B2B vs B2C Product Management: Abhineythri (Director of Product, Freshworks)
+ Small vs Large companies Product Management
Abhineythri is a friend of a friend. I got introduced to her last month when I was looking to have a chat with a seasoned product leader in the B2B vertical, mainly to discuss around the differences in Product Management across two axes:
B2B vs B2C
Small-sized vs large-sized organisations
Abhineythri has been in the industry for more than 15 years. A calm, collected person who has immense clarity in her thought process. I enjoyed talking to her and gained valuable industry insights from our 90 minute conversation.
We covered the below six topics:
Expectations from product
Tools of discovery and validation
Decision making
Ceremonies and processes
Building a product culture
The role of a product director
1. Expectations from product
Balancing user-centricity and business goals
In both B2B and B2C product management, irrespective of the size of an org, the fundamental balancing act between user-centricity and achieving business goals remains consistent.
Org size will have some influence in matters of execution i.e. Product managers in small companies are often expected to wear multiple hats and handle various responsibilities beyond core product management, such as market research, customer support, and even marketing. They need to be adaptable and capable of taking on different tasks as needed. In large companies, product managers may have access to dedicated market research teams or data analysts. They need to excel at stakeholder management, communication, and building consensus among different teams.
2. Tools of discovery and validation
Data vs relationships
B2C product management typically involves a larger user base, allowing for a larger database for analytics and experiments. This enables quicker and more confident validations of product ideas.
In contrast, B2B product management often operates with a smaller user base. To compensate, B2B product managers rely on external and internal partner relationships, such as clients and sales teams for discovery. They also leverage market research and competition intelligence to shape their products. Validation in B2B environments often occurs through beta rollouts and qualitative feedback from clients.
Small companies often rely on cost-effective user research methods such as direct user interviews, surveys, and usability testing. Product managers may conduct interviews in person or remotely using tools like Zoom or Google Meet, and utilize survey platforms like Google Forms or Typeform to gather feedback from users.
Large companies have the resources to invest in advanced analytics platforms, dedicated research teams and partners to conduct in-depth user research studies and gather detailed feedback on product prototypes or concepts.
3. Decision making
Complexity, sales cycles and negotiations
In B2B decision-making, multiple stakeholders are involved in a longer sales cycle, where complexity arises from customization and integration requirements. Value proposition, relationship building, and addressing specific business needs are crucial. B2C decisions, on the other hand, are made by individual consumers with shorter sales cycles driven by emotions, usability, convenience, and brand loyalty.
The size of the company plays a crucial role in shaping the product management landscape. In larger companies, decisions are often made on a consensual basis, involving multiple layers of stakeholders. Negotiations with leadership become vital to navigate complex organizational structures. In startups or smaller companies, individual product managers often have a higher level of influence on the product roadmap and decision-making.
4. Ceremonies and processes
Blurring boundaries and planning cycles
Traditionally, B2B and B2C companies followed distinct ceremonies and processes. However, as the boundaries between the two domains blur, similarities emerge. The term B2B is evolving into B2B2C. Both B2B and B2C companies are adopting agile methodologies, such as two-week sprints, for increased flexibility and adaptability.
Startups or small companies, characterised by their fast-paced environments, may skip formal ceremonies, opting for a direct path from idea to implementation. In contrast, larger companies invest heavily in planning cycles, seeking sign-offs and measuring planned versus delivered ratios. E.g. When I was in Cisco, the planned vs delivered ratio was at 85%.
5. Building a product culture
What to sell vs. How to sell
Building a product culture involves fostering an environment where everyone in the organization values and prioritizes customer-centric thinking, innovation, and continuous improvement. Irrespective of the type of organization, there are two key factors that influence product culture:
The background of the founder or CEO, and
The focus of organizational conversations
Founder: The founder or CEO's background, whether in product/engineering or business/operations/sales, shapes the emphasis placed on product strategy, roadmap evolution, and self-selling capabilities. A techie would most likely invest in continuous product improvement while a business or operations guy tends to have more reliance on sales efforts.
Organizational Conversations: Are conversations more skewed towards "What to sell" or "How to sell"?
When the focus is on "What to sell," there is a greater product-centric approach. This involves investing in product strategy, roadmap development, and continuous evolution. The goal is to create a product that can sell itself, moving towards zero sales dependency.
On the other hand, when the emphasis is on "How to sell," there is a stronger focus on sales-driven approaches, monetary levers (discounts, incentives), and operational considerations. While product evolution may take a back seat, the primary focus is on driving sales, optimizing revenue generation, and operational efficiency.
6. The role of a product director
Strategy and stakeholder management
Irrespective of the domain, the role of a product director encompasses strategy development, people management, and negotiations. It simply comes down to how well you are able to influence large teams to move in the same direction.
The level of end-to-end ownership varies based on organizational structure. In some companies, program managers handle the execution aspect, while product directors focus on higher-level responsibilities. In smaller companies, you will actively participate in hands-on execution, working closely with cross-functional teams to drive product development and delivery.
Note: You can follow Abhineythri on Linkedin.