The importance of crafting a good problem statement before building products

Kaushiki Bhattacharya
5 min readOct 4, 2021

Ever since I started my journey as a product manager, I’ve come across this piece of advice on several occasions- “Start with the problem”. And as I learn more about this role with each passing day, I am understanding the true significance of this sentence. Unless the problem that you are setting out to solve with your product is crystal clear to you and to your team of developers and designers, all the effort that is subsequently put in would amount to nothing concrete.

So, what exactly is a problem statement? As its name suggests, a problem statement explains a problem or a specific user need that is not being addressed in the current scenario and also highlights why it is important to solve this problem. One should refrain from including the solution in the problem statement and should focus only on the complication at hand, and look at it from the user’s perspective. Having a nuanced understanding of the issue that is causing customer/ user dissatisfaction is the first step that product managers need to take while handling an emergency. Often, due to scarcity of time (read TAT), we tend to jump right into the solution, assuming that talking to customers or other associated departments would not really help us unearth anything that we do not already know. This approach will only work if you are lucky. And as product managers, relying on mere luck is the last thing that one would want to do. Sure, we have success metrics that help us realize that there is a problem with our product and that it is not working as per our expectations. But that is all, we will never understand what is it that is hindering the performance of our product and why this is occurring in the first place by only analyzing metrics.

What are the components of a good problem statement?

1. It should highlight the outcome that the users want to achieve and not the output: Following a market research or an FGD (Focus Group Discussion), we are usually left with a long list of features that our users want us to build on our existing product. However, before handing it over to the development team, it is important to sit and dig deeper into their asks and identify the outcome that the users/ customers are seeking through their stated needs. For example, as an active user of Netflix, I want to be able to share the movies/ shows that I liked watching or am excited to watch with my friends and family via social media platforms, which is why Netflix has the “Share” option in-built. However, this is an example of an output-led approach, and the corresponding problem statement might have looked like this: “Users want to be able to share movies/ shows on social media”. This is not a good problem statement.

Instead, the focus should be on the outcome that users want and consequently solve it in an innovative way. In the example stated above, what I really want (ie the outcome) is to have a more social experience while using Netflix. Sure, sharing the content title on Instagram as a story helps, however it does not address my underlying requirement. Rather than building exactly what users like me want, what Netflix should instead do is understand the outcome of our needs, and maybe build a community like feature within the app where conversations regarding movies and shows can happen in real-time, without us having to switch between multiple apps.

(P.S. One can use a browser extension known as “Teleparty” to watch movies and shows on Netflix remotely with their friends and family. However, this is available only on desktops and laptops, and given the fact that a majority of us spend most of our time on mobile phones for different activities (including streaming online content), Netflix must build a mobile-supported feature within its app.)

2. It should clearly explain why the user or the customer wants to achieve this: After identifying the outcome, the next step towards framing the correct problem statement is to understand why users want this outcome. In the Netflix example, the primary reason why users like me would want a more social experience on the OTT platform is because we would want to move beyond isolation and connect with like-minded people while watching something, just like we used to do while watching TV with our families in the drawing-room. Especially in the current age where social media forms a large part in almost every person’s life (young or old), the desire to interact and connect with other people is at an all-time high.

Additionally, having the opportunity to communicate with friends and other similar-minded people within the platform itself will eliminate the need to solely rely on Netflix recommendations, and users can start watching a show if their connections suggest it. These are a few of the driving factors behind the outcome stated in point 1. Once Netflix correctly recognizes this, the OTT giant will be able to formulate a more accurate problem statement and consequently come up with innovative and effective solutions.

3. Finally, the problem statement should state what are the existing issues with the current solution: The shortcomings of the currently available solution need to be highlighted within the problem statement. As mentioned earlier, Netflix only has the “Share” option that allows us to share content on different social media platforms, either as a story or directly to someone’s chat inbox. However, there isn’t any facility available that lets us chat with each other within the mobile app while watching a movie. Neither can we see what our friends are watching or which show they have rated the highest.

How would the problem statement look like for the mentioned case?

The accurate problem statement for our use case would look something like this:

Users who actively stream Netflix on their mobile phones feel isolated during their entire journey on the platform and crave a more social experience. A less siloed environment would allow them to connect with like-minded people within the app itself and share movie/ show recommendations and reviews with each other. Currently, this community like feature is missing (on android/ IOS phones) thereby hindering a major chunk of Netflix’s target segment from enjoying a seamless experience.

Final Words:

As product people, it is very important that we not only take ownership of the product that we are working on but also fully own the problems that are associated with it. And to solve any problem one needs to understand it properly, notwithstanding how experienced or well-versed she is with the industry or the market. Additionally, a good problem statement is like a secret weapon for product managers, wielding which she can bring all the stakeholders on the same page and ensure buy-in.

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Kaushiki Bhattacharya

Product Manager & CSPO| Product Enthusiast| MBA, NMIMS Mumbai '21| Casual Writer