29 Apr 2022
Creating a value proposition for your Product-Market Fit in 6 steps
The product-market fit is your strongest ally in the case you want to introduce a new smartphone in the product market, and you have a unique concept that has never been seen before.
What steps do you take to get ready for the launch?
- Would you be interested in researching strong market demand?
- Would you look into what factors contributed to your competitors' success and how they achieved it?
- Would you be able to determine your potential customers or your value proposition?
With proper analysis and endless in-depth endoscopy, many startups succeed. The answers to these and other questions help you achieve Product-Market Fit.
What Does it Mean to Have a Product-Market Fit?
The product-market fit procedure is a business model and a go-to method for developing a product and launching it in the right market. It's a method for fully comprehending what your target customer wants, prefers, dislikes, and requires, identifying underserved needs market gaps, and filling them with your products or services. It's the first and most crucial step a well-intentioned company takes before going public.
It's a fact that most startups fail as they do not find a product-market fit.
In a nutshell, product-market fit is the foundation of success. Because you will not only learn how to move in the sector that interests you doing market research, but you will also create a comprehensive succession plan that you can rely on and grow understanding your customer lifetime value.
The significance of a policy that is goal-oriented
You must follow a goal-oriented policy to avoid market flaws and be able to react quickly, achieving product-market fit. The need for this step stems from the chaotic and vast market size, which does not allow for broad market surveillance and instead necessitates a focused study of specific products/services.
When you have a goal-oriented policy, you designate specific purposes for the product and work your way up from there.
Why Don't Some Businesses Prioritize Product-Market Fit?
Founders often overlooked and marginalized the product-market fit model despite its importance and value. On the other hand, many businesses skip setting goals. What is the reason for this?
1. Many entrepreneurs aspire to make a difference in the world, influence those around them, and disrupt the market. As a result of their ambition, they go straight to the launch instead of doing proper research. A dream isn't enough without the necessary research and strategy.
To do so, you must always put your idea to the test and assess its market impact.
Creation and launch don't need to be brief and sporadic. Almost every day, the study, step-by-step control, and special attention to any daily developments that occur due to the nature of the market must take place.
2. While some businesses examine and monitor their product-market fit, they frequently overlook and fail to communicate their primary goal and purpose. Thanks to technological advancements, this is much more manageable than before.
Your concept can quickly reach many users through online surveys, sales ratings, teams, and social media. These users can provide you with opinions and reflections to help you develop, modify, or discard your idea.
Meeting a few metrics is not enough for a startup to achieve market traction. Your product should have a high or extremely high degree to lead the product process.
There are five measurements that any online business can track to see if they've achieved product-market fit.
1. Bounce Rate
2. On-site time
3. Pages per Visit
4. Several Returning Visitors
5. Customer Lifetime Value.
Why is Product-Market Fit so Ιmportant in Υour Τarget Μarket?
Imagine that your product satisfies everyone, and that is so indispensable that no one can live without it. A situation like that is the pinnacle of success and prestige, and it is, without a doubt, every creator's deepest wish.
All of this recognition comes from understanding the needs and concerns of customers and providing a solution. It also happens when you improve their lives by allowing them to do something they couldn't do before with your product or make their lives less painful.
Your company may soon require financial assistance if it does not have a targeted and specific product-market fit. However, because you will continue to channel money, your expenses will outnumber your income.
In a nutshell, product-market fit is a method for a company to identify consumers who will buy, use, and primarily need the product but who are numerically many enough to justify a startup's existence in the first place.
The Importance of a Product Promise
Before creating your product-market fit, you must first draft and announce the product promise. The ultimate goal of the product promise is determined by:
The Necessity of the Product.
Consider a product that you use daily and cannot imagine not having. Because you aren't the only one who can't live without it, this product has a solid product-market fit. Facebook, Instagram, Google Maps, and Microsoft Teams are just a few examples. Or items such as your iPhone and Macbook.
The Added Value and Your Target Customer.
