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dJhzPA"><div class="sc-jr97bh-9 ljKcZh"><h2>Last updated</h2>16 Jun 2023</div><div class="sc-jr97bh-9 ljKcZh"><h2>Reading time</h2>10 min</div><div class="sc-jr97bh-9 ljKcZh"><h2>Share</h2><div class="sc-jr97bh-17 fVZqWG"><div class="sc-jr97bh-16 boXmqO"><a href="https://www.facebook.com/sharer.php?u=https://www.hotjar.com/product-strategy/" target="_blank" title="Facebook" rel="noreferrer"><svg width="8" height="16" viewBox="0 0 8 16" fill="none" xmlns="http://www.w3.org/2000/svg"><path d="M0.255436 8.5216H1.99143V15.7419C1.99143 15.8845 2.10576 16 2.24687 16H5.19031C5.33141 16 5.44574 15.8845 5.44574 15.7419V8.55561H7.44141C7.57117 8.55561 7.68035 8.45724 7.69516 8.32702L7.99826 5.66885C8.00659 5.59572 7.98365 5.52248 7.93522 5.46761C7.88674 5.4127 7.81736 5.38126 7.74456 5.38126H5.44584V3.71499C5.44584 3.2127 5.71354 2.95799 6.24158 2.95799C6.31683 2.95799 7.74456 2.95799 7.74456 2.95799C7.88567 2.95799 8 2.84243 8 2.69992V0.259974C8 0.11742 7.88567 0.00190926 7.74456 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14.3922 12.0306 13.7986 11.6645 13.4325C11.2983 13.0664 10.7047 13.0664 10.3386 13.4325L6.58208 17.1891C6.338 17.4331 5.94226 17.4331 5.69818 17.1891L2.81101 14.3019C2.56693 14.0578 2.56693 13.6621 2.81101 13.418L6.56756 9.66145C6.93368 9.29533 6.93368 8.70173 6.56756 8.33561C6.20144 7.96949 5.60784 7.96949 5.24172 8.33561L1.48517 12.0922Z" fill="#A6A8B3"></path></svg></button></div></div></div></div><div class="sc-jr97bh-15 jIPbuZ"><div class="sc-1h6crh2-0 ctAYiw next-image "><span style="box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;padding-top:66.66666666666666%"></span><img alt="Team analyzing dashboard with metrics" sizes="100vw" srcSet="/_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4oQCLKmVfHS8s8gm7aQ2kb%2F2721537d299e0df64ad345aefb60aec3%2FTeam_analyzing_dashboard_with_metrics.png&w=375&q=75 375w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4oQCLKmVfHS8s8gm7aQ2kb%2F2721537d299e0df64ad345aefb60aec3%2FTeam_analyzing_dashboard_with_metrics.png&w=384&q=75 384w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4oQCLKmVfHS8s8gm7aQ2kb%2F2721537d299e0df64ad345aefb60aec3%2FTeam_analyzing_dashboard_with_metrics.png&w=640&q=75 640w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4oQCLKmVfHS8s8gm7aQ2kb%2F2721537d299e0df64ad345aefb60aec3%2FTeam_analyzing_dashboard_with_metrics.png&w=750&q=75 750w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4oQCLKmVfHS8s8gm7aQ2kb%2F2721537d299e0df64ad345aefb60aec3%2FTeam_analyzing_dashboard_with_metrics.png&w=824&q=75 824w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4oQCLKmVfHS8s8gm7aQ2kb%2F2721537d299e0df64ad345aefb60aec3%2FTeam_analyzing_dashboard_with_metrics.png&w=946&q=75 946w" src="/_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4oQCLKmVfHS8s8gm7aQ2kb%2F2721537d299e0df64ad345aefb60aec3%2FTeam_analyzing_dashboard_with_metrics.png&w=946&q=75" decoding="async" data-nimg="responsive" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/></span></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><p>Without a well-defined product strategy that is aligned with your product vision and company goals even the best teams can succumb to chaos—the product team is pulled in different directions, trying to meet objectives that constantly change depending on the opinions of stakeholders and executives.</p><p>What's worse: misaligned product teams are often unable to meet user needs. The result? Products that fail to delight customers or fulfill business goals. </p><p>By building a brilliant product strategy, <a href="https://www.hotjar.com/product-management-101/product-manager/"><u>product managers</u></a> can keep their teams aligned on what the product should achieve—and <i>why</i>. This guide explains everything you need to know about a product strategy, and shows you how to create one to turn your vision into reality. </p></div></div></div><div data-testid="default-cta-banner" class="sc-113110s-0 sc-zylmo5-0 jDjEjm AVhwD"><div class="sc-341qbk-0 sc-zylmo5-2 iEiGUx gfTTXT"><div class="sc-zylmo5-3 jHaYAX"><h2 class="sc-167aua0-1 sc-zylmo5-4 cltmLY dKtBBt"> Use Hotjar to build an impactful product strategy</h2><div class="sc-zylmo5-5 ncYBt"><div class="sc-bppd0a-0 iVDwa"><p>Hotjar helps you discover and connect with the user needs that form the core of an excellent product strategy.</p></div></div><div class="sc-zylmo5-6 hiNNmc"><div class="sc-1gqa40i-0 dNLxeO" data-testid="ButtonWrapperPrimary"><a class="" href="https://insights.hotjar.com/register?pricing_table=8" target="_blank">Try Hotjar today!