SC
Strategy Map›Layer 4 · Product Strategy›Whole Product+ from outside the named canon

Multi-Product

What is Multi-Product?

The company builds or buys further products for adjacent jobs, sold as separate products to the same customers. The choice includes when to add a product and how to price the combination.

How Multi-Product works

A second product succeeds when it shares distribution, data or identity with the first and raises switching costs by deepening embedment. It fails when it dilutes the discipline the first product won on.

How companies won with Multi-Product

From the win chains in Strategy Canon case studies: what the winner did, and what its rival did at the same step.

vs. Cylance

CrowdStrike

Full scope on one agent: antivirus replacement, then modules

What it did
Cylance's marketing opened antivirus replacement, so CrowdStrike rushed Falcon Prevent out (Feb 2017)
Cylance
Two products (PROTECT, OPTICS); about $130M revenue when sold to BlackBerry for $1.4B (2018-19)
Read the CrowdStrike case study →
vs. New Relic

Datadog

One agent and tag model across products

What it did
APM on the same tags, priced with infrastructure (Feb 2017)
New Relic
Separate agents and products until New Relic One (Sept 2019)
Read the Datadog case study →
vs. Earnest

SoFi

Membership that turns borrowers into cross-buyers

What it did
Events, job help, unemployment forbearance (2014-17)
Earnest
One refinance product plus personal loans, dropped in 2020
Read the SoFi case study →
vs. Jobber

ServiceTitan

Operating system for larger contractors and roll-ups

What it did
$4M-ACV Mr. Rooter franchise deal (2015); Pro add-ons
Jobber
Kept firms under ~20 employees as its sweet spot
Read the ServiceTitan case study →

Also tagged: Adobe · Amwell · athenahealth · Atlassian · Autodesk · Block · Cadence Design Systems · Certara · Cloudflare · Compass · Confluent · Cornerstone OnDemand · Cylance · Dayforce · DigitalOcean · Figma · Freshworks · GoodRx · HipChat · HubSpot · Inovalon · Microsoft · MongoDB · Navan · Netflix · New Relic · Nubank · Palo Alto Networks · Procore Technologies · Qualtrics · Robinhood · Salesforce · Samsara · ServiceNow · Sprinklr · Squarespace · Teladoc · Toast · Twilio · Uber · Ultimate Software · Veeva · Weave Communications · Workday · Zendesk · ZoomInfo

The question to ask of a company

Which distinct products do customers adopt together, and why does the combination improve their choice or outcome compared with separate purchases?

Who names it — 2 of the canon

AuthorWhat they call it / where it appears
Mehrotra +Bundle economics
NeumannEconomies of scope
PorterShared activities across business units
Dave Yuan +Account gravity
First Round Review +Going multi-product
Note. Multi-Product covers separate products for adjacent jobs. Connected steps of one job inside one product are End-to-End Workflow. New products that deploy on the install the customer already has are Platformization; a company can have both tags. Scope economies concerns lower costs from shared assets.