensuring your product maintains relevance and value for its intended audience amidst market changes. Analyze competitors' products, strategies, and market positions thoroughly to pinpoint areas of opportunity and fine-tune your goals in response to market shifts for your product

When faced with an unexpected market shift, assess the impact by analyzing customer feedback, monitoring sales data, conducting market research, and evaluating competitor responses. Adapt the product strategy accordingly, possibly by pivoting features, adjusting marketing efforts, or targeting new customer segments to align with the evolving market demands.

-Transparency is Key: Clearly explain the market changes and their impact on the product. Open communication fosters trust and avoids confusion. -Brainstorm Together: Shift from "What went wrong" to "How can we adapt?" Hold brainstorming sessions to leverage your team's collective expertise. -Empower Action: Encourage team members to propose solutions and adjustments. Feeling valued and involved fuels creativity and ownership. -Adapt and Iterate: Move quickly! Test solutions, gather user feedback, and iterate based on learnings. Agility is key to surviving market shifts.

Explaining the shifts and their potential impacts on our product helps everyone stay aligned and responsive. Creating a space where each team member feels valued for their input can lead to innovative ideas and adaptations. This collaborative approach not only harnesses the diverse skill sets within the team but also fosters a sense of unity and purpose, empowering us to navigate the challenges together.

Let’s consider 2 examples: 1. With a shift in customer preferences from hatchbacks and sedans to SUVs, the automotive market saw a change in their product line. While Mahindra’s entire lineup consists of only SUVs, sedan-focussed Skoda now has Kushaq & Kodiaq SUVs along with other cars. 2. Grofers rebranding to Blinkit and launch of Zepto in quick delivery segment. This is more of a category creation example, but Swiggy’s Instamart is an example of adjusting to the shift in market. Although they did not deliver groceries initially, Swiggy saw quick delivery as an opportunity to expand and hence, launched Instamart. One might argue that opening a new vertical does not impact the other verticals, but the loss of focus might affect financials.

As a product manager, if my product's market shifts unexpectedly, I would conduct market research to understand the new dynamics, gather customer feedback, reassess product-market fit, adapt the product roadmap accordingly, and collaborate with cross-functional teams to swiftly adjust strategies and features to align with the evolving market demands.

Aim to avoid knee-jerk reactions as a market shift may not always be permanent. From my experience, taking the time to think in the medium term, assess the market and make decisions based on a longer-term outlook always wins in the end. Although, this is not always easy to do in practice!

Before you pivot, dive deep into the why behind market shifts. Are changes driven by customer behavior, competition, technology, or regulations? Understanding these underlying factors is crucial for crafting a strategy that meets the new demands of your target market.

After deciding a pivot is necessary, it’s also important to provide friendly user flow and guidance to ensure user experience.

1. Quick Assessment: Immediately analyze the market shift and its impact on your product and customers. 2. Strategic Review: Reevaluate your product strategy and pivot if necessary, ensuring alignment with the new market reality. 3. Engage Customers: Directly engage with customers to understand their evolving needs and tailor your product accordingly. 4. Agile Response: Adopt agile practices to adapt your product and marketing strategies quickly. 5. Team Alignment: Ensure your team is aligned with the new direction and understands the market changes. 6. Continuous Monitoring: Keep a close eye on market trends and the effectiveness of your adaptations, learning and iterating as necessary.

This is easier said than done category. Product market shifts require nimble strategy and proactive regression approaches. Anticipating a market shift is a skill and may take years to acquire. A better way to deal with it would be to start doing scenarios on proactive basis. It prepares you with optionality and can enable you to pivot when things go south.

In summary, the key is to remain "relevant." Markets are constantly influenced by external dynamics. Recognizing and adapting to these shifts is crucial. As an example, recently Cyber risk management products faced a shift as SEC gave ruling around reporting material risks.

If your product's market suddenly shifts, the first step is to closely examine your metrics and OKRs to see if they're still relevant in the new environment. Dive deep into data + the market as a whole to figure out whether it's the market that's changed or if your product is falling behind... Based on your findings, you might need to revisit your product strategy, update your value proposition, or even pivot to better match the changed market