What it is and how to achieve it?
PRODUCT MARKET FIT ?
Product/Market Fit (PMF) is a crucial milestone for a startup & a pivotal factor in determining the startup's success.. As explained in his blog pmarca by Marc Andreesen, It is achieved when the startup develops a product that perfectly aligns with the needs and demands of a specific market. In other words, the product satisfies the market's pain points and resonates with the target audience. At this stage, customers find real value in the product, leading to fast growth, positive reviews, and increased sales.
HOW TO MEASURE PMF?
A quick guide on metrics to measure when trying to assess PMF
There are different ways to measuring PMF, and the primary way is through surveys like NPS (Net promoter Score) and User interviews with your consumers. While surveys can help gauge customer satisfaction levels & loyalty related metrics, User Interviews can provide deeper insights into how they use your product and improvements they would like to see. One can also look at usage metrics such as active users, retention rates and engagement metrics to assess PMF. All methodologies are an iterative exercise.
Check out our specialized toolkit for PMF to explore and assess product to market fitment and identify opportunities to improve fit. Read more here .
WHAT IS MINIMUM VIABLE PRODUCT?
As per Y Combinator Partner Michael Seibel, MVP, or Minimum Viable Product, is where a simplified version of a product is released to the market to validate assumptions and gather feedback. Its advantages include testing riskiest assumptions early, iterating based on user feedback, identifying market fit and embracing a "fail fast" philosophy. The MVP approach helps startups avoid building products that don't meet market needs.
Not sure how to go about making your MVP? Connect with us.
WHAT IS SMALLEST VIABLE AUDIENCE & WHY IS IT IMPORTANT FOR GROWTH?
The concept of the smallest viable audience (SVA) as coined by Seth Godin means serving the smallest group of customers who can derive significant value from their offering. This approach allows for faster feedback loops, lower marketing costs, and deeper customer engagement. By validating the value proposition with a smaller audience, businesses can reduce risks and refine their offerings before expanding to a larger market. This approach leads to initial success and builds a strong foundation for growth. Do you have an SVA yet?