What is a Growth Product Manager in 2024

In the ever-evolving world of tech, a new breed of product manager has emerged: the growth product manager. This role combines traditional product management with a laser focus on driving user acquisition, engagement, and retention. As companies scramble to stay competitive in 2024, the demand for skilled growth product managers has skyrocketed, making it a hot career path for those looking to make a big impact in the digital space.

So, what exactly does a growth product manager do? They wear many hats, from analyzing user data and running experiments to developing strategies that boost product adoption. This article will dig into the core functions of a growth product manager, explore the skills needed to excel in this role, and examine how the position has changed over time. We'll also look at the job market for growth PMs, including typical salaries and career prospects, to give you a complete picture of this exciting field.

The Evolution of Growth Product Management

Origins in Growth Hacking

The concept of growth product management has its roots in the early days of growth hacking. This approach emerged as a response to the challenge of dividing responsibilities between product and marketing teams in digital products. Traditionally, these teams operated in silos, with product focusing on core value and marketing on promotion. However, the rise of digital products blurred these boundaries [1].

The term "growth hacker" was coined by Sean Ellis in 2010. He defined it as someone whose primary focus is driving growth, operating at the intersection of product and marketing [1]. This new role emphasized a data-driven mindset and a willingness to experiment across various growth levers.

One of the earliest and most notable examples of growth hacking in action was at Facebook. Chamath Palihapitiya, an early Facebook employee, worked on increasing daily active users and friend connections. His team's most famous discovery was the "Aha moment" - getting users to add seven friends in ten days significantly boosted engagement [2].

Shift from Marketing to Product

As the concept of growth hacking matured, there was a noticeable shift from marketing-centric approaches to more product-focused strategies. This transition was driven by the realization that in digital products, growth levers often lie within the product itself.

The emergence of Product-Led Growth (PLG) exemplifies this shift. PLG is a strategy where the product itself drives user acquisition, engagement, and retention, rather than traditional marketing efforts. Companies like Slack and Dropbox have successfully implemented PLG strategies, allowing users to experience the product's value before committing to a purchase [3].

This approach has proven effective, with research showing that B2B SaaS companies using PLG strategies perform 13% better in revenue compared to those that don't [3]. The success of PLG underscores the importance of designing products that naturally attract and retain users.

Current Landscape

In 2024, the landscape of growth product management continues to evolve rapidly. The role has expanded beyond its initial focus on user acquisition to encompass a broader range of responsibilities. Today's growth product managers are expected to drive revenue directly, with Chief Product Officers (CPOs) now responsible for profit and loss statements [3].

The demand for skilled growth product managers has skyrocketed, with projections indicating a 30%-40% increase in job openings across various industries [4]. This surge in demand has led to a talent shortage, with HR managers struggling to find qualified candidates. As a result, there's an increased focus on training and development programs to bridge the skill gap.

The integration of AI-powered tools has revolutionized growth product management, automating routine tasks and enhancing decision-making processes. This technological advancement has allowed growth product managers to focus more on strategic initiatives and innovation [4].

Another significant trend is the concept of ProductOps, which aims to streamline communication and collaboration between product management teams and internal stakeholders. This approach reflects the growing complexity of product ecosystems and the need for more efficient operational processes [4].

As growth product management continues to evolve, it's clear that the role will remain crucial in driving business success. The fusion of product expertise, data-driven decision making, and a deep understanding of user behavior will continue to define the field in the coming years.

Core Functions of a Growth Product Manager

Analyzing User Behavior

A crucial function of a growth product manager is to analyze user behavior through product management data analytics. This process involves collecting, analyzing, and interpreting data to gain insights into user behavior, preferences, and patterns. These insights help in making better, smarter, and more user-centric product decisions [5].

To effectively analyze user behavior, growth product managers focus on four key questions:

1. Who are our users? (Demographics, user segments, persona behavior patterns)
2. What are they doing? (User actions, feature usage, user flows)
3. Why are they doing it? (Surveys, user feedback, user pain points)
4. How are they doing it? (Click heatmaps, session recordings, A/B testing) [5]

While quantitative data is important, qualitative data is equally crucial to understand the "why" behind user behavior. Growth product managers use various tools to gather this qualitative data, including customer surveys, in-app ratings, user testing, and session replays [5].

