Product/market fit refers to a situation where a product dominates a particular niche due to the remarkable value it provides consumers. PMF provides us with valuable insights which facilitate sustainable and speedy growth. The quest for PMF helps you identify the best market for your product. A good market supports scalability and provides you with a large, active customer base.
The discovery of PMF is elusive for most early-stage startups. Industry experts believe that startups need to take twice as much time to validate the feasibility of their product in a target market. In order to get it right, startups need to search for PMF through a series of experimentation, and then build upon the lessons to edge closer to the perfect PMF.
With the discoveries made during the search for PMF, startup founders can avoid the risks of picking the wrong market for their product due to their information biases.
The Growth Marketing Funnel portrays the most vital elements that stimulate startup growth. The different strata can be described in a simple narrative: to find the perfect product-market match, a company needs to develop a core product value, provide the core value to users as quickly as possible, and then regenerate the users' experience of the offered core value repeatedly within a given period of time.
These elements also tell the whole story of a startup’s growth rate. All the layers bear equal significance and are intertwined in such a way that changes in any layer of the funnel produce a significant impact on the growth rate. For instance, the Activation layer, for the most part, revolves around the ‘Aha Moment’.
This element is intricately connected to the bottom layer, the retention, in the sense that the ‘Aha moment’ is just a moment in the buyer journey, while retention is a recurrent behavior during the buyer journey. In order to induce the behavior, the startup must first induce the ‘aha moment’ where the buyer is able to fully appreciate the core value of the product. An optimized period for the inducement of the ‘Aha Moment’ enhance the prospects of retention.
A startup needs to harness the intricate pattern of interdependence between these various layers to forge genuine growth. While the overarching goal should be to enhance the growth rate, it’s also imperative to improve on each layer separately. Paid acquisition (remarketing), product changes, and expansion of reach to other platforms are some of the measures that can be deployed to hone the layers, especially the ones from the middle to the bottom.
Both the product teams and the growth teams can work in different directions to harness the various layers of the Growth Marketing Funnel to identify the best PMF. While the product team focuses on harnessing the layers by developing and expanding the core value and features that attract people to the product, the growth teams can focus on inducing the experience of the core values in a large portion of the target audience repetitively at optimal times.
Finding the perfect PMF is imperative for the sustainable growth of a startup, and that entails altering the assumptions, processes and team structures that support the organizational framework. Biztruss’ steady hands can help you achieve coherency and clarity as you implement various changes in your quest to find the perfect PMF for your business.
Let’s talk more. Your Product Market Fit may well be only a conversation away!
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