Understanding Product-Market Fit
Studies show that a lot of start-ups fail because they launch things that customers do not want. A lot of start-ups also fail because their poor product launch leads to them losing a lot of money. Luckily, you can avoid both of these scenarios by ensuring that you achieve product-market fit as you start. You will have achieved product-market fit if you find yourself in a good market, selling a product that bodes well with all potential customers. A good market means not only high numbers but also high growth capabilities.
Product-market fit can be measured in several ways. The chances of your not having product-market fit are high if you feel as though you have not reached this point. Pages per visit, bounce rate, returning visitors, and time on site are some of the most commonly used product-market fit measuring techniques. The results gotten from these methods are compared with the industry average. You may also opt for the use of surveys among your clients. You know you have product-market fit if, after the issuance of surveys, you find that forty percent or more of your clients would be sad if your products and services were no longer accessible. You also have product-market fit if your net promoter score is positive. When you have a positive net promoter score, your customers have high chances of referring their friends and family to you.
There are several differentiating factors between companies with a product-market fit, and those without. If you have money that is piling up by the day, then you most likely have product-market fit. Another sign of product-market fit is the need to hire customer support staff to help the increasing number of customers. A company with product-market fit is also different from one without in terms of how fast the products produced are consumed.
Product-market fit can be achieved in several ways. You need to start by identifying your target consumers. You need to divide the market into segments for you to identify your target market. This is critical since it enables you to describe your target market’s persona to your product team so they can come up with a product that appeals to them. After segmentation, you have to identify the most crucial customer needs and work on trying to satisfy them.
For you to be in a position to attract customers, you need to assess what competitors are doing and come up with something fresh. When starting, include just the basic features you want your product to have since you will have time to improve later on.