</a></div></div></div><div class="sc-zylmo5-13 gWYKia"><img src="/images/orb-red.svg" alt=""/></div><div class="sc-zylmo5-14 sHEON"><img src="/images/orb-red.svg" alt=""/></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><h2 id="what-is-a-product-strategy">What is a product strategy?</h2><p>A product strategy is a high-level plan that defines the unique value proposition of a new product, its target audience, and how the product will meet key goals across its entire lifecycle. </p><p>Also known as a product development strategy, <b>this critical foundation links user needs with organizational goals to communicate the real purpose of the product</b>; it's the first step in turning the <i>product vision </i>into <i>action. </i></p><p>A product strategy often goes through several iterations in the early stages as you get more <a href="https://www.hotjar.com/blog/product-feedback/"><u>product feedback</u></a> and test <a href="https://www.hotjar.com/product-management-glossary/product-market-fit/">product-market fit</a>—it needs to be flexible enough to meet changing user needs and market conditions. </p><p>But once it’s set,<b> the strategy should act as a stable touchpoint, aligned with the company’s core vision</b>. While the product strategy only changes in response to major shifts, the <a href="https://www.hotjar.com/product-management-101/agile-product-management/"><u>product roadmap</u></a>, initiatives, and backlog can change as needed.</p><h2 id="what-are-the-benefits-and-importance-of-a-product-strategy">What are the benefits and importance of a product strategy?</h2><p>A product strategy offers guidance at multiple touchpoints throughout the product lifecycle, showing <b>how the initial product idea will help realize the company’s overall vision.</b> Incorporating a clear strategy into your business model is a useful asset in the <a href="https://www.hotjar.com/product-forge/user-research-techniques/"><u>research phase</u></a>, design process, and an important element of the <a href="https://www.hotjar.com/blog/customer-centric-marketing/"><u>marketing mix</u></a>, which ultimately improves overall <a href="https://www.hotjar.com/product-management-101/what-is-product-management/"><u>product management</u></a>.</p><p>The <b>best and most effective</b> product strategies: </p><ul><li><p>Include extensive target <a href="https://www.hotjar.com/blog/market-research/"><u>market research</u></a></p></li><li><p>Keep the product team focused and aligned </p></li><li><p>Help PMs prioritize features and direct resources</p></li><li><p>Answer the problems you solve for your ideal customers</p></li><li><p>Address methods that will help you achieve your business objectives</p></li><li><p>Provide guidance to improve your <a href="https://www.hotjar.com/product-management-101/product-management-team-structure/"><u>product management team structure</u></a> </p></li><li><p>Help other departments understand how the product ties into their business goals</p></li><li><p>Highlight your <a href="https://www.hotjar.com/conversion-rate-optimization/glossary/unique-selling-proposition/"><u>unique selling proposition (USP)</u></a>—in other words, how you’ll differentiate yourself from other market players </p></li><li><p>Convince investors and other external stakeholders on the viability of the product and organization, securing more buy-in</p></li></ul><p>The product strategy also<b> helps stakeholders understand </b><i><b>why </b></i><b>you’re developing the product and </b><i><b>how </b></i><b>you’ll develop it </b>to maximize customer delight, market share, and profitability. With a clear strategy, your business will be able to produce a reliable product roadmap that offers you a competitive advantage.</p><p>While product managers (PMs) draw on the product strategy to create the product roadmap, the whole product team should use the strategy to guide day-to-day decisions on <a href="https://www.hotjar.com/blog/product-backlog-management/"><u>backlog management</u></a>, <a href="https://www.hotjar.com/product-research/how-to-prioritize-features/"><u>feature prioritization</u></a>, and paying down <a href="https://www.hotjar.com/product-management-glossary/technical-debt/"><u>technical debt</u></a>. The product strategy also offers guidance to other business units, including people working in product design, marketing campaigns, and sales teams.