Highly successful companies base their business plans on the market. They study market segments and carefully choose which ones to compete in, looking for the most suitable dominant Tier 1 customer in a particular segment—the Right Customer.
The Right Customer’s product requirements are the ones to zero in on. If the dominant customer buys the product/solution, the Tier II customers are more likely to jump on the bandwagon and buy it too.
Derive product requirements from a Tier II customer, and the product will likely appeal only to the Tier II customer, and end up capturing a small share of the market—if any. Fast teams have methodologies that help focus on the Right Customer:
Engage with customers directly to define and develop the product
Analyze market segments in-depth to position products precisely
Put the emphasis on finding and meeting customer requirements, rather than letting the product’s potential capabilities drive the process.