Good question! Funny you ask, we're about to host a webinar on this exact subject with our guest who's a Chief Product Officer with +10 years of experience. Welcome to join: https://survicate.com/webinars/h...
I kind of divide users into two groups:
1. Users who LOVE your product: I try to improve the things they already love (e.g. if they love how fast your product is, I try to make it even faster)
2. Users who are interested, but don't love it yet: This is where innovation comes in. What's missing? What would make them love your product? And then I go and build that. Which should switch this group to group #1.
Balancing innovation with user needs is like finding the sweet spot between adding sprinkles on your ice cream without compromising the cone's structural integrity!