What Does a Data Product Manager Do?

The role of a Data Product Manager (Data PM) is becoming increasingly important as data becomes more and more central to how organizations make decisions. Data is a major driver of success in any company so it’s likely why those that are more data-driven opt to hire a Data PM.

If this is a role that interests you, you might want to know more about what a Data Product Manager does. In this post, we will explore what the role really is, a closer look at why a company might need a Data PM, the role’s key responsibilities, as well as:

• How data is utilized by a Data PM
• What metrics a Data PM handles
• How to become a Data Product Manager
• How to prepare for the Data Product Manager Interview

What is a Data Product Manager?

A Data Product Manager is a role that focuses on the development and delivery of a data product. A data product is a software application, service, or feature that is built around data. 

Although the focus is more on data as a product, some of the duties of a traditional PM are also included within the role’s scope. For example, defining the product strategy and roadmap, working with cross-functional teams to execute the product vision, and ensuring that the product meets the users’ needs.

To sum up the position’s common tasks, a Data PM will have to address the following questions while on the job:

• What data are there?
• Who requires these facts?
• Where is this info coming from and going?
• What function does this information offer?
• Is there a way to make using and accessing this data simpler?
• Is this data relevant and/or consistent?
• How can we quickly make data more valuable for more employees at the company?

Why is a Data Product Manager Needed?

Not all companies have Data PMs in their teams but this is an emerging and growing position. As companies grow and deal with big data, they will eventually need Data Product Managers to make sense of the expansive information they have on their hands.

Spotting holes in the data experience of internal users and then filling in the cracks found through collaborating with the data and analytics team is a vital part of the position.

The core of the role is data management. If there’s no one in charge of this, the burden of handling data will fall on individual contributors. That may not sound so bad but a company may be running the risk of decentralizing valuable insights and analytics, affecting efficiency and proper leveraging of data. Those will be missed opportunities that could give any company an edge over the competition.

Key Responsibilities of a Data PM

So what exactly are the key responsibilities that a Data Product Manager takes on? Data PMs must have a strong understanding of data science, engineering, and product management because they need to do the following:

• Assembling and analyzing product data
• Use such data to generate goods and design
• Utilizing several data science methods
• Managing engineering processes and data flow
• Construction of data pipelines
• Assessing data output

A good Data PM can impact long-term product performance and enable firms to be adaptive and responsive to shifting market circumstances.

Responsibilities Similar to a Traditional Product Manager

Definitely, the focus of the role is data. This type of PM simultaneously performs the roles of a Product Manager and a Data Analyst, utilizing data to improve the production process and take preventative action. 

Despite this, there are still some responsibilities a Data PM takes on that are similar to that of a traditional Product Manager: 

Perform Research 

Market, competitor, and consumer research is still required. This might range from a preliminary SWOT analysis of the market through user and beta testing of the product before launch.

Create Customer Personas 

While the marketing department frequently creates buyer personas, it’s crucial to work with them and incorporate analytics and important data to support decisions. 

Use Data and Analytics

A Data PM will have to use data and analytics to assist and persuade stakeholders. Every choice should be supported by data. 

The Data PM will have to simplify and break down data so that anyone can understand it. Being able to explain the numbers to people within the organization who may not have a good grasp of analytics is essential because it makes up a significant portion of a Data Product Manager’s job.

Establish OKRs and KPIs

Data PMs establish objectives and key results (OKRs), key performance indicators (KPIs), and specific, measurable, achievable, relevant, and time-bound (SMART) objectives for their group, their division, and the entire business.

What Metrics do Data Product Managers Track?

You might be wondering about the kind of metrics that Data PMs deal with. Almost anything can be turned into data so we’re going to give you the most common critical metrics that a Data PM should track regularly:

Monthly and Daily Active Users

As you progress through the product life cycle, the number of monthly and daily active users should rise, although this might vary depending on the product. 

Customer Conversion Rate

A high conversion rate means that customers are making purchases on your platform or app.

Customer Turnover and Retention Rates

Customer turnover, or churn rate, is the percentage of an organization’s lost customer base. Retention rates, on the other hand, are the opposite. It’s the percentage at which customers stay on a platform. By monitoring these indicators, a Data PM will learn why consumers are making subsequent purchases or why they aren’t.

Client Satisfaction Score and Net Promoter Score

The net promoter score (NPS) examines qualitative data and considers the full customer experience. A customer satisfaction score (CSAT) is a quick evaluation of a particular area, like accessibility or onboarding.

The metrics can vary from company to company. It can also depend on the kind of product or feature that’s being offered.

How to Become a Data Product Manager?

So now that you know most of the basics, you might be interested in knowing where to start. How do you become a Data PM? 

Start with a Foundation

The first step that you need to take is to gain a fundamental understanding of data and data products.

It will be simpler for you to get started if you have professional experience in any of the disciplines involved because it is a technical position that demands knowledge of data science, data engineering, data management, product development, UX, business intelligence, and much more.

