When Founders Build for Themselves: Feature Fixation in a SaaS Startup
A real-world example of Self-relevance effect in action
Context
A six-person SaaS startup providing invoicing software grew rapidly in its first year. The two founders were prolific users and leaned on their own workflows to decide what to build next — often skipping formal user research to move quickly.
Situation
Customers began requesting a wider range of invoicing templates and international tax handling, but the founders prioritized an advanced time-tracking dashboard because it matched their daily workflows. Roadmap meetings repeatedly elevated features the founders personally valued over features asked for by the larger customer base.
The bias in action
Because the founders naturally remembered and cared about the problems they faced, they afforded disproportionate weight to their own needs when shaping the product roadmap. User requests that didn’t match the founders’ personal workflows were remembered as vague or low-priority, even when repeated across support tickets. Product decisions were justified with anecdotes from the founders’ daily use rather than segmented data showing broader customer demand. As a result, sprint capacity went to features with high founder relevance but low overall adoption potential.
Outcome
Six months after shipping the founder-focused dashboard, only 8% of active customers used it regularly, compared with the company target of 40% for new features. Meanwhile, churn among customers who had requested better localization and templates rose from 4.9% to 7.8% over the same period. The startup missed an estimated $85,000 in annual recurring revenue (ARR) that could have been retained by prioritizing the broader requests.