How to Determine Product Market Fit in Your Industry

Think of product market fit in the lines where your customers become your salespeople. Think of it as a magical moment when three things happen; existing users recognize the value of your product, they tell others about the great experience with your product and your company replicates the great experience of the new users. Product market fit occurs when a company’s value proposition, consumers and distribution channels are all aligned. It forms a perfect balance between the three. If only two are aligned, you will only enjoy a short success, but you will eventually struggle to sustain the same. Product market fit is something most startups aim at achieving. Startups should prioritize product market fit above all other goals, because those that can find it achieve a high level of success.

Here are some steps on how to determine if your product is fir for the market.

Determine your target customer

You need to work to identify your target customer who are a representation of the users who will most, likely benefit from your product. You need to use market segmentation to identify who your ideal customer is. After that, you develop groups for your teams to target. This happens in a four step process, where, you analyze your products and services, get a clear familiarity with the competition, choose segment criteria and then perform research. The research phase is carefully crafted according to buyer persona, with the aim of identifying which part of that persona you will target and summarising your findings accordingly.

Gather intelligence

You need to talk to your customers to determine their pain points and how much they would consider paying for a solution to those challenges. You need to seek insights from your sales and marketing teams so as to identify recurring customer complaints. You need to collect large enough data samples so as to provide meaningful feedback. Additionally, consider face to face conversations as they often generate good feedback.

Focus on Single Vertical

Startups are very much known for having small budget. Thus means when trying to sell everything to everyone, it can a bad disaster. You need to begin the process by narrowing your focus and taking a deep dive into your industry. Establish yourself as industry expert ins a single field or domain with the goal of cementing your authority and spreading to other domains. You need to create a platform for people who want to listen and work with you, and expand your offerings with time.

Specify your value proposition

After that, you need to determine customer needs which can be addressed with your products or services. Try to come up with ways in which you can outperform your competitors and surprise your customers. You should never lose sight of your product roadmap when determining which challenges to address. It is always a good thing that you measure your product market fit so as to gauge if you are on route to success or not. At all times, avoid complacency and don’t assume you have made it. Always work at improving and offering better value to your customers.

Leave a Reply

Your email address will not be published. Required fields are marked *