Develop the Essential Skills

You must improve your abilities through further study and practice. To succeed as a data PM, you must have both hard and soft talents. These consist of:

• Abilities in product development
• Product administration
• Data Science
• Computer learning
• Analytics of data
• Development and design
• Database administration and SQL expertise
• Aptitude for addressing issues
• Ability to analyze
• Skills in cooperation, communication, and teamwork
• Adaptability and flexibility
• Meet deadlines, logical analysis, and decision-making abilities.

You will also need to develop the following essential skills to be a successful Data PM:

• Strong understanding of data and analytics – this will allow you to develop products that meet the needs of your users and achieve your business goals.
• Excellent communication skills – you must communicate effectively with both technical and non-technical teams. This ensures that everyone is on the same page and that your products are successfully built and implemented.
• Outstanding project management – this skill is critical in this role as you will be responsible for managing the development and launch of your data products.

Do the Job Before Doing the Job

After creating a foundation and knowing what skills to develop, you can move towards application. If you have no experience in Data Management, try joining a team to work as a Data PM. It’s like doing the job before you even do the interview.

This is a great way to become more confident and to be more familiar with the role you’re interested in.

What are the Challenges of Being a Data Product Manager?

Due to the nature of their work, Data Product Managers often face several challenges. Definitely, the other types of PMs will have challenges as well but the ones we listed below are specific to the type of PM that deals with data:

Managing Expectations

Data Product Managers must ensure that the products they develop meet the business’s and its customers’ needs. They must also be realistic about what can be accomplished with data.

Finding the Right Balance

Data PMs must find the right balance between features, functionality, data, and design. They must also strike a balance between meeting the needs of the business and the limitations of technology.

Keeping up with the Latest Trends

This type of PM must stay up-to-date on the latest data trends and technologies. It is necessary to be able to adapt to new changes and developments in the field quickly.

Managing Complexity

Data products are often complex, and Data Product Managers must be able to manage this complexity effectively. They must understand and simplify complex problems and ensure that products are developed and maintained accordingly.

Knowing what potential challenges you might face will further prepare you to become a Data PM. Your next step would be applying for the role and then preparing for your Data PM interview.

How to Prepare for the Data Product Manager Interview

How can you prepare for your Data Product Manager interview granted that you already have foundational knowledge, are aware of the skills you need to succeed, the potential challenges you will face, and have worked on a side project? Here are a few suggestions:

Build Your Professional Network Before the Interview

If you’re hoping to land a job in Data Product Management, you should start by building a strong professional network. You’ll likely be interviewed by people in your network – investors, advisors, or even other Data Product Managers – so it’s advantageous to meet people in the space.

If you would like to know more about building a network as a PM, you can read: How to Build a Network: A Guide for Product Managers.

Go Through a Self-Paced PM Interview Course

At PM Exercises, you will find a Product Manager interview prep course that contains the knowledge you need to master your PM interview skills. There are over 100 video hours plus more than 100 online lessons that will equip and make you feel more confident before your interview.

The lessons include the most common questions asked during PM interviews, sorted into the following categories:

• Product Sense
• Execution
• Analytics
• Strategy
• Technical
• Behavioral

As a Data PM, you’re going to need all the help you can get when answering analytics questions. So early on, it’s best to learn frameworks that can help you put a structure to your answers.

Note: You would need an upgraded account to access the full course.

Practice Answering PM Interview Questions

On PM Exercises, we have compiled over 2000 Product Manager interview questions. Our PM community has also provided sample answers to those questions as a form of practice. 

Some of the questions have multiple answers and feedback from the members. Spend time reading the questions, answers, and feedback. This step helps you see how PMs take various approaches to answer a specific question.

Pay close attention to which answers get the highest number of likes from the community. The feedback people post generally hints at the reason they are good answers. 

Do Mock Interviews

On PM Exercises, there’s a section where you can search for members of the community who are willing to do a mock interview. After signing up, you simply add your profile, browse through others’ profiles and then click on the “Request Mock Interview” button when you have chosen your partner.

Repeat the Process Until you Feel Confident

Preparing for your PM interview isn’t going to be a one-time process. PMs who have landed their dream job have repeated the cycle multiple times. Don’t worry if you feel like there are still more of your interview skills to improve. Generally, it takes about 4-8 weeks to prep for a PM interview so don’t hesitate to go over the suggested steps again and again.

Final Thoughts

Data Product Manager may be the PM role that most fits you. You become responsible for developing and managing data products, and, as a whole, data available to the company. You’re going to focus on data that powers a product and fulfills the goal set by the company. 

You just have to make sure that you go through the necessary steps to thoroughly prepare for your Data Product Manager interview by going through a course, practicing PM interview questions, doing a mock interview, then repeating the process until you are comfortable and confident.

FAQ

How does a Data Product Manager differ from a Project Manager?

A Data Product Manager focuses on the product development process, while a Project Manager focuses on executing a project plan. While both roles work closely with engineering teams, a Data Product Manager is typically more involved in the product design phase while a Project Manager oversees project progress and delivery.

What type of education is required for a Data Product Manager?

No specific degree or certification is required to become a Data Product Manager. However, most Data Product Managers have at least a bachelor’s degree in computer science, engineering, or a related field. Additionally, many organizations prefer candidates with an MBA or similar graduate degree.