Marketing - Product Market Fit

About

product market fit is achieved when customers start beating a path to your door.

When you don’t have it, everything feels hard. When you do have it, everything is easy and every move you make feel easy.

The focus should be on the problem and market in order to search for a solution.

Phases

Initial Product Market Fit Search:

  • Launch - “Launch when your product is better than what’s out there” - Paul Buchheit
  • Traction

Continued Product Market Fit Refinement:

  • Monetization
  • Growth

Metrics

  • Identify the metrics that represent the value my users get from my product - Measure the repeat usage of that metrics
  • Measuring retention - Returning usage (Day 1, 3, 7, 30 retention).
  • NPS (Should be > 50). (Net Promoter Score, ie customer survey). See Net_Promoter - A positive NPS (i.e., one that is higher than zero) is generally deemed good, a NPS of +50 is generally deemed excellent, and anything over +70 is exceptional. The Net Promoter Score is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague?
  • Paying customer renewal rates. Renewal rate is the defined as the percentage of eligible subscriptions who renew, which is cohort-based.

Documentation / Reference


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