Product Market Fit
Product market fit is vital to growing your business and determining the best outreach efforts.
More Than An Idea
Before you can successfully market your product to consumers, you need to make sure you have a solid product-market fit. This means doing your homework and making sure there is a demand for your product. Without this key ingredient, your chances of success are slim.
You can’t just have an idea and expect to succeed. You need to do your research to make sure there is a market for your product. This is known as product-market fit. Without this key ingredient, your chances of success are slim to none. Check out the following tips for guidance on determining this key to success.
- Know Your Target Customer: Before you can sell anything, you have to know who you are selling to. Without understanding the makeup of your customer, you will never find a product-market fit. Think about who will benefit the most from your product. Then write out a description of that person or company. Include as much detail as possible that describes who they are, what they do, what challenges they are facing, and what goals they are trying to achieve. This customer “persona” will help your team members know exactly who they are catering to and how they can best meet their needs.
- Differentiate Yourself From Your Competitors: In order to succeed in today’s market, it is essential that your product offers something unique that will solve ongoing problems for customers. This unique aspect of your product is known as the value proposition. By focusing on your value proposition, you will be better prepared to outperform your competitors and meet the needs of your industry.
- Ask for Feedback: This may be the most helpful tool of all in finding product-market fit. Who knows better what works and what doesn’t work for them than the customers themselves? Ask current customers how they would feel if they no longer had your product. Ideally, you want them to say, “Very disappointed.” As a general rule, if 40% of your customers says this, you have found product-market fit. But if you get a different answer, find out why and use that information to improve your product. Don’t have customers yet? Then get out there and talk to prospects. Ask them if they have ever used any similar products in your industry and what they did and didn’t like about those products. Then give a brief explanation of your product and see what sort of reaction they have. Does it sound like something that would help them? Do they want to know more about it? If the answer is yes, then you may be on to something.
- Test, Retest, and Test Again:It is essential to test your product in the market and track the results to gauge how well it fits. Keep an eye on metrics like conversion rates and customer churn rates, as well as repeat buyer percentage and daily usage. Also, make sure to check in with customers regularly to see how they are progressing and whether they need any help. Review the data from your tests and feedback surveys on a regular basis to determine what is working and what needs to be changed in order for your product to be successful.
- Don’t Get Complacent. Finding product-market fit is a huge achievement and definitely warrants some celebrating. But don’t get overconfident with your success. Customers’ needs can change with time, and your product-market fit may change as well. It’s important to continuously stay in tune with market conditions so that you can consistently meet the needs of your customers.
The Bottom Line
Product-market fit is a process, not an event. It’s the result of taking the time to ensure that your potential customers see the value in what you’re offering. The goal is to find that “aha” moment when they realize how your product can improve their lives. Once you reach this point, you’ll see not only an increase in sales but also repeat business and referrals from satisfied customers.
Let Funnelfly help with the process by putting your product—and your message—in front of prospects and customers on a continuous basis using our automated marketing and sales platform. Learn more about Funnelfly, marketing and sales software built by startup founders to specifically meet the needs of startups.