The Customer Letter Technique: A Powerful Tool for Product Development

For smaller projects, the Opportunity Assessment technique usually suffices. However, larger efforts often require a more comprehensive approach to effectively communicate value, address multiple customer problems, or tackle various business objectives. This is where the Customer Letter Technique comes into play.

The Need for a Larger Effort

When embarking on significant projects, such as a complete redesign, you often have several objectives. For instance, a redesign might aim to improve the experience for current customers while also attracting new ones. In such cases, the four questions from the Opportunity Assessment may not be enough. A more detailed technique is necessary to keep the team focused and aligned.

Learning from Amazon

One of the most successful technology-driven companies, Amazon, has perfected a method known as the "working backward process." This technique involves writing an imagined press release for a product before its development. The press release describes the future state where the product has launched, emphasizing how it improves customers' lives and outlining the real benefits.

Focus on Outcomes, Not Features

It's easy for product teams to dive into the details of features they plan to build without considering the actual benefits for customers. The imagined press release technique keeps the team focused on outcomes rather than outputs. The press release is read by the product team, related or impacted teams, and leadership, serving as a tool for evangelism. If the value isn’t clear from the press release, the product manager needs to either refine their message or reconsider the effort altogether.

The Customer Letter Technique: A Nordstrom Variation

Walker Lockhart, a former Amazon executive now at Nordstrom, shared a variation of Amazon's technique developed at Nordstrom. Instead of a press release, this method uses a customer letter format.?

The Hypothetical Customer Letter

In this approach, the product manager writes a letter from the perspective of a hypothetical satisfied customer. This letter, addressed to the CEO, explains why the customer is so happy with the new product or redesign. The customer describes how the product has improved their life. The letter also includes an imagined congratulatory response from the CEO to the product team, highlighting how the product has benefited the business.

Advantages of the Customer Letter Technique

1. Modern Relevance: Unlike the press release, which is somewhat dated, the customer letter feels more relevant and relatable in today's industry.

???

1. ?Empathy and Understanding: The customer letter fosters empathy by vividly illustrating the customer’s pain points and how the product addresses them. This helps the team understand the customer’s experience more deeply.

1. ?Motivation and Insight: Real customer letters, even those critical of the product, are highly motivating. They provide visceral insight into the problems customers face, compelling the team to find effective solutions.

Conclusion

The Customer Letter Technique is a powerful tool for product development, especially for larger efforts. By imagining a future state where a customer is delighted with the product, teams can maintain a focus on meaningful outcomes. This technique not only aligns the team around common goals but also fosters empathy and a deeper understanding of customer needs. Whether you choose the press release format or the customer letter variation, the key is to keep the customer’s experience at the forefront of your development process.