Product Market Fit - How to know your product is market fit

1. Product Market Fit
What? Why? How?
Saif Hassan, weDevs
October 6, 2020

2. PRODUCT MARKET FIT
What is it?
Product/Market FIT means solving a
particular problem in a good market where
users are ready to pay for the particular
solution/product.

3. An American entrepreneur, investor, and software engineer. He is the co-author of
Mosaic, the first widely used web browser; co-founder of Netscape; and co-founder
and general partner of Silicon Valley venture capital firm

4. • When it is not happening:
Poor conversions, no word of mouth, slow usage growth, long
sales cycle, and high churn
• When it is happening: “The customers are buying the
product just as fast as you can make it — or usage is growing
just as fast as you can add more servers.” - Marc Andreessen

6. If you have to ask if your
whether you have
product/market fit - the answer
is simple, you DON’T
- Eric Reis

7. Why Should
Anyone Care
About Product
Market Fit?

8. Why?
- Startups are inherently unstable.
- 9 out of 10 startups fail (90%)
- Startups need gravity to survive
- PMF = Gravity for Startups
- A product people want is not enough.

11. How to validate market potential?
- Who is the target customer?
- What is their underserved need?
(Are they ready to pay?)

12. Collecting Data from The Market
- Customer Surveys
- Design Thinking
- User Persona
- Research

14. The Challenge
“The number one problem
I’ve seen for start-ups, is they
don’t actually have
product/market fit, when they
think they do.”
Alex Schultz
Facebook Growth Marketing 1
4

15. Product Market Fit
Development
Introduction
Growth
Maturity
Decline
Value
Metric
Product
Market Fit
1
5Time
Achieving Product Market tfit is the inflection point from
“Introduction” to “Growth” in a Product’s Lifecycle
Before
AtfTE
R

16. 11
For Product
Market Fit, you
need “Traction”

17. What’s Traction?
“Traction is a measure of a
products engagement with
its market.
Investors care about traction
over everything else.
-Venture Hacks, “Pitching Hacks”
http://venturehacks.com/pitching
1
7

21. To create Customer Value, solve a
problem.
Find a sizable market that
has a problem worth
solving.
Find out if they would
exchange value to have it
solved.
Ideat
e
Explor
e
Focu
s
Immers
e
Defin
e
Buil
d
Prepar
e
Launc
h
Product
Strategy and
Lifecycle
Management
20

22. 22
Understanding the
Market and
Applying Product
Fit Technique

23. Start understanding your
market
What is the total
Addressable Market?
23

24. Start understanding your
market
What % of that market do
you think you can
capture.
24

25. Start understanding your
market
As a Startup
You are here …
100
%
0
% TimeNow
25

26. Start understanding your
market
Except it is never a
straight line…
So you are probably here.
100
%
0
% TimeNow
26
S-Curve

27. Start understanding your
market
The Customer
Adoption
Curve
100
%
0
% No
w
Laggard
s
Late
Majority
Early
Majority
Early
AdoptersInnovators
Tim
e
Product
Market
tfit
27

28. Customer Adoption
Curve
Product
Market fit
Aka “Technology Adoption Lifecycle”. Geoffery A. More –
Crossing the Chasm
2
8

29. You have to “Cross the Early Adopter Stage”
Product
Market
tfit
Aka “Technology Adoption Lifecycle”. Geoffery A. More –
Crossing the Chasm
2
9
CHASM

30. There are really 2 markets here for start
ups
Product
Market fit
CHASM
Aka “Technology Adoption Lifecycle”. Geoffery A. More –
Crossing the Chasm
3
0

31. There are really 2 markets here
Product
Market fit
CHASM
3
1
1) Early
Adopter
2) Early
Majority

32. You need to get Product Market
twice!
Product
Market tfit
#2
CHASM
1) Early
Adopter
2) Early
Majority
Product
Market tfit
#1
3
2

33. Actions for Customer Types
3
3
Innovators
•Offer first MVP’s and get feedback.
Will soon lose interest and move to something else.
Early Adopters
•Optimise learning and iterate MVP’s to
establish Product Market Fit #1.
Early Majority
•Use success with Early Adopters to attract Early Majority.
Continue to iterate to gain Product Market Fit #2.

34. After Product Market Fit
HANG ON!
Optimise for growth
and scale.
Don’t lose
Product Market Fit
to a competitor!
41

35. To Get to Product Market Fit
❑ Find a sizeable Market
❑ Identify a Problem worth solving
❑ Develop an MVP to solve it
❑ Find a business model to support it
❑ Test, Measure, Learn.
❑ Repeat!
45