Product misalignment

Product misalignment occurs when a product doesn't meet the needs or expectations of its customers. This often happens when there is a mismatch between the product's features and what customers expect or need. Misalignment can lead to frustration, dissatisfaction, and eventually, churn, as customers may feel that the product isn't solving their problems or delivering promised value.

Product misalignment can result from unclear product messaging, overselling, or failing to address the right market segment. Businesses can reduce churn by ensuring that product development aligns with customer needs and setting realistic expectations.

Google Stadia's 2023 shutdown exemplifies product misalignment. Despite promising high-quality gaming without expensive hardware, Stadia required excellent internet connectivity many users lacked, had confusing pricing combining subscriptions with full-price games, and offered a limited game library. By focusing on streaming technology over core gamer needs, Stadia misread its market. After 3 years, Google shut down the service and refunded all purchases, demonstrating how even technically impressive products fail when misaligned with user expectations.