</p></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-1msvl6g-0 dYnQAv"><div class="sc-bppd0a-0 iVDwa sc-1msvl6g-1 cvweeS"><p>Having a product strategy means having a clear direction that your team can refer to in order to understand where they should focus their energy and prioritize. </p><p>Without a strategy, different opinions on where the focus should be across the team can lead to recurrent conflicts when deciding on the next priorities. Everybody tends to fight for what they think is the top priority based on their reality and what they see or hear.</p></div><a class="sc-1msvl6g-3 jdGxOS" href="https://www.linkedin.com/in/elodiemouillet?originalSubdomain=ca" rel="noopener noreferrer nofollow" target="_blank">Elodie Mouillet</a><div class="sc-1msvl6g-4 hrsyHH">Product Manager, <a class="" href="https://dashthis.com/" rel="noopener noreferrer nofollow" target="_blank">DashThis</a></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><h3 id="4-effective-product-strategies">4 effective product strategies</h3><p>Deciding on the right product strategy for your company depends on the specific needs of your market and the resources you have available. </p><p>Here are some of the most common: </p><ol><li><p><b>Leader/alpha strategy</b>, which is all about creating a product that leads the market. </p></li><li><p><b>Challenger/quality strategy</b>, where your product challenges the current market leader by offering an improved <a href="https://www.hotjar.com/product-experience-insights/improve-px/"><u>product experience</u></a>.</p></li><li><p><b>Niche/focus strategy</b>, where you tailor your product to meet the particular needs of a very specific segment of the market, rather than aiming to dominate the market as a whole. </p></li><li><p><b>Cost strategy</b>, where you focus on highlighting your product through the cost of your offer. </p></li></ol><h2 id="what-is-the-difference-between-a-product-strategy-and-a-product-vision">What is the difference between a product strategy and a product vision?</h2><p>Though product strategy is deeply connected with the goals of the company and product, it is distinct from product vision. </p><p>The <i>product vision</i> is a broad, aspirational articulation of long-term business and product goals. It acts as a timeless statement of purpose. </p><p><b>The </b><i><b>product strategy</b></i><b> starts with the product vision but tailors it to your customer, market, and organizational goals</b>—it’s a high-level description of <i>how </i>the product will achieve the vision.</p></div></div></div><div class="sc-113110s-0 sc-ulhoor-0 jDjEjm tzAow"><div class="sc-341qbk-0 sc-ulhoor-1 iEiGUx koyxRU"><div class="sc-ulhoor-2 fkItys"><div class="sc-ulhoor-3 kZBmex"><div class="sc-bppd0a-0 iVDwa sc-ulhoor-4 erukES"><p><b>Keep in mind:</b> the product strategy isn’t a set of in-depth project actions. It doesn’t detail the execution of specific tasks or features, and it’s different from the product roadmap, which maps out the plan and timeline for achieving the strategy. </p><p><b>Product strategy is a bridge between </b><i><b>vision</b></i><b> and </b><i><b>execution</b></i><b>.</b></p></div></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-1msvl6g-0 dYnQAv"><div class="sc-bppd0a-0 iVDwa sc-1msvl6g-1 cvweeS"><p>The company’s vision statement sets out a lofty ideal linked to the company’s mission in the world. </p><p>The product vision then defines how the product (or products in the case of a portfolio company) will make the company vision a reality. </p><p>The product strategy lays out how to get there at a high level. </p><p>The product roadmap breaks that strategy into tactics and workable increments.</p></div><a class="sc-1msvl6g-3 jdGxOS" href="https://www.linkedin.com/in/charlesedge" rel="noopener noreferrer nofollow" target="_blank">Charles Edge</a><div class="sc-1msvl6g-4 hrsyHH">CTO, <a class="" href="https://www.bootstrappers.mn/" rel="noopener noreferrer nofollow" target="_blank">Bootstrappers.mn</a></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><h2 id="5-key-elements-of-top-product-strategies">5 key elements of top product strategies</h2><p>There’s no one way to build a brilliant product strategy. </p><p><b>Your strategy should be tailored to your particular market and the unique needs of your users and organization. </b></p><p>But typically, successful product strategies are:</p><h3 id="1-driven-by-vision-and-purpose">1. Driven by vision and purpose</h3><p><b>A great product strategy communicates the </b><i><b>why</b></i><b> behind the product.