Introduction
When a company’s product satisfies the needs of its target market, whether by addressing a need gap or resolving an issue, it has found its product-market fit.
Entrepreneurs typically have the vision to address an issue that already exists. Analyzing the issue and coming up with a potential fix does not ensure success. A fantastic product benefits the consumer. Only when a startup’s product fits the needs of the market does it attain product-market fit?
How to get a product that fits the market
The first stage in achieving the fit would be to comprehend market demand and match it to the product.
I) Recognize the target audience
Ensure that the clients who need your product are receiving it. For instance, if a firm provides an online matchmaking platform, individuals who are single and looking for a mate should be its target market.
Understanding the shortcomings of the current solutions and what is needed to satisfy client demand is critical. You may better understand the needs of the consumer and create the ideal solution with the aid of thorough market research.
ii) The product’s value proposition
Your product should have a special selling point that will set it apart from the competition and keep customers buying it.
Reaching out to target users and informing them about your product is crucial for first movers and early entrants to achieve product-market fit.
For instance, Bengaluru-based Rapido, a bike taxi startup, had to diverge from its primary market in 2020 because of the lack of demand for local transportation during the pandemic. Instead, it collaborated with Spencer’s Retail, Big Basket, and Big Bazaar to assist in the delivery of necessities.
iv) Constructing and evaluating the MVP
You can develop a simple version of your solution by creating a Minimum Viable Product (MVP). A limited group of clients can then test it and provide input for the product’s future enhancements.
Understanding the consumer perspective and validating your product both benefit from listening to your customers. They will eventually contribute to the development of later versions.
iv) Be quick.
Consumer preferences and market dynamics are always changing. Hence, if your product or service doesn’t adapt to market expectations, it runs the risk of being obsolete. A product update, or even a timely pivot, is essential for survival.
For instance, during COVID-19, several startups changed direction from their primary product to aid in the crisis.
v) Measure metrics
The measures used to assess a startup’s product-market fit must be clear. You can determine whether the product is still in demand with consumers by keeping an eye on the length of the sales cycle, the percentage of repeat customers, Customer Lifetime Value, and organic traffic.
Regular client feedback gathering will make it easier to spot changes in consumer behaviour. As a result, you can comprehend the problems with the current product and update it appropriately.
