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FasterTrack
to
ProductMarketFit
FEB 13, 2016
BY JEFF SAFOVICH
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Era of daily breakthroughs
Artificial Intelligence
with EQ
Solution for Cancer
Solution for hungerAugmented Human
Green Cities IoT based homes
Smart
Transportation
Virus-sized
computing devices
Quantum
computers
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
What is Product Market Fit (PMF)?
“Product/market fit means being in a good market
with a product that can satisfy that market.”
Marc Andreessen
“Product/market fit is a precondition for effectively
scaling marketing for a company”
Sean Ellis
“Product/market fit is a step in between customer
validation and customer creation”
Steve Blank
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Why PMF Methodology?
Fail fast: Failure is a cousin of creativity
Scientifically measure if there is progress over time
Be frank with yourself: know where you are to choose your next step
Identify “the most promising” concept; Verify a concept potential
Avoid waste: greatest waste is doing efficiently what should not be done at all Peter Drucker
Identify the most important improvement to focus on
Prioritize product features
Speed up business evolution: most startups do not fail, they just run out of money
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
PMF Methodology - Intro
• What trick am I about to show off?Trick
• What response do I want?Valuation
• Try this with different peopleExperiment
• Watch results, improve, retryLearning
• If the trick is not working,
try another oneValidation
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
5 Steps to Product Market Fit
Concept
Metrics
ExperimentLearn
Validate
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
5 Steps to Product Market Fit
Describe Your concept:
◦ Need
◦ Solution - Value
◦ Solution - Growth
◦ Solution - Monetization
Concept
Metrics
ExperimentLearn
Validate
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
5 Steps to Product Market Fit
Assessments
◦ What do you need to know to predict
success?
KPIs
◦ Translate Assessments into KPIs
(*) KPI = Key Performance Indicator
Concept
Metrics
ExperimentLearn
Validate
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
5 Steps to Product Market Fit
MVP
◦ Build a MVP to measure your KPI
Measure
◦ Run an experiment and measure your
KPI
(*) MVP = Minimal Viable Product
Concept
Metrics
ExperimentLearn
Validate
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
5 Steps to Product Market Fit
KPI vs. Goals
◦ See what works, and what doesn’t
Compass
◦ Focus improvements on highest risks
Concept
Metrics
ExperimentLearn
Validate
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
5 Steps to Product Market Fit
Progress
◦ Analyze KPIs over time
Convergence / Pivot
◦ Are you on track? Be frank with yourself
Concept
Metrics
ExperimentLearn
Validate
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Let's take a closer look
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Making people want your stuff Making stuff people wantVs.
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Solution
STEP 1 - Concept
• What’s the need? Who needs it? Painfulness? Context?Need
• What value will your clients gain?Value
• Distribution method: viral? sticky? paid?Growth
• How will you monetize?Model
• Promise, Players, Use cases, Funnels
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
STEP 2 - Actionable Success Metrics
Solution
Need
Value
Growth
Model
Assessments
KPIs
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
STEP 2 (cont)- Actionable Success Metrics
Solution
Need
Value
Growth
Model
Do they need your solution?
For example:
• Assessment:
• KPI:
(*) CTR = Click Through Rate
Do private users want to sort
out the mess in their
contacts?
% CTR on invitation emails
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Solution
Need
Value
Growth
Model
Do they appreciate the value you provide?
For example:
• Assessment:
• KPI:
Do users see value in your
smart contacts management
system?
# Returns per user
STEP 2 (cont)- Actionable Success Metrics
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Solution
Need
Value
Growth
Model
Is your growth method working?
For example (assuming viral method):
• Assessment:
• KPI:
Are users inviting their
friends to try out your
product?
# Invitation sent per user
STEP 2 (cont)- Actionable Success Metrics
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Solution
Need
Value
Growth
Model
Is your monetization effective?
For example:
• Assessment:
• KPI:
Are free users upgrading to a
paid version?
% of free users -> paying
STEP 2 (cont)- Actionable Success Metrics
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
STEP 3 - Experiment
MVP
Measure
Try
• Minimal possible scope to measure KPI
• Embed measurements into MVP
• Run your experiment
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
STEP 4 - Learn
Analyze
Compass
Progress / t
• Current KPI compared to your holy grail
• Focus improvements on highest gaps
• Did you improve?
