A product launch involves the whole company… Everyone has a contribution to make and a specific timeline to meet.

Every technology company launches products, but how they do so varies widely. Those differences can have a dramatic impact on the company’s revenue, market share and credibility, so it’s important to get it right.

As a former CPO and CTO at growth-stage technology companies and in my current role on the LLR Value Creation Team, I have had an opportunity to lead and advise dozens of successful product launches. I have also seen what happens when companies misunderstand the purpose of a launch and underestimate the amount of strategy, time and effort involved.

A successful product launch is a company-wide, coordinated effort to maximize market awareness, drive excitement, generate leads and help turn the product roadmap into revenue. Launch is about selling! In this GrowthBit, we’ll look at a tried and true, four-step process to help ensure that your next product launch delivers the opportunity for optimal returns on your R&D investment.

Reserve the launch for a new product, major update or bundle that brings substantial value to the market or an important segment.

Strategize

Any product launch needs to tie into the corporate strategy by helping the company stay competitive in its markets and reach its revenue goals. It’s not rocket science, but is a critical and often overlooked component.

Ask your team questions that link the launch strategy to the bigger context. What markets does the company want to be in, and how will the launch further those goals? What problems does your product solve? Who are the buyers, and how much are they willing to pay?

Articulate the goals you want the launch to achieve and identify the measurable outcomes1 associated with those goals. This includes specific revenue targets and as well as details about where the revenue will come from. Bigger market share or share of wallet? Greenfield opportunities? Increased retention or customer lifetime value? Usage metrics are also critical. Goal setting can be difficult, especially for new products or selling existing products into new markets, but without measurable goals it can be very difficult to track progress, prove or disprove a hypothesis, and course correct.

What does success look like at this stage? The company knows when the product will be ready for release, what market segments it brings value to, what that value is in each case and how that value translates into revenue.

Is it a launch? Or an update? Before committing to a product launch, make sure the effort is warranted. Minor updates, patches or hot fixes are not launch-worthy. Reserve the launch for a new product, major update or bundle that brings substantial value to the market or an important market segment. 

Communication is crucial, whether it’s between team members, across departments or with external stakeholders.

Mobilize

Translating the launch strategy into a plan of action requires a level of coordination, focus and accountability that is often underestimated. A product launch involves the whole company, including services, support, marketing, product, sales, engineering, finance, legal and partnerships. Everyone has a contribution to make and a specific timeline to meet.

Identify the budget required to support the launch, including campaign costs, events and travel.

Determine timelines based on the product window (when the product will be market-ready) and the market window (a customer budget cycle, an annual user conference or other high-visibility event).

Choose a launch team with the skills, experience and focus required. Include representation from each department and appoint an accountable decision maker for each. Ensure each representative has been designated authority and is held accountable.

Create a checklist to cover the many moving parts and dependencies of a product launch. Critical items can get overlooked without a readiness checklist that identifies tasks and assigns owners and due dates.

Establish communication protocols. Communication is crucial, whether it’s between team members, across departments or with external stakeholders including the wider organization and its executives. Formalize the cadence, channels and approach for each group to set expectations.

Appoint a launch manager who is accountable for coordinating efforts across departments to ensure things are getting done and report up to the executives.

What does success look like at this stage? At the end of this stage, all stakeholders are on the same page about how the launch will roll out and every individual understands their roles and responsibilities.

Not everything will go according to plan, but if you’re tracking against the goals, you can identify and address problems as they arise.

Execute

Putting the plan into action requires constant oversight, check-ins and communication—both pre- and post-launch.

Pre-launch

Meet regularly to ensure matrixed teams (especially product management, marketing and sales) are completing their deliverables. For example, sales and support will need training, marketing collaterals need to be developed, engineering needs to ensure quality and prepare release notes, and so on.

Confirm readiness by checking that systems are in place for post-launch quoting and measurement. Obtain sign-off on each department’s readiness and assess the risks posed by any readiness gaps.

(Over)communicate—not just with the launch team but with the whole company. It takes time and repetition for the information to sink in and for people to understand their roles, so plan to share updates and reminders regularly at least six to eight weeks ahead of the launch. The same goes for your customers and prospects; communicating regularly2 and through multiple channels will go a long way to building awareness and excitement.

Post-launch

Measure progress against the strategic goals. Regardless of what you’re measuring—bookings, revenue retention, product adoption, etc.—make sure you’re using numbers collected or validated by sales and finance so your reports are accurate and credible.

Adjust to accommodate the unexpected. Not everything will go according to plan, but if you’re tracking against the goals, you can identify and address problems as they arise.

What does success look like at this stage? The entire organization is aware of and ready for the launch. There is a sense of confidence and momentum as each department enacts the plan, monitors the impact and adjusts as necessary.

If the market didn’t respond to the launch or lacked awareness this can drive remedial action that helps ensure success the next time around.

Analyze

One of the most valuable aspects of a formal launch is the opportunity to learn and apply those insights moving forward.

Use the right systems. Without the right systems—such as a CRM, CPQ and a marketing automation platform—you can’t track launch data granularly, including metrics such as site traffic, lead generation and close rates.

Document success and failure. If the market didn’t respond to the launch or lacked awareness, or if the launch team wasn’t fully prepared, this information can drive remedial action that helps ensure success the next time around. Conversely, if you blew past the goals, that data can reset the expectation for future launches.

What does success look like at this stage? The launch team has a clear understanding of what worked, what didn’t and why. They can quantify their impact on revenue and have documented the lessons learned so that future launches can benefit from those insights.

Here’s the bottom line.

As your company matures, the product launches become increasingly crucial to growth and success. When the R&D budget reaches tens of millions, it elevates level of vigilance around the ROI generated. A formal, rigorous launch process helps ensure that the product team can optimize—and convincingly demonstrate—the product’s impact on company revenue and market share.

References

  1. Blask, Madison. “How to Measure Product Launch Success: 12 KPIs You Should Be Tracking.” Crayon, 2022. https://www.crayon.co/blog/the-secret-to-product-launch-success-kpis
  2. Coon, Spencer. “How To Create a Product Launch Communications Plan.” Beamer, 2022. https://www.getbeamer.com/blog/how-to-create-a-product-launch-communications-plan 

This GrowthBit is featured in LLR’s 2023 Growth Guide, along with other exclusive insights from our portfolio company leaders and Value Creation Team. Download the eBook here.