Mixpanel's product management strategy emphasizes the importance of incremental improvements, termed Building Block Updates, alongside major feature releases to ensure long-term success. The prioritization of these updates involves assessing customer feedback, analyzing data for potential friction points, and considering resource constraints. Mixpanel advocates for an analytics-driven approach that includes flexible processes and strategic allocation of development resources to incorporate user feedback and optimize key product areas. This method has proven beneficial in enhancing user experience and reducing engineering workload, as exemplified by the revamping of their Boards feature, which addressed inconsistencies in visualizations. By balancing iterative improvements with new feature launches, Mixpanel aims to maintain a competitive edge and improve overall product usability.