TL;DR
Launch tiers help companies prioritize resources for multiple product launches.
Tiers should be based on business impact, not the number of deliverables.
Clearly defined tiers create a common language and avoid resource mismanagement.
Avoid common pitfalls like "gaming the system" by tying tiers to business outcomes.
Launch tiers prioritize launches that matter most to the company's goals.
How to Use Launch Tiers to Ensure Product Launch Readiness
When you're managing multiple product launches throughout the year, resource allocation can be one of the biggest challenges. Each product demands attention, but not all of them are equally critical to your business goals. That's where launch tiers come in—a system that helps you prioritize product launches based on the business impact, not the number of tasks to complete. It’s all about ensuring that your company is launch-ready, no matter how many products are on the horizon.
What Are Launch Tiers?
Launch tiers categorize your product launches into levels based on their business significance. Instead of treating every launch with the same amount of resources, you can focus your attention and efforts where they’re needed most. Tier 1 might represent a game-changing product that could significantly move the needle for your business, while Tier 3 might be for smaller updates or niche products.
The key here is understanding that not every product launch deserves the same level of resources. By categorizing them into tiers, you're able to give your top-priority launches the attention they need, without spreading your resources too thin.
How to Define Launch Tiers
A common mistake companies make when defining their launch tiers is basing them on deliverables like the number of artifacts produced—press releases, social media campaigns, etc.
While deliverables are important, they shouldn’t be the primary factor for determining the priority of a launch. This approach can lead to people "gaming the system" by pushing for more deliverables just to increase the perceived importance of their launch.
To avoid this, launch tiers should be based on the expected business impact. Consider metrics like potential revenue, market share growth, or strategic alignment with company goals. These are the factors that truly justify the amount of resources allocated to a product launch.
Key Factors to Consider:
Revenue potential: How much revenue is this product expected to generate?
Strategic importance: Does this launch align with a broader company strategy?
Customer impact: How significantly will this product affect your customer base?
Competitive landscape: Will this launch give us competitive advantages?
With clear, impact-based criteria, you can assign resources appropriately and ensure that your team is working toward goals that matter.
Building a Common Language Around Launch Tiers
It’s not enough to define your launch tiers—everyone in the company needs to understand and agree on what these tiers mean.
Having a common language around launch tiers ensures that every department, from marketing to sales to product development, is on the same page.
When everyone understands that Tier 1 launches are a high-priority because they drive the most business impact, there’s less debate about resource allocation. This clarity helps avoid confusion and prevents departments from arguing for more resources without justifying the business need.
Communicating the Tiers Across Teams
Start by creating a simple, easy-to-understand framework that outlines what each tier represents and the types of resources and deliverables expected for each. This transparency will help foster better collaboration and reduce the likelihood of resource mismanagement.
Consider the following guidelines when communicating:
Use clear, business-focused criteria: Highlight how each tier ties back to business goals.
Set realistic expectations: Make sure teams know what’s achievable within each tier.
Involve leadership: Ensure that executives buy into the system and communicate its importance to the rest of the company.
Avoiding Common Launch Tier Pitfalls
While launch tiers can streamline resource allocation, they can also be misused if not implemented correctly. As mentioned earlier, one major issue is basing tiers on the number of deliverables rather than business outcomes. This can lead to teams pushing for more assets just to elevate their launch, without considering if it’s actually necessary.
To avoid this, ensure your launch tier system remains focused on business impact. Here are a few common pitfalls to watch out for:
Pitfall 1: The "More is Better" Fallacy
Some teams might think that producing more deliverables automatically justifies a higher tier. But this isn’t the case. Launch tiers aren’t about how much you do—they’re about the value of what you’re doing.
Pitfall 2: Lack of Clarity
If your tiers aren’t clearly defined, you’ll run into confusion and conflict over which launch deserves more attention. Create detailed documentation that explains what each tier means and how it connects to company goals.
Pitfall 3: Not Adjusting for Changes
Business priorities shift. A launch that starts as a Tier 2 might become a Tier 1 based on market changes. Be sure to regularly review and adjust your tiers to reflect the current business environment.
Why Launch Tiers Matter for Product Launch Readiness
Being launch-ready means more than just checking off deliverables. It means ensuring that your resources are being spent wisely and that your most important launches have everything they need to succeed. Launch tiers allow you to focus your team’s time and energy on the launches that will have the biggest impact, setting you up for success across the board.
By defining your tiers based on business impact and communicating them clearly across your organization, you can ensure that each launch gets the right level of support, no matter how many products you're juggling.
Launch Tiers Example
Launch Tier 1 - New products, new capabilities, new markets
Reserve a Tier 1 launch priority for the most important product launches. Tier 1 product launches have the highest visibility of all product launches. Everyone is watching. They are critical to successful growth.
A Tier 1 launch gets the highest priority for budget and resources. Lower-tier launches could get fewer resources when there is a resource constraint.
Choose a Tier 1 launch priority when you:
Enter a product category for the first time (or create a new product category)
Enter a new market with an existing product
Introduce significant new capabilities to a current product
Make a change to the status quo in substantial ways (internal and external)
Launch Tier 2 - Competitive advantage
A Tier 2 launch is essential to a business but less crucial than a Tier 1 launch, but still very important. A Tier 2 launch is for an existing product in existing markets for which you have an opportunity to create space between you and a competitor.
Choose a Tier 2 launch priority when you:
Increase competitive advantage to increase market share
Launch Tier 3 - Competitive parity
A Tier 3 launch is a lower priority than a Tier 2 launch. A Tier 3 launch is still essential to your business but could be sacrificed for higher-tier product launches.
Choose a Tier 3 Launch priority when closing the gaps in your product which cause you to lose business to competitors.
Choose a Tier 3 launch priority when you:
Catch up to competitive offerings
Introduce features and services intended to reduce customer churn
Introduce features and services designed to increase product adoption
Launch Tier 4 - Routine product improvements
A Tier 4 launch is the lowest priority launch tier. It's intended for product releases where customer communication of what's new is the only effort needed.
Choose a Tier 4 launch when you:
Introduce minor updates to a product
Fix bugs
Improve product performance
Why is having a Tier 4 launch needed? It's because of the conflation of product launch and product release I mentioned previously. Many organizations still refer to a product release as a product launch. A Tier 4 is a convenient place for them.
Wrap Up
In a world where companies are launching multiple products throughout the year, it’s essential to prioritize your resources based on business impact.
Launch tiers provide a powerful framework for doing just that. By focusing on business outcomes rather than deliverables, you can ensure that your top-priority launches are set up for success. And by creating a common language around these tiers, you can keep your entire organization aligned and ready to launch.