A real-world example of the power of user behavior analysis comes from JobNimbus, a UXCam customer. The company was struggling with low app store ratings and poor adoption rates. By using UXCam's product analytics suite, they tracked and analyzed user behavior within their app. This analysis led to iterative design changes, resulting in a 2.3-star rating increase on the App Store and a 25% increase in adoption [5].

Running Experiments

Experimentation is at the heart of a growth product manager's role. They design and interpret A/B tests, understand user analytics, and draw actionable conclusions from large data sets. This skill set enables them to identify growth opportunities, optimize product features, and validate hypotheses that lead to increased user engagement and retention [6].

A/B testing and multivariate testing are crucial tools in a growth product manager's arsenal. These tests allow them to compare different versions of UI elements, features, or entire user flows to determine which performs best. For instance, Userpilot offers functionality to run A/B and multivariate tests on in-app experiences, helping product managers quickly choose the most effective in-app patterns or microcopy [7].

Growth product managers also use experimentation to validate feature ideas. One technique is the "fake door" test, where they present users with a UI element for a non-existent feature to gage interest before committing resources to development [7].

Optimizing Conversion Funnels

Conversion funnel optimization is a critical function of growth product managers. A conversion funnel visualizes the path users follow from initial contact with a product or service to final conversion. Understanding and optimizing this journey is essential for increasing conversions and improving ROI [8].

To optimize conversion funnels, growth product managers:

1. Analyze each step of the conversion process to identify areas for improvement
2. Use funnel analysis to pinpoint when and why users drop off
3. Implement A/B testing to refine user onboarding strategies and UI elements
4. Leverage session replays to get deeper insights into user behavior
5. Break down conversion numbers by acquisition channels to focus efforts on the most valuable sources [23, 24]

For example, Userpilot offers funnel analysis features that allow product managers to track user flows and identify drop-off points. This quantitative data, combined with qualitative insights from session replays, provides a comprehensive understanding of user behavior and guides product improvements [20, 23].

Growth product managers also focus on reducing friction in the conversion process, particularly in checkouts and forms. Studies show that nearly 70% of online shoppers abandon their carts due to long forms and tedious checkout processes. By streamlining these elements and providing multiple payment options, growth product managers can significantly improve conversion rates [8].

In conclusion, the core functions of a growth product manager revolve around data-driven decision-making, continuous experimentation, and relentless optimization of the user journey. By mastering these functions, growth product managers drive sustainable product growth and contribute significantly to a company's success.

Essential Skills for Success as a Growth PM

Data Analysis

Data analysis is at the heart of product management, especially for growth product managers. They must be adept at forming and validating hypotheses, designing and running experiments, measuring the impact of product changes, and understanding market dynamics [9]. While the specific data skills required may vary depending on the product, team structure, and tools used, there are key areas where growth PMs should excel:

1. Mapping data to user needs, market trends, and product changes
2. Querying and manipulating data, understanding database structures
3. Statistics and math
4. Data visualization and storytelling

Perhaps the most crucial data skill for growth PMs is intuition. While some roles may require deeper technical skills like SQL or advanced statistics, all PMs need to have good instincts when it comes to data. They must be able to reason about what they're seeing and develop opinions about why metrics are moving in certain ways [9].

Growth PMs should understand the value of data and how it can provide insights into users, the market, and the company's business. This data-driven mindset leads them to search for ways to obtain good data and leverage it for better product decisions, problem identification, roadmaps, prioritization, goal setting, and measuring success [9].

While not always necessary, technical skills like SQL can be advantageous, especially in smaller companies without dedicated data teams. These skills enable growth PMs to explore data and answer questions independently, making them more effective and less reliant on others [9].

Product Strategy

A robust product strategy is essential for growth PMs. It's a high-level plan that defines product goals throughout its lifecycle and how it will support the organization's objectives. A good product strategy should have a clear purpose, understanding that building a product just for the sake of creating something isn't a strategy – it's busywork [10].

Key elements of an effective product strategy include:

1. Understanding customer needs and how they're evolving
2. Comprehending the value chain and its evolution
3. Anticipating likely changes and disruptions
4. Defining actions against those changes
5. Measuring success and course-correcting

Growth PMs must also conduct competitive analysis, evaluating other players vying for potential customers. This analysis informs pricing strategies, which may involve premium positioning or undercutting the competition [10].

