What It Takes to Build Products for Millions

Inside the world of consumer product management

Amy Mitchell

and

Wayne Chen

Oct 01, 2024

Intro

Building products that millions of people use daily sounds exciting, but the reality behind consumer product management is far more complex. It's a role that requires balancing the demands of a large, diverse user base with the need for speed, precision, and constant iteration.

This week we are joined by Wayne Chen, Principal Product Manager at Instacart, the leading grocery technology company. Wayne has discovered that changes in the product can have outsized effects on user experience and satisfaction.

If you've ever wondered what it takes to navigate the fast-paced, high-stakes world of consumer PMs, Wayne will share the challenges and opportunities that define consumer product management.

👋Wayne here

Ever wonder what it’s like to build something that millions of people use every day? As a Consumer Product Manager (PM), you’re tasked with making decisions that can directly shape how people interact with a product—and the stakes are high.

At Instacart, I’ve learned that the smallest tweaks can make a massive impact on the end users and the business. If you’ve ever been curious about what consumer PMs do or how they keep up with the pressure of delivering meaningful results, you’re in the right place. Let’s pull back the curtain on what it takes to succeed in this dynamic space.

The Role of a Consumer PM: Creating for Individuals, Not Systems

The heart of consumer product management lies in understanding the people behind the screen—each user with their unique preferences, needs, and habits. Unlike other areas of product management, a consumer PM focuses on creating products that resonate with broad audiences while addressing individual needs. This presents a distinct challenge: you can’t please everyone, but you need to deliver value that feels personal to each user.

Take the monetization models, for example. Consumer products often rely on direct sales, subscriptions, or even ads, where every feature can influence revenue. This approach demands a different kind of problem-solving and decision-making, often based on real-time feedback from a large user base.

Building Consumer Products: Fast Feedback, Faster Iteration

When you’re managing consumer products, speed matters. The development cycle is fast-paced, with feedback loops happening in real time. At Instacart, the moment a feature is rolled out, it’s instantly live to millions of users. Within hours, you’ll know if it’s a hit or a miss. This rapid feedback is both a blessing and a challenge—you can iterate quickly but also have to respond to issues before they spiral out of control.

One of the most important aspects of being a consumer PM is mastering the art of experimentation. We test, gather data, learn, and repeat—constantly tweaking the product to align with user behavior. This is where data becomes your best friend, guiding each decision you make to ensure that the experience you’re building truly connects with your audience.

The focus on data runs deep at every level of our team, from individual contributors right up to our CPO. Earlier this half, during a review of our loyalty experience, I pitched a design to integrate retailer loyalty into the checkout flow, keeping it aligned with the overall theme of our app. Our CPO, however, pushed back, proposing a bolder, more vibrant design that would highlight the retailer’s branding. After some healthy debate, we decided to test both ideas. Several weeks of experimentation later, the data spoke loud and clear: the vibrant design didn’t just underperform, it caused a noticeable drop in user engagement, proving too distracting for our users. When we shared the results, our CPO didn’t hesitate to embrace the data, applauding the team for running the test and letting the insights guide us.

Navigating the Unique Ecosystem of E-Commerce at Instacart

Working as a consumer PM in e-commerce adds a unique layer of complexity. Instacart operates as a four-sided marketplace, balancing the needs of customers, retailers, advertisers, and shoppers.

Let me paint a picture: you might be working to lower prices for customers, but that decision could reduce profitability for retailers. This is where data and experimentation come into play. Every decision must be a calculated trade-off, and testing is critical in making informed choices that benefit all sides of the marketplace.

Here is a diagram of our 4-sided marketplace:

We also provide white-label solutions to retailers like Sprouts.com, enabling them to run their e-commerce operations seamlessly. From powering everything on Sprouts.com and the Sprouts app to closely collaborating with their teams to integrate with their network of services, we’re the engine behind their digital presence. Balancing these two worlds—our marketplace and our retail partners—requires thoughtful product strategy and alignment across teams.

The Development Process: Data-Driven and Rapid

Speed is a hallmark of a consumer PM. Whether it’s a new feature or a checkout flow improvement, everything moves quickly. Shorter release cycles paired with immediate feedback means you’re constantly iterating and refining. Even minor optimizations in the customer journey can have significant impacts, especially when you’re serving millions of users.

Consumer PMs live and breathe data. Every product decision is supported by user insights, making experimentation the backbone of our work. We run A/B tests, analyze the results, and use that data to inform the next iteration. This approach keeps the product evolving and responsive to user needs.

Common Challenges Faced by Consumer PMs

Working as a consumer PM is rewarding, but it comes with its own set of complex challenges. With a large and diverse user base, constant feedback, and multiple stakeholders to consider, the role demands sharp decision-making and an ability to prioritize effectively. Whether you’re navigating real-time data or balancing competing interests, here are some of the key challenges that define the day-to-day life of a consumer PM—and how to overcome them.

Prioritizing the Right Users: With such a large user base, you can’t build for everyone. Successful consumer PMs prioritize key user segments and ensure that their needs are being met without losing sight of the broader audience.
Balancing Short- and Long-Term Success: At times, making progress requires short-term trade-offs, like temporarily sacrificing a key metric to unlock long-term benefits. It’s all about understanding when to make those calls.
Interpreting Data in Real-Time: Data is both your compass and your map. But with so much information at your fingertips, learning how to interpret it effectively and make fast, informed decisions is crucial.
Handling Public Feedback: The fast nature of consumer feedback, especially in the social media era, can work for or against you. Monitoring sentiment and acting quickly is vital to maintaining your product’s reputation.
Managing Expectations Across Stakeholders: With so many stakeholders—customers, partners, and advertisers—all with their own goals, consumer PMs must become experts at making trade-offs and finding the right balance.

Tips for Growing as a Consumer PM

Success in consumer product management isn’t just about managing today’s challenges—it's about continuously growing and adapting in a fast-paced environment. Whether you're just starting or looking to sharpen your skills, there are a few key practices that can help you thrive in this role. From mastering data-driven decisions to navigating setbacks, here are some essential tips to accelerate your growth as a consumer PM and stay ahead:

Get Comfortable with Data: Learn to leverage data at every step. Whether it’s working with data scientists or diving into user insights yourself, understanding how to use data to drive product decisions is key to your success.
Embrace Setbacks: Not every feature will be a winner. The important thing is to learn from each setback, adjust, and move forward quickly.
Adapt and Iterate: Flexibility is your superpower as a consumer PM. Things move fast, and being able to pivot and refocus is an essential skill.
Balance the Portfolio: Make sure your project mix includes quick wins alongside more ambitious bets. This approach helps manage risk and creates space for meaningful impact.

Key Takeaways for Consumer Product Managers

Being a consumer PM means working in a high-velocity environment where real-time user feedback impacts decision-making, making agility and rapid iteration essential. Data is the foundation that guides every experiment and product change, ensuring that decisions are rooted in insight rather than guesswork. Finally, one of the biggest challenges—and rewards—is balancing the needs of multiple stakeholders while keeping the user experience as the top priority.

In the end, the true art of consumer product management lies in the ability to craft experiences that feel personal, even when serving millions—because every user counts.