Briefly, the product development stage focuses on planning, developing, and evaluating a product. Moreover, this stage consists of:
1.Plan or Generate an Idea,
This stage is to make sure that you have a valid business case for the product and a solid strategy to give your startup the best chance of success. Requests from customers, brainstorms with employees, responses to a competitor’s product, or suggestions on social media are places where you can find ideas for your new products or services. You could also start market research and competitive analysis to understand the market and key players in it.
This stage will be done after the product (software or hardware) is built. Unfortunately, building the software is not as straightforward as saying “get it built”; The product needs to be broken down into features, with specification and user stories for each feature. Then, it should be ranked by the difficulty and priority to estimate the time consuming to create a minimum viable product.
In this stage, key performance indicators could be used as a metric to measure the success of the product. All the metrics below could be used in evaluation:
- Cost of Acquisition
- Rate of Revenue Growth
- AARRR Metrics: Acquisition, Activation, Retention, Referral, Revenue
Launching the product means that you let your target audience that your product is ready. It can be done with press announcement & interviews, advertising, creating public launch events, etc.
Assessing the product entails collecting metrics and analyzing them, to gather insight into the performance of the product. A/B testing, challenging how to improve a return on investment, testing what makes a returning customer are a few possibilities for assessing and analysis.
6. Iterate or Kill.
This stage is where the decision about keeping/updating or removing features made.
Based on the explanation above, the product development stage matters because it is needed to ensure that your product can build a strong market share and fend off competition by continuously innovating.