Throughout a product's lifecycle, the growth PM's role must adapt. During the initial strategy development phase, they spend more time refining the strategy as research comes in, MVPs are built, and feedback is collected. Once the product gains traction, attention shifts to growth and retention [10].

Cross-Functional Leadership

Cross-functional leadership is crucial for successful product management. Growth PMs must navigate the challenges of leading diverse teams, fostering collaboration, and ensuring alignment with organizational goals [11].

A cross-functional team typically includes developers, DevOps, solutions architects, scrum masters, designers, business analysts, marketers, sales professionals, and customer support. For AI products, the team may also include ML engineers, data engineers, subject matter experts, and data scientists [11].

Key aspects of effective cross-functional leadership include:

1. Transparency: Ensuring every team member understands the "why" behind the product
2. Effective communication: Keeping everyone on the same page and working towards the same objectives
3. Technical and business expertise: Making informed decisions that balance feasibility with business value
4. Stakeholder management: Managing expectations and communications with stakeholders
5. Partnership management: Building and managing partnerships for scaling the product

Growth PMs must also possess empathy, understanding people's challenges and needs, and helping them solve problems. This goes a long way in facilitating collaboration across different teams [12].

By mastering these essential skills – data analysis, product strategy, and cross-functional leadership – growth product managers can drive sustainable product growth and contribute significantly to their company's success.

Conclusion

The role of a growth product manager has evolved significantly, becoming a crucial position in the tech industry. These professionals blend traditional product management skills with a keen focus on driving user acquisition, engagement, and retention. Their ability to analyze data, run experiments, and optimize conversion funnels has a significant impact on a company's success. As the digital landscape continues to change, growth product managers must stay adaptable and keep honing their skills to analyze user behavior, craft effective product strategies, and lead cross-functional teams.

For those looking to break into this exciting field or enhance their existing skills, there's a wealth of resources available. To explore courses, case studies, and job opportunities in growth product management, visit growthproductmanager.com. The future looks bright for growth product managers, with increasing demand across various industries. By mastering data analysis, product strategy, and cross-functional leadership, these professionals are well-positioned to drive innovation and growth in the ever-changing tech world.

FAQs

What can we expect from product management in 2024?
In 2024, the focus for companies will be on delivering superior customer experiences. Product managers (PMs) will increasingly address ethical issues related to AI, such as its objectivity and its effects on user well-being. Additionally, augmented reality will play a significant role in enhancing user onboarding, as well as in UI, UX design, testing, and research processes.

Who is a growth product manager?
A growth product manager (GPM), also known as a product growth manager, is dedicated to enhancing specific business metrics or goals, such as acquisition, activation, retention, referral, or revenue. Their role involves identifying and eliminating obstacles that prevent users from realizing value in a product or service.

What is the expected growth rate for product management roles by 2024?
The field of product management is projected to grow by about 10 percent by 2024, as reported by the Bureau of Labor Statistics. This growth is driven by the need for data-driven decision-making and the ongoing digital transformation across all sectors. Notably, there has been a 33 percent increase in product management roles from 2017 to 2019.

What does the future hold for product managers?
Looking ahead, product managers are expected to utilize artificial intelligence (AI) to enhance decision-making processes and provide more personalized customer experiences. They will also depend more on data-driven strategies, given the rapid increase in data availability, to inform and guide their decisions.

References

[1] - https://gopractice.io/skills/growth_hacking/
[2] - https://thegrowthmind.substack.com/p/story-of-growth-hacking-part-1
[3] - https://engineering.teknasyon.com/navigating-the-future-product-management-in-2024-5ba8694b5221
[4] - https://www.linkedin.com/pulse/evolving-landscape-product-management-2024-trends-insights-prodhub-rnjif
[5] - https://uxcam.com/blog/analytics-for-product-managers/
[6] - https://www.tealhq.com/skills/growth-product-manager
[7] - https://userpilot.com/blog/product-management-trends-2024/
[8] - https://www.fullstory.com/blog/conversion-funnel-optimization/
[9] - https://gopractice.io/skills/key-data-skills-for-pm/
[10] - https://www.productplan.com/learn/guide-to-product-strategy/
[11] - https://www.linkedin.com/pulse/mastering-cross-functional-leadership-product-akachukwu-fred-ekhose--o27rf
[12] - https://productschool.com/blog/skills/cross-functional-collaboration-prouduct-management