Fireside chat with Amplitude CPO
Amplitude Growth Story
Last week, I had the chance of attending a fireside chat with Justin Bauer, Amplitude’s Chief Product Officer (CPO), where he shared invaluable insights into the company’s exceptional growth journey. What sets Amplitude apart from other organizations is its unwavering commitment to long-term strategy, customer-centric product development, and data-driven big bets.
Amplitude’s growth journey can be divided into four distinct phases spanning a decade. It all began with their support for fledgling Silicon Valley startups, laying the foundation for a strong and dynamic company. The next phase involved targeting enterprise customers within the United States, further expanding their reach and influence. The natural progression towards globalization followed, with Amplitude striving to make a global impact. Finally, they ventured into diversifying their product offerings, capitalizing on their solid foundation to expand into new territories.
Central to Amplitude’s success was their unwavering focus on customer-centric product development. Throughout their journey, product managers played a pivotal role, dedicating a significant portion of their time to engaging with customers. This approach ensured that Amplitude’s products were finely tuned to meet real needs and desires, fostering a culture of continuous improvement and innovation. Their approach to enterprise sales was equally impressive, as they sought to build meaningful partnerships with clients, looking towards a collaborative journey that would span five years. This forward-thinking strategy underlined their commitment to being not just a vendor but a trusted partner in their customers’ growth and success.
One fascinating aspect of Amplitude’s success was their decision to focus on a single product for an extended period. Unlike some competitors who diversified early on, Amplitude harnessed the strength of their flagship product’s engine and structure, allowing them to expand effectively into new territories when the time was right.
Two key principles guided Amplitude’s product diversification strategy. First, they stressed the importance of a clear distinction between ongoing product development and the introduction of new products. By hiring new talent exclusively for new product ventures, Amplitude ensured a laser-sharp focus on innovation and avoided resource dilution. Second, their conviction to invest in new products was driven by data validation. They carefully analyzed the potential for success based on integrated usage rates and the opportunity to leverage current assets to create superior solutions.
Currently, Amplitude is not just providing data analysis solutions but also AB test platforms and solutions for marketers. Their commitment to continuous improvement is evident in their work on leveraging LLM to sharpen their abilities and expanding their capabilities to cover other data types based on datalake analysis.
Regarding metrics, Amplitude refrains from relying on a single “north star.” Instead, they track 5–6 core metrics and deconstruct them into approximately 25–30 related metrics. While some consider revenue a potential north star, historically, product-related metrics such as “Weekly Querying Number” for SMBs and “Weekly Learning Users” for Enterprise have served as guiding metrics for the company.
Amplitude’s triumphant journey is a testament to the power of big bets, customer-centricity, and continuous product innovation. By adhering to their core principles and embracing challenges, Amplitude has emerged as a pioneering force in the product intelligence industry. Their inspiring success story serves as a beacon of motivation for aspiring entrepreneurs and product leaders, urging them to pursue a vision-driven approach and a commitment to customer satisfaction for long-term success.
