You focus on a customer group that sees big value in the solution – the solution being worth much more to them than the investment you made with your product development team. You determine for which customers you can make the biggest impact, and what deliverables you need to build to do that.

And because of that limited capacity, you prioritize goals or problems to be solved: you only build solutions that serve most of your customers. In other words, your software development team always feels too small.

Therefore, you cannot build all the solutions you want. If you work in a software-driven business, you probably recognize what I have learned throughout my years of working in Software-as-a-Service (SaaS) and e-commerce: Avoid diminishing returns of product features This article explains how you move from a product company to a platform company how you move from UI-first development to API-first development how you keep a small development team and leverage partners. This way you need limited development capacity yourself.

You can solve this by focusing on the core product yourself, and work with partners to provide additional solutions. Hence, the relative value for effort decreases. You often have a first product serving all clients, and then you add functionality that is relevant to sub-segments only. Product development has diminishing returns.

Long tail pro features