Post by account_disabled on Jan 4, 2024 11:40:18 GMT 2
The definition of the concept of PMF (Product Market Fit) means 'having a product that can satisfy a good market'. Rather than planning and marketing existing products first, we confirm this through hypothesis testing that solves the real problems of consumers in the market. Definition of PMF PMF (Product Market Fit), which means product market fit, was explained by Marc Andressen, founder of Netscape, as 'having a product in a good market that can satisfy that market.' Checking PMF means checking whether our product satisfies customer needs in the market and whether it has growth potential. Why check PMF? This is because the existing product launch formula, which is to first turn a product into a finished product based on logical and groundbreaking ideas and plans, and spend time and resources on marketing and updating the product to persuade customers, is difficult to solve real consumer problems. no see. If so, the product will eventually be ignored by consumers in the market.
That's why we check PMF first to make sure that the products or services we create in the market are truly what customers want. In order to draw a steep growth curve in the market, rather than planning a product first and persuading Special Data customers, products that already know the problems consumers have in the market and focus on solving them, i.e. products that have confirmed PMF, are already in demand by consumers. By confirming that there is and targeting it, you can greatly increase the probability of success of your products and services. How to check PMF In order to confirm product market suitability, we typically check based on three indicators. Retention rate PMF viewed through retention graph (Image source: brianbalfour) Taking IT products as an example, retention, which is an indicator of how consistently users remain in a specific service and uses the product, shows a pattern of gently and stably finding and maintaining an appropriate level when it shows a pattern that satisfies the PMF. If you draw a pattern with a downward slope, you can say that you have not found the PMF.
Conversion rate Marketing Funnel (Image Source: SEMRUSH) Checking the conversion rate for the service's core usage path as an indicator is a good way to check PMF confirmation. If we analyze the conversion rate of our products by benchmarking the average conversion rate in the market by industry, product category, and customer price, it can be used as a useful indicator to check PMF. Net Promoter Score (NPS) Net Promoter Score (NPS) (Image source: mtab) NPS (Net Promoter Score) refers to an indicator that can effectively predict the success of a service through a survey of service users or product users. Users in the group who are loyal to our service and want to actively recommend it score 9 to 10, those who are satisfied with our service but can easily switch to a competitor's service score 7 to 8, and those who are dissatisfied with our service and do not recommend it score 0 to 6. Points By calculating the divided groups into scores, you can check the PMF by checking how many NPS loyal users, or true fans, your product has. Checking the PMF through these three indicators means that there is really a problem in the market? Does our product really solve the problem? And did it become a hypothesis developed while creating the product? This is to check. Then, check your PMF by looking at these three indicators.
That's why we check PMF first to make sure that the products or services we create in the market are truly what customers want. In order to draw a steep growth curve in the market, rather than planning a product first and persuading Special Data customers, products that already know the problems consumers have in the market and focus on solving them, i.e. products that have confirmed PMF, are already in demand by consumers. By confirming that there is and targeting it, you can greatly increase the probability of success of your products and services. How to check PMF In order to confirm product market suitability, we typically check based on three indicators. Retention rate PMF viewed through retention graph (Image source: brianbalfour) Taking IT products as an example, retention, which is an indicator of how consistently users remain in a specific service and uses the product, shows a pattern of gently and stably finding and maintaining an appropriate level when it shows a pattern that satisfies the PMF. If you draw a pattern with a downward slope, you can say that you have not found the PMF.
Conversion rate Marketing Funnel (Image Source: SEMRUSH) Checking the conversion rate for the service's core usage path as an indicator is a good way to check PMF confirmation. If we analyze the conversion rate of our products by benchmarking the average conversion rate in the market by industry, product category, and customer price, it can be used as a useful indicator to check PMF. Net Promoter Score (NPS) Net Promoter Score (NPS) (Image source: mtab) NPS (Net Promoter Score) refers to an indicator that can effectively predict the success of a service through a survey of service users or product users. Users in the group who are loyal to our service and want to actively recommend it score 9 to 10, those who are satisfied with our service but can easily switch to a competitor's service score 7 to 8, and those who are dissatisfied with our service and do not recommend it score 0 to 6. Points By calculating the divided groups into scores, you can check the PMF by checking how many NPS loyal users, or true fans, your product has. Checking the PMF through these three indicators means that there is really a problem in the market? Does our product really solve the problem? And did it become a hypothesis developed while creating the product? This is to check. Then, check your PMF by looking at these three indicators.