In the world of startups, the “product market fit” is a concept that is dreaming of many managers. Under this term “barbaric” hides the principle of the ideal match between a product and a market. What is the product market fit and how to reach it?
What is the product market fit?
Marc Andreessen is at the origin of the concept of “product market fit”. It’s a perfect deal between a market and a product. You get positive results by having made financial efforts. Your startup is experiencing exceptional growth.
Nevertheless, these elements do not allow to affirm that you have reached your product market fit. Have you determined what level to take to consider that your product appeal to consumers?
The fit of which every entrepreneur dreams? Its target audience understands the product, appreciates it, buys it and recommends it to those around them.
How to reach your product market fit?
Did you find your product market fit? Three axes must be taken into account:
Make sure your target audience understands their offer. To do this, target precisely the public concerned by your offer. It must be simple to be easily understood and quickly assimilated by your audience. Try to summarize your offer in two sentences.
How to encourage your target to buy your offer after having understood? To achieve this, you must have optimal visibility. Your communication around your product should elicit an enthusiastic response from your audience. This demonstrates that your product is reaching your target audience. Little by little, this one is essential as a purchase obviousness.
Your product is certainly purchased by your target audience but are you sure it communicates around it? The ideal approach? Word of mouth. Your sales are done alone without you having to convince anyone. Customers, who like a product, tend to talk to those around them enthusiastically. That means your startup is growing exponentially.
What are the areas for improvement if you do not reach your product market fit?
Your product does not work despite its launch for several months? The advantage that startups enjoy over a traditional business is their ability to rotate and start over. They are also changing their business model on this occasion.
The trend, resulting in the creation of your startup has evolved? Your offer is too complex? You have targeted the wrong market? Study your business model, understand the blocking points that prevent you from establishing a synergy with your target.
One of the keys to success is listening constantly to feedback from customers. Indeed, by taking the time to listen to it, you can detect signs of dissatisfaction. Rotate before failing but do not wait beyond 18 months.
Snapchat: the product market fit that all entrepreneurs dream of
According to Brian Balfour, three elements must be verified successively to reach the product market fit:
- Measures of commitment
- The retention rate
As soon as the questionnaires, the commitment measures and the retention rate are positive, the product market fit is reached. Among the startups having achieved their product market fit, Snapchat is positioned as a UFO. Indeed, the social network managed to reach the Holy Grail in the months following its launch.
The numbers that prove it? 100,000 daily active users for 200,000 downloads per day and publishing about 1,000,000 photos every day in the space of a few months. Very fast growth associated with a retention rate of 50% and intensive use.
Few startups will be able to compete with Snapchat’s rapid popularity and exponential growth. Nevertheless, based on the model defined by Brian Balfour, you will be able to determine the way to go to reach your product market fit.