As a basic definition, you have P/M fit when people who know they want your product, are happy with what you’re offering.
“Product/market fit means being in a good market with a product that can satisfy that market.”
“Good” meaning that the market size is large enough to sustain a business.
Practically, product/market fit just means you have a product that the market really loves and can’t live without.
In order to identify PM fit, we have broken down the process into 2 steps. The first step contains all the elements that prove we have achieved Product Market Fit, and the second step enables us to prove Business viability.
By Product Market Fit we mean that there is space for your product and audience is listening. Identified based on the following metrics:
Going a step further, we achieve Business viability if the user would pay for the product we’re offering. Identified based on the following metrics:
Achieving Product Market Fit can be interpreted as having the right funnel, and having each step of the funnel fine tuned so that it effectively converting traffic and reach into sales.
The Funnel consists of 5 steps or KPI’s that allow us to turn Reach into actual Sales. These KPI’s are:
1. Reach (which can be Organic, Paid and Social),
2. Traffic on the website,
3. MQL (Marketing Qualified Leads),
4. SQL (Sales Qualified Leads) and finally
5. Sales of the service.
For each KPI or step of the funnel, we have Metrics that prove the level of success we have achieved in every step.
We also have specific Criteria which are critical to the Success of every step of the Funnel. These criteria will be turned into the Action Plan for achieving Product Market Fit. We have further defined them for each step of the funnel