When trying to determine if you have product/market fit, some people say that if you need to ask that question, you certainly don’t have it yet. While finding that ideal product/market fit is something that you will certainly know once you have it, there are definitely more concrete steps to determining PMF.
What is product/market fit?
Product/market fit (PMF) is a term coined by Marc Andreesen who said “product/market fit means being in a good market with a product that can satisfy that market.” Sounds simple enough, but it can be hard to achieve and lead to the failure of a company or startup should they get it wrong.
It is important to understand that PMF is different than just creating a product or service that provides a solution to a problem. That solution must be certain to solve the problem of a healthy market, as success of your product or solution hinges around the market you have entered. And if you have PMF then you will be scrambling to keep up with the amount of customers who are looking for what you have to offer.
How do I measure product/market fit?
Your first step towards PMF is to define what PMF looks like to your small business. The key is to make it very specific and measurable. For you, PMF could mean getting a certain number of people to buy your product or service and increase that growth by a certain percentage. Whatever metric you choose, make sure that you are able to specifically measure the outcome via Google Analytics or another platform.
How do I find product/market fit?
Now that you have a specific and measurable goal to work towards, we need to take the next steps towards whether or not your product or service can meet those goals.
First of all, it is important to understand the importance of the market that you are entering. The quality and size of the market you choose to enter is by far the largest factor to whether or not your product will succeed. A great product with no market will lead to failure. Whereas a product that lands in a market with many potential customers will have people knocking down the door to purchase their product or service.
Next you need to ask yourself a few questions:
- Do I have a problem worth solving?
- Have I built something that people want?
Finally, to find your PMF you want to break down your goals into smaller pieces and then determine what steps it will take to get each piece on track. Your PMF goals can be broken down into acquisition, activation, retention, referral, and revenue. For PMF you can primarily focus on activation and retention – did your customer have a good first experience and did they come back. Focusing on these areas individually will work towards completing the PMF puzzle.
Growth and scaling
At the end of the day PMF is all about the ability to scale your product because if it truly solves a problem and fits your market, people will be knocking down your door to get it. After you have found your PMF, it’s time to maximize it and accelerate your growth. Employ growth hacks that you can start using and enjoy the success that you have found!
If you’re looking for help finding your PMF, we’re glad to help. Or, if you have PMF, we can help with growth hacks and other marketing that can capitalize on the position you have in the market. Contact us today!