Don't Kill Your Product—Try This First

Learn when to pivot vs sunset products with our data-driven framework. Discover 5 strategies for product experimentation that drive measurable results.

‍

The $50,000 Question Every Product Manager Faces

Research shows that 72% of product initiatives fail to meet their objectives, yet only 44% of product teams have clear frameworks for deciding when to pivot versus when to sunset. This decision—knowing when a product has run its course versus when it needs a strategic reset—can mean the difference between abandoning untapped potential and wasting resources on a lost cause.

The cost of getting it wrong? Millions in wasted development, demoralized teams, and missed market opportunities that could have transformed your business.

We recently faced this exact challenge with our newsletter. Engagement had stagnated, open rates fluctuated unpredictably, and click-through rates fell below benchmarks. Our team confronted a familiar question: Should we sunset this product or give it a strategic reset?

What we learned transformed not just our newsletter, but how we approach product management strategy for client engagements.

‍

🧠 How to Decide: Pivot vs Sunset Framework

Reading the Performance Signals

Before making any sunset decision, distinguish between products that have genuinely reached end-of-life and those experiencing solvable challenges.

Signals indicating pivot opportunity:

• Core audience exists but engagement patterns shifted
• Product solves real problems but delivery needs updating
• Market evolved but fundamental need remains strong
• Competition changed landscape but differentiation is achievable

Signals indicating product sunset:

• Market need has fundamentally disappeared
• Maintenance costs significantly exceed value delivered
• Strategic misalignment with organizational priorities
• Superior alternatives have made product obsolete

The Data-Driven Assessment Process

We approached our newsletter evaluation systematically. We analyzed engagement metrics, surveyed our audience, and examined competitive shifts in product management content delivery.

The data revealed something crucial: our audience still valued our expertise, but content format and delivery no longer matched their needs. The product wasn't dead—it needed strategic repositioning.

‍

🏆 Our Product Reset: From Stagnation to Growth

Phase 1: Conduct an Honest Product Audit

We started with fundamental questions that every product team should ask:

• What value does this product currently deliver?
• Who is our actual audience versus intended audience?
• What competitive alternatives exist in the market?
• Where do we have unique differentiation opportunities?

The audit revealed our newsletter had drifted toward generic thought leadership. In a crowded market, we were competing on the same terms as dozens of other product management publications.

Phase 2: Redefine Your Product Strategy

Based on our findings, we made a deliberate pivot from broad thought leadership to actionable, use-case-driven content that demonstrated our consulting expertise.

Our content transformation included:

• From theoretical frameworks → practical application examples
• From general best practices → specific client success stories
• From passive information → active problem-solving demonstrations
• From broad appeal → targeted decision-maker value

We refined our audience focus:

• Primary: Product leaders facing specific organizational challenges
• Secondary: Product managers seeking immediate tactical solutions
• Tertiary: Executives evaluating product management consultancy needs

This mirrors the product discovery approach we use with clients—clearly defining who you serve and what problems you solve.

Phase 3: Design Rapid Experimentation Cycles

The first iterations weren't perfect. Initial engagement actually dipped as we tested new approaches. But by establishing clear product metrics and running controlled experiments, we gathered actionable insights with each release.

Our rapid iteration framework:

1. Hypothesis formation based on audience feedback and data
2. Content testing with A/B variations in messaging and structure
3. Performance measurement against predefined success criteria
4. Learning capture to inform subsequent iterations
5. Strategic refinement based on validated insights

This disciplined approach to product analytics drove steady improvements while aligning the newsletter with business objectives.

‍

💡 5 Essential Elements for Product Experimentation

Our newsletter reset succeeded because we created conditions that enabled experimentation. Apply these principles to foster continuous improvement across your product teams.

1. Secure Leadership Buy-In for Strategic Risk-Taking

Experimentation requires leadership that champions innovation over predictability. Leaders must provide genuine autonomy to test approaches without guaranteed outcomes.

Practical implementation steps:

• Allocate dedicated "experimentation budget" separate from core roadmap
• Establish clear boundaries for acceptable risk levels
• Celebrate learning outcomes regardless of immediate results
• Model risk-taking behavior at leadership level

According to research from the Harvard Business Review, teams with explicit permission to experiment show 35% higher innovation rates than those without. When leadership demonstrates openness to strategic experimentation, it creates psychological safety that drives innovation.

2. Create Safe Spaces for Productive Failure

Product experimentation inherently involves risk. Teams must feel safe to fail without fear of blame or career consequences.

Building failure-positive environments:

• Reframe failures as learning opportunities in retrospectives
• Document and share failure case studies organization-wide
• Separate performance evaluations from experiment outcomes
• Recognize teams for rigorous processes, not just positive results

Organizations that celebrate learning from failures accelerate innovation velocity. Teams aren't paralyzed by fear of negative outcomes—they're energized by learning opportunities.

3. Implement Data-Driven Decision Making

Encouraging experimentation doesn't mean acting on intuition alone. Teams need robust infrastructure and analytical frameworks to validate hypotheses.