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
STEP 5 - Validate
Goal
Goal
Are the KPI converging?
A
B
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
5 Steps to Product Market Fit
Concept
Metrics
ExperimentLearn
Validate
• Need, Solution (Value, Growth, Model)___
• Need, Value, Growth, Model___
• MVP, Try, Measure__Analysis, Progress / t, Compass
KPI Converging?
Repeat
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
More to explore
Books
Lean startup, by Eric Ries
Toyota Production System: Beyond Large-Scale Production, by Taiichi Ohno (Kaizen)
Lean Thinking: Banish Waste and Create Wealth in Your Corporation, by James P. Womack and Daniel T. Jones
Crossing the Chasm, by Geoffrey A. Moore
The four steps to the Epiphany, by Steve Blank
Links
https://en.wikipedia.org/wiki/Product/market_fit
http://www.startup-marketing.com/the-startup-pyramid/
http://blog.pmarca.com/2010/03/20/the-revenge-of-the-fat-guy/
http://theleanstartup.com/
http://paulgraham.com/startupmistakes.html
Techniques
Agile / SCRUM
Rapid prototyping
Continuous deployment
A/B Testing
The 5 Why
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Points to remember
Failure is a cousin of creativity. Fail fast!
Making stuff people want vs. Making people want your stuff
Greatest waste is to do efficiently what should not be done at all.
Follow the trail wherever it leads… Most successful startups end up doing something different
than they originally intended
Enjoy along the way!
Paul Graham
Peter F. Drucker
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Thank you for attention!
If you are wondering how to apply this to your own company,
Or if you would like to discuss an interesting idea,
I’ll be happy to meet for a coffee.
Jeff Safovich
jeff@navigabiz.com
www.Navigabiz.com
All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com
Special Thanks!
A big thanks to everyone who attended this event!
It was a great pleasure to meet you. We hope you had as much fun attending as
we did organizing it.
Thanks to Google Campus that invited us to host the event in their offices!
An invitation from Google Campus: If you enjoyed this event, there are many
more tech/entrepreneurial related events at Campus Tel Aviv.
Special thanks to Opher Brayer who inspired and encouraged me to arrange this
event!

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How to build a product that people want - Product Market Fit Methodology

  • 2. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Era of daily breakthroughs Artificial Intelligence with EQ Solution for Cancer Solution for hungerAugmented Human Green Cities IoT based homes Smart Transportation Virus-sized computing devices Quantum computers
  • 3. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com What is Product Market Fit (PMF)? “Product/market fit means being in a good market with a product that can satisfy that market.” Marc Andreessen “Product/market fit is a precondition for effectively scaling marketing for a company” Sean Ellis “Product/market fit is a step in between customer validation and customer creation” Steve Blank
  • 4. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Why PMF Methodology? Fail fast: Failure is a cousin of creativity Scientifically measure if there is progress over time Be frank with yourself: know where you are to choose your next step Identify “the most promising” concept; Verify a concept potential Avoid waste: greatest waste is doing efficiently what should not be done at all Peter Drucker Identify the most important improvement to focus on Prioritize product features Speed up business evolution: most startups do not fail, they just run out of money
  • 5. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com PMF Methodology - Intro • What trick am I about to show off?Trick • What response do I want?Valuation • Try this with different peopleExperiment • Watch results, improve, retryLearning • If the trick is not working, try another oneValidation
  • 6. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Concept Metrics ExperimentLearn Validate
  • 7. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Describe Your concept: ◦ Need ◦ Solution - Value ◦ Solution - Growth ◦ Solution - Monetization Concept Metrics ExperimentLearn Validate
  • 8. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Assessments ◦ What do you need to know to predict success? KPIs ◦ Translate Assessments into KPIs (*) KPI = Key Performance Indicator Concept Metrics ExperimentLearn Validate
  • 9. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit MVP ◦ Build a MVP to measure your KPI Measure ◦ Run an experiment and measure your KPI (*) MVP = Minimal Viable Product Concept Metrics ExperimentLearn Validate
  • 10. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit KPI vs. Goals ◦ See what works, and what doesn’t Compass ◦ Focus improvements on highest risks Concept Metrics ExperimentLearn Validate
  • 11. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Progress ◦ Analyze KPIs over time Convergence / Pivot ◦ Are you on track? Be frank with yourself Concept Metrics ExperimentLearn Validate
  • 12. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Let's take a closer look
  • 13. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Making people want your stuff Making stuff people wantVs.
