Product Meets Market Interaction

Product and marketing need to work together to create the best outcome. If you only focus on one, you are optimizing only part of the total value of your product. An overly simplified yet still very powerful equation to keep in mind is the below.

[Revenue] = [Lifetime Value] - [Customer Acquisition Cost]

If your lifetime value of a customer is very high that is great! BUT if the cost to acquire a customer is higher, then you will never get any customers. The two need to work in parallel with each other.

You need to make sure that these two forces, and usually in organizations, these two teams, are working together to try and drive the most value. Often they become silos within themselves vs buttressing each other.

Ask yourself: is the product sufficiently supporting your marketing efforts, and vice versa.