SDMs should be a constant buffer between engineers and product.
This works wonders at an enterprise or mid market company. I don't envy smaller companies that need to drive alignment between stakeholders that have to straddle all of these lines.
A good portion of my job is helping small businesses find that alignment and being able to present the big picture to all of these teams. Somehow being external seems to help.
I know there are exceptions, but, usually I’d rather a company be customer focused and deliver a product I want, rather than worry too much about the methodology they use to deliver it.
That sounds like a different way of saying "you can end up with 15 years off revenue".
Feature chasing needs to have very coarse data attached to it:
- how many overpromised features attracted revenue?
- how many delivered overpromises features didn't win the potential customer?
That last one is about 80% for my career.
"We had a 5 minute phone call with someone doing a vendor comparison and saw that we didn't have features Y, and Z that X has. We got them to say they'd consider us if we delivered Y and gave them a 50% discount."
The customer already decided on X, X isn't a direct competitor - if you build Y you'll just be a crappy version of X. Not to mention building Y means pushing out features that your target customers keep asking for.
As a PM I got pulled into dozens of these calls as the sales team was desperate to hit quota. Not a single time did I see a feature that was worth building. The few times I saw a deal swing on these offers we had effectively guaranteed client specific dev work that other venders were turning down due to the risk of losing money.
I’ve been in many scenarios where devs have pushed back on table stakes functionality simply because we didn’t have the data to prove that we need it. Even showing them a competitor and saying “we literally can’t compete with XYZ” is often met with “yeah, but do we have the data to prove that?”.
Early on in a startup your roadmap is essentially gut feelings mixed with features your prospects are telling you they’d pay for. A lot of devs, designers and PdMs can’t deal with this type of uncertainty. This is why I can’t recommend contract devs enough. They’re much more willing to just trust you and put the work in.
If you want to simply point at competitors and say "build that" then you need to set yourself up to be a second mover. Unfortunately this is a bit of a one way decision as you need to build the whole business around being cheaper. Bain capital had a whole notion of velocity sales based around this model which spawned a few companies.
Prospect A pays for Competitor B. Prospect A is willing to drop Competitor B and move to your solution, but they need feature X. A feature you don’t have. Feature X just so happens to be a basic feature 90% of competitor products have. However, this isn’t a feature any of your current customers have asked for. So while current demand isn’t high, you know that you can likely sign a net new customer, and you’ll have feature parity with 90% of your competitors.
So the situation is that the Prospect loves your core product, but they NEED this one feature. This isn’t a case of building a competitor clone and selling it cheaper.
On the other hand, you need to consider what happens if the prospect doesn't follow through. After all, As a buyer I often pit vendors against each other to get a better deal. Even if it's a common feature like "LDAP authentication support" it may only matter to enterprise customers, and your product might be better for SMB firms. A good test of this is to ask whether they'd be willing to sign a contract with a lump sum payment/longer term dependent on feature delivery. Bear in mind, the prospect offering to dump Competitor B may not be the most influential internal stakeholder of Competitor B (think Tech infra offering to switch DB vendors when the Dev team would scream bloody murder).
If this feature burns up 12 weeks of dev time, and you dropped a product feature to make it happen then you're out both the cost of dev time and the opportunity cost for the other feature being delayed a quarter. For a small/medium startup, it's entirely plausible the "one needed feature" doesn't show up as a customer/prospect ask for another year.
When it comes to "take-out" deals where a customer is offering to "switch" from one product to another you always need to be cautious that your product wasn't added to the comparison for completeness. If you're going to burn your VC building one-off features for a big firm - you better get good marketing out of it and a long-term contract.
With all that being said, there are worse PMs than paying customers. If your team is fast, and you have money in the bank - then building whatever customers tell you they want isn't as bad of a product strategy as most devs/PMs would let you think.
I understand your point that developer effort is valuable and should be directed toward features that have impact on the business and customers, but I don't see how that relates to the loot crate analogy.
Is this about objectifying people? Is it about gambling related mechanics? I'm honestly very confused.
Coder: Anything can be coded. Can sales bundle a contract where a SaaS covers that feature for us while we code it? Just to test drive the clients actual needs?
Sales: no
Coder: okay. Do you have data to show that's the actual need?
Sales: I have an email of them saying that's their need.
Coder: okay, no data. What are the odds of the customer onboarding once the feature is done?
Sales: 100%
Coder: okay, no reasonable thought process behind conversion odds. Do you have a memorandum of intent from the potential customer?
Sales: no
Coder: okay, so you have no capacity to wrangle a contract that bundles a third party for feature Y with our product, you have no data or insight about why this person wants this feature, and you say we have a 100% chance of converting to a customer despite not having a memorandum of intent.
Sale: ...... but can we get feature Y tho?
At this point, sales is myopic and thirsty and will use social pressure to force the dev to do something stupid.
The company agrees because they see devs as loot crates: a concept where an interaction has a very low chance of very high rewards.
There’s always one more sale in the pipeline and you can end up with 15 year old products that are entirely the result of feature chasing.
I think it is absolutely necessary for development to develop a better understanding of customers and their requirements. Is it possible for us to predict some of the features from customers 1..2.. or maybe 5 years down the line in a way that the architecture and design can easily accommodate? I think it is somewhat possible and there are many examples of flexible products that do just that.