</b> It offers a clear sense of purpose, outlining how the product makes a difference, who it makes a difference to, and where it will position itself on the market. </p><h3 id="2-led-by-user-needs">2. Led by user needs</h3><p><b>Successful product strategies begin and end with user needs.</b> Great strategies don’t jump straight to offering solutions. Spend time understanding the underlying problems of your customer base and how you can generate effective solutions that offer an enjoyable user experience.</p><p>Product experience insights tools like Hotjar are key here: <a href="https://www.hotjar.com/session-recordings/"><u>Session Recordings</u></a> and <a href="https://www.hotjar.com/heatmaps/"><u>Heatmaps</u></a> help product teams empathize with user needs by seeing what their users experience, and <a href="https://www.hotjar.com/incoming-feedback/"><u>feedback tools</u></a> offer rich voice of the customer (VoC) data that will serve as a foundation for effective product strategy.</p></div></div></div><div class="sc-113110s-0 sc-ulhoor-0 jDjEjm tzAow"><div class="sc-341qbk-0 sc-ulhoor-1 iEiGUx koyxRU"><div class="sc-ulhoor-2 fkItys"><div class="sc-ulhoor-3 kZBmex"><div class="sc-bppd0a-0 iVDwa sc-ulhoor-4 erukES"><p><b>Pro tip:</b> leave space for creative thinking in the early stages of defining your product strategy. </p><p>Don’t assume you know what will satisfy your customers—develop <a href="https://www.hotjar.com/blog/user-personas/"><u>user personas</u></a> to find out how people search for, buy, and use products. Not only will you end up culling non-viable ideas, but discover new, unexpected ways of fulfilling user needs.</p></div></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><h3 id="3-developed-collaboratively">3. Developed collaboratively</h3><p>The best product strategies emerge through ongoing conversations. Hear from as many different voices as possible: a range of product team members, different organizational stakeholders, and, of course, your users. </p><p>By leading with <a href="https://www.hotjar.com/blog/cross-functional-collaboration/"><u>cross-functional collaboration</u></a>, you’ll <b>gather diverse perspectives and get stakeholder buy-in </b>on your product strategy from the start.</p></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-1msvl6g-0 dYnQAv"><div class="sc-bppd0a-0 iVDwa sc-1msvl6g-1 cvweeS"><p>Product strategy must be designed in conjunction with design, development, marketing, and sales departments; the contribution of all these departments is what makes a product strategy effective. This allows all stakeholders to speak the same language. </p><p>An even more advanced approach involves prospective users in the process to help curate a customer-centric product strategy.</p></div><a class="sc-1msvl6g-3 jdGxOS" href="https://www.linkedin.com/in/rugamez/" rel="noopener noreferrer nofollow" target="_blank">Ruben Gamez</a><div class="sc-1msvl6g-4 hrsyHH">CEO, <a class="" href="https://www.signwell.com" rel="noopener noreferrer nofollow" target="_blank">SignWell</a></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><h3 id="4-flexible-but-stable">4. Flexible but stable</h3><p>The product strategy will naturally evolve, especially in the early stages, as you do more research or your user needs shift. Great strategies make space for changes that emerge from <a href="https://www.hotjar.com/product-forge/continuous-discovery/"><u>continuous discovery.</u></a> </p><p>But you also need to be careful not to chop and change your product strategy constantly. Remember that this form of strategic planning has long-term goals. It’s supposed to be your product team’s foundation, so it can’t shift in response to <i>every</i> new request or need that arises. </p><p><b>The best product strategies find a balance:</b> product managers should make wiggle room for changes and think carefully before updating the strategy to avoid disorienting your team and stakeholders.</p></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-1msvl6g-0 dYnQAv"><div class="sc-bppd0a-0 iVDwa sc-1msvl6g-1 cvweeS"><p>Product strategy should be a living thing—not a document set in stone and reviewed once per quarter. It should reflect all emerging insights, changes in user needs, market, or technology. It should be adapted frequently.