We scan new podcasts and send you the top 5 insights daily.
Go-to-market executives are wired to think in currency. To be heard and get buy-in, product managers must translate concepts like tech debt or user joy into revenue, cost savings, or other financial metrics.
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.
Executives don't care about tactical benefits like 'five fewer clicks'. A crucial skill for modern sellers is to extrapolate that tactical user-level gain into a strategic business outcome. You must translate efficiency into revenue, connecting the dots from a daily task to the company's bottom line.
It's not enough to improve engagement or NPS. A product manager's job is to understand and articulate how that metric connects to a financial outcome for the business. Whether it's growth, margin, or profitability, you must explain to leadership why your product goals matter to the bottom line.
Product initiatives often seem disconnected from company goals because teams struggle to articulate their work in terms of business impact. This forces executives to pay a 'translation tax' to justify product investments to the board and C-suite, undermining the product team's credibility.
Executives and investors care about lagging business indicators like ARR and churn, not leading product indicators like user engagement. It is the PM's job to connect the dots and clearly articulate how improvements in product metrics will directly result in moving the high-level business needles.
Stakeholders respond to the language of business impact. Instead of pitching an initiative to "improve the onboarding experience," frame it as a way to "grow our business customers in this sector." This small change in communication connects your work directly to the goals stakeholders care about.
To bridge the communication gap with leadership, reframe common product metrics into financial terms. Instead of reporting daily active users (DAU), calculate and present average revenue per daily active user (ARPA-DAU). Similarly, frame quality initiatives not as ticket reduction but as operating expense (OPEX) savings.
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.
Creating products customers love is only half the battle. Product leaders must also demonstrate and clearly communicate the product's business impact. This ability to speak to financial outcomes is crucial for getting project approval and necessary budget.
To advance in product management, move beyond only solving customer problems. Frame your work in the language of business impact. Articulating how features will affect corporate goals and key metrics is essential for gaining buy-in from senior leadership and progressing your career.