Product Market-Fit: anything you don’t know

Product Market-Fit describes if a product meets expectations of its target audience; a harmonious combination with the market, which allows to increase conversion rate and revenue.

How to achieve Product Market-Fit

  1. Product Market-Fit survey by Sean Ellis;
  2. User engagement / User Retention;
  3. Unit economics.

Product Market-Fit survey by Sean Ellis

  • people who paid;
  • people who experienced the core value of product. Most often, this means people that used the product several times.
  • people who used the core feature.

User engagement

  • Our product is an image editing and sharing app.
  • The main purpose is to help users get professional-like photos in a minute.
  • What metric are we tracking? We need to track how many likes a user gets after having edited a photo in the app. Likes is a product of the product.
  • The Nord Star metric is the number of photos that get 30% more likes.

User retention

That is, even it is only 5% retention it’s already good. It is much worse if this number is zero. Andrew Chen says that a good retention for B2C products is 25–35%, and the churn rate for B2B is 2–5%.

--

--

--

Product Manager nut. Stirring up some monkey business. Delivering genius solutions. Teaching on moonlighting. Usually here: https://t.me/productmonkey

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Top Web Marketing Reviews!

Gillette’s Iconic Tagline Gets a Face Lift

Having The Weight Of The World On Your Shoulders

How to Leverage HubSpot for Account-Based Marketing

Iconic Ads: BMW — The Ultimate Driving Machine

How to Produce and Market Insane Amounts of Content

10 Best Practice Tips On How To Write Global-Ready Content For Localization

ICONIC ADS — Volkswagen — Think Small

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Andrei Smagin

Andrei Smagin

Product Manager nut. Stirring up some monkey business. Delivering genius solutions. Teaching on moonlighting. Usually here: https://t.me/productmonkey

More from Medium

Building the Building Muscle

There is no business like flow business

Sharpwitted Ninja Banner

3 “life-changing”​ questions to prompt guidance, increase sales, and get your time back in 2022

The Secret to Product-Market Fit and Beyond