Sometimes product development misses the target.

Remember Microsoft Word’s Clippy? The presumptuous virtual paperclip would bounce along the margins of user’s documents making speculative statements (“It looks like you’re writing a letter”) and providing not-so-helpful suggestions. Users rejected Clippy, so Microsoft quickly scrapped it, but it went down in history as one of Time’s 50 worst inventions.

No company—from giants like Microsoft all the way to startups—is immune from tripping up when it comes to product development. According to one report, companies spend up to 35% of all project time on rework.

I’ve been there, too. I once worked for a digital marketing company that created an SMB version of our product. We were pressed for time and didn’t do enough testing before we launched. Once we were live, we began attracting some pretty shady businesses—far from our target market. Oops.

Technology has streamlined product development, but it’s no wonder companies still struggle with “getting it right”: Myriad factors must align during the development process, and setbacks are par for the course; customer expectations are at an all-time high and constantly changing; companies are expected to develop and release products with lightning speed to stay relevant.

Eliminating the guesswork in product development is more important than ever. In the midst of economic uncertainty, most companies are dealing with some combination of budget cuts, less talent due to layoffs, and fewer resources overall. Everyone needs to do more with less.

Let’s look at what companies are getting wrong when it comes to product development and how they can mitigate risk to save time, money, and resources.

WHAT GIVES?

The most common reason companies aren’t getting products right is that they’re misaligned with their market and/or their customers. There are many reasons why projects are undertaken: Maybe there’s a shiny new technology companies want to utilize, or they’re trying to keep their offerings competitive, or perhaps something just seemed like a great idea at the time.

Without a deep understanding of what customers are looking for, these aren’t cause enough to build a product. Companies must truly understand customers’ problems and determine how their solutions will fix them before embarking on any project.

Sounds like a no-brainer, right? Well, it’s easier said than done. Organizations are often lacking easily accessible, direct customer information and input at each stage of the product development process. Without this insight, how can they be expected to deliver products that hit the mark?

By prioritizing a few strategies—and adopting the tech necessary to support them—companies can mitigate the risks associated with product development and build offerings that better fit customer needs.

GET CUSTOMER FEEDBACK AT EVERY STAGE OF DEVELOPMENT

Testing design concepts, prototypes, and experiences with customers during development is vital, yet up to 62% of high-fidelity prototypes go unvalidated. With little to no customer input during the development process, it’s unsurprising that companies are spending so much time on rework.

This can be avoided by incorporating direct customer feedback into each step of the development process. By adopting this strategy, product teams can iterate in real time and have greater confidence in their end result. There’s a common misconception that gathering this information stifles innovation because it eats up time, but technology has made it faster (and easier) than ever to get critical feedback with minimal disruption to workflow.

ENSURE PRODUCT MANAGERS HAVE THE INFO THEY NEED

Over half (55%) of product managers frequently guess when making product-related decisions. It’s no fault of their own—they have a lot on their plate and guessing is sometimes necessary. They’re the air traffic control of development, constantly walking the line between analysis paralysis and making fast, solid decisions. The easier they can access the information needed to make informed decisions, the less likelihood there is for rework.

De-siloing departments within the company means product managers have fewer hoops to jump through to get what they need. Additionally, setting up a cross-functional customer advisory board with direct input from the market can help product managers make more sound decisions.

KEEP UP WITH CHANGING CUSTOMER ATTITUDES

There’s always something impacting consumer behavior, whether it be a pandemic, an impending recession, or more subtle factors. Today’s world moves fast, and customer attitudes and needs can change almost overnight. By keeping a constant pulse on what customers are thinking and feeling, companies have the best shot at hitting the mark with their offerings.

Keeping in regular touch with customers is an effective way to do this, and delving into current market research can give companies a macro view of what’s happening in the market. Organizations can also tap into social media to better understand what customers are saying in real time. This is a great way to get insight into brand sentiment and discover what is most important to customers currently.

There’s no way to perfect the complicated and unpredictable process of product development. But by incorporating customer feedback every step of the way, empowering product managers with the information they need, and staying current with customers, companies can optimize product development, reduce the risk of rework, and drive positive business outcomes. Had Clippy been created with these considerations in mind, the iconic-for-the-wrong-reasons paperclip might still be around today.