Blog 51: How to achieve product-market fit?
- Idea2Product2Business Team
- Jun 5, 2024
- 3 min read
Updated: Mar 20
In blog 41, we learnt about the widely used 4 fits framework. One of them is Product-Market fit. Now, product-market fit can be achieved once we launch and continuously iterate based on user feedback. Proper strategising and planning can enhance the likelihood of achieving product-market fit.
The Lean Product Playbook by Dan Olsen talks about achieving product-market fit. According to this playbook, the main framework is the Product-Market Fit Pyramid. Each layer is built on top of each other.
The first two layers relate to the ‘Market’. The next three layers relate to the ‘Product’.
Steps while using the framework.
Step1: Who is the target customer (layer1)?
Leverage the frameworks, mentioned in blog 9 (business model canvas), blog 14 (user personas), blog 16 (customer journey) to crystallise the target audience, their needs, and their user journey. Also refer to blog 77 to understand how to identify the target market? Refer to blog 78 to understand the different types of customer segmentation.
Note the difference between customer segments and personas. Customer segments group customers by shared characteristics. While, personas enable us to create personalised content and messaging tailored to individual needs.
Step2: What are the underserved needs (layer2)?
Analyse the competition (read blog 13 on SWOT framework) and industry landscape (read blog 12 on porters five forces) to zero-in on the unmet needs of customers.
Next, use the 'problem space' and 'solution space' to clarify your points. Under 'problem space', list real customer pain points. Next to each pain point, write its solution under 'solution space'.
Finally, map each user need (i.e., this problem-solution set) on a 4*4 matrix. Select the needs that are plotted in the opportunity box (green colour).
Step3: What is your product’s value proposition (layer3)?
Map your ‘value proposition’ with ‘customer expectations’ (read blog 10 to learn more). Value propositions are (a) products & features that solve certain customer jobs (b) pain relievers that relieve customer pain points (c) gain creators that create gains for customers (as per image below).
Lean Product Playbook also recommends using the Kano Model (https://en.wikipedia.org/wiki/Kano_model). This is a theory for product development and customer satisfaction. In short, breakdown customer benefits into three segments, i.e., must-haves, performance, and delighters. Have at least one benefit listed in each of the must-have, performance, and delighter categories.
Refer blog 68 to learn more about product management prioritisation frameworks.
Step4: What are the features of your MVP i.e., minimum viable product (layer4)?
Plan your MVP. Lean Product Playbook explains this with another pyramid from Aarron Walter’s book Designing for Emotion. Product is divided in functionality, reliability, usability and delightfulness. The MVP (the first customer facing product version) must have a healthy combination of functionality, reliability, usability and delightfulness. Else, the MVP will leave the initial set of users disappointed.
Step5: What will be the UX (layer5)?
Create the MVP prototype. Use good UX design practices. Read blog 28 on best practices in UI, blog 29 on best practices while designing your UX and blog 30 on usability heuristics to improve user experience. Finally, launch, test and continuously iterate.
Note: Read Blog 52 that talks about a popular design methodology i.e., Design Thinking.
Jump to blog 100 to refer to the overall product management mind map.
Source:
https://productized.medium.com/a-playbook-for-achieving-product-market-fit-by-dan-olsen-3e97f7cb1006
All the best! 😊