Continuous Discovery Habits: Discover Products that Create Customer Value and Business Value

Torres examines the importance of shifting from output-focused to outcome-focused product development. The chapter begins with a case study about Sonia Martin, a product manager at Tails.com, a subscription-based dog food company. Martin’s team initially aimed to improve customer retention at the 90-day mark but encountered difficulties measuring their impact. The team ultimately identified more specific, actionable metrics: increasing the perceived value of customized dog food and improving canine satisfaction with the product.



Torres uses this case study to illustrate the challenges teams face when transitioning to outcome-based management. She differentiates between three types of outcomes: business outcomes (measuring company progress), product outcomes (measuring product advancement), and traction metrics (measuring feature usage). Business outcomes typically manifest as financial indicators or strategic objectives but often serve as lagging indicators, measuring past events rather than predicting future success. Product outcomes, by contrast, function as leading indicators that teams can influence directly.

The author emphasizes that product teams achieve better results when assigned product outcomes rather than business outcomes. She cites an example in which multiple factors might affect customer retention, requiring coordination between product, marketing, and customer support teams.