A B2B product manager is a key role responsible for developing and managing products and services that a company offers to other businesses. The responsibilities of a product manager greatly depend on the company, business model, and product.
The average salary of a B2B product manager is about$139,088 per year. They earn an annual base salary of about $121,151 with a bonus of $17,937
It is pretty hard to deny the importance of a B2B product manager as they improve the product marketing and increase the sales team’s performance. They also partner with technical teams to deliver solutions to increase the chances of success for new products.
Let’s find out the roles of business-to-business product managers and how they meet short-term and long-term business objectives.
B2B Product Manager Role
The roles of business-to-business product managers are vast and ever-evolving. As the technology landscape changes, so does the product manager’s role. Despite the constantly changing landscape, certain roles and responsibilities are essential for all product managers, like developing and managing products sold to businesses rather than customers directly. It includes both software and physical products.
A B2B product manager plays a vital role in the entire product lifecycle, from ideation and development to launch and post-launch. Product managers are often involved in market research. They focus on understanding their target customers and their needs. Analyzing market and customers’ requirements gives them insight into how to improve their products.
B2B product managers also need to develop a deep understanding of the competition and the market. They need to identify the areas where their product has the edge over the competition. They work closely with engineering, marketing, support, and sales teams to ensure that the product meets the needs of the customer and the business.
This analysis enables B2B product managers to define the product vision and develop a comprehensive product roadmap that meets the business objectives. They prioritize product features and requirements based on the impact they will have on the business. After the product roadmap is approved, B2B product managers work with the engineering team to develop the product.
B2B Product Manager Responsibilities
B2B product managers contribute to various aspects of product development. They are responsible for:
- Conducting market research
- Defining product vision and strategy
- Working with cross-functional teams
- Managing the product life cycle
- Define metrics to measure success
- Leadership and product expertise
These responsibilities are challenging and require excellent analytical, problem-solving, and leadership skills. B2B product managers must wear many hats and juggle multiple tasks simultaneously. Let’s learn more about these responsibilities in detail.
Conducting Market Research
A B2B product manager is responsible for conducting market research. Market research is necessary to understand the client product usage and the competitive landscape. Product management plays a vital role in collecting customer data and feedback. Product managers understand their working environment and the challenges they face while using the product. This customer feedback is essential for product managers as it helps them identify areas where the product needs to be improved.
B2B product managers use custom research to validate new features and product ideas and help the product team decide which features to build next. They also use market research to monitor trends in the industry to keep up with the latest advancements.
Defining Product Vision & Strategy
The product manager is responsible for creating the strategy and vision for the product. It includes understanding the market landscape, identifying customer needs, and defining the product roadmap. They work with the engineering team to determine the technical requirements for the product. Moreover, the product manager also creates the business case for new features and products.
Creating the Product Roadmap
The product roadmap is a document that managers regularly update as new information arises. It is a high-level view of the new features and timeline for upcoming releases. It is created by the product manager and shared with stakeholders to ensure everyone is aligned on the product vision and strategy.
Working with Cross-functional Teams
To execute the product roadmap, the product manager works closely with cross-functional teams such as engineering, sales, marketing, and support. They collaborate with data scientists to get insights from customer data. The product managers work with the design teams to create a user-friendly interface for the product. Product managers should also have effective communication with the sales team to get feedback about the product.
Managing the Product Life Cycle
The product manager manages the product life cycle, from ideation to launch and post-launch. They work closely with the engineering team to develop new features and products. They also manage the beta testing process and gather customer feedback. After the product is launched, the product manager monitors key metrics to ensure that the product meets the customer and business needs.
Define Metrics to Measure Success
The product managers define all the key metrics like monthly active users (MAUs)/daily active users (DAUs), customer retention rate (CRR), net promoter score (NPS), customer acquisition cost (CAC), and customer satisfaction score (CSAT) to measure product’s success. They also use these metrics to make data-driven decisions about the product and ensure that it meets the customer’s needs.
- Monthly active users (MAUs)/daily active users (DAUs) is the number of unique users who have used the product in the last month/day.
- Customer retention rate (CRR) is the percentage of customers who continue to use the product after a certain period.
- Net promoter score (NPS) is a customer satisfaction metric that measures how likely customers are to recommend the product to others.
- Customer acquisition cost (CAC) refers to the cost of acquiring new customers.
- A customer satisfaction score (CSAT) is a metric that measures how satisfied customers are with the product.
Leadership & Product Expertise
B2B is all about the relationships between businesses. So product managers need to be great leaders and have excellent communication skills. They must be able to build relationships with ease and understand the needs of both the customer and the business. Additionally, experienced PMs should deeply understand the product and the industry. Product experts are also responsible for making decisions that impact the product direction.
B2B Product Manager Qualifications
To be a successful B2B product manager, you must have a mix of skills and experience. Here are some of the most important qualifications for the job:
- A minimum of a bachelor’s degree in business, marketing, or a related field
- 3-5 years of experience in product management, marketing, or a related field
- Strong analytical and problem-solving skills
- Excellent written and verbal communication skills
- Strong project management skills and knowledge of industry trends.
- Experience with product development tools and methodologies
- Familiarity with customer feedback tools and data analysis
- Experience with market and user research
Tips for a B2B Product Manager
Accomplishing all the responsibilities is daunting for a B2B product manager. If you want to get into B2B product management or if you are already working as a B2B product manager, here are some tips that can help you succeed in this role:
Pay Attention to User and Client Feedback
Paying attention to user and client feedback is one of the essential things a B2B product manager can do. This feedback can help you learn about the valuable features of your product and the areas where you need to make improvements.
Monitor Industry Trends
To be a successful B2B product manager, you must know the latest industry trends. Learning about industry news and trends will help you make better decisions about the product and its direction.
Building Strong Relationships
As a B2B product manager, you need to build strong relationships with clients, customers, and other stakeholders. These relationships will help you understand the pain points of the potential customer and the business, which means identifying market opportunities becomes more accessible.
Communicate Effectively
Communication is vital for any professional, but it is especially important for B2B product managers. You need to collaborate with clients, customers, and other stakeholders. Communication will help ensure that everyone is on the same page and enables you to build a profitable product.
Final Thoughts
As a business-to-business product manager, you need to wear many hats. From setting the product vision to analyzing customer feedback, a lot goes into the role. But once you get rolling, there is no doubt that it can be a very rewarding career.
It is everything that you need to know about the role of a B2B product manager. We hope this guide has given you a better understanding of the skills and qualifications necessary for the job. So if you think you have what it takes to be a B2B product manager or you’re someone who loves challenges, this job is the perfect fit for you.
FAQs
What is a B2B product manager?
A business-to-business product manager is a professional responsible for planning, developing, and executing a company’s products and services. They work on the products that are sold to other businesses. They mostly have two different audience types that they focus on when developing products; the businesses and the end user. Product managers accomplish it by improving existing products or developing new ones the business needs.
What is a B2B product example?
A few examples of B2B products are industrial machines and equipment, office supplies, and other machines and equipment used in manufacturing. It can be software that businesses use to run their operations.
Why is B2B product management different from B2C?
There are several differences between B2B and B2C product management, but their target audience is the most common. B2B products are targeted toward businesses, while B2C products are targeted toward consumers. Moreover, B2B products are usually more expensive and complex than B2C products.
