10 Product management terms you should know

A product manager should know a lot terms, so in this blog we gonna explore some of the important Product management terms that every product manager should know.

A/B testing:

AB testing is having two version of the visual or text asset and helps us to find which one is performs best. For example, refer the below image.


Of late, YouTube has introduced AB Testing for Thumbnail. We can upload two different thumbnail and YouTube will show A thumbnail to 50% of the Audience and B thumbnail to another 50% of the audience. After certain period, the Youtuber can see the analytics of AB testing. 

In the given image A is performing well, so the youtuber can go for A thumbnail.

AB testing can be used in Images, advertisement, forms, and much more.


Buyer Persona:

A buyer persona is a fiction character of your customer. Every business has a target customer, so this Buyer persona helps a business to visualize their target audience and their pain points.


Design Thinking: 

Design thinking is a process of solving a problems in a human-centered way.

Design thinking has 5 stages

Empathize, Define, Ideate, Prototype, Test

  1. Empathize: Understand the problem from the user's perspective.

  2. Define: Clearly define the problem statement.

  3. Ideate: Brainstorm new ideas to solve the problem.

  4. Prototype: Build a prototype to test your ideas.

  5. Test: Test the prototype with users.


Go-To- Market plan (GTM):


 A GTM is a plan or strategy to launch a product or service to the market. 

It has four simple steps.

  1. Identifying the target audience
  2. Positioning the product or service
  3. Choosing the sales and marketing approach
  4. Distribution

KPI (Key Performance Indicator):


Key Performance Indicators are helps the business to monitor certain function of the business. For example Marketing, sales, support, Product management and all the functions should have its own KPI to monitor the performance.

Some of the famous KPIs are

  1. Cost acquisition cost 
  2. Customer Life time value
  3. Net promoter score
  4. Churn rate
  5. Cost Per Lead
  6. Conversion rate\

MVP(Minimum Viable Product):


A Minimum Viable Product term was coined by Eric Reis, he is a author of  The Lean Startup book. In simple terms MVP is a basic or minimal version of the product. 

If you have solution for a particular problem, fist you will build a MVP. It will helps you to invest less money and effort. After building the MVP you can test the product in market.

After getting the customer reviews, you can build the product's full version or doomed it.



NPS (Net Promoter Score):


NPS is one of the important metric used to evaluate the one form of the business performance. The NPS is sent to various stages of the customer journey, and request the customer to score "On a scale of 1 to 10 how likely are you to recommend our product or company?"

Based on the 0-to-10 scale, NPS scores fall into three categories:
Promoters (9 or 10)
Enthusiastic customers likely to tell others about the product.
Passives (7 or 8)
Satisfied users, but not motivated enough to promote it.
Detractors (0 to 6)
Unhappy customers who might talk badly about your company

Product Lifecycle:


Every product has 4 distinct stages and no product lasts forever.  

  1. Introduction: This is the stage a product is introduced to the market. Early customer will adapt and profits will be minimum.
  2. Growth: This is the phase where a business will acquire a lot of customer and sees a significant growth.
  3. Maturity: At this stage, a product or company will be in a stage to starting losing the customer.
  4. Decline: In this phase, a product will lose all the of the customer and eventually a product will be dismantled. This is happens because of the change of market needs or new solutions becoming available.

USP (Unique Selling Proposition):


USP helps the business to standout from rest of the competitor and convey the unique aspect from your business. 

Famous examples of successful USPs include:

Domino’s Pizza

You get fresh, hot pizza delivered to your door in 30 minutes or less, or
it’s free.

FedEx

When it absolutely, positively has to be there overnight.

UX (User Experience):


User experience is all about the user experience while using your product. The product should make them feel easy to navigate, smooth and appealing. 




There are 100 terms a product manager should know, Please refer this link to know them all.


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