  • 14. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Solution STEP 1 - Concept • What’s the need? Who needs it? Painfulness? Context?Need • What value will your clients gain?Value • Distribution method: viral? sticky? paid?Growth • How will you monetize?Model • Promise, Players, Use cases, Funnels
  • 15. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 2 - Actionable Success Metrics Solution Need Value Growth Model Assessments KPIs
  • 16. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 2 (cont)- Actionable Success Metrics Solution Need Value Growth Model Do they need your solution? For example: • Assessment: • KPI: (*) CTR = Click Through Rate Do private users want to sort out the mess in their contacts? % CTR on invitation emails
  • 17. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Solution Need Value Growth Model Do they appreciate the value you provide? For example: • Assessment: • KPI: Do users see value in your smart contacts management system? # Returns per user STEP 2 (cont)- Actionable Success Metrics
  • 18. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Solution Need Value Growth Model Is your growth method working? For example (assuming viral method): • Assessment: • KPI: Are users inviting their friends to try out your product? # Invitation sent per user STEP 2 (cont)- Actionable Success Metrics
  • 19. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Solution Need Value Growth Model Is your monetization effective? For example: • Assessment: • KPI: Are free users upgrading to a paid version? % of free users -> paying STEP 2 (cont)- Actionable Success Metrics
  • 20. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 3 - Experiment MVP Measure Try • Minimal possible scope to measure KPI • Embed measurements into MVP • Run your experiment
  • 21. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 4 - Learn Analyze Compass Progress / t • Current KPI compared to your holy grail • Focus improvements on highest gaps • Did you improve?
  • 22. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com STEP 5 - Validate Goal Goal Are the KPI converging? A B
  • 23. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com 5 Steps to Product Market Fit Concept Metrics ExperimentLearn Validate • Need, Solution (Value, Growth, Model)___ • Need, Value, Growth, Model___ • MVP, Try, Measure__Analysis, Progress / t, Compass KPI Converging? Repeat
  • 24. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com More to explore Books Lean startup, by Eric Ries Toyota Production System: Beyond Large-Scale Production, by Taiichi Ohno (Kaizen) Lean Thinking: Banish Waste and Create Wealth in Your Corporation, by James P. Womack and Daniel T. Jones Crossing the Chasm, by Geoffrey A. Moore The four steps to the Epiphany, by Steve Blank Links https://en.wikipedia.org/wiki/Product/market_fit http://www.startup-marketing.com/the-startup-pyramid/ http://blog.pmarca.com/2010/03/20/the-revenge-of-the-fat-guy/ http://theleanstartup.com/ http://paulgraham.com/startupmistakes.html Techniques Agile / SCRUM Rapid prototyping Continuous deployment A/B Testing The 5 Why
  • 25. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Points to remember Failure is a cousin of creativity. Fail fast! Making stuff people want vs. Making people want your stuff Greatest waste is to do efficiently what should not be done at all. Follow the trail wherever it leads… Most successful startups end up doing something different than they originally intended Enjoy along the way! Paul Graham Peter F. Drucker
  • 26. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Thank you for attention! If you are wondering how to apply this to your own company, Or if you would like to discuss an interesting idea, I’ll be happy to meet for a coffee. Jeff Safovich jeff@navigabiz.com www.Navigabiz.com
  • 27. All Rights Reserved 2017 jeff@Navigabiz.com www.Navigabiz.com Special Thanks! A big thanks to everyone who attended this event! It was a great pleasure to meet you. We hope you had as much fun attending as we did organizing it. Thanks to Google Campus that invited us to host the event in their offices! An invitation from Google Campus: If you enjoyed this event, there are many more tech/entrepreneurial related events at Campus Tel Aviv. Special thanks to Opher Brayer who inspired and encouraged me to arrange this event!