Navigating Product-Market Fit

On my last entry, we dove into understanding your go-to-market strategy. Today, we're tackling a question that keeps many founders up at night: Where exactly are you on the journey to product-market fit?

‍

Earlier this year, I met a brilliant founder who was convinced her startup was miles away from PMF. "Our CAC is too high and we're just not seeing good signs of people wanting to give this product a chance. It is like pulling teeth." She lamented over a virtual coffee. But as we dug deeper, a surprising truth emerged. One that would completely shift her perspective and strategy.

‍

This story isn't unique. Many founders I've worked with either overestimate or underestimate their position on the PMF journey.

‍

But why? Because PMF isn't a destination—it's a spectrum. And your place on that spectrum can shift faster than you might think.

‍

So how do you know where you stand? Look for these key signals:

• Organic growth without or with minimal marketing spend
• Strong customer retention and engagement - Ask your paying users what they would do (and how they would feel) if you took the product away from them.
• Increasing word-of-mouth referrals
• Shortening sales cycles and improving conversion rates
• Passionate customer feedback (both positive and negative). Yes, negative too. This means users are invested and want to see the product get better. A win-win.

Tip: Create a simple weekly scorecard for these metrics. You might be surprised at the patterns that emerge.

‍

The 'Why' Behind the 'Where':

Here's where this founder's story takes an unexpected turn. As we got deepen into the conversation, and after some calls with prospects and users, we uncovered something fascinating. Her product wasn't struggling because it was bad. I mean, there was plenty of room for improvement (as all other early-stage products). Growth wasn't happening because her team wasn't communicating its value effectively. They had a message-market fit problem. In other words, her team wasn't communicating the product's value effectively to the right audience. An unclear message was attracting the wrong type of users. Once on the platform, these users struggled to find a compelling reason to stay.

There was a product - message - market mismatch. We'll discuss how we solve this another time. Let's go back to how to find PMF.


So, here is the most effective, tactical idea you can (and should definitely) try.
‍

Talk to your users. Customer discovery is the foundation of building a successful product. It's not just a preliminary step but a critical process that determines whether your solution will actually have a shot at solving a real-world problem. I know... this advice sounds cliché, right? But it truly is the fastest, most effective way to understand where you are in your PMF journey.

‍

So, here's my challenge to you: Take 60 minutes this week to honestly assess your PMF position. Create that scorecard I mentioned before. Look at your metrics, but more importantly, look at the 'why' behind them.

‍

Then. Conduct at least 3 in-depth customer interviews each week for the next month. At the end of the exercise, you should be able to:

• Clearly articulate their pain point(s)
• Completely reframe your understanding of the problem
• Identify unexpected market opportunities
• Develop a more targeted value proposition
• Bonus: Include value-based questions to get a sense of whether or not they would pay for your product (if they already aren't)

‍

You might discover, like this founder did, that you're closer to PMF than you think, or that the path to get there is clearer than you imagined. It's not easy, but remember there are no shortcuts.

‍

Next month, we'll dive into a question that's crucial for scaling: Have we found a predictable selling motion? Trust me, you won't want to miss it.

‍

I sincerely hope this helps! And remember, if you want to discuss your PMF journey or outreach strategy in more depth, I'm always just an email away.
‍

G

‍