Thread by Aditya Gaur
- Tweet
- Mar 10, 2022
- #Startup #ProductManagement
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62% of startups fail because they never achieve a Product-Market fit.
What is it? And, How to know you've got Product-Market Fit?
🧵
What is it? And, How to know you've got Product-Market Fit?
🧵
Here on, Product-Market Fit = PMF
What is PMF?
The degree to which a product meets the needs of the target/potential users and market.
What is PMF?
The degree to which a product meets the needs of the target/potential users and market.
PMF is Market and Customer-driven
This means a product that is making billions today could be a failure tomorrow.
It evolves with time.
Remember Blackberry?
The same secure phones with physical keyboards that made it no. 1 eventually led to its downfall.
This means a product that is making billions today could be a failure tomorrow.
It evolves with time.
Remember Blackberry?
The same secure phones with physical keyboards that made it no. 1 eventually led to its downfall.
Pre-Launch 🛠
This is the most crucial step in the product development cycle.
Numerous metrics, sentiments, and numbers need to be looked at and analyzed.
But there are a couple of signals to look for...
This is the most crucial step in the product development cycle.
Numerous metrics, sentiments, and numbers need to be looked at and analyzed.
But there are a couple of signals to look for...
1. Visible Excitement
The "real" metric for consumer products is - "does someone's pupils dilate while using your product?".
Simple and Effective.
A to evaluate a product in beta and early stages should be happiness and excitement.
h/t @sgblank
The "real" metric for consumer products is - "does someone's pupils dilate while using your product?".
Simple and Effective.
A to evaluate a product in beta and early stages should be happiness and excitement.
h/t @sgblank
@sgblank 2. Does the product have very good customer feedback?
Even from a fairly small user base.
It could well be that you've found your niche early on, do your research and learn more about it.
h/t @eladgil
Even from a fairly small user base.
It could well be that you've found your niche early on, do your research and learn more about it.
h/t @eladgil
@sgblank @eladgil 3. People ready to pay - right now!
Users are reaching out on their own to ask if you have a paid or premium version?
Users are reaching out on their own to ask if you have a paid or premium version?
@sgblank @eladgil If people are willing to pay for a free product – it's a winner.
Nothing is a better PMF signal if your customers are ready to pay before you have a finished product.
Nothing is a better PMF signal if your customers are ready to pay before you have a finished product.
@sgblank @eladgil Post Launch 🛳
Research ✅
Testing ✅
Marketing ✅
The product has been launched.
What are we looking at now to determine, if the product has found its market?
Research ✅
Testing ✅
Marketing ✅
The product has been launched.
What are we looking at now to determine, if the product has found its market?
@sgblank @eladgil 4. Retention
A critical issue among early-stage consumer startups is low retention rates.
Even if a product retains even a low number of users, it means it has found its niche.
A critical issue among early-stage consumer startups is low retention rates.
Even if a product retains even a low number of users, it means it has found its niche.
@sgblank @eladgil The Tell – The DAU or MAU curve will flatten without bottoming out.
h/t - @bbalfour
h/t - @bbalfour
@sgblank @eladgil @bbalfour 5. Users say it would be difficult to live without your product
Excel was unsuccessful for 6 years after its launch until it found its core audience as a business application.
The threshold is around 40%+ of existing users.
h/t - @SeanEllis
Excel was unsuccessful for 6 years after its launch until it found its core audience as a business application.
The threshold is around 40%+ of existing users.
h/t - @SeanEllis
@sgblank @eladgil @bbalfour @SeanEllis 6. Organic Exponential Growth
Who doesn't want to wake with a bunch of green numbers on your bank account, a herd of new subs to your newsletter?
If it happens without any marketing and cash-burn – it's organic growth.
Who doesn't want to wake with a bunch of green numbers on your bank account, a herd of new subs to your newsletter?
If it happens without any marketing and cash-burn – it's organic growth.
@sgblank @eladgil @bbalfour @SeanEllis What does it look like?
• Users love your product → Word-of-Mouth
• People searching for your product
• Brands reaching out to explore partnerships
If 50%+ of your new users are organic, you've got PMF.
h/t - @merci
• Users love your product → Word-of-Mouth
• People searching for your product
• Brands reaching out to explore partnerships
If 50%+ of your new users are organic, you've got PMF.
h/t - @merci
@sgblank @eladgil @bbalfour @SeanEllis @merci 7. People keep using a product – even if it's broken
A broken product and high retention are clear signals of PMF.
A broken product and high retention are clear signals of PMF.
@sgblank @eladgil @bbalfour @SeanEllis @merci When you see a successful startup, you're looking at a good product-market fit.
@lemlist, founded by @GuillaumeMbh is a great example of building on community to optimize the path to PMF.
Quick Case Study 👇
@lemlist, founded by @GuillaumeMbh is a great example of building on community to optimize the path to PMF.
Quick Case Study 👇
@sgblank @eladgil @bbalfour @SeanEllis @merci @lemlist @GuillaumeMbh Another excellent example I should mention is @NotionHQ
Everyone loves it ➡️ PMF
Everyone loves it ➡️ PMF
@sgblank @eladgil @bbalfour @SeanEllis @merci @lemlist @GuillaumeMbh @NotionHQ If you wanna get into "How to find product market fit", check out 🧵 by @justinkan.
@sgblank @eladgil @bbalfour @SeanEllis @merci @lemlist @GuillaumeMbh @NotionHQ @justinkan If you're a founder, bring this thread to your team.
Did you learn something new here?
Share it with your friends, they'll love you.
Did you learn something new here?
Share it with your friends, they'll love you.
@sgblank @eladgil @bbalfour @SeanEllis @merci @lemlist @GuillaumeMbh @NotionHQ @justinkan Here are some resources to continue learning about PMF,
• www.lennysnewsletter.com/p/how-to-know-if-youve-got-productmarket
• pmarchive.com/guide_to_startups_part4.html
www.youtube.com/watch?v=0LNQxT9LvM0&ab_channel=YCombinator
• www.lennysnewsletter.com/p/how-to-know-if-youve-got-productmarket
• pmarchive.com/guide_to_startups_part4.html
www.youtube.com/watch?v=0LNQxT9LvM0&ab_channel=YCombinator
@sgblank @eladgil @bbalfour @SeanEllis @merci @lemlist @GuillaumeMbh @NotionHQ @justinkan Would you like to learn more about,
• Startups
• Growth Strategies
• Business Stories and Frameworks
Join me @adltyagaur
• Startups
• Growth Strategies
• Business Stories and Frameworks
Join me @adltyagaur
@sgblank @eladgil @bbalfour @SeanEllis @merci @lemlist @GuillaumeMbh @NotionHQ @justinkan Here's a quick recap,
▪︎ Pre-launch
• Visible Excitement
• Good Feedback
• People ready to pay
▪︎ Post-launch
• Retention
• Life without your product
• Organic Growth
• Broken product works
▪︎ @lemlist
▪︎ Pre-launch
• Visible Excitement
• Good Feedback
• People ready to pay
▪︎ Post-launch
• Retention
• Life without your product
• Organic Growth
• Broken product works
▪︎ @lemlist
