Product failure is a harsh reality for many entrepreneurs and companies. According to Harvard Business School professor Clayton Christensen, a whopping 95% of new products introduced each year end up failing. This daunting statistic is enough to deter even the most daring and madly ambitious individuals from launching a new product into the market.
But here’s the catch – even the lucky 5% of products that do succeed don’t always meet their intended goals. Despite carefully listening to customers and diligently incorporating their requested features, these products often struggle to gain traction. This cycle of failure is known as the “product death cycle,” and it’s a familiar and frustrating occurrence for many product experts.
The irony is that most product experts are simply following what they’ve been taught – listening to their customers.
But the good news is, this vicious product death cycle can be broken. Companies can gain a better understanding of their customers’ needs and pain points, allowing them to develop the right products that solve the right problems at the right time. It all comes down to understanding the core fundamentals.
Make sure you’re solving the right problem
When it comes to product design and development, it may seem like common sense to solve a problem that exists. But successful products and services thrive because they address a specific, well-demonstrated issue. The challenge lies in truly understanding the pain points of customers.
One startup learned this lesson early on when they were approached by a division of a large multinational company. Excited to work with such a prestigious client, they poured all their efforts into creating a stellar product. However, after the product was completed, the client’s priorities had shifted, and they no longer needed the solution.
This scenario may hit close to home for many startups – you get a promising lead from a big company, they share their problems, and you develop a product or solution accordingly. Yet, it still doesn’t pan out as expected.
