A good product-market fit means that your product is a welcome addition to the market by the market itself. Before even thinking about whether people will buy your product or not, there are a few steps you cannot skip in order to achieve a great product-market fit. And these steps will bring you credibility in front of investors and make it easier for word of mouth marketing to spread faster so that it brings you more users.
Find the right market.
The first step to achieving product-market fit is to understand your target market through research. To do this, you need to know who your target customers are and what they want or need.
Find the right product.
Just as an investor looks for the right investment opportunity, you need to find the right product or service to sell. The first step is to understand your offerings by breaking them down into tangible benefits and features. Then, you must identify your target customer group and define how you are going to reach them.
Your unique selling proposition (USP) can be found by reviewing products on the market with a similar benefit or feature. Think about what makes your offering different from the competition. Are there any features that will add value for potential customers? How is this reflected in pricing? Can you offer a lower price? If not, why will people pay more?
Once you’ve established what makes your offering unique, it’s time to ensure it meets their needs by defining two groups of target buyers: existing and potential customers.
Launch your MVP.
The MVP is a way to test your assumptions about your market and product, as well as a way to learn about your customers. This allows you to quickly set up a feedback loop and iterate before launching the final product.
There are multiple ways to get feedback from users on an MVP: surveys, focus groups, interviews, usability tests and so on. As long as you’re getting your questions answered, it doesn’t really matter what method you use. You can even do it all in one session if that works best for you. However, make sure the MVP you’re using is appropriate for the type of feedback you’re trying to collect; if it’s too basic or doesn’t represent the real thing accurately enough then you won’t get useful information from it. Here are some questions that may help guide these sessions:
- Was there anything unexpected or surprising? What did they react positively or negatively towards?
- Do they understand how this could solve their problem? Why or why not? How does it compare with other products currently available on the market?
- What other features would be helpful for them in order to fully solve their problem with this product?
Build a relationship with your prospects.
Once you have identified the right target customer for your idea, your next step is to build a relationship with that person. This will help you better understand their pain points and needs. When someone comes to you with a question or comment, be responsive and helpful. If they reach out over email or social media, prioritize response over other tasks. Treat them like they are already a customer and encourage them to share their feedback and ideas. And don’t be afraid to share your product roadmap with prospects—it’s important that they feel like they’re part of something bigger than just using the software itself.
Identify value gaps.
Identify the gaps in the value your product provides for customers and how you deliver that value.
Use surveys, interviews, and analytics to identify value gaps and use these insights to inform your roadmap for improvement.
For example, if customers are having trouble using an important feature of your product, consider adding a tutorial or other onboarding tool.
Track, learn and iterate.
You can use this data to validate your assumptions, or you may find that you need to make some changes. These changes could mean adjusting a feature or the way you communicate with your customers. As you go through this process, each update will be driven by the insights and data that you collect.
It is important to learn from what you are finding out, and iterate based on what you have learned. You should avoid making assumptions without tracking how they are performing. If something doesn’t work, adjust it immediately; but if something works well then double down on it!
Get to product-market fit as quickly and efficiently as possible.
Product-market fit (PMF) is the most important component of a start-up’s business model. Achieving PMF is a qualitative measure of how well a company’s product satisfies the needs of its customers. In other words, finding PMF means finding the right product for the right market. The goal for any start-up should be to find PMF as quickly and efficiently as possible. Once you have found PMF, you can concentrate on scaling your startup, growing revenue and optimizing resources to keep costs low.