💬 Takeoff #47: Slack's success strategies
Welcome to Takeoff, your weekly dose of product deep-dives and new learning opportunities. Today, we're diving into Slack's success strategies. Lessgo!
🧑💻 Slack’s simple success strategies
Did you know that Slack, a household name for real-time collaboration, began its journey as a tiny side project of a struggling gaming company? Sounds unbelievable, right? Well, in this week's edition, we're diving deep into the fascinating origin story of Slack and what it means for product managers.
Slack: From an Unexpected Pivot to a Game-Changer
In 2009, Stewart Butterfield, Eric Costello, Cal Henderson, and Serguei Mourachov - a team at the gaming company Tiny Speck - were developing a game called 'Glitch.' Amid significant challenges, they built an internal communication tool to collaborate better. When Glitch failed, the team realised that their improvised tool had great potential - and thus, in 2013, Slack was born.
Interestingly, 'Slack' is an acronym for "Searchable Log of All Conversation and Knowledge." Anecdotally, the team named it Slack as a nod to the productivity it was supposed to create, implying a slackening of work.
Now let’s get into the key takeaways from the builders of this amazing app.
The Importance of User Feedback:
Kenneth Berger, Slack's first product manager, emphasized the importance of user feedback in product development. Despite the overwhelmingly positive feedback on Twitter, Berger sought out the silent majority who weren't saying anything. He discovered that while these users found value in the product, they also had consistent frustrations that were relatively easy to fix. This underscores the importance of seeking out and listening to all user feedback, not just the loudest voices.
Focus on Goals, Not Just Metrics:
Berger also stresses the importance of focusing on the company's top-line goals rather than getting hung up on specific metrics. He emphasizes that metrics are just a part of a goal that makes it measurable. This approach allows for flexibility and adaptability as conditions and priorities change. It's a reminder that while metrics are important, they should not overshadow the broader goals of the organisation.
The Power of Hypothesis Testing:
Slack's launch strategy was based on hypothesis testing. They started with a hypothesis about how their product would be used, tested it, and then adjusted based on the results. For example, they initially avoided labelling their product as a chat app, focusing instead on their broader vision. However, usability testing revealed that users needed more clarity, leading to a shift in their messaging strategy.
Combining Qualitative and Quantitative Data:
In an interview with First Round, Berger highlights the importance of combining qualitative and quantitative data. He suggested that quantitative data can tell you if something is wrong, while qualitative data can tell you why. This approach provides a more comprehensive understanding of user behaviour and product performance, enabling product managers to make more informed decisions.
These strategies have proven to directly impact Slack’s success today. If you think about them, they’re quite simple and obvious. Sometimes the key to success is identifying the simple things and doing them really well. That’s exactly what Slack did!
😎 Leverage user research like a PRO
Recently, we had a masterclass by Jozzire Lyngdoh on leveraging user research and data analysis as a product manager. It was a great session filled with a lot of insights and best practices!
If you’re interested, you can check out the full masterclass, here
💁♂️ Product Jargon of the Week
AAARRR Funnel
The AAARRR funnel, also known as the Pirate Metrics, stands for Acquisition, Activation, Retention, Referral, and Revenue. These are key metrics for understanding customer behavior and growth in a business. Let's use Slack as an an example:
Awareness: This is when someone first hears about Slack. It could be through an online advertisement, a blog post, or word of mouth. The goal at this stage is to increase Slack's visibility and reach.
Acquisition: This is when the person decides to try Slack. They might visit Slack's website or download the app. The goal here is to convert the awareness into actual interest in the product.
Activation: This is when the person starts using Slack. They've created an account, joined a workspace, and sent their first message. The goal is to get users to experience the value of Slack as quickly as possible.
Retention: This is about keeping users engaged over time. For Slack, this could mean users checking and interacting with the app daily, becoming a part of their work routine.
Referral: At this stage, users are so happy with Slack that they start telling others about it. They might invite colleagues to join their workspace or recommend the app to friends.
Revenue: This is when users see so much value in Slack that they're willing to pay for it. They might upgrade to a paid plan to access additional features or to accommodate more team members.
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That’s all for today, folks! We hope you enjoyed this week’s newsletter. 🤗
Until next week, keep learning and growing! 👋