Also called: Product Behavior Management, Product Behavioral Management, Behavioral Product Development, Product Behavioral Development, Behavioral Product Design, Product Behavioral Design, Behavioral Product Optimization, and Product Behavioral Optimization
See also: User Story Mapping, Behavioral Product Management
Relevant metrics: User Engagement, Conversion Rate, Retention Rate, Customer Satisfaction, and Product Usage Metrics
What is Behavioral Product Management
Behavioral Product Management is a method of product management that focuses on understanding user behavior and using that knowledge to inform product decisions. It is based on the idea that understanding user behavior is essential to creating successful products.
Behavioral Product Management involves collecting data about user behavior, analyzing it, and using it to inform product decisions. This data can include user surveys, user interviews, user testing, and other methods of gathering user feedback. The goal of Behavioral Product Management is to create products that are tailored to the needs and preferences of users. By understanding user behavior, product managers can create products that are more likely to be successful.
Where did Behavioral Product Management come from?
Behavioral Product Management is a relatively new term in the product management field. It was first coined by product management expert Marty Cagan in his book, Inspired: How to Create Products Customers Love.
In the book, Cagan explains that Behavioral Product Management is a way of managing products that focuses on understanding customer behavior and using that knowledge to create products that meet customer needs. He argues that traditional product management techniques are not enough to create successful products, and that understanding customer behavior is essential to creating products that customers will love.
A tool for optimizing the User Experience
Behavioral product management is based on the idea that user behavior is the best indicator of what works and what doesn’t. By understanding user behavior, product managers can make informed decisions about product features, design, and usability.
“User behavior is the best indicator of what works and what doesn’t”
The use of behavioral product management is becoming increasingly popular in the tech industry. Companies are using it to create products that are more user-friendly and to optimize user experience. By spending time and energy to understand user behavior, product teams can create products that are more effective and efficient.
Applying Behavioral Product Management
The first step in behavioral product management is to collect data on user behavior. This can be done through surveys, interviews, and other methods of gathering user feedback. Once the data is collected, it should be analyzed to identify patterns and trends in user behavior. This analysis can help to identify areas where the product could be improved or enhanced to better meet user needs.
Once the data has been analyzed, the insights should be used to inform product design and development. This could involve making changes to the user interface, adding features, or making other changes to the product to make it more user-friendly. The goal is to create a product that is tailored to the user’s needs and preferences, resulting in a better user experience.
The Difference between Behavioral Analytics and Other Business Data
Behavioral analytics differs from traditional methods of data collection, as it focuses on observing actual customer behavior instead of relying on self-reported data. As we have seen in the past, relying on customer feedback can lead to inaccurate conclusions, as demonstrated by a classic example from the airline industry. Passengers in a survey claimed they would prefer healthy in-flight snacks such as fruit, but when given the choice, the majority selected cake instead.
The Benefits of Behavioral Analytics
Behavioral analytics offers a way to uncover truths about customers that they may not even be aware of themselves. This type of data provides a more accurate representation of customer behavior and can be invaluable in helping product teams make informed decisions. By observing actual customer behavior, teams can gain deeper insights and better understand their customers’ needs, wants, and preferences.
Navigating the User Experience
Product managers are tasked with the challenge of understanding how users interact with their products. Traditional methods of gathering feedback, such as surveys or focus groups, can provide valuable insights, but they only offer a limited perspective. Behavioral analytics represents a more comprehensive approach to understanding user experience, as it reflects not just what people say, but what they do.
By monitoring the journey of users through a product, product managers can gain a better understanding of the product’s intuitiveness and identify areas for improvement. This information is particularly valuable as it provides a more accurate representation of the user experience, compared to feedback gathered through traditional methods.
Uncovering Stickyness
In any product, there may be areas that are confusing or difficult for users to navigate. Often, these areas result in frustration and eventually cause users to abandon the product and seek alternative solutions.
To prevent these scenarios, product managers must monitor the usage of their product for common areas where users tend to stop and leave. This information can help identify sticking points within the product and facilitate the implementation of solutions to improve user experience.
Behavioral analytics provides a proactive approach to understanding user experience and preventing the loss of customers. By analyzing the actions of users within a product, product managers can gain a more comprehensive understanding of the challenges and opportunities for improvement.
