Launching a new product is an exciting time for a company. It is also a stressful moment, particularly if it is a replacement for an existing offering, or a major upgrade. If you have an existing product in the market, as soon as prospects hear that a new version or a new product is coming, sales cycles slow down as everyone wants to wait for the new release, or suddenly the new features become the most important thing, and the only reason to buy. The real challenge is that the new product is not yet mature, and usually feature deficient when compared to mature existing products. While there may be new features and breakthroughs, the new product probably does not cover all of the corner cases or edge applications of the existing offering, so migrating existing users or winning competitive battles will be challenging.
Even though the new product may have lots of new features and a bright future with even more breakthroughs on the horizon, at launch, the focus has to be on early customer success, and making sure the sales team can deliver. They will urgently need reference customers., but this can be a chicken or egg problem. In order to win new accounts you need references, and in order to have references you need new accounts. Meanwhile, competitors are smart, and when they learn that you have a new product, they follow a well rehearsed competitive script intended to introduce FUD (fear, uncertainty, and doubt). In fact, the first thing a competitor will say to prospects is “ask them for references.” Competitors know that peer references and referrals are the most effective sales tool, so they will shine a bright light on your lack of existing customers.
Assuming the new product really is demonstrably different and better, the sales team will be able to demo their way past the lack of references objection. A shiny new object that uniquely solves a real problem can move a prospect to want to become an early adopter. However, the second thing a competitor will say to generate FUD is “are you sure you want to be the first company to use this untested new product?” Their goal is to burst the euphoric bubble created by a flashy demo, and bring the prospect back to their tried and true existing product. This is when your company’s reputation and commitment to customer success will have to carry the day. You may have to make some guarantees you would rather avoid.
Once competitors gain a little knowledge and experience competing with the new product, they will focus on product gaps. They learn where the weaknesses are, and the message shifts to “did you make them show you…?” This is when sales skills and a real understanding of the prospects’ needs will have to augment the flashy demo to demonstrate that the new product really does solve the their problems, or it satisfies a need that outweighs the pain caused by any deficiency. It is also when the product roadmap and your company’s track record for delivering on promises will play a role in convincing the prospect that the missing feature will be there when they need it.
Until the product matures, competitors will continue to zero in on missing capabilities. The most effective response is to continue to rapidly release meaningful, innovative and competitive features. An accelerated delivery schedule for new capabilities, particularly the ones that surfaced during early selling, will keep the competition off balance. Every time a competitor’s sales person makes a claim about something your product cannot do, if your team can demonstrate that their statement is false, it destroys their credibility. A solid drumbeat of delivering new capabilities will continue to embarrass the competitors and keep them guessing about just how comprehensive the new offering is.
It takes a true team effort to launch a new product or major upgrade. Too often, the focus is solely on the engineering effort, but a successful launch requires the collaboration of all aspects of the business with a well choreographed plan to win the hearts and minds (and wallets) of prospective buyers, while keeping the competition off balance and ineffective. Product management, engineering, marketing, sales, services, support, and customer success all have to work together to create the path to success. Market feedback has to be heard, and rapidly acted upon. The product roadmap and engineering project plans need to become fluid and able to respond to market feedback. Focus on winning early adopters who will become those initial all important references. Ensure the sales team is equipped with clear messages to differentiate the new product, and demo systems that showcase the new capabilities, and it all has to be tied together with a strong marketing message and launch. Initial battle plans rarely survive the first competitive encounter, so working as a rapid response team is critical.
Effective product management will be the key to a successful launch. The product manager has to be a renaissance person who has mastered an understanding of every function in the company and can orchestrate the launch. Their scope goes from market understanding to product strategy, and from product engineering, to market messaging, sales, and implementation, with an underpinning of financial analysis and budgeting. Done well, the product manager will coordinate the entire company to function as a well oiled machine. The product manager has a singular goal — make the product successful in the market. In most organizations, the product manager does not have direct management responsibility for any of the key functional areas that they have to lead and coordinate. It is an incredibly challenging role, but a strong product manager can be the key to a successful product launch.
It takes a village to launch a new product or major upgrade. The new product has to thread its way through a competitive gauntlet while it is gaining features and maturing. It requires cooperation and collaboration throughout the entire company, and strong leadership. When it is done well, it is a thing of beauty.