Unlocking Market Magic: Product/Market Fit
In the bustling world of business, many companies embark on a thrilling journey. Picture this: they find a tribe of customers, believe they've hit the sweet spot of product/market fit, and eagerly anticipate unbridled growth. Yet, often, this excitement is short-lived. Growth plateaus, leaving them pondering where they went astray. The culprit? More often than not, it's a lack of attention to the dance of market fit. You see, discovering a product and its market isn't a linear tale; it's a synchronized waltz.
When I talk about market fit, I'm referring to uncovering the 'market pull.' What compels a customer to crave your product so intensely that they take immediate action? And, equally vital, what turns this yearning into a repeatable pattern?
Beyond a product's usability, feasibility, and viability, the intricate dance of value discovery aims to unravel these questions. Yet, despite its paramount significance, it's often the most overlooked piece of the puzzle.
People might say they'll use or buy something, and that's easy to confuse with product desirability. But not all tests are created equal in placing decisions into a realistic market context.
Determining market fit is a dive into the realm of real-life conditions – crowded markets, competing priorities, limited budgets, and a status quo that works well enough. Value discovery must stretch beyond surface-level questions and delve into market conditions that stir action and urgency. Sometimes it's in how a product is distributed; often, it commences with how a product is spoken about and its messaging.
Many companies grapple with translating their learnings into actionable market insights. This is where a product marketing partner becomes invaluable. A skilled product marketer breathes nuance into discovery work, applying it to all facets of the go-to-market strategy.
They're the ones who discern nuances like segmenting customers based on potential evangelism, not just the initial users. They understand that word-of-mouth from a comparison site or Reddit might sway actions more than a trial experience.
Now, here's a golden nugget: Probe early, probe often. While traditional market research provides context, nothing beats the insight gleaned from live customer conversations.
Led by product managers, discovery work should cover the basics: Are your customers who you think they are? Do they truly have the problems you think they do? How do they currently solve these problems, and what would entice them to switch?
The market fit side of the equation explores what lies beneath perceived value. It delves into market dynamics affecting thoughts, driving growth, and kindling urgency.
The questions below don't need constant asking, nor are they the only ones appropriate. However, the collective discovery work should answer these market-oriented queries:
Value:
Who is most likely to use this? Who buys it? Who influences decisions?
Do they prioritize the problem?
What else are they considering that is similar?
What have I said/shown you that is most compelling (‘a-ha’ moment)?
If probing urgency: If you had 10 points in your budget, how many would each urgent problem get?
Growth / Connection:
What sparked curiosity?
How would they describe this to a colleague? (crucial for messaging insight)
Where would they expect to see this product talked about?
How would they expect to assess it?
What would make them a raving fan?
Is there line of sight to the next most likely market segments to adopt?
Any discovery technique engaging with customers can inform this work – from prototypes to usability tests to A/B tests. Simple market test techniques offering quick feedback on how people think, feel, and act are also powerful.
Let's walk through some examples:
Exit surveys: For immediate website exits, ask, "Is there anything we could have done differently to make you stay?"
A/B messaging test: Optimize product descriptions, but also grasp what the performance differences reveal about market perception.
Demand test variation: Separate the curious from the action-takers by asking for a buy or trial commitment.
Ad testing: Test different directions to understand what gets people to act and what it tells you about the market.
Sentiment probe: Measure sentiment before and after exposure to videos or explainers to gauge shifts in interest.
Usability test variation: Include competitor websites to understand the complete customer journey and product's place in the market.
Creativity is key to understanding market fit. Get out there, explore, and gain insights that might just transform your go-to-market strategy. After all, that's where the 'a-ha' moments happen.
