Reducing Product Risk and Improving Retention in the Times of COVID-19

Reducing Product Risk and Improving Retention in the Times of COVID-19

In the ever-evolving world of product development, it is crucial to de-risk projects and focus on improving retention, especially in the challenging times of COVID-19. However, the approach to these two aspects may vary depending on the type of customer we are building for. Let's explore how we can reduce product risk and improve retention by understanding the unique needs and behaviors of our users.

One common factor in both reducing product risk and improving retention is the importance of iteration. Initial releases may not have all the features and functionalities that teams desire, but through continuous iteration, we can address these gaps and provide value to users as soon as possible. Users are often unreliable narrators of their own behaviors and preferences, so it is essential to regularly engage with them and infer solutions ourselves. As Henry Ford famously said, "If I'd asked customers what they wanted, they would have said a faster horse." Therefore, we cannot solely rely on user feedback but must think critically and creatively to develop effective solutions.

To de-risk projects, we can adopt Cody's design quality framework, which emphasizes the level of investment before a product reaches the customer. This investment is directly tied to our understanding of the problem and the viability of the solution. By investing more in research and analysis, we can gain greater confidence in our product's potential success. However, it is crucial to strike a balance and avoid overinvesting in features. Instead, we should focus on building minimal viable products (MVPs) or minimal viable features (MVF) to prove that our ideas can solve problems effectively. Once proven, we can then invest more resources to unlock the product or feature's full potential.

While reducing product risk is essential, retention is equally crucial, especially during the COVID-19 pandemic. Retention is about building and deepening habits, and it requires a scientific approach. It is important to remember that retention is driven by usage, not just revenue. Revenue retention is an output of usage, which means that to improve retention, we need to focus on the inputs that drive it.

There are three core inputs that impact retention: Activation, Engagement, and Resurrection. Activation refers to getting users to take the initial steps to use and experience the product. Engagement involves keeping users actively involved and interested in the product over time. Resurrection focuses on re-engaging users who may have become inactive or churned. To improve retention, we need to identify which of these inputs requires our attention and allocate resources accordingly.

COVID-19 has undoubtedly changed user behavior and habits, making it vital to assess how these changes impact our customer base. By analyzing usage patterns and understanding the shifts in user habits, we can identify the areas that require improvement. This allows us to make informed decisions on which input - Activation, Engagement, or Resurrection - needs the most attention. Investing resources in the right area can significantly impact retention and ensure long-term success.

To conclude, reducing product risk and improving retention go hand in hand, especially in the times of COVID-19. By adopting an iterative approach, understanding user needs beyond their explicit feedback, and investing wisely based on the design quality framework, we can de-risk projects and build successful products. Additionally, focusing on the core inputs of Activation, Engagement, and Resurrection allows us to improve retention by adapting to the changing habits and behaviors of our users.

Actionable Advice:

1. Regularly engage with users to infer solutions: While user feedback is valuable, don't solely rely on it. Talk to users about their problems but also think critically to develop innovative solutions.

2. Invest wisely based on the design quality framework: Understand the problem and viability of the solution before investing heavily. Utilize MVPs and MVFs to prove the effectiveness of your ideas before scaling up.

3. Analyze usage patterns and adapt to changing habits: Assess how COVID-19 has impacted user behavior and adjust your activation, engagement, and resurrection strategies accordingly. Invest resources in the input that requires the most attention to improve retention.

By following these actionable advice, you can reduce product risk and improve retention, ultimately leading to the success of your projects, even in uncertain times.