Glossary

A

Acceptance Criteria

Acceptance criteria in product management are the specific conditions that a product or feature must meet to be considered complete and acceptable by stakeholders. They serve as a clear set of guidelines for development and quality assurance teams to understand what needs to be achieved

Agile

Agile is a product development model that emphasises on flexibility, collaboration, and customer-centricity. It focuses on iterative progress through small, manageable increments called sprints or iterations. Agile aims to deliver value quickly and continuously, by adapting to changing business requirements and customer needs throughout the development process.

Archetypes

In the context of teams, archetypes refer to recurring and recognisable patterns of behavior, roles, or personalities that members embody within the group dynamic. Understanding these archetypes can help in forming balanced teams, managing conflicts, and leveraging the strengths of each member. Here are three common team archetypes: Leaders, Innovators and Executors.

A/B testing, also known as split testing, is a method used to compare the performance of two variations against one another to determine which one performs better. In product management, A/B tests are commonly used to identify the most effective option among different versions of a feature, interface, or other product elements.

ABCD testing extends the principles of A/B testing to allow for the comparison of more than two variations simultaneously. This broader approach can provide deeper insights and faster optimisation by testing multiple elements at once.

ABCD Testing

An Affinity Diagram is a powerful visual technique that helps Product Managers group ideas and data into meaningful clusters, identify patterns, and generate insights. This technique is particularly useful for managing large volumes of complex information, allowing product managers to organise, categorise, and prioritise effectively.

Affinity Diagram

A/B Testing

Assumptions

Assumptions are ways to capture your beliefs and findings based on observations or market study. They are key to formulating a successful product strategy. Hence, construct assumptions and test them via continuous discovery processes to evolve your business model and products. Recognising and revisiting assumptions can lead to more accurate and robust conclusions.

Agency

In a product operating model, "Agency" refers to the level of autonomy and decision-making power granted to product teams. It empowers teams to make independent choices about product development, prioritisation, and execution, fostering innovation and accountability. This autonomy helps in aligning team actions with customer needs and business objectives, ultimately driving better product outcomes.

The AARRR pirate Metric Framework helps businesses track key stages of the customer journey: Acquisition (attracting users), Activation (initial user experience), Retention (returning users), Referral (word-of-mouth promotion), and Revenue (monetisation). This model aids in identifying areas for improvement and optimising growth strategies. The framework was coined by Dave McClure, a well-known entrepreneur and investor.

AARRR

Anchor pricing is a psychological strategy used in pricing products and services to influence customers' perception of value. It involves setting a reference price, or "anchor," which customers use as a benchmark when making purchasing decisions. This anchor can be the initial price shown to customers, and it shapes their expectations about what constitutes a reasonable price.

Anchor Pricing

B

Backlog Management

The backlog is a comprehensive overview of your segmented product roadmap, designed to drive specific business outcomes. Avoid viewing it as a laundry list of features, bugs and tech tasks. Backlog management is the art of ensuring there is incremental and continuous flow of value to the customers and business stakeholders.

The Balanced Scorecard is a strategic management tool that helps organisations translate vision and strategy into actionable objectives. It integrates financial and non-financial performance measures across four perspectives: Financial, Customer, Internal Processes, and Learning & Growth. This holistic approach ensures a balanced view of organisational performance. By aligning initiatives and metrics, it drives continuous improvement and strategic alignment.

Balance Score Card

BATNA

BATNA stands for "Best Alternative to a Negotiated Agreement." It is the most favorable course of action a party can take if negotiations fail and an agreement cannot be reached. Knowing your BATNA provides leverage in negotiations, allowing you to make informed decisions and avoid unfavorable agreements.

Business Model Canvas

The Business Model Canvas is a strategic management tool that helps organisations visualise, design, and innovate their business models. It consists of nine building blocks: Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure. By providing a comprehensive overview of how a company creates, delivers, and captures value, it facilitates strategic planning and decision-making.

C

CAC

Customer Acquisition Cost (CAC) or Cost of Customer Acquisition (COCA) is the total expense incurred to acquire a new customer, including marketing, sales, and onboarding costs. From a digital product management standpoint, understanding CAC is essential to optimise spending, assess the efficiency of marketing strategies, and ensure sustainable growth by balancing it against the customer's lifetime value.

CRC

Customer Retention Cost (CRC) encompasses the expenses involved in keeping an existing customer engaged and satisfied, including support, loyalty programs, and ongoing communication. Effective management of CRC is vital for maintaining a loyal user base, maximising customer lifetime value, and ensuring long-term profitability by reducing churn.

