{"id":1304,"date":"2022-02-09T01:23:41","date_gmt":"2022-02-09T01:23:41","guid":{"rendered":"https:\/\/mobileaders.com\/?p=1304"},"modified":"2022-02-09T01:23:43","modified_gmt":"2022-02-09T01:23:43","slug":"produt-market-fit-what-is-it-and-how-important-is-it-for-startups","status":"publish","type":"post","link":"https:\/\/mobileaders.com\/produt-market-fit-what-is-it-and-how-important-is-it-for-startups\/","title":{"rendered":"Produt Market Fit – What is it and how important is it for startups?"},"content":{"rendered":"\n
<\/strong><\/p>\n\n\n\n Have you ever heard of the term “product market fit” or PMF? It is used to evaluate the performance of a product within a given market. Key factors which shape PMF are consumer loyalty, competitor qualification, and the ability to deliver value.<\/p>\n\n\n\n According to Andreesse, the creator of the concept, good PMF means fitting into a strong market while offering products that satisfy a niche. In other words, the solution offered by your brand must solve the persona’s problems. Of course, this level can only be achieved if you have a thorough understanding of the consumer’s motivations and needs. You should also consider the ability of your competitors to offer added value to customers. The higher the quality of your competitors’ products, the higher yours must be.<\/p>\n\n\n\n Thus, we can understand Product Market Fit as a tool that enables a mapping of your position in the market. Ultimately, it is possible to draw a parallel between the degree of consumer need and the suitability of the product offered by your company.<\/p>\n\n\n\n How to define your company’s PMF<\/strong><\/p>\n\n\n\n One of the biggest mistakes made by startups is to invest all their resources in solutions that are not yet sure about their market fit. This action probably depletes a good part of a company’s investment, and even increases the time it takes for the product to be available.<\/p>\n\n\n\n To avoid this mistake, some steps are important to define Product Market Fit:<\/p>\n\n\n\n Understand and identify the needs<\/strong><\/p>\n\n\n\n One of the pillars of this concept is the identification of the pains and needs of the persona, the representative of the audience that your startup hopes to reach.<\/p>\n\n\n\n In the old days, products and services were developed from the company and business vision. After that, there was a strategy to create a market for such a solution.<\/p>\n\n\n\n Nowadays, the Customer Centric concept is gaining more strength and the customer is at the center of the whole process.<\/p>\n\n\n\n Therefore, understanding the real needs of this persona is fundamental for the development of a solution that really meets this demand and is perceived as a value for these people.<\/p>\n\n\n\n Value proposition<\/strong><\/p>\n\n\n\n Value proposition is the main characteristic that differentiates and makes the offered solution really relevant and functional to meet the persona’s needs. Thus, we can say that it is this proposal that will make your brand be chosen and remembered in the market.<\/p>\n\n\n\n MVP \/ Prototype<\/strong><\/p>\n\n\n\n Before launching the solution into the market, it is essential to conduct tests to analyze the performance and public acceptance of this innovation. The best strategy for this process is the development of MVPs.<\/p>\n\n\n\n MVP is the acronym for Minimum Viable Product. These are simpler versions of the solution, offered to the public for them to validate, test, and get feedback on improvements.<\/p>\n\n\n\n An MVP is one of the main ways to define Product Market Fit. If the response to the test version is totally negative, it is a sign that some points need to be reviewed.<\/p>\n\n\n\n To reap this result, it is fundamental that the startup invests in a direct and effective line of communication with consumers. They are the main agents of this definition and who should be heard at all stages of the life of a company.<\/p>\n\n\n\n Rule of 40% – understand if there is Product Market Fit<\/strong><\/p>\n\n\n\n The rule of 40% consists of constructing a questionnaire about an audience’s reaction to a feature or solution itself. If the positive response is greater than 40% it is a sign that your business is on the right track.<\/p>\n\n\n\n If the result does not reach this percentage of acceptance, it is an indication that it is necessary to look at some points of the solution more calmly and make adaptations or adjustments.<\/p>\n\n\n\n