Product Market Fit — 101

Ravi Patel
Sep 7, 2018 · 2 min read

What is Product Market Fit?

Product Market Fit (PMF) is a new term that describes how to have a successful product in today’s market. To achieve PMF, one must be in a favorable market and have a product that will address what those in that market desire. The key here is to have a relevant product that can sell itself within the marketplace.

Target Customers

Products are not able to sell themselves without the backings of a strong customer base. To find your target customers, there must be some background and marketing research conducted to find those consumers who would most likely buy your product.

Value Proposition

Value proposition is the number one reason a customer will buy a product. A product must solve a problem to a group of consumers to be of any value in the market. Value proposition also sets you apart from a competitor and gives target customers validation for choosing your product.

Feature sets and benefits of a product are selling points that should be presented easily to target customers. For example, on a website for a product you are selling always list the features of the product. This makes it easy for consumers to see a quick outline of why they should buy what your product.

User Experience: Does it Matter?

Customers are your golden ticket to a successful future. The more that customers talk about the benefits and positives of using a product, the more likely that demand for that product will rise. A key indicator of an effective market and product, is the growth in customers.

Test Prototype to Customers

Before a product is widely available, a prototype is launched. Always promote the feedback received from this testing. Your product is not a static item; changes and evolutions may need to occur to be competitive in the market. Before launching any changes to the market, conduct trials with real customers for accurate responses.

Test for Product Market Fit

Once your product is in the market, the following indicators highlight PMF success:

1. Survey customer attachment to the product. If a consumer base is becoming more dependent and attached to what you are selling, then it is a good fit for the market.

2. Examine the trend of “word of mouth”. Do customers recommend your product? Then your product is providing a necessary solution to the problem and will continue to be successful.

3. Watch the growth of new consumers. If this is higher than the number of users who discontinue using the product, then your product passes the PMF test.

Ravi Patel

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