A vital product today may be temporary due to market changes and fluctuations, rapid technological development, and the constantly expanding needs of people. For this, your product should not only aim for short-term success but also add additional value to consumers' lives while continually evolving in response to societal and consumer demands.
These variables play a role in determining and settling on the product promise.
But are they sufficient?
It's critical to promote your product promise rather than your finished product.
1. For your product promise, create various ads and campaigns to see which one will reach the most people.
2. Create multiple landing pages with various calls to action.
3. Use this method to reach out to your audience and begin marketing, with the ultimate goal of having them contribute to evaluating your product promise, as we'll see below.
4. Analyze and evaluate the campaign regularly, making changes as needed and adjusting the program to reach more people.
It's time to move on to the product-market fit after you've found the product promise and decided on the product service you'll launch.
1) Determine the precise target group you're addressing:
Whether we're talking about a specific age group, a country, or a large population, you'll need to categorize and figure out exactly who you're talking to. What are the demands of the customers? How will you get the word out to them about the product?
All of this aids in promoting your product to these individuals. Of course, the larger the target group you target, the more difficult it will be, but once the product-market fit is achieved, revenue will follow.
2) Provide solutions
In this step, your customer support staff tries to determine that the goal is to improve your customers' lives as much as possible through your product, proving your value proposition.
3) Provide the needs of customers
The third step entails researching and developing patterns for announcing the product to the target market. The simplest solution that comes to mind is to advertise the product widely, but this is insufficient because processing costs are usually prohibitive. Examine and determine the methods and means by which you will deliver the news to your target audience.
4) Develop and release a minimum viable product (MVP) feature set
To complete the MVP feature set and the product promise, audience participation is required. The MVP feature set is a release of your product service that includes a subset of its specific features that must be tested and evaluated by your surveyed customers. This lets your target customer understand your value proposition.
Those individuals suggest what they would like to see included and what they do not want to be included. Because the public may reject the product, this step can save you money. As a result, if you release the MVP to the market, you will have spent less money on it than on the product's mass circulation. Your product team reshapes and redesigns the product based on the feedback.
5) Create a minimum viable product prototype
After finishing the product testers' corrections and studies, it's time to build the MVP prototype.
What exactly is an MVP prototype?
It is a detailed and explicit presentation of your product's final form, primarily in digital format, to a subset of customers. You, as the creator, can still make changes and receive feedback at this stage, when there is still significant financial risk if you go ahead and start production. There are hundreds of prototyping and mockup tools, such as Sketch, InVision, etc.
For example, in a survey, you can use Net Promoter Score to ask your users, "How likely are you to recommend our product to a friend or colleague?". Users can choose from numbers ranging from 0 to 10, with zero indicating "not at all likely" and ten indicating "very likely."
6. Put your final MVP to the test with real customers.
Finding customers and using them to test the final MVP after being created and put into production. These customers should be part of the users you're targeting.
During the test, your team observes and listens carefully, noting their observations and feedback, whether positive or negative. They will not, under any circumstances, refrain from asking questions about the product. Avoid closed-ended questions that answer "yes or no." Instead, ask open-ended questions that allow testers to discuss their feedback accurately.
Instead of asking, "Do you like this feature?" which limits the consumer's ability to express themselves fully, ask, "Could you please describe what you thought about a feature?"
The following are the processes you'll need to launch and succeed in the market:
1. Identify a problem and develop a product or service to address it. (Find the pain points)
2. Identify your potential customers and explain the benefits of your product.
3. Formulate the final product promise and the solution your product provides.
4. Follow the steps outlined above to create the MVP.
5. Make necessary changes and modifications until the final result is achieved.
6. Your company will achieve its ultimate goal of sustainable growth through constant effort and vision.
Product-market fit is an ongoing process that is rarely completed without bloodshed. Don't be disheartened. Continue to improve and seek new ways to improve your product and service. Apart from the above, you can check some additional steps here and a framework here.
Do not hesitate to contact us if you want to boost your business performance and learn all the secrets of the marketing world. Our approved team is here to assist you with anything you require!