</p></div><div class="sc-1msvl6g-2 hMAYFr">Ula Augustyniak and Aneta Orszewska</div><div class="sc-1msvl6g-4 hrsyHH">Senior Product Designer and Senior Product Strategist, <a class="" href="https://www.boldare.com/" rel="noopener noreferrer nofollow" target="_blank">Boldare</a></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><h3 id="5-able-to-measure-key-product-business-outcomes"> 5. Able to measure key product, business outcomes</h3><p>Since the product strategy aims for clarity and efficiency, it doesn’t usually get too detailed with numbers or metrics—most product managers save those for the roadmap and product plans and initiatives. </p><p>However, it’s important to define the strategy to<b> offer a clear, </b><a href="https://www.hotjar.com/website-tracking/compare-traffic/"><u><b>measurable benchmark</b></u></a><b> you can test to see whether the product meets key goals.</b> This often means using the strategy’s vision of a successful product to tie in specific time-bound metrics and objectives, like hitting a certain number of daily, weekly, or monthly active users (AU), increasing monthly recurring revenue (MRR), or improving retention rate.</p><h2 id="6-steps-to-build-an-effective-product-strategy">6 steps to build an effective product strategy</h2><h3 id="1-deeply-understand-and-describe-your-customer">1. Deeply understand and describe your customer</h3><p><b>The success of your product strategy depends on your empathy for user needs. </b>Discover your <a href="https://help.hotjar.com/hc/en-us/articles/4402892526487-What-are-User-Attributes-#:~:text=User%20Attributes%20are%20facts%20about,users%20associated%20with%20those%20attributes."><u>user attributes</u></a>—who your customers are, what they do, what they want, what they need, and what obstacles they face. </p><p>Tools like Hotjar (👋) keep you connected with your product experience and let you dig deeper to discover real user needs. </p><p>Once you understand your customers’ needs, you need to communicate them. Many product managers recommend creating user personas to make your customers real and add depth to your user knowledge.</p></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-1msvl6g-0 dYnQAv"><div class="sc-bppd0a-0 iVDwa sc-1msvl6g-1 cvweeS"><p>Every successful product exists to solve a problem. If your product does not meet a user’s needs, or users don’t understand how your product solves the problem, then your product will not be a success. </p><p>As a product manager, it’s your responsibility to identify the most important problems to solve and to make informed decisions on how best to solve them. What informs the prioritization of the problem and the efficacy of your solution is the quantitative and qualitative feedback that you receive from your users. </p><p>Always keep in mind that you do not necessarily want your customers telling you what to build, but their insight into the problems to solve is invaluable.</p></div><a class="sc-1msvl6g-3 jdGxOS" href="https://www.linkedin.com/in/christophermcraig/" rel="noopener noreferrer nofollow" target="_blank">Christopher Craig</a><div class="sc-1msvl6g-4 hrsyHH">Lead Product Manager, <a class="" href="https://www.scalematters.com/" rel="noopener noreferrer nofollow" target="_blank">scaleMatters</a></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><h3 id="2-ensure-you-have-a-well-defined-product-vision">2. Ensure you have a well-defined product vision</h3><p>Start with the <i>why </i>of your organization. Ensure you fully understand your company’s overarching purpose, then<b> align your </b><a href="https://www.hotjar.com/product-strategy/product-vision-statement/"><u><b>product vision</b></u></a><b> with the organizational vision by synergizing user, market, and business goals</b>.</p></div></div></div><div class="sc-113110s-0 sc-ulhoor-0 jDjEjm tzAow"><div class="sc-341qbk-0 sc-ulhoor-1 iEiGUx koyxRU"><div class="sc-ulhoor-2 fkItys"><div class="sc-ulhoor-3 kZBmex"><div class="sc-bppd0a-0 iVDwa sc-ulhoor-4 erukES"><p><b>Pro tip</b>: use tools and templates to help you define the vision by visualizing how your product mobilizes organizational resources to meet user needs. </p><p>Roman Pichler’s <a href="https://www.romanpichler.com/tools/product-vision-board/" rel="noopener noreferrer nofollow" target="_blank"><u>product vision board</u></a> is one popular option for mapping out the product’s features, target group, and business goals to determine the vision.</p></div></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 iEiGUx"><div class="sc-bppd0a-0 iVDwa sc-qvfq4k-0 cFAXwm"><h3 id="3-find-your-products-unique-selling-point">3. Find your product’s unique selling point</h3><p>Product differentiation is a crucial aspect of a successful product strategy. This step helps you determine <b>how your product will stand out from the crowd and compete on the marketplace</b> in terms of: </p><ul><li><p>Usability</p></li><li><p>Quality</p></li><li><p>Cost</p></li><li><p>Niche focus</p></li><li><p>Customizability</p></li><li><p>Features </p></li></ul><p>Run a SWOT analysis and competitive analysis to better understand the landscape and determine your product market. Then, use these insights to inform your strategy.