Business Model in Product Strategy

Introduction

When you build a product, understanding the business model behind it is key. The business model guides how your product creates value and makes money. Without a clear model, even the best products can struggle to succeed.

In this article, we will explore how the business model fits into product strategy. You will learn why it matters, how to align them, and practical examples from today’s top no-code and low-code tools. This will help you create products that not only solve problems but also grow sustainably.

What Is a Business Model in Product Strategy?

A business model explains how your product delivers value to customers and earns revenue. It covers who your customers are, what you offer, how you sell it, and how you make money. Product strategy is the plan to build and improve your product to meet customer needs.

When combined, the business model and product strategy ensure your product fits the market and supports your company’s goals. They work together to answer questions like:

• Who will use the product?
• What problem does it solve?
• How will it generate income?
• What features are essential?
• How will it grow over time?

For example, a subscription-based business model requires a product strategy focused on retention and regular updates. Meanwhile, a freemium model might prioritize user acquisition and conversion tactics.

Key Components of Business Models in Product Strategy

Understanding the main parts of a business model helps you design a product strategy that works. These components include:

• Value Proposition: What unique benefit does your product offer?
• Customer Segments: Who are your target users or buyers?
• Channels: How do you reach and deliver your product to customers?
• Revenue Streams: How does your product make money?
• Cost Structure: What are the main expenses to build and run the product?
• Key Activities and Resources: What actions and assets are needed to create value?

For instance, Glide, a no-code app builder, targets non-technical users (customer segment) and offers a freemium model (revenue stream). Its product strategy focuses on easy app creation and seamless publishing (value proposition and key activities).

Aligning Business Model with Product Strategy

To succeed, your product strategy must support your business model clearly. Here are steps to align them:

• Define your business goals: Know what success looks like financially and for customers.
• Identify customer needs: Use research to understand problems and desires.
• Prioritize features: Build what delivers the most value and supports revenue.
• Plan growth: Consider how to scale users and income sustainably.
• Measure outcomes: Track metrics like customer acquisition cost, lifetime value, and churn.

For example, Bubble’s product strategy focuses on empowering users to build complex apps without coding. This supports its subscription-based business model by encouraging long-term use and upgrades.

Examples of Business Models in Product Strategy

Different business models shape product strategies in unique ways. Here are some common models with examples:

• Subscription Model: Products like Airtable offer monthly plans. Strategy focuses on retention, feature updates, and customer support.
• Freemium Model: Glide provides free basic apps with paid upgrades. Strategy targets easy onboarding and conversion.
• Marketplace Model: Platforms like Sharetribe connect buyers and sellers. Strategy emphasizes trust, user experience, and network effects.
• Advertising Model: Some apps offer free access but monetize through ads. Strategy balances user engagement and ad placement.

Understanding these models helps you tailor your product roadmap and marketing efforts effectively.

Tools to Support Business Model and Product Strategy

Several no-code and low-code tools help you design and test your business model and product strategy quickly:

• Bubble: Build complex web apps to validate ideas and revenue streams.
• Glide: Create mobile apps fast for customer testing and feedback.
• Make (Integromat): Automate workflows to reduce costs and improve customer experience.
• Zapier: Connect apps to streamline operations and support growth.
• FlutterFlow: Design cross-platform apps with integrated backend support.

Using these tools, you can iterate your product and business model without heavy coding or investment.

Conclusion

Understanding the business model is essential for a strong product strategy. It ensures your product meets real needs and supports sustainable growth. By aligning your product features, customer focus, and revenue plans, you create a clear path to success.

Using no-code and low-code tools, you can quickly test and refine your ideas. This approach reduces risk and helps you build products that customers love and that drive your business forward.