Product Market Fit: Nail Your Target
Actionable steps to establish PMF
Ah, Product Market Fit (PMF)—the holy grail of startups and entrepreneurs everywhere!
That exhilarating moment when your product meets the needs of your customers so seamlessly that they can't help but go ga-ga about it.
Think of it as finding the right dance partner for your moves:
if you're in sync, it's a beautiful thing.
If not?
Well, let's just say it can get awkward fast and end up as a bummer!
Let me guess what you are thinking at this point -
1. So, you're telling me that achieving Product Market Fit is the biggest determiner that your startup will create wealth? Sounds like a tall order!
2. Wait a minute, you mean to say that if I am selling ingredients and recipes while customers want to order food, I might be in trouble? Who would've thought?
3. Hold up, are you suggesting that throwing money at marketing without nailing PMF first is like trying to fill a leaky bucket with water? Isn't that stating the obvious?
4. Let me get this straight—understanding my persona is like knowing my audience before stepping onto the stage. But what if my audience is a bunch of cats? How do I cater to their needs, huh?
I can't wait to guide you through the fascinating world of PMF, or Product Market Fit.
We'll delve into what it is, why it's so important, and how you can get there.
What to expect along the way, you ask?
Gear up for a rundown of some entertaining stories, thought-provoking quotes, and handy tips that will help you navigate this often bumpy ride and make it a smooth sail. Sounds good?
Okay, so grab your favorite beverage, settle in, and let's jump right in!
Understanding Product Market Fit
So, what exactly is all this fuss about Product Market Fit?
So, you've created a product that goes beyond solving a problem — doing it in a way that makes customers jump for joy.
That's PMF for you!
It's the sweet spot where your offering meets the needs of your target audience, and they just can't have enough of it. Extreme PMF is when demand for your product is so widespread that you can deliver it efficiently to every customer.
A simple example to explain what I mean: if you're running a vending machine that dispenses ice-cold lemonade on a hot summer day, and everyone's lining up for it as your lemonade tastes the best, you've hit the jackpot!
But if your lemonade machine is broken and only dispenses warm pickle juice?
Well, let's just say your business model just gotta go back to the drawing board.
Here's the kicker: once you achieve PMF, acquiring new customers should feel like a walk in the park for you.
The marginal customer becomes easier to attract, and your efficiency skyrockets.
But beware!
If you're throwing money at marketing without first nailing PMF, you might just be pouring cash down the drain.
Remember, a leaky bucket can’t hold water (or customers) for long, right?
Now, let’s take a brief sidestep!
“I want to share that we had once created experience centers to display real estate projects at airports, and metro stations with all the futuristic features like ARs, VRs and holograms. Attracted a lot of audiences, and garnered organic PR as well”
But when we tried to scale, our leads didn’t convert at all as our “customers” were just curious passersby coming to the center out of curiosity.
Oops!
We learned the hard way that footfalls/traffic don’t equate to true PMF.
Recognising the signs of true PMF is of utmost importance.
If your customers are coming back for more, kudos—you’re indeed on the right track! Sounds exciting, right?
If that's not the case, it may be time to reassess your product offering.
PICS Framework - It all starts here!
Persona
First up, who are your customers?
Understanding your persona is like knowing your audience before stepping onto the stage.
What questions would I ask?
Are they busy professionals, college students, or perhaps cat enthusiasts?
In my used car buying/selling startup stint, the user persona was an individual 25-30 years old, in her first or second job, with high aspirations, daily office commute within 10-15 km range…
Issue
Next, what is the critical issue that remains unaddressed or is addressed by the user in a very distortive way?
Spoiler alert: it's not just about making life easier.
Dig deep!
What keeps your customers up at night?
If you can identify that pain point, you're halfway there.
Pre-owned car buyers were facing daily difficulties in booking cab/auto, higher costs, last mile connectivity not enabled through mass public transport….
Capability
Now, let's talk about the capability which is a benefit/promise made by your product.
Pretty much a no-brainer!
Here you craft a value proposition that's as irresistible as a free donut on a Monday morning.