Essential data capabilities include:

• Clear baseline metrics for product performance measurement
• A/B testing infrastructure for controlled experiments
• User feedback collection mechanisms (surveys, interviews, analytics)
• Reporting systems connecting experiments to business outcomes

Product analytics expert Amplitude notes that high-performing product teams make decisions based on data 78% of the time versus 42% for underperforming teams. Establishing feedback loops between experiments and outcomes minimizes risk while maximizing learning velocity.

For comprehensive guidance on establishing metrics frameworks, explore our detailed article on SMART goals for product management.

4. Optimize for Rapid Iteration Cycles

Long experimentation cycles create momentum loss and delayed results. Optimize for learning speed through rapid prototyping and frequent testing.

Implementing quick iteration:

• Break large experiments into smaller, testable components
• Establish sprint-based experimentation cycles (1-2 weeks ideal)
• Use low-fidelity prototypes for early validation
• Create decision criteria for fast experiment termination
• Document learnings immediately after each iteration

Fail fast to fix faster. Rapid iteration compresses the learning curve and validates more hypotheses within the same timeframe. This approach to agile product development enables teams to course-correct before significant resources are committed.

5. Foster Cross-Functional Collaboration

Experimentation culture thrives when diverse functional perspectives converge. When product, marketing, design, engineering, and data teams collaborate, they generate more comprehensive solutions and identify blind spots earlier.

Building cross-functional experimentation:

• Include multiple disciplines in hypothesis formation
• Create shared ownership of experiment outcomes
• Establish cross-functional working sessions for problem-solving
• Break down silos through integrated team structures
• Align incentives across functions to encourage collaboration

In our newsletter reset, cross-functional collaboration between editorial, marketing, and business development transformed the newsletter from a cost center to a business development asset. This demonstrates the power of stakeholder management and aligned objectives.

‍

✅ Your Product Evaluation Checklist

When facing pivot-versus-sunset decisions, evaluate your product against these criteria:

Market Viability Assessment

• Does fundamental user need still exist?
• Has market size grown, stabilized, or contracted?
• What competitive dynamics have shifted?
• Are there emerging trends creating new opportunities?

Product Performance Evaluation

• Which engagement metrics declined versus remained stable?
• What user feedback themes emerge consistently?
• Where do conversion funnels show friction points?
• How does user satisfaction compare to alternatives?

Strategic Alignment Review

• Does this product support current organizational priorities?
• What resources does it consume versus value generated?
• Could those resources create more impact elsewhere?
• What is the opportunity cost of continuing investment?

Experimentation Potential Analysis

• Have we tested meaningful variations in approach?
• What hypotheses remain unvalidated?
• Do we have capacity to run proper experiments?
• Is the team motivated to pursue product improvement?

If analysis reveals untapped experimentation potential, strategic misalignment, or unclear value proposition, you likely have a pivot opportunity rather than a sunset requirement.

‍

🚀 Measuring Product Experimentation Success

Effective experimentation requires clear success metrics. Based on our transformation experience, here are essential measurement frameworks:

Leading Indicators

• Experiment velocity: Number of experiments conducted per quarter
• Learning rate: Insights generated per experiment cycle
• Hypothesis validation rate: Percentage of tests yielding actionable data
• Team confidence: Self-reported comfort with experimentation

Lagging Indicators

• Engagement improvement: Trend in core usage metrics over time
• Business impact: Revenue, conversion, or retention improvements
• Resource efficiency: Output per input ratio changes
• Strategic alignment: Product initiatives supporting business goals

These product metrics provide early warning signals and validate whether your experimentation approach drives meaningful results.

‍

😎 The Continuous Improvement Mindset

Our newsletter transformation demonstrates a fundamental truth: most products don't fail because the idea was wrong—they fail because teams don't create conditions for continuous adaptation.

The difference between successful and failed products often isn't the initial vision but organizational capacity to:

• Recognize when strategic pivots are necessary
• Create space for meaningful experimentation
• Gather and act on data systematically
• Iterate quickly based on validated learning
• Maintain team motivation through uncertainty

These capabilities transcend individual products. They represent organizational maturity in product management that enables consistent success across entire portfolios.

According to McKinsey research, companies with strong experimentation cultures are 2.5 times more likely to achieve above-average revenue growth. The investment in building these capabilities pays dividends across your entire product organization.

‍

Transform Your Product Management Approach

Whether you're deciding the fate of a struggling product or optimizing a successful one, the principles of experimentation and continuous improvement apply universally.

Our newsletter survived—and ultimately thrived—because we approached the challenge with the same rigorous methodology we bring to client engagements. We treated our newsletter as a product requiring strategic evaluation, clear success metrics, and disciplined experimentation.

Facing similar product challenges? ProductPeople has guided over 200+ cross-functional teams through strategic product transformations across industries. Our interim product managers bring battle-tested frameworks for product strategy, experimentation design, and organizational change management.

We specialize in helping organizations build the capabilities and culture needed for continuous product improvement. Whether you need strategic guidance for specific product decisions or comprehensive transformation of your product management practices, we deliver results.

Explore our case studies to see real examples of product transformations we've facilitated, or discover how our product management coaching develops internal capabilities for long-term success.

Contact us today to discuss your product challenges. Let's transform your product strategy from reactive to proactive—from struggling to thriving.

‍

FAQ