Before we speak about PMF(Product Market Fit) let's understand what product-market fit feels like? Last weekend we founders got together to discuss the OKR for the company for FY23, this topic came up. The points below are something that we came up with. We all agreed with the point that customers stay put after using your product, then it's a good indication of it.
I have listened to a talk by Abhishek Nayak and many points are spinning from that talk.
Signs of PMF ( Product Market Fit)
- Customers are converted to paying customers easily
- There will be the word of mouth
- Customers give reviews without asking
- for product-market fit can be felt, no need for any cues
Things that block product-market fit
1. It takes too long to explain my product to customers :
2. Every customer takes too long to decide ( Quick no or quick yes)
3. Trying to add more customers when existing customers are not happy
4. Spend too much time trying to make one customer happy
5. Trying to acquire a large customer before small customers ( Feedback loop is smaller)
6. Depend on a partner/gatekeeper to find customers
7. Not modifying and simplifying the product
8. Changing directions often ( Don’t do crazy pivots)
9. Not being able to demonstrate value easily
10. There is not a big enough market need for your product
11. Not creating a buyer segment and persona
12. Haven't decided on a client buying process
13. Customers cant easily buy the product
14. Issues with the sales cycle (B2B sales cycle average is 102 days)
PMF doesn’t necessarily guarantee success, but one absolutely needed to achieve it
The ones that are successful are growing well. If the market doesn't want what you are selling, you won't succeed
Ask these questions to yourself and try and work on your product to refine it to suit the market. But work with customers in these process
- Does the customer find it useful?
- Are you unique? Does the customer feel like no one else can do this?
- Does the product make your customer feel like talking about you?
- Do you have clarity on what you are selling and how long will the customer take to understand it?
- Only validate with real target customers.
- Show customers what it feels like to use the product. Doing that well is important
- Deliver a real MVP.
The network effect is when a customer feels like talking about the product.
All the best to all those trying to achieve PMF. Keep working harder to get there. Don’t feel low on the days when things don't work for you. Keep striving to make it! All the best to all those entrepreneurs who is trying to make it work !!