</p><h3 id="4-collaborate-with-different-stakeholders">4. Collaborate with different stakeholders</h3><p>Get product team members and exec-level stakeholders involved in the strategy's inception and development stages. </p><p>This will help yo<b>u understand your organization's broader landscape of needs and concerns,</b> which contributes to a more robust product strategy. Engaging different organizational stakeholders also helps them get behind your product development process and business strategy from the start.</p><h3 id="5-test-and-adjust">5. Test and adjust</h3><p>At the early stages of strategy building, it’s important that you test, adapt, and evolve your product. Get general <a href="https://www.hotjar.com/blog/user-feedback/"><u>user feedback</u></a> on your product ideas as soon as possible and use it to refine the strategy. </p><p>Once you’ve built a <a href="https://www.hotjar.com/product-management-glossary/minimum-viable-product/"><u>minimum viable product</u></a> (MVP), <b>learn how users are experiencing the product</b> and, especially, which needs aren’t being met. </p><p>Hotjar’s <a href="https://www.hotjar.com/website-feedback-tools/"><u>website feedback tools</u></a> show you how users interact with your product and where they experience obstacles or drop off. You can also gather VoC feedback to understand what your users are thinking and feeling as they use your MVP.</p><div class="sc-1h6crh2-0 ctAYiw next-image "><span style="box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:relative"><span style="box-sizing:border-box;display:block;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;padding-top:69.2722371967655%"></span><img alt="#A Hotjar on-site Survey" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" decoding="async" data-nimg="responsive" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%"/><noscript><img alt="#A Hotjar on-site Survey" loading="lazy" decoding="async" data-nimg="responsive" style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%" sizes="(min-width: 1000px) 946px, 100vw" srcSet="/_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4pEp7kIbUCPZp4iUQo7kVi%2F9cf8bb388ba4bfaaa14f7adec16b9192%2FHotjar-On-Site-Survey__3_.png&w=375&q=75 375w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4pEp7kIbUCPZp4iUQo7kVi%2F9cf8bb388ba4bfaaa14f7adec16b9192%2FHotjar-On-Site-Survey__3_.png&w=384&q=75 384w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4pEp7kIbUCPZp4iUQo7kVi%2F9cf8bb388ba4bfaaa14f7adec16b9192%2FHotjar-On-Site-Survey__3_.png&w=640&q=75 640w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4pEp7kIbUCPZp4iUQo7kVi%2F9cf8bb388ba4bfaaa14f7adec16b9192%2FHotjar-On-Site-Survey__3_.png&w=750&q=75 750w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4pEp7kIbUCPZp4iUQo7kVi%2F9cf8bb388ba4bfaaa14f7adec16b9192%2FHotjar-On-Site-Survey__3_.png&w=824&q=75 824w, /_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4pEp7kIbUCPZp4iUQo7kVi%2F9cf8bb388ba4bfaaa14f7adec16b9192%2FHotjar-On-Site-Survey__3_.png&w=946&q=75 946w" src="/_next/image/?url=https%3A%2F%2Fimages.ctfassets.net%2Flh3zuq09vnm2%2F4pEp7kIbUCPZp4iUQo7kVi%2F9cf8bb388ba4bfaaa14f7adec16b9192%2FHotjar-On-Site-Survey__3_.png&w=946&q=75"/></noscript></span></div><div class="caption">A Hotjar on-site Survey</div><p>The next step is to channel all of these insights into the product strategy. Frequently ask <a href="https://www.hotjar.com/blog/customer-feedback-questions/"><u>customer feedback questions</u></a> to engage in continuous discovery, connecting with users regularly, and testing whether your product strategy is still relevant. </p><h3 id="6-make-a-plan-to-execute">6. Make a plan to execute</h3><p>Once you’ve defined the strategy based on the product vision, user needs, market differentiators, stakeholder inputs, and feedback,<b> it’s time to put it into action. </b></p><p>Here’s how:</p><h4>Create a product roadmap</h4><p><b>The product roadmap is your key to bringing the product strategy to life.