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How Catalytic Customers Help Product Managers Avoid the HiPPO Trap

Writer's picture: Paul PetersonPaul Peterson

Updated: Jan 8

In product development, it’s a familiar scenario: a critical decision looms about the product roadmap, and in the absence of clear direction, the "highest paid person's opinion" (HiPPO) takes over. While relying on senior leadership’s instincts isn’t inherently wrong, the HiPPO phenomenon often steers teams away from evidence-based decisions and toward subjective choices that may not align with what the market truly needs.


Enter Catalytic Customers. These highly engaged, knowledgeable, and constructive users offer a practical and insightful alternative to subjective decision-making. By understanding and leveraging Catalytic Customers, product managers can bring clarity to product strategy and ensure decisions are grounded in real-world insights—not just organizational hierarchy.


The Cost of the HiPPO Phenomenon


The HiPPO effect often emerges when:


  • Data are ambiguous or insufficient


  • Teams feel pressured to align with leadership’s vision


  • There’s an over-reliance on gut instincts rather than customer evidence


The result? Decisions that might align with leadership’s intuition but fail to resonate with actual users, leading to wasted resources, slower adoption rates, and a loss of competitive edge.


Who Are Catalytic Customers?


Catalytic Customers are not influencers or early adopters. They are deeply engaged and knowledgeable about the category, offering a forward-looking perspective. These customers:


  • Know what they want. They’ve spent time with products in the category and have a clear sense of how they could be better.


  • Think critically and constructively. Their feedback is actionable, offering clear pathways to improvement.


  • Want to improve the product. They’re invested in seeing products evolve to meet their needs more effectively.


How Catalytic Customers Help Sidestep the HiPPO Trap


  1. Evidence-Based Roadmapping Catalytic Customers provide detailed, actionable insights that reduce ambiguity in product decisions. Instead of relying on internal assumptions, product managers can turn to these customers to validate concepts, features, and pain points.


  2. Democratized Decision-Making By highlighting Catalytic Customers’ perspectives, product managers can present compelling data to leadership, ensuring decisions are made collaboratively and inclusively, not dictated by hierarchy.


  3. Building Stakeholder Confidence Insights from Catalytic Customers are forward-looking and specific, aligning with product teams' goals to innovate. When leadership sees a product roadmap rooted in the real needs of highly engaged customers, their confidence in the team’s direction grows.


  4. Spotting Emerging Trends Because Catalytic Customers are so immersed in their category, they often notice shifts in user expectations early. This enables product managers to anticipate changes and adjust their strategy proactively, staying ahead of the curve.


Best Practices for Engaging Catalytic Customers


  • Identify Them Strategically Use surveys, user data, and engagement metrics to pinpoint customers who consistently offer insightful, constructive feedback.


  • Create Feedback Loops Establish formal channels—such as beta programs, advisory boards, or private forums—for Catalytic Customers to share their input.


  • Balance Their Influence While Catalytic Customers offer valuable insights, they represent a segment of your user base. Pair their feedback with broader research to ensure a balanced perspective.


  • Show Impact When you implement changes based on Catalytic Customers’ feedback, let them know. This strengthens their relationship with your brand and keeps them invested in your product’s success.


A Better Way Forward


The HiPPO phenomenon thrives in the absence of clear customer signals. Catalytic Customers offer product managers a critical advantage: a direct line to the kind of engaged, forward-thinking users who can clarify what truly matters in your roadmap. By building a culture that values and acts on the insights of Catalytic Customers, product managers can make smarter, more user-centered decisions that satisfy both customers and stakeholders.


The next time you’re tempted to default to the loudest voice in the room, consider this: your Catalytic Customers already have the answers you need—they’re just waiting to be asked.

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