Understanding the concept of ‘Product Ecosystem’ can help us see why some products become indispensable in our lives.
-> What?
In Product Management, an ‘Ecosystem’ refers to a set of interconnected products or services that create a unified customer experience. It is more than a standalone product. It is a suite of offerings designed to fulfil a broad range of user needs.
-> Why?
By providing multiple touchpoints, the ecosystem approach enhances customer retention and engagement. An ecosystem strives to become a part of the customer’s daily routine, increasing their interaction and dependency on the product.
-> How?
- Understand the customer’s journey. Then, identify opportunities for additional services.
- Create seamless integration between products or services.
- Make data-driven improvements by continuously measuring customer interaction KPIs.
-> Example: Amazon Prime
Amazon Prime is a strong example of an effective product ecosystem, especially considering its impact in India. A report from Financial Express stated that Amazon Prime had reached more than 10 million subscribers in India. According to a study by Forrester, 35% of online adults in metropolitan India had also used Amazon Prime Video, indicating that the ecosystem isn’t just about quick deliveries but is engaging customers on multiple fronts like entertainment.