Mastering the art of problem validation for successful product-market fit

Andi Bell
Slalom Customer Insight
7 min readJul 24, 2024
Photo by Jopwell from Pexels

In a landscape overflowing with new technologies, it’s easy to feel like we’re swimming in a sea of solutions. But in a world full of shiny new tools, have we lost our patience for basic problem-solving?

At its core, achieving product success boils down to three essential ingredients: desirability, feasibility, and viability. I’ve always appreciated Dan Olsen’s straightforward perspective on the topic, as outlined in his book The Lean Product Playbook. His approach hinges on the product-market fit pyramid, neatly divided into the problem space and the solution space, with five key components — all of which are hierarchical and rely on one another. As you work your way up the pyramid, it’s crucial to address and validate each step before moving forward.

At the top of the pyramid, a dotted line emphasizes the importance of feedback loops, bringing the validation cycle back to the bottom (target audience). Throughout my career, I’ve found myself returning to this pyramid repeatedly for two reasons: it underscores the importance of starting and ending with the customer, and it highlights how the problem space should inform the solution space — and not vice versa.

“Don’t find customers for your products, find products for your customers.”
— Seth Godin

Adapted lean product pyramid — original by Dan Olsen
Product-Market Fit Pyramid overlaid onto the Product Engineering Methodology (PEM), Slalom’s proprietary adaptation of the agile process for software development

Where we’re going wrong

Even though most strategists understand the importance of problem validation prior to solutioning, it still seems to be one of the most prevalent hurdles currently faced — resulting in wasted time and resources, and products that no one needs, wants, or asked for. So, if we all acknowledge the importance of problem validation and its costly repercussions, why does this critical step so often get overlooked?

The mirage of all-in-one solutions

Today’s technology landscape is undeniably saturated and fragmented, presenting businesses with a myriad of options to navigate through. Each day, the pressure for vendors to close grows more intense while consumers grow more and more overwhelmed: suites and platforms casually promise to solve ALL business challenges without batting an eye — allowing little to no room for problem exploration. There’s no denying the value of these technologies, however, most customers are typically in danger of over-buying than underbuying due to the hefty price tag of these extensive capabilities and advanced features.

Should you really be buying a Ferrari with all the bells and whistles when all you need is a reliable Toyota? Not to mention, this Ferrari is really expensive to customize once you realize you didn’t account for a few use cases. There’s really no way of knowing unless you take the time to define your audience and their needs.

Shiny object syndrome

With every passing trend (Hi there, GenAI!), teams get excited and then begins the hunt for problems they can solve, rather than starting with a clear understanding of actual problems that need addressing — resulting in superfluous solutions and misallocated budgets. Yes, this new tech is very cool, but the novelty will soon wear off when your core problems block implementation or creep back into the foreground with dogged persistence. In the long term, this approach will erode trust with your users and result in products that lack scalability.

“If you start building sooner, you’ll finish faster” fallacy

While starting a project quickly might seem like the fastest route to completion, this approach often leads to numerous setbacks. Without a clear understanding of the problem, teams risk building unnecessary features, which is a waste of time, teams, and investment that results in reworking, scope creep, or the sunk-cost fallacy. Thorough problem exploration and validation are essential to prevent these issues, ensuring a more efficient and cost-effective development process. While it might seem counterintuitive, careful planning and validation up front saves time and resources in the long run.

Beyond order-taking: The danger of assumptions

In the fast-paced world of technology and consulting, simply taking orders without questioning underlying assumptions can lead to costly missteps. This mistake is all too common — “I know my customer, and they want a dashboard.” Rarely do businesses admit they lack a thorough understanding of their customers and their needs. However, failing to validate these assumptions can have catastrophic consequences, leading to costly reworkings or even complete project failures. Think of it as the butterfly effect but with significant product and business implications.

Understanding the target audience and their needs forms the base of the product-market fit pyramid, with each layer informing the next. If these foundational assumptions are not validated, the risks compound exponentially as you move upward. This doesn’t mean starting from scratch each time, but rather digging deeper and critically evaluating the level of confidence in what’s known and assumed. What (if anything) has been validated? What remains an assumption? What is the risk if the assumption is incorrect? If the risk is high, additional research is likely warranted.

