It's widely believed that we should start with the customer's wants and needs when developing new products or improving experiences. This won’t do you any harm, but it overlooks a powerful insight: our sense of identity — of who we are or want to be — not only precedes our goals, but directs them.

There's a couple of basic reasons for this:

First, we’re predisposed to economy of thought. Assuming an identity then simply acting in accordance with the norms for that persona unburdens us from the tyranny of choice. Our identity is a shortcut for basic decision-making.

Second, we’re a highly social species. If we acted without considering our identities — as members of groups and communities — we'd violate social norms and risk being ostracized. Our identities allow us to navigate complex social environments.

By implication then, we must first understand who our customers are and aspire to be, then strive to create products, services and experiences that reflect and reinforce that identity, through any means possible — community-building, enhancing status, etc.

"Sign value", as the philosopher Jean Baudrillard called it, often holds greater appeal than "Use value" — as brands like Beats By Dre (who gained 60% market share in 3 short years) have demonstrated.

See this post on LinkedIn