MVP = Minimum Viable Product but also Most Valuable Possible
Fail fast, but also give your idea a chance.
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.
Product Market Fit Milestones
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.
Product Market Fit Metrics
By Product Market Fit we mean that there is space for your product and audience is listening. Identified based on the following metrics:
Reach (Impressions) means that we have identified the right keywords, channels, campaigns and medium to make our message heard by our target audience.
Visits (Traction) that proves that the message was clear and an audience has connected with it.
MQL (Qualifying Traction that needs to be further nurtured) People who visited our website and subscribed to our newsletter, or downloaded our Brochure, or Liked our Facebook page.
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:
SQL (Qualified Sales Traction meaning that user already started the process but never finished it) For example this when a user gets the questionnaire, passes the questionnaire but either abandon it or never moves to next level (which is the payment)
Sales (Completion of payment). The most critical step of this stage is the UX while checking. However, we should not underestimate the importance of the UX during previous steps of the process (also known as activation process).
Breaking Down Product Market Fit
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.
The Theoretical Background of MVP
Have we developed a product that users want? > Define Demand
Pre-existing product category
Verify the target market (find out who is in your target market)
Number of customers “pulling” for that product category
Understand your customers’ current behavior and needs
Foresee future ones
How can our product pick over the competition? > Define Competition
MVP of successful competitor(s)
Trends in the industry
Firm Size (employees, sales)
Build a Minimum Viable Product
Specify Minimum Viable Product (MVP) feature set
Create MVP prototype
Test MVP with customers
Build feedback loop
Systematically test your model
Wanna Read More on the topic
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