CLTV

Customer Lifetime Value (CLV) is the total revenue a business expects to earn from a customer over the duration of their relationship. CLV is a key metric for assessing the long-term value of customers, guiding decisions on customer acquisition, retention strategies, and resource allocation to maximise overall profitability.

Customer Success

Customer Success is a proactive approach focused on ensuring customers achieve their desired outcomes while using a product or service. In digital product management, it involves strategies and practices to enhance user experience, drive product adoption, and foster long-term customer loyalty, ultimately contributing to reduced churn and increased lifetime value.

Churn Rate

Churn Rate is the percentage of customers who stop using a product or service over a specific period. From a subscription services perspective, monitoring churn rate is crucial for identifying potential issues, improving customer retention strategies, and ensuring sustained growth by maintaining a stable and loyal customer base

Customer Centricity

Customer centricity is a business approach that prioritises the needs, preferences, and experiences of customers at every stage of the product lifecycle. This means designing and iterating products based on customer surveys and controlled group feedback, ensuring user satisfaction, and building strong customer relationships to drive loyalty and product success.

Cognitive Bias

Cognitive biases are systematic patterns of deviation from norm or rationality in judgment that lead to individuals creating their own "subjective reality" from their perception of the input.. These biases often result from our brain's attempt to simplify information processing, leading to errors in reasoning and decision-making. These biases are are often influenced by past experiences.

Continuous Discovery

Continuous Discovery in Product management is a means through which we stay close to our customers and consumers by testing our assumptions and collecting market feedbacks through regular engagements. It helps product teams reprioritise backlog items on their roadmap and deliver continuous value to customers not only in short run but also in the long term. Ultimately, continuous discovery helps in mitigating risks and building brand value by enabling customers to get their jobs done is an increasingly desirable fashion.

The 3C Model, developed by Kenichi Ohmae, is a strategic framework that focuses on three critical factors for success in business and product strategy: Customer, Company, and Competitor. By understanding customer needs, leveraging company strengths, and analysing competitor actions, businesses can create a compelling value proposition and achieve a sustainable competitive advantage. This strategic framework helps in aligning product development and marketing efforts with market demand and competition dynamics.

3C Model

Consumer surplus is the economic benefit consumers receive when they pay less for a product or service than the maximum amount they are willing to pay (WTP). It is calculated as the difference between the WTP and the actual price paid. This surplus represents the extra value or satisfaction gained by consumers, reflecting their perceived value of the product or service.

Consumer Surplus

Customer Vs Consumer

Consumers and customers are often used interchangeably, but they have distinct meanings. A customer is the individual or entity that purchases goods or services, while a consumer is the end-user who actually uses them. In some cases, the customer and the consumer are the same person, but they can also be different; for example, parents (customers) buy toys for their children (consumers). Understanding the difference is crucial for businesses in tailoring their marketing strategies and product development.

Conway's Law

Conway's Law is a principle that states:"Any organization that designs a system (defined broadly) will produce a design whose structure is a copy of the organization's communication structure." For product teams, Conway's Law means that the structure and communication patterns within the team will influence the design and architecture of the product. To create well-integrated and cohesive products, it's important to ensure that the team's structure and communication are aligned with the desired product outcome. Cross-functional collaboration and effective communication are key to avoiding silos and ensuring that the product is designed as a unified whole.

COTS

COTS (Commercial Off-The-Shelf) software refers to pre-built, ready-made solutions available for purchase from vendors. It offers quick deployment and lower initial costs, making it ideal for standard business needs. However, customization options are limited, and it may not fully align with unique business processes. COTS is best for organizations needing a proven solution with minimal development effort.

D

Decision

In product management, a "Decision" refers to the act of making a choice among various options regarding product features, strategies, or priorities. Decisions are made based on data, user feedback, market trends, and business goals, and they significantly impact the product's direction and success. Effective decision-making is crucial for maintaining a dynamic and responsive product roadmap that drives continuous improvement and market competitiveness.

Decoy Pricing

Decoy pricing is a strategic pricing technique used in product management where an additional product (the decoy) is introduced to influence customers' purchasing decisions. The decoy is intentionally designed to make another product appear more attractive by comparison. This tactic leverages the principles of relative pricing and consumer psychology, steering customers towards a specific option, typically the more profitable one.

E

5E experience cycle

The 5E Customer Journey Model maps the stages of a customer's interaction with a brand: Entice (attracting interest), Enter (initial interaction), Engage (building relationships), Exit (ending interaction), and Extend (fostering loyalty). It helps businesses enhance customer experience and drive long-term engagement.

