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Understanding Product-Market Fit

The number one cause for new venture failure is the building and launching of things that customers do not want. A lot of start-ups also fail because their poor product launch leads to them losing a lot of money. Product-market fit can help you avoid both of these scenarios. You will have achieved product-market fit if you find yourself in a good market, selling a product that bodes well with all potential customers. A good market is a market with a lot of consumers and has high growth potential in terms of users.

There are several ways product-market fit can be measured. The chances of your not having product-market fit are high if you feel as though you have not reached this point. You can measure your product-market fit either by looking at your pages per visit, time on site, bounce rate, and returning customers. Comparing the results from these tests to the industry average will tell you if you have achieved product-market fit or not. Your clients can also help you measure product-market fit by doing surveys. You know you have product-market fit if, after the issuance of surveys, you find that forty percent or more of your clients would be sad if your products and services were no longer accessible. You also have product-market fit if your net promoter score is positive. This shows that your customers are satisfied with your products and have high chances of recommending them to their relatives and friends.

There are several indicators of a product-market fit. If you have money that is piling up by the day, then you most likely have product-market fit. If you find yourself having to hire more support staff to help increasing numbers of customers, then you most probably have product-market fit. Another indication of product-market fit is the consumption of goods as fast as they are made.

There are several ways with which a company can get product-market fit. The first thing you need to do to achieve product-market fit is to identify who your customers are. You need to divide the market into segments for you to identify your target market. Market segmentation is crucial in trying to come up with your potential customers’ personas so your product team can develop a product that is appealing to them. Since you cannot satisfy the needs of all your customers, you need to identify the most vital needs and work on them.

For you to be in a position to attract customers, you need to assess what competitors are doing and come up with something fresh. You have a lot of time to improve on your product in the future, which is why you only need to include the basic features when starting.

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