Requirement Customization and Product Refinement: A Product Manager's Real Thoughts

Recently, I've been constantly filling the gaps in product design. Over the years as a product lead, the most painful thing has been that the early-designed features were like "headless flies"—needing to satisfy the boss's ideas while also dealing with various practical implementation issues. Much of what we are doing now is essentially paying for past mistakes. This reminds me of some viewpoints from Wu Hao's SaaS Entrepreneurship Roadmap. Combining these with my own experience, I'd like to share some heartfelt thoughts.

I. Three Hard-Learned Lessons in Product Refinement

1. Don't Let Engineering Mindset Ruin the Product

When I first started in the industry, I saw many startups fall into pitfalls during the research phase: Product managers would work in isolation to draw prototypes, and engineers would develop according to a "perfect logic." A few months later, when the product was launched, customers would say, "This is not what I wanted at all."

The Truth: B2B needs are rational and complex, and customers themselves may not be able to articulate their needs clearly. For example, when a customer says, "I want a faster horse," what they actually need is a "car."

Suggestions:

• Segment the market: First, figure out who the target customers are and what their core pain points are.
• Validate in a small scope: Select 3-4 top customers in the segmented market for in-depth research, involving the founder, product team, and sales together.
• Iterate quickly: Use an MVP (Minimum Viable Product) to validate quickly and don't pursue "perfection."

2. Custom Development: The Sweet Poison

Early on, I was firmly against custom development, but reality slapped me in the face. A leading customer in a trillion-dollar market demanded a customized SFA product. Companies that insisted on productization were left behind, while the two that did customization captured the market.

The Dilemma:

• The Project-Based Trap: Earning "headcount money," with significant changes in requirements and a team that easily disbands.
• The Productization Dilemma: Large customers have strong personalized needs that are hard to standardize in the early stages.

My Shift:

• Customization can be done in the short term, but with clear purposes:
  • To make money: Take on large orders and deepen customer relationships.
  • To refine the product: Only do customizations related to the core direction to avoid being led by the customer.

3. The Life-or-Death Transition from Projects to Products

I've seen too many companies die during the transition:

• Code Chaos: Each project has its own version, leading to explosive maintenance costs.
• Team Mindset Rigidity: Teams accustomed to customization find it hard to switch to a productization mindset.

Breakthrough Points:

• Control Customization Boundaries: Only customize core functions and leave the rest to third parties.
• Transition Early: When revenue growth slows and team friction increases, productization must be initiated.

II. Seven Consensuses of Domestic SaaS Companies

1. Don't Believe in the "Free Strategy"

Free makes customers think "this thing is not valuable" and lacks the motivation to use it. Keep the trial period to 1-2 weeks to create a sense of urgency.

2. Custom Large Orders: Accept or Not?

Before accepting, ask yourself:

• Does this requirement align with the product's long-term direction?
• Do we have enough resources to handle subsequent maintenance? Otherwise, it's better to let go.

3. Where Should the SDR Team Be Placed?

SDR (Sales Development Representative) should be placed in the marketing department because their core task is to screen leads, which is more closely related to marketing collaboration.

4. Sales Can't Rely Solely on Marketing Leads

Companies that overly depend on marketing leads will eventually hit a growth bottleneck. It's essential to cultivate the sales team's ability to actively develop customers.

5. CSM Determines Renewal Rates

Renewals should not be handled by sales but by Customer Success Managers (CSM), who understand customer needs better and can drive long-term value.

6. Small and Micro Enterprises: The Graveyard of Tool-Type SaaS

Small and micro enterprises have weak payment capabilities and high churn rates. Unless they can be converted into high-value customers (such as through transaction commissions), it's better to be cautious.

7. Don't Take Multi-Year Orders, or You'll Suffer

Multi-year orders may seem to lock in customers, but they come with many hidden dangers:

• Poor service leads to bad customer experience.
• Product iteration becomes disconnected from market needs.

Suggestions: Gradually tighten the terms, reducing from 3-year orders to 18 months, and eventually return to the essence of a "renewal system."

III. Words for Those Who Come After

Building a product is like feeling for stones in the dark to cross the river. The pitfalls I encountered early on can be summarized in seven words: Don't be greedy, don't take chances, and don't be lazy.

• Don't be greedy: Not all requirements need to be met; focus on core pain points.
• Don't take chances: Custom development may seem like a shortcut, but it could lead to a cliff.
• Don't be lazy: Visit more customers, ask more "whys," and make fewer decisions in the office based on intuition.

Finally, I'll share a real case: A SaaS company took on a large custom order to survive, only to fall into a "requirement black hole," forcing the founder to write code personally to put out the fire. This reminds us that in the business world, there are no shortcuts, only perseverance.

This article was rewritten using AI. Please refer to the original - https://hiwannz.com/archives/727.html