Empathy map

An empathy map is a collaborative tool used in persona definition to visualise what a user thinks, feels, says, and does. It helps teams gain deeper insights into users' experiences, motivations, and pain points, there by leading to better user-centered product development.

H

HIPPO

HIPPO stands for "Highest Paid Person's Opinion." It refers to the tendency for decisions to be influenced disproportionately by the opinions of the highest-ranking person in the room, rather than being based on data, evidence, or collaborative discussion. You can tackle or influence them by emphasising on data-driven insights, fostering a collaborative environment, and aligning with organisational goals.

Hyper-personalisation

Hyper-personalisation uses advanced data analytics, AI, and real-time data to create highly individualised customer experiences. Unlike traditional personalisation, which caters to broader segments, hyper-personalisation focuses on specific customer behaviours, preferences, and interactions. This approach ensures more relevant and timely product recommendations, services, and communications. By addressing nuanced individual needs, it significantly enhances customer satisfaction and loyalty.

I

Ideal Customer Profile

An Ideal Customer Profile (ICP) is a detailed description of the perfect customer for a product or service. It includes demographic, psychographic, and behavioral characteristics that align closely with the product's value proposition. An ICP helps businesses focus their marketing and sales efforts on high-value prospects, improve customer acquisition strategies, and enhance overall customer satisfaction by targeting those most likely to benefit from and remain loyal to the product.

Illusory correlation is the tendency to perceive a relationship between two variables when none actually exists, often based on preconceived notions or stereotypes. For product managers, this bias can lead to faulty assumptions about customer behavior, product features, or market trends. It might cause them to prioritize features or strategies based on perceived patterns that aren't backed by data

Illusory Correlation

J

Jobs-to-be-Done

The "Jobs to be Done" (JTBD) framework focuses on understanding the tasks or goals that customers are trying to achieve when they use a product or service. Rather than just looking at customer demographics or product features, JTBD explores the underlying reasons why customers choose a particular solution to get a specific job done. This perspective helps businesses innovate and design products that helps customers do their job in a desirable manner, leading to greater satisfaction and market success.

K

Key Performance Indicator (KPI)

Key Performance Indicators (KPIs) are quantifiable metrics used to evaluate the success of an organisation, project, or initiative in achieving its objectives. KPIs help track performance against strategic goals by providing measurable values that can be regularly monitored and analysed. KPIs are widely used across various domains to drive performance and gauge progress.

M

MoSCoW

The MoSCoW Method helps teams effectively prioritise tasks by categorising them into Must-Have, Should-Have, Could-Have, and Won't-Have. This framework ensures that critical requirements are addressed first, while less essential items are deferred, enabling better focus on delivering high-value outcomes within the constraints of time and resources.

Minimum Viable Product (MVP)

A Minimum Viable Product (MVP) in the context of a startup is the most basic version of a product that can be released to early adopters or your Ideal Customer Profile, to validate key hypotheses and gather feedback. The MVP includes only the essential features necessary to meet the primary needs of the target market. By focusing on the MVP, startups can efficiently use their resources, reduce development time and costs, and make data-driven decisions for future product iterations.

Minimum Viable Slice (MVS)

A Minimum Viable Slice (MVS) is a concept in agile development that focuses on delivering the smallest, fully functional part of a product that provides value to users. Unlike a Minimum Viable Product (MVP), which may include a broader range of features with minimal functionality, an MVS ensures that each slice is a complete, usable increment that can stand on its own and deliver immediate value. The goal of an MVS is to quickly validate assumptions, gather user feedback, and iteratively improve the product with each subsequent slice.

Market segmentation

Market segmentation in marketing management is the traditional way of dividing a broad consumer or business market into distinct sub-groups of consumers based on shared characteristics. These segments can be based on demographics, psychographics, geographic location, behavior, or other factors, allowing companies to personalise their marketing strategies, products, and services to meet the specific needs and preferences of each segment more effectively.

Market size

Market size refers to the total potential sales or revenue that could be generated from a specific market or segment. It can be measured by analysing the total number of potential customers and the average revenue per customer. Market size can be measured through three key metrics: Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM). TAM represents the total potential revenue from all possible customers in a market. SAM narrows this down to the segment of the market that a company's products or services can serve. SOM further refines it to the portion of SAM that the company can realistically capture.

MECE

MECE, which stands for "Mutually Exclusive, Collectively Exhaustive," is a problem-solving framework commonly used in management consulting to ensure thorough analysis and structured thinking. The principle helps in organizing information in a way that avoids overlaps and gaps, leading to more effective decision-making and clearer communication.

