A critical mistake in enterprise product management is to treat the user and the buyer as the same person. The daily user (e.g., an SRE) cares about features and usability, while the economic buyer (e.g., a CIO) cares about ROI and strategic value. A successful product must deliver distinct value to both, and the PM must treat them as separate personas.
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In enterprise sales, the user and buyer are different people. While the user needs a problem solved, the buyer needs a business outcome that advances their career. Product managers must identify and build for the metric that makes their buyer look good—like cost savings or productivity gains—to secure the sale and ensure product success.
For Polly's horizontal product, the founder learned the most critical mistake was assuming every user should be a paying user. The key to success was distinguishing the vast user base from the specific buyer persona, a trivial-sounding but fundamental insight that guided their entire strategy.
A significant maturity gap in large organizations is that internal platform PMs don't treat their users (e.g., developers, finance) as customers. Applying customer-centric practices like problem framing and journey mapping to these stakeholders can dramatically improve outcomes.
Business viability is often siloed to executives or sales, but the product manager and their team ultimately pay the price for failure. PMs must own this risk, tracking metrics like the LTV/CAC ratio to ensure the product is not just loved by users but is also sustainable.
A platform's immediate user is the developer. However, to demonstrate true value, you must also understand and solve for the developer's end customer. This "two-hop" thinking is essential for connecting platform work to tangible business outcomes, not just internal technical improvements.
Don't design solely for the user. The best product opportunities lie at the nexus of what users truly need (not what they say they want), the company's established product principles, and its core business objectives.
StatusGator initially targeted developers but found success only after realizing IT directors were the true buyers. The mistake was focusing on users who loved the tool but lacked the authority and budget to purchase it for their company.
Product managers often fail to get ideas funded because they speak about user needs and features, while executives focus on business growth and strategic bets. To succeed, PMs must translate user value into financial impact and business outcomes, effectively speaking the language of leadership.
A common PLG pitfall is assuming the user base will naturally springboard into enterprise deals. Often, the enterprise buyer is a different person with different problems. This oversight can cost companies years, as they have to build a second, separate sales motion from scratch.
To create transformational enterprise solutions, focus on the core problems of the key buyers, not just the feature requests of technical users. For healthcare payers, this meant solving strategic issues like care management and risk management, which led to stickier, higher-value products than simply delivering another tool.