Easier said than done, you say!
If I were you, I would make it clear what the product will do for the customers.
If you can make their lives better, they'll be lining up to buy from you!
Our USP for our used car buyers was unlimited options, price guarantee, automated loan processing, timely servicing and inspection of cars…
Solution
Finally, and very importantly ---- ensure your product delivers on that capability, effectively and at scale!
We onboarded thousands of pre-owned car dealers, created an algo for the right pricing basis transaction data, onboarded an inspection team, and provided a 15-day buyback guarantee. All this is delivered through a website and an App!
If you're feeling stuck at any level of PMF, take a moment to adjust the PICS framework. A little tweaking can go a long way in helping you find the right groove
Steps to Achieve Product Market Fit
1. Whom are you solving for!
First things first—who are you trying to impress?
Think of your ideal customers as the VIPs at your party. You wouldn’t serve them cold pizza, right?
What could be the starting point?
Start by doing some leg work:
- Conduct surveys
- Chat with potential customers
- And --- dive into market analysis.
And trust me, it’s all worth it!
I spend hours on LinkedIn talking to job seekers and people on personal breaks to understand their aspirations and areas of interest.
Once you know your audience inside-out, you will be in a better position to segment them based on their quirks, preferences, and pains
You know what I mean!
This way, you can customize your product to make them feel like you’ve created it just for them.
2. What’s your superpower
Now, let’s talk about your secret sauce!
What makes your product stand out in a sea of options? What’s the asymmetry?
In what way is my startup different from others? In what way is my team different? What unique knowledge or process do we know that other people don't know?
Your value proposition should be no less than a catchy jingle that sticks in their heads.
They should have a reason to choose you over your competition. Simple as that!
Take some time to create a clear and compelling message.
And hey, don’t be afraid to test it out!
Use A/B testing to see which version gets your audience singing your praises.
3. Do you have a working prototype
Your minimum viable product can be likened to the appetizer before the main course.
It’s not a full feast, but it should be delicious enough to whet their appetite!
Focus on the essential features that solve your customers’ biggest problems.
Once you’ve whipped up your MVP, you must share it with a selected group of early users.
Their feedback will be like gold— make optimum use of it to refine your dish until it tastes just right!
How was it for me?
I once launched an MVP for a learning and productivity app, and all I had was a Figma prototype!
Consisting of basic pages, it was enough to get the feedback. As a pleasant surprise, users eagerly shared their feedback. It helped me quite a bit to enhance the app faster than I expected.
Don't hesitate to launch a simple MVP. Early feedback is invaluable for refining your product and getting closer to Product Market Fit!
4. Can you iterate your prototype out of your ego
Feedback is your best pal on this journey. Having a personal coach who cheers for you or gives you a gentle nudge when you need it.
It’s simply wonderful!
Regularly collect insights from your customers through different modes such as surveys and casual chats.
Be open to their suggestions—after all, they’re the ones using your product!
If they’re saying, “This is great, but I wish it did X,” take note.
Adaptability is key; sometimes, you might need to pivot faster than a cat chasing a laser pointer!
5. Metrics are everything!
Finally, let’s talk numbers. To see if you’re on the right track, define some success metrics—think of them as your GPS.
A few questions to ask are-
Are your customers sticking around - What's the retention
Are they raving about your product - What’s the NPS score
Are they using the features you thought were important - What’s the usability score
Keep an eye on retention rates and engagement levels. If something isn’t working, trying a new route altogether won’t hurt.
It’s all part of the adventure you will cherish later on!
Achieving Product Market Fit (PMF) is indispensable for startup success.At the end of the day, you are creating a product for real people.Focus on understanding your audience, solving their problems, and delivering a compelling value proposition they drool over.Remember, without PMF, marketing efforts may fall flat. Adaptability is key!If you’ve enjoyed this piece, do consider referring our newsletter to a friend. All my writing has topics related to startups, businesses, career, and entrepreneurship - Published at 10 am IST every Friday.
Also do provide your feedback or any questions that you may have on my email id: saurabh.substack.2407@gmail.com