When should a product be discontinued in its early development phase?

Most of us are familiar with it: you have a product idea 💡, the ambition and expertise to drive this product forward alone or as a team 💪, and with some luck, the necessary financial resources 💰as well.

However, despite the promising initial situation, getting a foot in the door with customers is not always guaranteed. But should you give up right away? Is there a benchmark for how long you should try for a successful market launch? And where should you actually set boundaries? 🤷‍♀️

After some research, I have come up with the following five reasons that can indicate an unsuccessful market launch:

Low demand

Who would have thought 😉 Insufficient sales or customer interactions are probably the strongest indicator why a product is not successful at the current time. I wonder: Is this due to the wrong customer approach? Am I even focusing on the right target audience 🎯? And what if I want to target different target groups 👥with a new product?

Negative customer reviews

This is probably one of the toughest reasons and requires strong nerves from everyone involved in product lifecycle management 😔. Many people claim to be open to feedback and communicate this up and down. But when constructive feedback is given, it is often taken personally and the cause is sought elsewhere.

Missed revenue and profit targets

There is likely a strong difference between internal and external startups here, as internal startups may be able to finance themselves through the profits of other products, while classic startups often face difficulties when revenue and profit targets are not met and sponsors withdraw 📉. I am interested to know if there is a certain rule for classic startups as to when the funding is cut off.

High product returns or complaints

The customer complains 🗣️because the product does not meet expectations? Quality issues 🔧 are on the agenda? This is certainly an indication that improvements should be made as soon as possible - those who do not get a handle on the issue in the short or long term will probably experience the harsh reality in points 1, 2, or 3 again.

Lack of competitiveness

If the product does not compete 🏆 with other products or solutions in the industry, and perhaps even loses market share, it is necessary to quickly gain a better understanding of the product's advantages and unique selling propositions, as well as those of competing products. If there are no unique selling propositions and advantages to buying your product, then you probably did not do your homework at the beginning and are now dealing with the consequences 🧐

Do not misunderstand me: Just because, for example, you did not initially focus on the target audience or the differentiating factors from the competition, does not mean that you have to tear down all the tents in the long run. There is always the possibility to revise the product, adapt it to market requirements, or develop new marketing strategies to increase its success. 🚀🚀🚀

The question is, how many iterations, years, etc., do you want to spend on it until you finally say - the product is a flop? 🤔

I am incredibly curious and wonder: What are your experiences? At what point have you pulled the plug on your products? And do you feel that the topic of "product flop" is still treated as a no-go and that people may even hesitate to make a decision (despite all the signs)? What is the culture in your company regarding this? 💭

I am looking forward to an open exchange 😊