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Blog 41: Increase probability of success: by having the product, market, channel and model in sync

  • Writer: Idea2Product2Business Team
    Idea2Product2Business Team
  • May 14, 2024
  • 2 min read

Updated: Mar 17

We must consider the 4 fits framework when planning product strategy (read blogs 31, 32, 33) and tactics (read blogs 9, 10, 11, 12, 13).


During our research, we encountered an article titled "Why Product-Market Fit Is Not Enough." The article recommends considering a broader perspective by focusing on 4 fits:

1. Product Market Fit

2. Product Channel Fit

3. Channel Model Fit

4. Model Market Fit


Hence, to increase probability of success, 4 fits i.e. product, market, channel, model need to be in sync.


4 fits framework
4 fits framework

1. Product-market fit

  • Does the ‘product’ actually solve users’ problems?

  • If we don’t have a product-market fit, the ‘market’ i.e., the users won’t really care about the product. Despite its excellent technology and team.

  • Read blog 51 to learn more on achieving product-market fit.

 

2. Product-channel fit

  • Is the ‘product’ leveraging the right ‘channel/s’ to reach users and maximise growth?

  • There are various ways to grow a product. These include: Sales, Virality, SEO, Performance marketing, Partnerships.

  • If we don’t have a product-channel fit, we can’t effectively reach out to users.

 

3. Channel-model fit

  • Channel-model fit answers if the monetisation ‘model’ can cover the costs for acquiring customers (read blog 50 to learn more about the different revenue streams or models).

  • Two metrics: ARPU (average revenue per user) and CAC (customer acquisition costs).

  • Case 1: If the product has low ARPU, choose a channel with a low CAC; so as to not lose money.

  • Case 2: If the product has high ARPU, then use expensive growth channels (high CAC) to acquire more customers.

  • If we don’t have a channel-model fit, we could either burn a lot of money (case 1) or lose out on maximizing revenue potential (case 2).

 

4. Model-market fit

  • Is the monetization ‘model’ aligned with the target ‘market’? i.e., are enough users willing to pay the price quoted? (read blog 50 to learn more about the different revenue streams or models)

  • If we don’t have a model-market fit, we may not be able to scale.

  • Therefore, we can either enhance our product to increase Average Revenue Per User (ARPU) or expand our market reach.

 

To summarise,

  • Product-market fit to understand if enough users benefit from the product.

  • Product-channel fit to acquire new users effectively.

  • Channel-model fit to avoid losing money.

  • Model-market fit to ensure the product can scale.

 

The 4 fits, take time and multiple iterations.


Jump to blog 100 to refer to the overall product management mind map.

 

 

All the best! 😊

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