One of the best companies I’ve ever worked for - they were far better at this than their competitors, and it was a HUGE competitive advantage for them. They consistently posted 35-40% NET margins - which no one in their space came even close to!

Expressed more generally, it’s insufficient to understand the specific problem the user is trying to solve; you need to understand the context in which the problem resides to be able to provide a solution that has the most significant positive impact.

This is not a simply a conceptual approach - it’s competitive advantage.

I’d step even farther back than asking “how can our product make your work easier”. I’d ask “ideally, how would you perform this task? What data/process/workflow would minimize the pain?” This way you can identify gaps that:
-Your product already fills, but the user doesn’t know it;
-Your product could fill with an enhancement;
-Is beyond the scope of your business, but the knowledge of the gap, conveyed by you to the user’s company, may result in a new work-around or solution that enhances the value of your product within the workflow (or at least win you additional credibility as “getting” their business)

Similarly
——-
Customer says: “Please add Feature X”
PM asks: “Can you tell me more about why you need Feature X?”
——-

This question by PM usually results in deeper insight (and more customer delight down the road) than just adding “Feature X” to the enhancement request list.

Getting to the heart of the problem, reduces the likelihood of product failure

While some executives know the Product Management is important, Revenue is King. Thou who generates the Revenue calls the shots and gets the attention. Its not fair, equitable, rational, etc.

To be fair in larger companies that can afford to make strategic investments other groups may get a lot of attention. But especially these days, in this economy, Sales will be king.