Letting engineers call the product shots with PostHog CEO James Hawkins
Feb 3, 2023
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James Hawkins, CEO of PostHog, discusses finding product-market fit, supporting 23,000 customers without a dedicated support team, and prioritizing roadmap items. They also talk about balancing performance improvements with new functionality, building an inbound sales engine, and defining company vision.
PostHog tailored product for tech-savvy engineers to capture niche market.
Pivoting towards demanded features improved PostHog's product-market fit.
PostHog's inbound sales approach led to sustainable growth and revenue shift towards cloud-based model.
Deep dives
Importance of Building a Product for a Specific Audience
Focusing on building a product for a specific technical audience, Post-Hog emphasized customization and making the product tailored to the needs of product engineers. By providing a solution that was more tech-savvy than existing options, Post-Hog captured a niche market within the competitive space, leading to better reception and adoption among users.
Iterative Approach and Pivoting in Product Development
Post-Hog's journey involved multiple pivots and failures, highlighting the importance of quick iteration and testing decisions. By continuously pivoting towards more demanded features, like real-time insights and efficient data handling, Post-Hog improved its product-market fit and addressed evolving user needs in a crowded market.
Strategic Growth via Inbound Sales and Product Focus
Opting for an inbound sales approach, Post-Hog avoided the inefficiencies of outbound sales tactics and focused on building a strong product and brand presence to drive growth. By investing in product depth, widening its offerings, and relying on word-of-mouth referrals and SEO, Post-Hog strategically positioned itself for sustainable growth without traditional sales strategies.
Success of Cloud Version and Long-Term Vision Planning
The podcast discusses how the unexpected success of their cloud version led to a significant shift in revenue from self-hosting to cloud-based revenue. By focusing on serving technical users rather than product managers, they experienced substantial growth in their cloud revenue. They emphasized the importance of having clear long-term goals and vision for the company, including a mission, vision, and OKRs to drive success.
Balancing Performance Enhancements, Features, and Vision Execution
The episode highlights the importance of balancing performance enhancements, feature improvements, and new functionalities in product development. The company shared insights on investing in infrastructure and feature development, emphasizing the need for ongoing performance improvements. They discussed the approach of aligning development efforts with customer demand, adapting strategies based on product-market fit, and the significance of positioning and differentiation in achieving success.
Executing on Product Market Fit
The speaker emphasized the company's journey to product-market fit by focusing on a specific positioning for developers and addressing existing gaps in the market. By honing in on developers' needs and building products tailored to their requirements, they were able to capture significant market share. The episode underscored the importance of aligning every aspect of the company, including hiring practices and company values, with the target customer segment for cohesive product development and market success.
Steve Klein (twitter.com/stevenklein) of LaunchNotes talks with James Hawkins (https://www.linkedin.com/in/j-hawkins/) of PostHog about how they found product market fit after pivoting several times and how they support 23,000 customers through a community without a dedicated support team. They also discuss tips for prioritizing roadmap items and the delicate balance of performance improvements and new functionality.
