# Why Founders Misunderstand Customer Demand A McKinsey expert reveals the common mistake behind failed products. - **Source:** [McKinsey Insights](https://www.mckinsey.com/insights) - **Published:** 2026-07-24 - **Topic:** [Entrepreneurship](https://brifing.si/c/entrepreneurship) - **Original article:** - **On Brifing:** https://brifing.si/s/fb245607-9f6f-47a6-b389-724534ddcbfe ## The common issue of failed products Many promising products fail to gain expected traction. A former McKinsey employee points out that the root cause lies in founders misinterpreting customer needs. Conventional thinking patterns prevent them from seeing real demand. ## The trap of false assumptions Founders often act based on their own biases. They believe they know what customers want, but these assumptions rarely align with reality. This leads to product-market misfit and eventual failure. ## Defining the ideal customer The key to success lies in accurately defining the 'ideal' customer. This segment appreciates the product's true value most and shows long-term loyalty. Asking the right questions is critical at this stage. ## Data-driven approach Entrepreneurs should use both quantitative and qualitative data to understand customer behavior. Surveys, interviews, and user testing are effective methods to uncover real needs. This allows decisions based on evidence rather than assumptions. ## A practical framework proposal The expert offers a step-by-step methodology to accurately gauge customer demand. This framework covers all processes from market research to product development. Its flexible structure allows adaptation across industries. ## Critical lesson for success Preventing product failures requires deeply understanding customers. Founders recognizing their biases and making data-driven decisions lays the foundation for sustainable growth. This approach saves time and money by preventing resource waste. ## Sources covering this story - https://www.mckinsey.com/featured-insights/mckinsey-on-books/author-talks-why-founders-misunderstand-customer-demand — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._