Outcomes Before Features
Aligning Product Development With Customer Needs
Nearly 30,000 new products debut each year, yet according to MIT's research, a staggering 95% fail, primarily due to a lack of market need. Further underscoring this issue, the 2014 Chaos Report by the Standish Group reveals that about 20% of product features are rarely used, with over 40% never utilized. This raises an essential question: Why do we continue to develop features without thoroughly understanding customer needs? This pattern of misplaced priorities often stems from several deep-rooted misconceptions in the product development process. This article aims to debunk these myths, laying the groundwork for a more effective and customer-centric approach to developing successful products.
The 'Must Build-First To Learn' Misconception: A widely held belief is that understanding customer needs is only possible through a cycle of building and testing. It's important to acknowledge that building prototypes can provide valuable insights into customer reactions to a solution. However, this differs from the notion that building is necessary to comprehend their needs. A deep understanding of customer needs can, and ideally should, be developed before any building begins. Engaging with customers upfront charts the most efficient course and avoids the costly detours of promiscuously pivoting.
The 'Customers Don't Know What They Want' Misconception: This misconception, often bolstered by the misattributed Henry Ford quote about faster horses, suggests that customer input is irrelevant as they cannot envision innovative solutions. This view, however, overlooks a crucial aspect. While customers might not articulate specific innovative solutions, they are experts in recognizing their problems and desired outcomes. The real need in Ford's time wasn't faster horses but a more efficient means of transportation. Tapping into these customer insights is crucial as they are instrumental in shaping genuinely innovative and effective products.
The 'Customer Discovery Delays Value Delivery' Misconception: In the rush of product development, releasing features without fully understanding customer needs might seem efficient, similar to rapidly firing arrows without aiming. While this approach produces faster output, which can feel like progress, it often leads to misaligned solutions. In contrast, taking the time to aim – to understand customer needs deeply – may appear slower at first but ultimately leads to faster delivery of real value. It's a classic case of fewer, more precisely aimed arrows hitting the target more effectively than a flurry of misguided attempts. This strategic approach saves time in the long run and ensures that every effort contributes meaningfully towards desired outcomes.
Conclusion: These misconceptions underline the necessity for a balanced approach to product development that starts with customer insight to guide our iterative building approach. But how can we effectively integrate these elements to ensure our development process is both customer-centric and reduces waste in time and effort? The solution lies in a powerful tool: the Customer Job Map. In our next post, we'll explore how the Customer Job Map can revolutionize your approach to product development, aligning each step closely with your customer’s actual needs. Stay tuned to discover how this innovative approach can lead to more focused, efficient, and ultimately faster delivery of valuable solutions.