For example, do you have a serious discussion about customers’ next best alternatives? What do we know about these alternatives, how do we know this to be true, how do customers measure their satisfaction, and how is our new product design stacking up? Without such insight, you’ll have to guess at your new-product pricing.
Sure, the most important practice is understanding customer needs. But most overlooked? Few suppliers ask customers 1) for the most important, unsatisfied outcomes, 2) what test methods measure these outcomes, and 3) how satisfied customers are by various test results. Without these questions, you cannot properly assess competing alternatives.