Metcalfe's Law

Metcalfe's Law is a principle that describes the value of a network, suggesting that the value of a network is proportional to the square of the number of its users. Formulated by Robert Metcalfe, one of the co-inventors of Ethernet, this law illustrates how networks become exponentially more valuable as more users join. The law emphasizes the concept of network effects, where the utility or value of a network increases as more participants are added. This is because each new user can connect with existing users, thereby creating more potential connections.

Murphy's Law

Murphy's Law is a popular adage that states, "Anything that can go wrong will go wrong." It reflects a humorous and often pessimistic outlook on the inevitability of problems or failures occurring, especially when things seem to be going smoothly. It is particularly relevant in product management, where it serves as a reminder to anticipate and prepare for potential issues throughout the product development and launch process.

N

NOPAT

NOPAT stands for "Net Operating Profit After Tax." It is a measure of a company's operational efficiency and profitability, representing the profit generated from its core operations after deducting taxes, but before financing costs and non-operational expenses. It helps product managers assess the operational profitability of their products by excluding cost of capital and non-operational activities, aiding in better decision-making, performance benchmarking, and investment evaluation.

O

Opinion

In product management, an 'Opinion' refers to a subjective viewpoint or belief held by stakeholders, team members, or users about a product's features, design, strategy, or overall direction. Unlike data-driven insights or user feedback, opinions are based on personal experiences, preferences, and perspectives. While opinions can provide valuable insights and spark innovative ideas, they need to be balanced with empirical evidence and user research to guide decision-making effectively.

Objectives and Key Results (OKR)

OKRs (Objectives and Key Results) is a straightforward yet powerful framework used to define and track outcomes related to an initiative. Typically short-term, OKRs outline specific goals (Objectives) and their associated success metrics (Key Results), which helps business and product teams stay focussed and also validate the results to ensure that the desired outcomes are achieved. Sometimes, it is referred to as Objective, Key Activities, and Results, where Key Activities capture the business actions associated with the initiative.

P

Problem statement

A problem statement outlines the specific challenges and pain points experienced by both the business and its customers. It should be contextual and concise, clearly describing the problem's impact and quantifying the associated pains. This ensures a thorough understanding and alignment among stakeholders.

Personalisation

Personalisation in products and services involves tailoring offerings to match the general preferences and needs of customer segments. This includes customisation options, personalised recommendations, and targeted marketing to create more relevant and engaging experiences. By doing so, companies enhance customer satisfaction, loyalty and overall value.

R

RACI

RACI clarifies roles and responsibilities in project and product management by identifying who is Responsible, Accountable, Consulted, and Informed for each task. This framework helps ensure clear communication, avoid confusion, and improve project efficiency and accountability.

Risks, Assumptions, Issues, Dependencies and Decisions. These elements are often collectively referred to as RAID(D). Managing these items involve identifying, assessing, and actively managing these elements throughout the product lifecycle to mitigate risks, validate assumptions, resolve issues, manage dependencies effectively, and make informed decisions to achieve product objectives.

RAIDD

Reasoning in product management involves using logical thinking, analysis, and evidence to make decisions and form conclusions about product features, strategies, or directions. It is based on data, user research, market analysis, and systematic evaluation, ensuring decisions are well-founded and justifiable.

Reasoning

S

Scrum

The Scrum Agile framework is a flexible methodology to manage agile software projects. It involves defined roles (Product Owner, SCRUM Master, Development Team), artifacts (Product Backlog, Sprint Backlog, Increment), and events (Sprint, Sprint Planning, Daily SCRUM, Sprint Review, Sprint Retrospective). It emphasises iterative development, collaboration, and continuous improvement, driven by core values of commitment, courage, focus, openness, and respect. It is a lot more philosophical and logical than being statistical and data driven.

SAFe

SAFe (Scaled Agile Framework) is a comprehensive methodology designed to help large organisations scale agile practices across multiple teams and departments. It operates at various levels—Team, Program, Large Solution, and Portfolio—to ensure alignment and efficient delivery of value. SAFe integrates lean, agile, and DevOps principles, promoting continuous improvement, customer-centricity, and coordinated execution. Key elements include PI Planning, Scrum of Scrums, and a focus on lean-agile leadership, agile product delivery, and lean portfolio. Avoid adopting SAFe as-is, tailor it to the needs of your Product Operating model else you run the risk of losing agility.

