"Building and Retaining User Habits: A Guide for Product Leaders"

"Building and Retaining User Habits: A Guide for Product Leaders"

Introduction:

In the ever-changing landscape of the digital world, building and retaining user habits is crucial for the success of any product. However, with the current COVID-19 pandemic, the dynamics of user behavior have shifted significantly. In this article, we will explore the science of habit building and delve into the core inputs of activation, engagement, and resurrection. Additionally, we will discuss the transition from being a Product Manager to a Product Leader and the key skills required to excel in this role.

Building User Habits:

To create great retention, it is essential to understand the science behind habit building. Users are driven by motivations, face cognitive and physical friction, and seek rewards. By comprehending these factors, product leaders can design experiences that encourage and deepen user habits over time. It is important to note that revenue retention is an output of usage and should not be the sole focus. Instead, product leaders should concentrate on improving activation, engagement, and resurrection to enhance retention rates.

Retaining the Marginal Audience:

Trying to retain every single user is not a sustainable strategy. As the behavior shift continues, it is crucial for product leaders to identify and retain the marginal audience. To determine if the marginal audience is experiencing real value or only temporary value, it is necessary to analyze the underlying behavior that drives engagement. If users are engaging solely due to current events and not experiencing the broader value proposition, their retention is likely to be low. Therefore, it is essential to focus on providing long-term value and ensuring that users truly benefit from the product.

Transitioning from Product Manager to Product Leader:

After achieving initial product-market fit, product leaders face a new set of challenges. There are four categories of product problems that need to be managed and sequenced: feature work, growth work, scaling work, and product-market fit expansion. As a Product Leader, it is crucial to have knowledge of these categories and guide the team in working on the right problems at the right time. The role shifts from being hands-on to making strategic decisions and maximizing the overall return on investment for the product.

Maximizing Team Output:

As a Product Leader, success is not determined by personal output but by the total output of the team. It is essential to train others to excel in their roles and influence stakeholders outside of your direct span of control. Allocating resources effectively and influencing others to solve problems is crucial for driving organizational progress. Influencing individuals who may not have the same level of knowledge or involvement in your specific area of expertise requires the development of persuasive communication skills.

Crossing the Canyon to Product Leadership:

To transition from a Senior Product Manager to a Group Product Manager, one must learn how to create more scope and opportunities for the organization. While it is important to empower the team to make decisions, it is equally vital to escalate the right problems to higher levels. Balancing these two aspects ensures that the team continues to grow and improve, while also addressing critical issues that may hinder progress.

Actionable Advice:

• 1. Understand your users' motivations, friction points, and desired rewards to design experiences that build and deepen user habits over time.

• 2. Focus on retaining the marginal audience by providing long-term value and ensuring that users experience the broader value proposition of the product.

• 3. Train and influence others in the organization to solve problems outside your direct span of control, maximizing the overall return on investment and driving organizational progress.

Conclusion:

Building and retaining user habits is a science that requires product leaders to understand the core inputs of activation, engagement, and resurrection. By focusing on the marginal audience and providing long-term value, product leaders can improve retention rates. Additionally, transitioning from a Product Manager to a Product Leader involves maximizing team output, influencing stakeholders, and effectively allocating resources. By following the actionable advice provided, product leaders can navigate the challenges and excel in their roles, ultimately driving the success of their products.