Dan Olsen's prioritization tool for customer needs: plot each need on a 2x2 of importance (to the target segment) against satisfaction (with customers' current solution). The upper-left quadrant — high importance, low satisfaction — is the largest opportunity, since customers care a lot and are poorly served.
Opportunity size can be scored as importance × (1 - satisfaction) and rendered as a heat map across many needs, or approximated more cheaply with a coarse grid or a team sticky-note exercise (see Physical Prioritization via Post-it Wall Ranking) when survey data isn't available.
This is explicitly a first-pass prioritization, done before engineering scopes anything — its output (the "Return") feeds into a later, separate ROI calculation against effort (see Explicit Trade-off Prioritization).
Case studies: Segway targeted "walking," a need already high on both importance and satisfaction, and tried to compete via disruptive "to-11" innovation rather than an underserved need — it succeeded only in niche segments (mall cops, tour guides). Uber instead identified ground transportation as high-importance/low-satisfaction (taxis) and won by filling that gap. Google Search exemplifies a need already high-importance/high-satisfaction — competing there requires being "10x better," not just marginally better.
Olsen uses differently-shaped scales for the two axes because importance and satisfaction behave differently:
Asking customers to point to a position on these scales, even across a handful of interviews, converts vague verbal answers into comparable pseudo-numeric data for the grid.
When survey results cluster everything at "extremely important" — a common failure of the 5-point importance scale — Olsen recommends forcing differentiation with one of:
Opportunity = Importance × (1 − Satisfaction). This formula converts a need's importance and satisfaction ratings into a single number, so needs can be ranked numerically instead of just eyeballed on the quadrant. Olsen later built an opportunity heat map that colors every importance/satisfaction combination from 0 to 1 by this score — hotter colors mark higher opportunity — so the overlay can be read at a glance instead of computed by hand for each need.
For teams that want to prioritize without running a formal customer survey: