Product Market Fit (PMF) is a new term floating in the business world. Though, not many may understand the term, it is a vital point to consider while starting to compete in the market. In this lecture Jocelyn Miller, with her very cordial approach, educates us on the ways to utilize PMF in the early stages of Product discussion.
Jocelyn Miller is a very congenial speaker who has worked as a Product Manager for Amazon, Google and Zazzle. Her indomitable interest to systematically design and create an optimized solution for business and personal career hassles, has made her best in her work as a corporate consultant and coach.
How to Utilize Product Market Fit
According to Marc Andreesen, “Product/market fit means being in a good market with a product that can satisfy that market”.
Most of the times, the product owners will start to realize if the PMF is not happening for their product. This might happen through the reduced market size, low response from customer base, negative press reviews or the weakening word of mouth, etc. In this session, Jocelyn Miller, the session host for the night, explains in detail, the concept of PMF with various examples.
Tale of two Transport Products
Initially, there was no mechanism to book a car nearby, to get to somewhere. For instance, if one wanted to get to the airport to catch a flight, he had to literally go on roads and depend on luck for a taxi on time. Upon this, owing to the method of payment, the cash or credit card would eat up sometime after the drive. Uber utilized this gap in the system as an opportunity to build a product that would address all these problems.
Solving real world problems, create market fit products.
While, on the other hand, Segways are high-quality products introduced to get a faster commute. However, it could not find a place in the market, owing to its poor utility range.
At times, even if you spend years in creating a high quality product, without actually making an effort to solve any real world issues, your product may fail to be market fit.
To find the right market area for your product
- Look out for where people are spending money. This is the place where they would not mind investing.
- Analyze if the product eases the lifestyle.
In order to effectively find the right reasons, it is the customer communication that brings the meal to the table.
Effective Customer Communication
The most important aspect of the product and customer management is to understand the customer pain.
If you can solve it or alleviate it to an extent, then you have a say in the place.
The most important intent of communication must be empathy. This emotion helps one to find the right chord of the customer feedback. It makes the other person feel valued and considered. This often helps you to get the honest feedback for your products.
Minimum Viable Product. This concept emphasizes on maximizing learning validation with least efforts to solve real life problems.
Always intend to create usable products at every stage of product development. If the focus is to create an end product, ensure each milestone in between has a usable product completed. This defines the healthy growth graph of a product development.
Customer interviews are the major means of obtaining feedback for your product market fit value. The speaker says that one is always surrounded with the opportunity to learn from the happenings around. Be always curious to know and understand people. One may get a chance to get a review in a bus stop while talking to a person near by or from a stranger in the park. Be open to communicate, always.
Traditionally, there are different ways of obtaining customer reviews in the market, depending on the stage of product development. Some of the ways adopted by different companies are given below:
1. Paper Prototype – Twitter
Twitter used paper prototype to get feedback from customers personally, in the initial stage. It is believed that a personal human interaction always gives more honest and unadulterated answers. The technology often messes up a rather simpler situation, while communicating!
2. Landing Pages – Buffer
Landing Pages are the faces of an enterprise. The more attractive and informative they are, the percentage conversion of visitors to customers is higher.
Buffer company carried out the landing page optimization using better graphics and texts to make things smoother for the users.
This change was adopted upon obtaining continuous customer reviews and close analysis of market demand and user requirements.
3. Video or clickable prototype – Dropbox
This type of feedback system was circulated in the initial stages of Dropbox development. It mainly aims at obtaining feedback with higher fidelity MVP.
- Understand the process of experimentation needed for Product Market Fit
- Best practices on how to measure product market fit–and which pitfalls to avoid
- How to effectively talk to customers in a way that gets them to tell you what you need to hear
- How to hear what a customer means beyond just their words. Hint: sometimes, customers lie!