</b> It’s a high-level plan for how your product will achieve its strategic goals and what the product priorities are. </p><p>It should give a clear overview of <i>how</i> the strategy will be translated into action, provide a timeline for product development, and put key metrics in place to measure success. </p><p>Take a look at <a href="https://trello.com/b/LJOcdoHx/hotjar-public-product-roadmap" rel="noopener noreferrer nofollow" target="_blank"><u>Hotjar’s public product roadmap</u></a>, which highlights the features and improvements it has added to its software, to get an idea of how to create your own.</p><h4>Use the product strategy to inform your product initiatives</h4><p>Product initiatives are big-picture product themes or ideas, which describe customer value—i.e.<a href="https://www.hotjar.com/product-management-glossary/jobs-to-be-done/"><u> the jobs to be don</u></a><u>e framework (JTBD)</u> that helps your team<b> discover what people are trying to accomplish when using the product</b>. Each product initiative is then split into concrete plans and actions. </p><p>For example, if your initiative is to make your product more attractive to social media users, you’ll break that down into the specific features and projects required to make that happen, like adding share buttons or integrations. </p><p>The product strategy should inform long-term themes and smaller projects and tasks. </p><h4>Refer back to the product strategy when prioritizing the backlog</h4><p>The <b>product backlog</b> is a dynamic list of product development tasks and initiatives, including features, updates, optimizations, and bug fixes. </p><p>The product strategy should be a key touchpoint that helps you manage the day-to-day tasks on your backlog. Use the key themes in your product strategy to inform the decision-making frameworks you use to <a href="https://www.hotjar.com/product-research/how-to-prioritize-features/"><u>prioritize features and fixes</u></a>.</p><h2 id="why-a-brilliant-product-strategy-is-key-to-product-success">Why a brilliant product strategy is key to product success </h2><p>Leading a product team with an ill-defined product strategy is a bit like taking one step forward and three steps back. Product managers lose valuable time and resources to indecision and uncertainty and move forward in stops and starts, if at all. </p><p>But <b>a brilliant product strategy helps you make confident decisions to turn your product vision into a reality</b>. With an aligned, connected product team, and a clear sense of your strategic priorities, you’ll be well on your way to developing a product that truly solves user problems and brings about <a href="https://www.hotjar.com/product-forge/product-teams-customer-delight/"><u>customer delight</u></a>.</p></div></div></div><div data-testid="default-cta-banner" class="sc-113110s-0 sc-zylmo5-0 jDjEjm AVhwD"><div class="sc-341qbk-0 sc-zylmo5-2 iEiGUx gfTTXT"><div class="sc-zylmo5-3 jHaYAX"><h2 class="sc-167aua0-1 sc-zylmo5-4 cltmLY dKtBBt"> Use Hotjar to build an impactful product strategy</h2><div class="sc-zylmo5-5 ncYBt"><div class="sc-bppd0a-0 iVDwa"><p>Hotjar helps you discover and connect with the user needs that form the core of an excellent product strategy.</p></div></div><div class="sc-zylmo5-6 hiNNmc"><div class="sc-1gqa40i-0 dNLxeO" data-testid="ButtonWrapperPrimary"><a class="" href="https://insights.hotjar.com/register?pricing_table=8" target="_blank">Try Hotjar today!</a></div></div></div><div class="sc-zylmo5-13 gWYKia"><img src="/images/orb-red.svg" alt=""/></div><div class="sc-zylmo5-14 sHEON"><img src="/images/orb-red.svg" alt=""/></div></div></div><div class="sc-113110s-0 sc-15lfwxq-0 jDjEjm ggYFac"><div id="6Dvo7WY2Xqtg0HlX0zPIPQ" class="sc-341qbk-0 iEiGUx"><h2 class="sc-167aua0-2 sc-15lfwxq-1 kiAwCm eREeLz">FAQs about product strategy:</h2><div class="sc-15lfwxq-2 jPyyCB"><div class="sc-15lfwxq-3 eXwHgO"><button class="sc-15lfwxq-4 bnDEIo"><h3 class="sc-15lfwxq-5 kJjHjF">What is a product strategy?</h3><svg width="24" height="24" viewBox="0 0 24 24" fill="none" xmlns="http://www.w3.org/2000/svg"><path d="M4 8L12 16L20 8" stroke="#323232" stroke-width="2"></path></svg></button><div aria-hidden="true" class="rah-static rah-static--height-zero " style="height:0;overflow:hidden"><div><div class="sc-15lfwxq-6 fTUgPP"><div class="sc-bppd0a-0 iVDwa"><p>A product strategy is a high-level plan that defines how a product will meet key goals across its entire lifecycle. The product strategy helps stakeholders understand why you’re developing the product and how you’ll develop it to maximize customer delight and profitability.</p></div></div></div></div></div><div class="sc-15lfwxq-3 eXwHgO"><button class="sc-15lfwxq-4 bnDEIo"><h3 class="sc-15lfwxq-5 kJjHjF">What’s the difference between the product strategy, product roadmap, and product backlog?