Achieving Product-Market fit in your Software Product
Every step in developing a Product is important, but the product market fit will define your finances later. So, we understand you are interested to be clear about it. Read below and get all information that you need.
What is Product Market Fit?
Product market fit is the perfect connection between your value proposition and a defined market segment. We list three requirements that product market fit has for you to understand better this concept:
- A clients segment is willing to pay for your product
- The cost of production is lower than the final prize that your clients will pay.
- There are enough space and opportunities to success in the market that you choose.
Necessary steps to find your product market fit
- Work on the idea first
As we said, product market fit is part of the Cobuild process: validating the idea should be first, the value and growth hypotheses too, as well as the minimum viable product. But the most important thing you need to do before finding the perfect market fit is to be sure of you are solving a problem or a necessity of customers’ life, that your product offers a nice value proposition, and there are a segment in the market that can buy your product and they will want to do it.
- Define well your target
This is one of the key things in the equation. They are the group you will take to test, offer, and sell your product. Be as specific as you can. There isn’t information that can be badly used. All of it is necessary to be effective.
- Get the first set of satisfied customers
In this moment you should have defined the idea that will solve the problem or necessity, and also, you should have a minimum viable product. What do you have to do? Easy! Select a group of potential customers and show them your app or software, explain well everything it would do for them, and if it is possible, let them test it.
Note: when we say test it, we are referring to your MVP.
And then, take their feelings and references. They will be your first referenced customers. If you study and get the best version of your idea they should love your software. Do it as many times you consider necessary and there you will have the first look about your product market fit.
- Make a predictable selling pattern
This is basically a description, a pattern that you make to clarify and define your customers, taking into consideration aspects as the role, the organization, sector, title and other customers characteristics. This would help you to classify your customer’s information and in that way you will know how you can offer them a new feature, how you will sell or just know the level of satisfaction and loyalty they will have with you. For example, suppose that you released an app for organizing tasks, but you make an upgrade for technological companies. If you have a selling pattern, and thanks to him you know that 15 clients are technological companies, they would be your best clients for buy this upgrade. Share this information with your sellers and enjoy results.
- Improve and work for references
If you convince a customer, the best thing you can do is to make her or him loyal. Why? Because they will be ambassadors of your brand, and they can directly refer more people. And if it happens, congratulations, you will get a better product market fit.
- Repeat the process and doing it forever; market changes
What you need to repeat? Well the market study for finding the perfect match between necessities, desires, requirements of customers and the product or the update you are offering. The product market fit is not only for the beginning of the Product development process, it must be a constant in the life-cycle of your brand. That’s the only way to guarantee a good place in the market, high level in sells, and enough quantity of loyal customers.
What will you achieve with this?
Well, for beginning we say the security of your customers going to buy your product and you will find your space in the market. Actually, your clients can buy the product as fast as you can offer and make it. That phenomenon is known like the trend of catch and convert profitable customers. And if it isn’t enough, we have to say lots of money, sells, popularity, and a nice place in the market and customer’s life. That’s more than enough!
To get the product market fit can sound easy but it isn’t. Take all of these tips to do it and tell us how it went. If you need some help in the process don’t hesitate to contact us. We love software development and we will gladly help to everyone who is in the same path. We hope you can find it for selling a lot!