By Anya Wainberg | Product Expert – Leadership and Management Mentor – Start-Up Advisor – Investor

In this article, we unravel the mysteries of failure by exploring the 10 steps to ruin a product. Beyond the basics, we delve directly into the experiences of companies and entrepreneurs that demonstrate how even well-intentioned projects can derail. The path of learning is not always straight.

Every day, we strive to immerse ourselves in best practices, but sometimes we forget that learning from mistakes is also essential. 

Although we follow protocols, reality teaches us that success is elusive and failure can lurk around every corner.

These lessons not only serve as a warning but also as a guide for those seeking to avoid mistakes and understand the complexity of product development in an ever-changing world.

From lack of market research to ignoring user experience, each misstep offers valuable learning. By delving into these cases, we equip ourselves with practical knowledge that can enrich our strategies and decisions to increase the chances of success.

So, without further ado, let’s embark on this journey of discovery, where lessons from mistakes become beacons illuminating the dark ocean of product development:

#1 Do not research the market

In 2013, Microsoft launched Xbox One without properly researching the market. The console required a constant Internet connection and focused on a multimedia entertainment center. These features were very innovative at that time, and Microsoft failed to achieve the desired adoption. As a result, sales were significantly lower than its competitor, PlayStation 4. 

There are more players in the market, and our customers and users show us trends in tastes, needs, and habits. So it is important not to research the market from time to time, if we want to fail with our product.

#2 Forget your stakeholders

In 2011, Netflix separated its streaming and DVD-by-mail services into two different companies: Netflix and Qwikster, without considering the opinions of its stakeholders.

In a few months, the decision resulted in the loss of over 800,000 subscribers and a 75% decrease in stock price. Internal stakeholders are valuable for informing product decisions. Ignoring their opinions is crucial to leading our product to failure.

#3 Don’t worry about UX/UI

To ensure that a product solves the problems it focuses on, it is important that users can interact with it simply and enjoyably, for which a design with an adequate User Interface (UI) and a satisfactory User Experience (UX) are indispensable.

Self-service checkouts are a good example. These automated systems implemented in supermarkets or other commercial establishments for customers to scan, pack, and pay for their products without the assistance of a human cashier often have difficulties with the user experience, frustrating those looking to buy quickly and efficiently.

Therefore, it becomes evident that not paying careful attention to user experience and interface will not only worsen customer satisfaction but also discourage the adoption of our product, and steer us away from success.

#4 Don’t worry about quality

In 2012, Apple released a maps application for iOS 6 that, due to lack of thorough testing, showed severe geolocation difficulties. This led to widespread dissatisfaction, resulting in a public apology from CEO Tim Cook.

In 2014, Walmart recalled defective dolls from the market after discovering that the chest area heated up, potentially causing burns. Both cases teach us that poor product quality can lead to risks, a negative image, and loss of credibility, creating an ideal environment against the product’s success.

#5 Don’t build an efficient onboarding

In 2018, Snapchat introduced a revamped version of its application with a redesigned user interface. However, the company did not conduct extensive tests with its users, leading to confusion and frustration among many users due to unexpected changes. This situation resulted in a significant decrease in the number of daily active users of the application.

The company had to revert some of the changes and make adjustments to recover lost users. This process not only caused unnecessary costs for the company but also wasted time and caused inconvenience for its customers.

This situation shows you can ruin your product by neglecting the user experience.

#6 Don’t invest time in documentation

Sometimes, the question arises of whether we need to document. Some might argue that if a product is intuitive, documentation becomes unnecessary. However, this perspective can be risky since what is obvious to some may not be so to all, considering the diversity in users’ skills and experiences.

The lack of documentation impacts not only internal teams but also customers, who, without clear usage or installation manuals, can get confused, thus affecting the user experience.

A prominent example was Microsoft Windows 10 in 2015. Criticism arose due to the lack of documentation on updates and changes in the user interface, causing frustration among users who couldn’t find information to perform specific tasks in the operating system.

Ignoring documentation can lead to confusion and negatively impact the product’s perception, ideal for starting the beautiful path of ruining a product.

#7 Dismiss your competition

Imagine driving on a road and not paying attention to other vehicles, only focusing on your driving. Sounds absurd, right?

The same applies to the business world. Ignoring competition is closing your eyes to market trends. Managing well involves more than just improving your product; it involves anticipating and reacting to others’ strategies.

A landmark example is Blockbuster, the movie and game rental chain. As the entertainment industry evolved with streaming and mail-order rentals, Blockbuster clung to its traditional business model, requiring customers to physically go to stores, ignoring signs of change, while Netflix offered more convenient options. This lack of adaptation resulted in Blockbuster’s extinction, which by 2004 had over 9,000 stores worldwide and by 2010 had to file for bankruptcy with a debt of over a billion dollars.

To approach the decline of your product, it is important NOT to be alert and NOT to respond to market and competition evolution.

#8 What about security?

Security, often underestimated, is a critical barrier to prevent hacks and other vulnerabilities.

Noteworthy examples, such as Facebook in 2019 storing passwords in plain text or data breaches suffered by companies like Equifax, Adobe, or Sony (among others), underscore the importance of safeguarding users’ sensitive information.

Security not only involves preventing intrusions but also ensuring that external components, such as uncertified developer plugins, do not become weak links.

A funny vulnerability episode involving the author of this text occurred in 2004 at McDonald’s in Uruguay, where, as clever young nerds, we discovered how to get free ice creams by manipulating a URL. 

This is evidence that even large companies are not exempt from security risks.

The lesson is clear: if security is not a priority, you can not only jeopardize the product’s integrity but also the trust of your customers.

#9 Don’t consider your team

Disregarding the voices and opinions of the team can become a lonely path to failure.

Ignoring feedback and suggestions from the environment deprives them of the opportunity to contribute to crucial decisions about processes, strategies, technology, architecture, or design, which can lead to suboptimal solutions and a lack of motivation.

Agile methodologies, with their principles of feedback, open communication, and constant feedback, emphasize the importance of involving teams in decision-making processes. Creating a trusting environment where members feel free to express their opinions is essential.

Involving the team directly with customers and making them part of the development process is fundamental to promoting the creation of products that are closer, more empathetic, and aligned with market needs.

#10 Ignore your customers

Dismissing the importance of listening to customers and overvaluing personal beliefs can become a foolproof formula for business failure.

In the quantitative realm, it is essential to measure and quantify the problems and opportunities that customers face, especially the majority of those generating the most revenue, or tackle opportunities whose solution would save the company high costs. Defining KPIs, measuring them, and analyzing them periodically is fundamental; however, a true understanding of the underlying difficulties behind these metrics requires qualitative techniques. Approaching customers, conducting usability tests, or using data analysis tools are indispensable practices.

Ignoring this comprehensive approach, whether due to lack of resources or overestimation of personal knowledge, can result in the loss of valuable insights, compromising the product’s relevance.

Concluding this journey through the ten steps that can lead to the failure of a product, it is clear that learning from mistakes is as fundamental as seeking the path to success.

The shared experiences of notable companies, from Microsoft to Snapchat, provide valuable lessons that go beyond simple anecdotes.

Reflecting on these steps, we equip ourselves with valuable knowledge that can transform how we approach product development, guiding us toward more informed decisions and more effective strategies.

Ultimately, the journey of discovery not only reveals how to ruin a product but also how to build the path to success through careful attention, constant adaptation, and active listening.

To learn more, I invite you to watch my talk: How to spoil a product in 10 steps, presented at the GeneXus Meeting – GX30.

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