Customer vs. Market: Which Should Take Priority in Product Management?
In the past, I used to advocate for a user-centric approach in product management, emphasizing the importance of tailoring products to individual users rather than a broader market. While this approach can lead to a highly specific backlog and intense focus on individual needs, it results in satisfied customers relatively quickly and enhances the value of your role as a product owner.
However, I’ve recently come to realize that this strategy is particularly effective for early-stage startups. But can it truly serve the needs of a growing business or a corporate giant? Well, I wouldn’t be overly dogmatic about sticking to a strictly customer-centric approach in these cases. Allow me to elaborate.
When we reference the foundational contributions of Sigmund Freud in psychology, we often neglect the historical context. Vienna in the 1900s was a city teeming with coffee shops frequented by hedonistic, Epicurean, and occasionally nihilistic philosophers, artists, politicians, and scientists. Social norms in Vienna diverged somewhat from those in other European capitals at the time. Freud’s theories emerged from this unique environment, where attitudes toward sexual matters were shaped by both the extremely liberal mindset of men and the considerably more conservative expectations placed on women. This imbalance contributed to some of the mental disorders experienced by Freud’s clients and shaped the challenges he had to grapple with.
Consider a philosophy of diesel engine engineering being applied to contemporary Tesla service technicians. Certain aspects would be irrelevant or outdated, wouldn’t they? Even though we’d still be discussing automobiles with four wheels and a radio.
Likewise, being a product manager for a fledgling startup demands an intense focus on catering to the needs of individual users, sometimes at the expense of broader context. On the other hand, a large corporation must navigate shifting contexts, occasionally sacrificing personal connections and individual customer requirements.
Startups strive for success by addressing the dissatisfactions of a select few, whereas companies like Meta Inc. must follow or even create trends based on the collective needs of a much larger audience.
