I feel this one of the important items every entrepreneur should know about, however, it’s the one item that many entrepreneurs fail to think about and understand.
So, What is Product-Market fit?
It means that the product you are building is a good fit for the pain/need the market (your users) feel. It may be easier to think of your product/service like a job. Can your customer hire your product/service to solve their pain or need?
Why do many entrepreneurs fail to find “Product-Market” fit?
I feel this is heavily due to entrepreneurs making assumptions that what they’ve built is exactly what users will need. They live in their own box and come up with this horrible assumption.
Instead, entrepreneurs should be pitching their idea or MVP and getting feedback from potential users. This will help them understand if future users will get value out of the product.
Why your customers can’t help you with Product-Market fit?
Customers have pains/needs. They haven’t thought through the process on how to solve this for the masses. This was best said by Henry Ford “If I had asked people what they wanted, they would have said faster horses”.
Don’t listen to proposed solutions by customers. Your job is not to ask customers to give you the solution. Your job is to listen to their pain. Then take this newly learned information and work on a solution.
What happens when you don’t have Product-Market fit?
– customers you pitched don’t see the value
– trial users don’t convert to paid
– paid user retention is low (high churn)
– no one is talking about it except you
What happens when you realize you don’t have Product-Market fit?
Go back to the drawing table and do the below…
– look over customer feedback forms and emails
– listen to your sales team
– pick up the phone and call customers to get feedback
– run user testing to watch user behavior
– read online sites where customers may have left reviews about your product and your competitors
– check if your product is 10X better, otherwise, customers won’t leave their existing solutions
Does this apply to every industry?
Yes! Doesn’t matter if you are creating the next Tyneol, the next Tesla, the next Facebook, the next dog walking service, the next kid’s toy, the next web design tool- every one of these products/services needs to find product-market fit.
One of the videos I like that speaks to “Product-Market fit”
Hope you found this of value. Feel free to reach out to me if I can help you get more clarity around this concept.