Product market fit is when your product finds the ideal consumers for its product.
A bit more in-depth information reveals that your product should capture your consumers so that it solves all their problems and makes sure that your product is providing what your competitor isn’t.
You can measure this with the help of a couple of pointers.
- Your product is unique to your consumers.
- The market for you; this means that they recommend your product to their friends and family.
- Your product has no issues and works flawlessly for new customers; You can reduce quantity but never compromise quality.
These points are what every business wants rather than a startup or an international juggernaut. These points help the product reach new audiences and help them save on marketing. If these points are achieved with perfection, a company can become self-sufficient.
If you need better advice or more in-depth information about product-market fit, dozens of product marketing agencies helping budding startups grow and enter new markets.
How to Measure Product Market Fit?
Product-market fit is a significant problem that most corporations have dubbed a hair-on-fire problem. It’s a scenario in which a product provides services that its competitor is not.
A successful product-market fit can be felt with having increasing reserves of money. An unsuccessful product-market fit can be felt quite the opposite way with investors not being drawn to your company. Or with having no reviews.
Suppose you’re more interested in the statistical point of view. Don’t worry because there are more accurate ways of figuring out product-market fit. These come in the form of surveys.
The questions in these surveys must be cutthroat and leave no room for a 50/50. These questions should generally relate to if your consumer thinks your product is good and if your product has something that your competitor does not.
Your questions should look something like this:
Q: Is this product helpful to you?
The answers should be limiting and look like this;
- A) Yes, it is essential to me.
- B) Not really. I could use another product without much difference.
Q: Would you use an alternative to your product if you didn’t have this product?
- A) No (insert product name) has something irreplaceable for me
- B) Yes, I would use ( Have a text box available for their alternative)
This question can be extremely helpful to you in two ways. First, if they pick A, you know that you have customers who value your product. If they pick B, you can study the competitor they mention and find out what your competitor has, which you don’t.
Some other questions that you could add would be:
Q: What makes our product special for you?
Q: Would you recommend this product to someone else?
Q: What changes can be made to (insert product name) to help you?
Q: Why do you use our product over our competitor?
Q: What features make our valuable product to you?
It would be best if you used the 40% rule with your surveys to get the best results. This rule entails that if 40% of your customers find your product irreplaceable, your product fits perfectly into the market.
Due to product-market fit’s importance,, there are some really important steps which also include a couple do’s and don’ts.
Many startups fail because their startup is something that nobody needs or wants to buy. This is why startups should prioritize product-market fit rather than try to infiltrate an oversaturated market or make an unnecessary product.
To be safe from this fatal error, you should know what hurts your product, what your customers want, and the issues they want you to solve. This can be solved by focusing on a couple of core points.
1. Know who Your Customer is
Figure out who you’re marketing to once you know what your customers want and what they require.
Once you have these pieces of information, your team can work around this information and create a product that interests your ideal customers and matches your product market.
This can be done in 4 easy steps:
- First, research deeply into your product.
- Know who your competitors are.
- Select a criterion.
- Research your customers.
Researching your customers is extremely important as it’ll help you figure out the basic costumer. When you have an idea of what your basic customer wants, you can work on that and provide it. This can be helped by performance surveys and figuring out what you are lacking in.
2. Know what Your Customers Want
Open a channel of communication between you and your customers. Through this channel, discuss what they think your product lacks.
Ask for what they’d like to see and what they think sets you apart from your competitors. This information, combined with a good sales team, can boost your sales.
Collect such an amount of data that action can be taken on it. What we mean is that we collect a large sample of data to get a good feel for what your customers want.
3. Target Your Ideal Consumers
This is a key point as this can help you score customers very easily. This point revolves completely upon your product. Most companies focus on multiple different markets and try to sell their product to uninterested people.
This backfires in two ways:
- First, your marketing budget is spread thin.
- You can’t find your ideal consumer.
These tips should help find the right product-market fit and help you know who to sell to, what to do, and what not to do.