7 Steps Product Managers Can Take to Determine the Fate of Existing Products

As Product Managers, reviewing products we did not pitch-build-launch is sometimes more challenging. Therefore, the following is a comprehensive approach to evaluating existing products' viability and future potential when that day comes. The review will examine various aspects, from financial and technical metrics to customer feedback and competitive dynamics.

- 1 - Review Original Justification: Try to dig out past presentations and related finances that justified the launch so you can better understand the history, the players that approved, and the like. Hence, the launch made sense to someone or a body of deciders at some point in the past, so it is best you know so as not to step on any toes and speak unfairly. Another upside of reviewing past business cases and presentations is that it will allow you to see the format and content requirements that were successful.?

During your review, compare the product's current state with the initial expectations and KPIs. Try to find out what happened or did not happen because customer _____ did not _______. You may see the impacts of war, COVID-19, and the exiting of the original product champion, e.g., life-cycle-impacts. If justifiable, the trick will be to pivot to course correct.

- 2 - Financial metrics and market analysis:?During your history review, you may not see the use of SOM, SAM, and TAM. You'll likely see some equivalent of TAM or the market's total size. In contrast, you may see or hear about setbacks within the Serviceable Obtainable Market and why strides were not reached or lost within the Serviceable Available Market.

The history of plays that reached the goal line and those failed plays is of utmost importance since a "replay" with an adjustment may prove valuable. At some point, you have the luxury of acting as a "Monday Morning Quarterback" because you can see the past and the present, so don't let it go to your head because you'll be deciding which play to run soon.?

It would be prudent to illustrate an overlay of the past and present numbers for each Serviceable Obtainable Market, Serviceable Available Market, and Total Addressable Market so everyone can see the shifts for the product. You may have to estimate the historical SOM and SAM based on the total target initially presented. If so, use the same percentage of totals as the current SOM and SAM to the recent TAM. Also, it is best to provide the calculation so others will understand the "numbers behind the numbers."?

Determine the untapped portions of each SOM, SAM, and TAM while considering that some reasons may or may not be linked.

What actions, contracts, and calls generated the results to date?

What did it not go as hoped or planned? [ This is a sensitive topic, though it is better to surface and learn from it to avoid and advance the learning curves. ]?

Product Unit Financials:?Hopefully, you gained the historical data, financial models, and contribution margin estimates to update and check the total cost versus current cost and selling prices and net profit before and after. Assess key performance indicators such as sales trends, profit margins, and growth rates.

Lastly, you can calculate adoption rates, churn rates, and customer lifetime value (CLV) from the SOM, SAM, and TAM reviews. Note that the "churn rate" differs slightly in relation to tech products than physical products.

For physical products, correlate product returns as "stop subscribing."

Suppose you have a hybrid product [ physical with IoT tech ] in which the physical product is not dependent on the tech IoT sub-product. In that case, it is best to evaluate both together and separately since the market may love the physical product features without the IoT App due to UI, UX, firmware issues, and so on. +++ If this is the case and you need to talk about it, please let me know.+++

- 3 - Capital Assets and Tooling Life: If capital equipment were approved, you'd hopefully see the related suppliers while reviewing the finances and capital expenditures above. Based on history, it is best to gain insights from Sourcing about the program-related supply base, tooling ownership, fixture condition, and historical problems.

It is best to know if any "skeletons are in the closet" since the tooling may need to be updated or the design changed. If you exist, ensure all debts for raw materials and any WIP are paid. If the tooling is returned to your site to control the disposal, it will carry a crating and packing exit cost.

If you do not take possession of the tooling, expect the supplier to relaunch the product for themselves, which happens more than you may expect and could be why your TAM sales are lower than hoped. However, this is another matter I've successfully combatted. +++ If you need to address this topic, let me know, and I can help with the related strategies to avoid and resolve it if there is still time. +++

- 4 - Dependencies on Other Products: If you all have a One-Stop-Shop product offering mindset, the likelihood that the demand for this product is related to others is highly likely, though to what degree is the tricky part.

"If the sale of __ONE___ triggers the sale of __MORE___," you know the story—for example, HP sells one printer and multiples of the ink cartridges.

OK, Best to talk with Sales in the field and management to determine whether this product is a gateway to other offerings. Suppose other products in your portfolio depend on it as an add-on, upsell, or integration. In that case, Sales should be able to clarify if the codependency is widespread or just how one seller got to the term sheet to purchase. Hence, the dependent may not be a Must-Have versus a Should-Have or Nice-to-Have. Finally, all these insights will factor into the justification for keeping the product alive and the reason for adjusting the selling price. During all this fact-finding, it best to keep a tally of who said what and which client was referenced to have "proof in the pudding."

- 5 - Competitive Analysis:?Review how competitors have responded to your product. Have they released similar offerings or complementary products? Are they gaining market share? What differentiates their product from yours? Have they filed or been awarded related patent protection??

- 6 - Customer Analysis:?Some suggest that talking with Customers should be done first, though the intention is to know more before getting in front of the customers. Note that it is much more important to talk with customers that existed or returned your product or did not buy another one when you know they could use more. One potential sensitive point is that these interviews should only be with Product Management; sorry, Sales, no offense or discredit; we need the customer to be completely free to say what they want about The Product, The Offer.

? ?- Evaluate the number of critical accounts using the product.

? ?- Customers that returned?

? ?- Are these accounts increasing or decreasing their usage?

? ?- What feedback or requests are you receiving from these accounts?

? ?- Are there key accounts not using the product, and if so, why?

- 7 - Decision Framework: Using the insights gathered, use a decision matrix or weighted scoring system to objectively evaluate the product's future. Consider factors like potential revenue growth, cost of updates, strategic importance, and customer demand.

To help others in management and C-Suite, gain more meaningful insights, utilize simple maps or grids. And please prepare the related story of what has happened and what needs to be done to achieve the objectives.?

Depending on the audience, consider the "ground fight" within each "reach" of SOM, SAM, and TAM. Focus on the actions needed to deploy the play because projects or sales numbers alone are meaningless since only activities may generate and surpass the objective.

Consider including the following:

• Time - Resources - Cost to achieve?
• Actions required by each department to "run the new play" turn the words into action.
• It is best to list the significant unknowns and assumptions within the Product, noting the major unknowns of other departments.
• Qualitatively or quantitatively, it is best to capture the Confidence Levels or "buy-in" of each department that will contribute to the extension or exit. Example: Engineering ____%, Service ____%, Sales ____%, Supply Chain ____ %, Finance ____% and last Product Management ____% because the outcome is dependent on and affects everyone.?

OK, now you have [ 7 ] ways to get you on the right track, understanding there are more things to consider. Feel Free to Like-Share-Connect. God Bless.