‘Why many tech startups fail’ Product Marketer, Chisom Anaesiuba highlights key mistake

Many tech startups fail not because of poor engineering or a lack of funding, but due to their failure to listen to user feedback, Product Marketing Manager Chisom Anaesiuba said.

Speaking on the importance of user-driven product development, Anaesiuba emphasised that companies that integrate customer insights into their roadmaps are more likely to succeed, while those that rely solely on internal assumptions risk launching products that don’t resonate with users.

“Too many companies build in isolation, assuming they know what users want. But the real test of a product’s success is whether it solves actual pain points—something only user feedback can reveal,” she explained.

She pointed to Quibi, the short-form streaming service that raised nearly $2 billion but shut down just six months after launch. Despite early user complaints about the platform’s lack of sharing features and its mobile-only restrictions, Quibi executives insisted on sticking to their initial strategy. By the time they made adjustments, user interest had already declined.

“Quibi’s failure highlights what happens when companies dismiss user concerns instead of adapting. If your customers are frustrated, that’s not just noise—it’s a warning sign,” Anaesiuba noted.

While some companies fail by ignoring user input, others have successfully pivoted based on feedback. A prime example is Nigerian mobility startup Gokada. Initially launched as a motorcycle-hailing service, Gokada faced a regulatory ban on commercial motorcycles in Lagos in 2020. Rather than shutting down, the company used customer insights to shift its focus to logistics and delivery services. By 2021, Gokada had expanded into parcel delivery, food delivery, and ride-hailing for other vehicle types, launching a Super App that consolidated all its services. This shift, driven by real customer demand, allowed the company to continue operations and expand into new markets.

“Gokada could have disappeared overnight. But by listening to user needs, they found a new path forward and turned a crisis into an opportunity,” Anaesiuba said.

She also highlighted that user feedback isn’t just critical for product features it also plays a key role in positioning and messaging. She shared an example from her experience launching Credible, a Nigerian marketplace that connects borrowers with verified lenders.

“When launching Credible, we leveraged social listening and direct interviews to understand borrowers’ biggest pain points. This not only shaped the product but also the messaging strategy,” she explained.

The approach proved effective. The team initially set a goal of 100 user sign-ups within 60 days, but by aligning the messaging with real customer concerns, they acquired 687 users exceeding the target by 587 per cent.

“The right messaging one that directly addresses users’ pain points—can make or break a product launch,” Anaesiuba noted.

To avoid costly missteps, she recommends that tech startups build a structured approach to collecting and acting on feedback. She suggests setting clear objectives for feedback collection, using a mix of qualitative and quantitative insights, and involving cross-functional teams to ensure feedback translates into action.

“The best products are never truly ‘finished’—they evolve based on user needs. Companies that embrace continuous improvement will always have a competitive edge,” she said.

In Nigeria’s rapidly growing tech industry, the difference between success and failure could come down to one thing: Are startups willing to listen to their users before it’s too late?

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