Consider the tale of NASA’s space pen versus the Soviet cosmonauts’ pencil — a vivid illustration of the importance of understanding problems contextually rather than fixating on predetermined solutions. The story goes: when Americans aimed to send their first astronauts into space, they discovered traditional ballpoint pens were useless without gravity. NASA invested a million dollars into developing a solution, or “a pen that can write with zero gravity.” On the other side of the world, the Soviets faced the same challenges. However, they took a different approach by noting the pain points of the cosmonauts and the need to capture notes on paper. Their pragmatic choice? A pencil.

Source: Space Pen

The benefits of patient problem-solving

Prioritizing problem exploration is not just a means of avoiding costly mistakes — it’s a strategic imperative with far-reaching benefits. By delving into the heart of customer pain points, we unlock a multitude of advantages:

“If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and five minutes thinking about solutions.” — Albert Einstein

Improved customer satisfaction

Understanding and addressing the root causes of customer dissatisfaction enables us to craft solutions that truly resonate with our target audience, fostering higher levels of satisfaction and loyalty.

Increased efficiency and productivity

By homing in on the right problems to solve, teams can streamline workflows, eliminate wasteful activities, and optimize resources, leading to enhanced efficiency and productivity across the board.

Revenue growth

Products that closely align with customer needs and preferences are more likely to gain traction in the market, driving higher sales volumes and fostering revenue growth for the organization.

Competitive advantage

Armed with a deep understanding of the problem space, organizations can develop innovative solutions that set them apart from competitors, establishing a solid foothold in the market and positioning themselves for long-term success.

Practical application

We’re all striving to do more with less these days, and carving out a budget for extensive research isn’t always feasible. But fear not — there are free tools for delving into the problem space and exploring what really counts — our end users, their unmet needs, and how to differentiate.

At the end of the day, what matters most is getting assumptions out of our heads and somewhere where they can be shared, discussed, and validated.

These resources offer the perfect opportunity to evaluate whether you’ve truly nailed your product’s problem or if it’s time to pivot before it’s too late.

Empathy mapping

An empathy map is a visual tool that helps you gain deeper insights into the thoughts, feelings, and behaviors of your users. By creating an empathy map, you can develop a more nuanced understanding of your end users’ unmet needs, enabling you to tailor solutions that resonate on a deeper level and address key pain points effectively.

Source: Daniel Birch, UX strategist

“The customer’s perception is your reality.”
— Kate Zabriskie

Simon Sinek’s Golden Circle

Sinek’s framework challenges you to dig deeper, starting with why you do what you do, rather than just what you offer. By understanding the underlying motivations driving customer behavior, you can craft value propositions that resonate on a deeper level, fostering stronger connections and engagement.

Adapted Golden Circle — original by Simon Sinek

“People don’t want to buy a quarter-inch drill; they want a quarter-inch hole.”
— Theodore Levitt

Value proposition canvas

This handy tool guides you through articulating the core elements of your value proposition, from customer jobs to be done to pains and gains. Through systematic analysis, you can fine-tune your offering to better address customer needs and stand out in a crowded market.

A value proposition canvas includes elements from behavioral psychology and design thinking

“You’ve got to start with the customer experience and work backward to the technology.”
— Jeff Bezos

In a time of constant change, it’s more important than ever to return to our customers, as they’re the only ones who can truly tell us what’s needed. Patience in problem exploration and a keen understanding of our audience are not just guiding principles but the bedrock upon which successful products and ventures are built. So, before plunging headlong into the sea of solutions, let us take a moment to pause, reflect, and truly understand the problems we seek to solve.

After all, in the quest for innovation, patience is not just a virtue — it’s a necessity.

Slalom is a next-generation professional services company creating value at the intersection of business, technology, and humanity. Learn more and reach out today.

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Andi Bell
Slalom Customer Insight

Life's too short to build products no one wants, needs, or asks for...👉 In the business of delivering purpose-built strategies and experiences that spark joy ✨