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Understanding Product Gaps to Unblock Your Revenue
When product management effectively responds to product gaps, millions of dollars are unblocked within weeks." — CEO, Mid Cap Company.
➦ A study by Accenture found that 81% of customers are more likely to switch brands if they encounter a product or service that doesn't meet their needs.
What are Product Gaps?
Picture this: You buy a new smartphone after researching and comparing features. But when you start using it, you realize you can't customize the home screen's appearance, which was important to you.
That's a product gap—a missing feature that doesn't meet your needs and expectations. The smartphone failed to deliver what you wanted.
Product gaps are shortcomings or deficiencies in a product's features, functionalities, or overall offerings.
Basically, they're the gaps between what you offer and what your customers expect. Identifying and understanding these gaps is key for aligning the product roadmap with customer needs + revenue goals.
How are Product Gaps sabotaging your Revenue?
Missed Sales Opportunities
Let's take a scenario in which your customer is eagerly searching for a solution to their problem. They stumble upon your product, excited about the possibilities. However, they quickly realize there's a crucial feature missing, a product gap. They will choose to look for alternative solutions that better meet their needs.
If we were to assume that 3 in 10 customers decided to look for alternatives due to that missing feature - This open loop leaves potential sales on the table, leading to missed revenue opportunities.
A research report by McKinsey & Company states that one-third of customers are willing to switch brands if their needs are not met.
Customer Dissatisfaction
Put yourself in your customer's shoes. They have certain expectations and requirements when they invest in your product. But when they encounter a product gap—They feel let down.
Product gaps create a disconnect between what customers expect and what your product offers. The open loop of unmet expectations makes them feel like their needs aren't being prioritized.
Increased Churn Rate
Building customer loyalty is no easy feat. However, neglecting to address product gaps can undermine all your efforts. If your product fails to fulfill the specific requirements of your customers due to a gap, they may start exploring alternatives.
That circle of unresolved needs pushes them toward your competitors, leading to increased customer churn. Losing customers not only impacts your revenue but also increases the cost of acquiring new customers (CAC) as you struggle to replace those lost.
Negative Customer Testimonials
In today's product-led growth landscape, word-of-mouth can make or break your success.
Now, imagine a scenario where a customer encounters a product gap in your offering. Disappointed and feeling like their needs are not being met, they might share their negative experience with others. Whether it's through reviews, social media, or conversations, that undisclosed effect of negative sentiment spreads, tarnishing your reputation.
Potential customers, influenced by these experiences, might be deterred from choosing your product, impeding revenue growth.
By understanding and addressing product gaps, you can unlock new revenue streams, attract new customers, and retain existing ones, ultimately driving revenue growth.
Precautions for Unblocking these Product’s Blackholes
- Actively listen to your customers' feedback, concerns, and requests.
- Regularly engage with your customer base through surveys and feedback channels.
- Analyze metrics from customer support tickets, user engagement, and churn rates.
- Conduct market research to identify potential gaps between your product and market demands.
- Encourage collaboration between product teams, sales teams, customer success, and other relevant stakeholders.
➦ Product Gap Manager to get you started
With PreSkale's Product Gap Manager (PGM) — Track product gaps and unblock revenue.
We provide you with one-stop solution to track and manage product gaps — in-sync — with the entire product team to identify gaps blocking revenue and tweak the roadmap to access a better revenue stream.
How exactly does PreSkale’s Product Gap Manager help in identifying product roadblocks?
Product gap analytics: Provides a dedicated dashboard for in-depth analysis of feature severity and revenue impact due to gaps, helping prioritize roadmap decisions.
Usecase manager: Provides a library that contains all the feedback and comments. Product teams can narrow down specific features and build directly from customer feedback.
Collaborator: Facilitates seamless communication and collaboration among team members and cross-functional teams.
Conclusion
In the ever-evolving world of product development and customer expectations, product gap analysis is crucial to unblock the revenue streams. While there may not be a one-size-fits-all solution to completely eliminate product gaps, there are precautionary measures that can significantly mitigate their impact.
Unlocking hidden revenue means spotting product gaps early on, and that's where PreSkale's Product Gap Manager (PGM) comes into play. With its powerful analytics, use-case management, and collaboration features, the PGM empowers you to streamline your product gap management process.
By leveraging this tool, you can proactively bridge the gaps between your product and customer expectations, unlocking new revenue streams and enhancing customer satisfaction.
So, if you are searching for a comprehensive product gap management solution, consider embracing the practices outlined in this blog and leverage the power of PreSkale's Product Gap Manager to stay ahead of the curve and attain many closed deals.
➦ How PreSales can contribute to product roadmap
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