</h3><svg width="24" height="24" viewBox="0 0 24 24" fill="none" xmlns="http://www.w3.org/2000/svg"><path d="M4 8L12 16L20 8" stroke="#323232" stroke-width="2"></path></svg></button><div aria-hidden="true" class="rah-static rah-static--height-zero " style="height:0;overflow:hidden"><div><div class="sc-15lfwxq-6 fTUgPP"><div class="sc-bppd0a-0 iVDwa"><p>The product strategy is a centralized, high-level plan that sets out the product’s aims and explains how the product will achieve those aims. </p><p>The product roadmap maps out a plan and timeline for achieving the product strategy in more detail, but it’s still a high-level document that doesn’t go deep into everyday tasks. </p><p>The product backlog is a dynamic list of product development tasks and initiatives, including features, updates, optimizations, and bug fixes.</p></div></div></div></div></div><div class="sc-15lfwxq-3 eXwHgO"><button class="sc-15lfwxq-4 bnDEIo"><h3 class="sc-15lfwxq-5 kJjHjF">How can product managers build effective product strategies?</h3><svg width="24" height="24" viewBox="0 0 24 24" fill="none" xmlns="http://www.w3.org/2000/svg"><path d="M4 8L12 16L20 8" stroke="#323232" stroke-width="2"></path></svg></button><div aria-hidden="true" class="rah-static rah-static--height-zero " style="height:0;overflow:hidden"><div><div class="sc-15lfwxq-6 fTUgPP"><div class="sc-bppd0a-0 iVDwa"><p>Product managers can build effective product strategies by: </p><ul><li><p>Deeply understanding their users</p></li><li><p>Ensuring they have a well-defined product vision </p></li><li><p>Finding unique selling points for their product </p></li><li><p>Collaborating with different stakeholders</p></li><li><p>Testing and adjusting the strategy </p></li><li><p>Executing the strategy through the product roadmap and product initiatives</p></li></ul></div></div></div></div></div><div class="sc-15lfwxq-3 eXwHgO"><button class="sc-15lfwxq-4 bnDEIo"><h3 class="sc-15lfwxq-5 kJjHjF">What should a product strategy include?</h3><svg width="24" height="24" viewBox="0 0 24 24" fill="none" xmlns="http://www.w3.org/2000/svg"><path d="M4 8L12 16L20 8" stroke="#323232" stroke-width="2"></path></svg></button><div aria-hidden="true" class="rah-static rah-static--height-zero " style="height:0;overflow:hidden"><div><div class="sc-15lfwxq-6 fTUgPP"><div class="sc-bppd0a-0 iVDwa"><p>A product strategy should include information about the product vision, unique value proposition, target market, and goals.. With this foundation, you can develop key product requirements, such as features, design, user flow, and technical specifications.</p></div></div></div></div></div><div class="sc-15lfwxq-3 eXwHgO"><button class="sc-15lfwxq-4 bnDEIo"><h3 class="sc-15lfwxq-5 kJjHjF">What are the different types of product strategies?</h3><svg width="24" height="24" viewBox="0 0 24 24" fill="none" xmlns="http://www.w3.org/2000/svg"><path d="M4 8L12 16L20 8" stroke="#323232" stroke-width="2"></path></svg></button><div aria-hidden="true" class="rah-static rah-static--height-zero " style="height:0;overflow:hidden"><div><div class="sc-15lfwxq-6 fTUgPP"><div class="sc-bppd0a-0 iVDwa"><p>There are four common types of product strategy:</p><ul><li><p>Leader strategy</p></li><li><p>Quality strategy</p></li><li><p>Focus or Niche strategy</p></li><li><p>Cost strategy</p></li></ul></div></div></div></div></div></div></div></div><div class="sc-113110s-0 jDjEjm"><div class="sc-341qbk-0 sc-ijx967-0 iEiGUx 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","marks":[],"data":{}}],"data":{}},{"nodeType":"paragraph","content":[{"nodeType":"text","value":"Roman Pichler’s ","marks":[],"data":{}},{"nodeType":"hyperlink","content":[{"nodeType":"text","value":"product vision board","marks":[{"type":"underline"}],"data":{}}],"data":{"uri":"https://www.romanpichler.com/tools/product-vision-board/"}},{"nodeType":"text","value":" is one popular option for mapping out the product’s features, target group, and business goals to determine the vision.","marks":[],"data":{}}],"data":{}}]},"links":{"entries":{"hyperlink":[]}}}},{"__typename":"ComponentText","sys":{"id":"3VBG5j5bH6fzfQ4NMwaO3G"},"colorTheme":null,"text":{"json":{"nodeType":"document","data":{},"content":[{"nodeType":"heading-3","content":[{"nodeType":"text","value":"3. Find your product’s unique selling point","marks":[],"data":{}}],"data":{}},{"nodeType":"paragraph","content":[{"nodeType":"text","value":"Product differentiation is a crucial aspect of a successful product strategy. 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