Chapter Chapter 3 3 NonetheleNonetheless, wess, s houlwe sdhouln’t bden ’toot be h tooard hoanr dthi osn c thioms paconmypa orn they or man the y many othersothers like itli. kAefter it. A allfter, a chieviall, achieving andng maandin mataininintagi nproingduc prot/ducmart/kmetar fitk etin fit in todaytod’s faasyt-gro’s fast-growingw, ever-ing, ever-chancgihangn gitechng ntechologynology sector sector is ha rid.s h Raercd.e nRtlecy ently CB InsightsCB Insights polled polled faile df asiletartd usptarts andups andfound fo undthat tha42t % 42bl%am bledam theied r their failurefa ilureon l aonck oflack mar of kmaret neeketd nee, md aki, nmgaki itn theg it numbthe number onere causone ecaus of e of startup startup demidseemi. se. Here areHere are a few a m feorew m cooremm coommn reaon soreans wsohyns w prohyduc prots ducfailt:s fail: • There is low customer adoption or use.• There is low customer adoption or use. • The product does not work as intended.• The product does not work as intended. • The product does not address a key problem for target • The product does not address a key problem for target customers.customers. In myIn e mxperieny experience, imcme, erimsminger yosinugr syoelfu irnself yo iunr yocusutor cusmerto’sm worler’s dworl is thde is the best bestway towa gy atoin gtheain aw theare awnearess nneeessd neeed tode dspot to srepotal opportreal opportunitieuns foitier s for markmaret disruptionket disruption. For i.ns Fortan inscet,an it’sc eu,nli it’sk elyunli thkelyat M thaartc M Beanrcioff Be nwioffoul wd ohuavlde have confiden confidence, andce, visioand nvisio to nmove to move custo cusmerto relmeratio relnatio-n - had thehad inspiratio the inspiration, n, ship mashipn agemanmageentm (CeRM)nt (C iRM)nto theinto c theloud c louwithd wtheith fo theund foinundg ofin Sag ofles Saforlece sforce withoutwithout his yearshis years of s uccof esssucc aetss O raact lOe.r acAsle .Be Asn ioffBe ncioffouns coelunss inel shi is n his BehindBehind the Clo theu dClo, “uDdo, n “’tD boen ’afrt baeid afr toa iigd ntoore ig nrulesore rulesof your of yourindu sindtry ustry that have bethat have becomec oombsolete ore obsolete or that defythat c defyomm coommn senon sse.en” se.” To helpTo helpyou nyoavigateu navigate the pitf thea llspitf caollsmm coommn too nclo toud c lostudart usptas,rt I’uveps, pI’uvet put togethertogether a frame a frwameorkw thorkat wthilla tas wseillss as thesess a thelignm aligentnm ofent yo ofur yostaurtr uspta wrtuitph with a marak metar neeketd nee. Whiled. W I hiledes igneI desdigne thed fr theam efrwamorkew workith wtheith soft thewa softrewa as rea as a serviceservice (SaaS ()S maraaS)k maret ink etm iind,n m itind, ca nit alcason bales ou sbeed ubsye dst barty ustpasrt inup othes in r other sectors to asectors to assesss theirsess their prod ucprodt/maucrt/kmaet fitrk.et fit. ThereThere are fiveare bafivesi cba elemesic elements younts youshou sldho usuled tous eme toasu mereasu youre r your startustartup’s prop’sd uproct/dmaucrt/kmaet rfitket: afit d: ivera dsityiver ofsity c uofsto cmusertosm, eernsg, aegengmaegentm, ent, churn, commitmechurn, commitment, and nt,vir and alitviry, aorlit wy, orord wofor md oofu mth.outh. 1. Diversity of Customers1. Diversity of Customers You mYou must haveust have a diver a diverse bassee bof ascuse of tomercustomers who s wusho e the prouse the product. ducYou t. You begin begin by being by b einghone host andnest to andugh to mughind medind aboedu at boyouutr yocuustor cmusertosm. ers. shoushold uld For examplFor example, aske yo, auskrs yoelfu wrshelfat w perhacte perntacgeen oftage yo uofr cuyostour cumstoersm areer peopls are people e you didyoun ’tdid knno’tw k nwohenw w yohenu s yotarteu sd tarteyourd cyourom cpaonmy.pany. 4040 4040
Measuring Product/Market Fit Page 2 Page 4