Use cases where Behavioral Product Management is appropriate
- Psychological Pricing. A research in pricing psychology highlights that product sales increase when customers are presented with two pricing options side-by-side. Customers may feel they’ve made a wise choice when opting for the lower-priced version, or may attach additional value or prestige to the higher-priced option.
- Decision Automation. Behavioral product managers can leverage insights from behavioral psychology to make products more appealing to users. For instance, providing a “Stay logged in” option on an app saves the user from repeating the mundane task of logging in for each session.
- Simplifying the Customer Journey. Behavioral product managers take into account the impact of too many choices on the user’s experience. For example, by presenting the user with fewer options during each stage of the product’s interface, the experience is made calming and welcoming, instead of overwhelming.
Benefits of Behavioral Product Management
- Improved Customer Experience. By understanding customer behavior, product teams can create better experiences that are tailored to their needs. This leads to higher customer satisfaction and loyalty.
- Increased Revenue. By understanding customer behavior, product teams can create products and services that are more likely to be purchased. This leads to increased revenue for the company.
- Improved Decision Making. Behavioral Product Management provides data-driven insights that can help product teams make better decisions. This leads to better products and services that are more likely to be successful.
Challenges of Implementing Behavioral Product Management
- Understanding User Behavior. Implementing behavioral product management requires a deep understanding of user behavior. This can be difficult to achieve, as user behavior is often unpredictable and can change quickly.
- Data Collection. Collecting the necessary data to inform behavioral product management decisions can be a challenge. This data must be collected in a timely manner and be accurate and reliable.
- Analyzing Data. Once the data is collected, it must be analyzed to identify patterns and trends in user behavior. This requires a deep understanding of data analysis techniques and the ability to interpret the data correctly.
- Implementing Changes. Once the data has been analyzed, changes must be implemented to improve the user experience. This can be difficult, as changes must be made quickly and accurately to ensure the desired results are achieved.
- Monitoring Results. Finally, the results of the changes must be monitored to ensure they are having the desired effect. This requires ongoing monitoring and analysis of user behavior to ensure the changes are having the desired effect.
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What is the goal of the product and how will it be achieved?
Hint The goal of the product is to provide a solution to a specific problem or need and it will be achieved by creating a product that meets the user needs and provides a positive user experience. -
What are the user needs and how can they be addressed?
Hint The user needs should be identified through research and feedback from potential users. These needs should be addressed by creating a product that meets the user needs and provides a positive user experience. -
What are the key metrics that will be used to measure success?
Hint The key metrics that will be used to measure success include user engagement, customer satisfaction, and product usage. -
What is the timeline for the product launch and what are the milestones?
Hint The timeline for the product launch should include milestones such as product development, testing, and launch. -
What resources are available to support the product?
Hint Resources available to support the product include personnel, technology, and financial resources. -
What is the budget for the product and how will it be allocated?
Hint The budget for the product should be allocated to cover the costs of development, testing, and launch. -
What is the competitive landscape and how can the product stand out?
Hint The competitive landscape should be analyzed to identify how the product can stand out from the competition. -
What is the customer feedback loop and how will it be used to inform product decisions?
Hint The customer feedback loop should be used to collect feedback from users and inform product decisions. -
What is the team structure and how will it be managed?
Hint The team structure should be managed to ensure that the product is developed and launched in a timely manner. -
What is the process for testing and validating the product?
Hint The process for testing and validating the product should include user testing, usability testing, and performance testing.
You might also be interested in reading up on:
- Nir Eyal @nireyal
- Jeff Gothelf @jboogie
- Laura Klein @lauraklein
- Marty Cagan @cagan
- Des Traynor @destraynor
- Hooked: How to Build HabitForming Products by Nir Eyal (2014)
- Inspired: How to Create Products Customers Love by Marty Cagan (2008)
- Extreme Ownership: How U.S. Navy SEALs Lead and Win by Jocko Willink (2015)
- The Lean Product Playbook: How to Innovate with Minimum Viable Products and Rapid Customer Feedback by Dan Olsen (2014)
- User Story Mapping: Discover the Whole Story, Build the Right Product by Jeff Patton (2014)
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