Growth Hacking Strategies for Product Managers: Building Value and Happiness

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Sep 29, 2023
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Growth Hacking Strategies for Product Managers: Building Value and Happiness
Introduction:
In the world of product management and marketplace development, the ultimate goal is to create value for users and ensure their happiness. This article combines insights from "Growth Hacking for Product Managers" by Chris Long and "The Hierarchy of MarketplacesāāāIntroduction and Level 1" to provide actionable advice on achieving growth and maximizing user satisfaction.
Creating Value for Users:
According to Chris Long, the key to a successful product lies in its ability to deliver value to its users. This value can be achieved through continuous small changes rather than risky, large-scale transformations. The focus should always be on making the smallest change that can have the biggest impact in the shortest possible time.
Finding Shortcut Solutions:
In the context of growth hacking, the term "hacking" refers to finding shortcuts and easy solutions. By identifying the cross-section of users that retains the best, product managers can double down on that specific use case or market. The goal is to make buyers and sellers meaningfully happier than any substitute, rather than solely chasing metrics like Gross Merchandise Volume (GMV), which can be misleading.
The Importance of Happiness:
Happiness becomes the ultimate moat for marketplaces. Regardless of the size of an incumbent player, they are always vulnerable to a new entrant that can provide a superior happiness quotient for buyers and sellers. Therefore, growth should be seen as a means to increase the average level of happiness per transaction, rather than a standalone goal. Pursuing happiness will ultimately lead to sustainable growth.
Choosing the Right Market:
If there is a concern about targeting too small a market, it often indicates that you are on the right track. However, it is crucial to ensure that the chosen market is not a dead end. Successful marketplace founders possess the ability to identify the most promising opportunities and sequence their actions accordingly. By focusing on quality growth and monitoring net revenue retention, they can gauge the level of happiness achieved.
Dynamic Nature of Happiness:
It's important to recognize that happiness is a dynamic measure that needs continuous monitoring. Expectations and satisfaction levels are relative to the available substitutes in the market. Minimum Viable Happiness should be constantly assessed and adjusted to ensure that users are consistently experiencing value and happiness.
Actionable Advice for Product Managers:
- 1. Prioritize Value Over Vanity: Instead of solely chasing metrics like GMV, focus on creating enduring value for users. Measure success through the level of happiness and satisfaction your product brings to buyers and sellers.
- 2. Choose the Right Market: Be strategic in selecting your target market, ensuring it has potential for growth and isn't a dead end. Sequence your actions based on the most promising opportunities that align with your product's value proposition.
- 3. Continuously Monitor and Adapt: Keep a vigilant eye on user happiness and satisfaction. Understand that it is a dynamic measure that depends on market conditions and available substitutes. Make small, continuous changes to your product to maintain and enhance user happiness.
Conclusion:
In the world of product management and marketplace development, the focus should always be on creating value and happiness for users. By adopting growth hacking strategies that prioritize quality growth over vanity metrics, product managers can achieve sustainable success. Choosing the right market, monitoring user happiness, and making continuous improvements are essential for long-term growth and user satisfaction. Remember, growth is a means to increase happiness, not the other way around.
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