PMF- Product market fit

[Santhosh]

Hi Megha,

Businesses assume that a new product or feature will be used by a large number of people when they release it. It would stand to a reason that the business would have no trouble in marketing and selling its products to happy customers if this benefit was made clear.

Even if a product is ten times better than its rivals, even if you know that it would significantly improve the lives of its consumers, it will fail if it cannot relate to them on a fundamental level.

Consider a Sofware. What if you created a replacement that was 100 times better and began selling it to potential customers.

Who will purchase this item?

Business customers? No, big businesses have already invested billions in integrating Microsoft productivity tools.

Students? No, most kids have access to software through their institutions or online for cheap or for free.

The list continues.

There must be a way to advertise these features. There is 0% probability of success, even if the product is fantastic. No fit would exist.

An entrepreneur might have more success using these elements to build a minimal viable product and looking for a niche market to expand into. Consider an email service where you send a plaintext message and receive a reply right away that is guaranteed to be 100% error-free in both spelling and grammar. This allowed a company to develop its brand swiftly and affordably, gather a large number of interested customers’ contact information.

Hope this helps!

[Srisachin K]

Hello People,

1. Retention: The product or service should be viewed as a “must have” by at least 20–40% of users or consumers

2. Growth engines: At least 3 engines with positive economic units—that is, ones that return more money than they cost—are found and tested. A sticky product or service cannot expand in a sustainable manner if it cannot be marketed at a reasonable customer acquisition cost. 

3. Strong platforms and processes: When scaling, make sure you can manage an inflow of users or clients.

Thanks!

[Kajal]

Hi Megha,

Cheers!