When looking for an agency to help with your product development needs, you may notice the term ‘digital product agency.’ But you might not be sure what a digital product agency does and might not be familiar with its service or concept. Briefly, a digital product agency helps from conceptualization to testing your product, and it is not the same as a typical software development agency.

So, What does Digital Product Agency do?

Digital products include all software that can access with electric devices, such as websites, mobile applications, and even digital marketing collaterals. A common concept of a digital product agency is an external team to help companies build the right product in the right place. For example, you want to develop a new digital product, and you need to search for a UX agency, development agency, and marketing agency. A digital product agency can fulfill these multiple agencies’ capabilities as a single team. Digital product agency typically consists of collaborative teams, including product manager, UXUI designers, developers, QA, agile leaders, product strategist, and marketing experts. And it focuses on user research, user journey workflow, and design process to build the right digital product for the right target audience.

Difference between Digital Product Agency Vs. Software development agency 

There are differences between a digital product agency and a software development agency. 

Software agency focuses on building software, and digital product agency focuses on strategizing the products. Software development agency specializes in developing software with fundamental methodology, which will not make a successful digital product. Digital product agencies, on the other hand, bring technical and design skills altogether and collaborate with multidisciplinary teams and focus on product strategy and marketing. 

Why need to work with a digital product agency? 

Developing a new product with the internal team requires a lot of effort and can be expensive. Imagine you need to hire a user research team, an additional product team, QA, and a product marketing team for new product development. It is a long process to hire and onboard the team, and it costs a lot to employ the entire team. The benefits of hiring a digital product agency are efficiency and cost-effectiveness. It also helps to align your product development process.  

A digital product agency can help avoid biases and reduce the risk of approaching the market. Most digital product agencies like Tacpoint provide full service for a new digital product, from research to maintenance. Here is the type of services that digital product agencies can help you with:  

Product Strategy 

When you decide to work with a digital product agency, they will start to discuss your needs and goals, and they will develop the product roadmap and product strategy. The most common things that they will discuss are the following :

  • Planning MVP 
  • Technical specifications
  • Resources to build the product
  • Pricing strategy 
  • Metrics to track 

Research & Insight

Digital product agencies can help to understand the best target market and the users. They will research the industry landscape, market, and competitors and conduct user interviews to learn more about your potential users and think about how your product can approach the problem.

Product Design & Development 

Once they have enough information about your product and user personas, they will start to design the products. Mostly, they will work on user stories in the beginning. Also, they will help develop the brand identity for your product. Once the design is ready to go, development is the final stage. Front-end & back-end developers and Quality Analysts will work together to develop your products with the design specification. 


After your product is launched, they will keep testing and getting feedback from the users, fix the bugs, updates new features, and keep optimizing the user experience.


A digital product agency is an external collaborative team that helps build a successful digital product. Compared with a software development agency, a digital product agency can help you strategize your product and support the entire product development, from researching the market and users to maintaining your final product. Hiring a digital product agency like Tacpoint can reduce the risk of product-market fit failure. It is more cost-effective and efficient than working with an internal team or hiring a new internal team. 

Tacpoint Digital Product Agency 

We’re a digital product agency that designs and develops enterprise digital products. At Tacpoint, we offer a complete end-to-end service to guarantee the highest quality in your finished product. It's an approach that's supercharged businesses for over 20 years.


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