Supplier surplus, also known as vendor surplus, is the economic benefit suppliers receive when they sell a product at a price higher than their willingness to supply (WTS). It is calculated as the difference between the actual price received and the minimum price vendors are willing to accept. This surplus represents the extra profit or utility gained by supplier from market transactions, reflecting their advantage in selling at a higher price than their minimum acceptable amount.

Supplier Surplus

In the dynamic realm of supply chain management, various phenomena can significantly impact the flow of goods and services. Among these, the Cobra, Bullwhip, Butterfly, and Snowball effects stand out due to their unique influences and implications. It is crucial for Product managers to put process in place to identify and assess these phenomena in order to mitigate their impact.

Supply Chain Phenomena

Service Recovery Paradox

The service recovery paradox is a phenomenon where a customer who experiences a problem with a service and then has that problem resolved effectively by the company ends up being more satisfied—and potentially more loyal—than if they had never encountered any problem at all.

U

Unit Economics

Unit economics refers to the direct revenues and costs associated with a single unit of a product or service. Understanding unit economics is crucial for evaluating the profitability and scalability of a product or business model. It helps product managers make informed decisions on pricing, customer acquisition, and overall product strategy.

Unique Differentiator

A unique differentiator or Unique Selling Proposition (USP) in product strategy is a distinctive feature, benefit, or attribute that sets a product apart from its competitors. It highlights what makes the product unique and valuable to the target market, addressing specific customer needs or pain points better than alternative solutions. Unique differentiators can stem from innovative technology, superior quality, exceptional customer service, exclusive partnerships, or any other factor that provides a competitive advantage and drives customer preference and loyalty.

UX Principles

UX principles guide the creation of user-friendly products by focusing on usability, accessibility, desirability, findability, credibility, and usefulness. These principles ensure that products are intuitive, inclusive, and valuable, leading to better user satisfaction and engagement.

V

Value

In product strategy, value refers to the benefits provided by a product to its customers and the business. Value delivered focuses on customer benefits and satisfaction, while value captured focuses on the financial gains the business retains from those benefits. Understanding both is crucial for creating successful products that satisfy customers and drive business growth.

Value Proposition

A Value Proposition in digital product development articulates the unique benefits and value a product offers to its users, clearly explaining why a customer should buy your product or service. It addresses the specific needs and pain points of the target audience, highlighting how the product solves problems or enhances user experience. Ultimately, it serves as a key element in product positioning and marketing strategy.

Voice of Customer (VOC)

Voice of Customer refers to the systemic approach of gathering and analysing the pains, jobs to be done and aspirations of our customers. This then shall be used as an input to develop products that resonate deeply with our target segment.
This can also be used as a way to capture feedback on existing products and service. Therefore VOC is crucial for creating customer-centric products that drive satisfaction and loyalty.

W

Willingness to Pay (WTP)

Willingness to pay (WTP) refers to the maximum price a customer is willing to pay for a product or service. It involves market research, surveys, and competitor analysis to gauge customer perceptions of value and price sensitivity. By aligning pricing with customer value, product managers can drive sustainable growth and profitability.

Willingness to Sell (WTS)

From a business stand point, Willingness to sell (WTS) refers to the minimum price at which their suppliers are willing to supply their goods or services. Suppliers do consider market demand, competitor pricing, and their own cost structures when determining their WTS. If a business with its higher bargaining power ends up negotiating with supplier for a lower cost than their WTS, the partnership ends in a win-lose situation.

WRICEF

WRICEF is a framework used in software development, particularly in SAP projects, to categorise different types of custom development objects: Workflows, Reports, Integrations, Conversions, Enhancements, Forms. This framework ensures comprehensive coverage of all custom development needs, enhancing system functionality and integration.

WISMO

WISMO stands for "Where Is My Order?" and refers to customer inquiries about the status of their orders in e-commerce and retail. Effective WISMO management involves real-time order tracking, proactive customer communication, efficient customer support, and robust technology solutions. Addressing WISMO inquiries promptly enhances customer satisfaction and loyalty.

WYSIWYG

WYSIWYG stands for "What You See Is What You Get." It refers to a user interface design approach where the content displayed during editing appears very similar to the final output. This concept is widely used in web design, content management systems, and software applications. This approach reduces errors and empowers users, ultimately leading to enhanced product experience for customers in ecommerce.

Z

ZOPA

In negotiation theory, Zone Of Possible Agreement (ZOPA) refers to the range within which two parties can find common ground and reach a mutually beneficial agreement. It represents the overlap between the minimum outcome that the seller is willing to accept and the maximum outcome that the buyer is willing to pay.