“I believe my company has hit market fit for our product” is a huge statement worthy of celebration. It is a major milestone in a product journey. Product market fit is when your product has been refined such that it fits perfectly your desired market segment. You can think of it as your product being so perfect for your customers that they become advocates for your product.
At this stage, your current users love and recognize your product’s value. They can go to the extent of sharing the experience they have with your product with their friends and families. Even new users also enjoy a great experience with your product. All these are at a large scale, not just one or two persons.
According to Product Plan, it describes a scenario in which a company’s target customers are buying, using, and telling others about the company’s product in numbers large enough to sustain that product’s growth and profitability.
Product market fit is not just one of product management terms. It is a very important factor that can make or break a product. If you assume you have product market fit before you actually do, your product might not last long in the market because you do not fully understand your market segment and the major people you should be marketing and selling to.
To achieve Product market fit, you must first know your customers- their demography (This can be done through user research, and surveys) and identify their needs that are yet to be served. Things that they wish existed. After discovering their needs, you then propose a solution to their need and create an MVP for it. After developing an MVP, you test it with the users you identified and analyze their responses and willingness to use and pay for the solution you are proposing.
This is an iterative process. After analyzing, you will find other needs that need to be solved. This is the reason why there should be a strategy that guides this process so you do not end up creating several solutions that only a few people need.
Before scaling, ensure you have hit market fit to avoid product failure. To learn more about the Product life cycle, click here. Also, don’t forget to let me know if you find this helpful.