Find Product Market Fit [How To In 5 Steps]

Five Steps to a Product Market Fit

In this video, the founder of Vivino shares his experience on how to find a product market fit. He explains the five steps that can help startups achieve success.

Finding Problem Solution and Audience

• 80% of all startups fail because they don't find a product market fit.

• Start by defining the problem and solution in simple terms.

• Find an audience that has the problem and wants the solution.

• Test the problem and solution by looking at frequency and value.

Finding a Way to Start Building

• Start building with limited resources or have a plan on how you're going to start building.

Perfect Release Cycle

• Follow a perfect release cycle that will take you to a solid product market fit.

Identifying Product Market Fit

• Identify your product market fit by finding out if either frequency or value are high, maybe even both of them.

• Change your audience if necessary to increase both frequency and value.

Conclusion

Finding a product market fit is not easy, but following these five steps can help startups achieve success.

Building an MVP

In this section, the speaker talks about building a minimum viable product (MVP) and provides tips on how to build it effectively.

Starting Small

• Start with a smaller rocket to show people what you can build.

• Build the smallest possible thing that's still viable.

• Build your MVP fast and get it in front of real users or customers as quickly as possible.

Tips for Building an MVP

• Define core features and stick to them.

• Don't increase scope, just build the smallest possible thing.

• Get feedback from a small relevant group of potential users for the product.

Finding Metrics for Success

In this section, the speaker discusses finding metrics for success when building an MVP and avoiding vanity metrics.

Vanity Metrics

• Vanity metrics are numbers that sound and look great but don't really get you any closer to a product market fit.

• Examples of vanity metrics include downloads or celebrity mentions.

Real Metrics for Success

• The two numbers to monitor are retention and usage.

• Retention is about finding out if people keep using the product, while usage is how much do our users use the product.

Tracking Numbers in a Startup

In this section, the speaker talks about tracking numbers in a startup and building a fast and insanely awesome release cycle.

Tracking Numbers

• The two numbers to monitor are retention and usage.

• It's more important to get a few users in every week or every month.

Building an Insanely Awesome Release Cycle

• Build a fast and insanely awesome release cycle.

The Seven Steps of Building a Product Fast

In this section, the speaker outlines the seven steps to building a product fast and releasing it quickly.

Brainstorming

• Gather feedback from users and team members

• Engage the entire team in brainstorming ideas

• Prioritize ideas by estimating how much work each idea will take (shirt sizing)

Specifying

• Decide which features to build based on brainstorming and shirt sizing

• Properly specify what is being built for the team

Building

• Build the feature according to specifications

• Avoid feature creep

Releasing

• Release the feature

• Tell all users about it

Post-Mortem

• Evaluate how well the feature was received

• Determine if it improved metrics as intended

Identifying Product Market Fit

In this section, the speaker discusses how to identify product market fit.

Hints of Product Market Fit

• Users continue using a flawed product because they like it so much (e.g., early days Instagram)

Retention and Usage

• More and more users use the product more frequently (e.g., Vivino's active users scanning more wines)

Be Careful with New Users

• New users that use our product for a short time do not indicate product market fit.

[#](0:11:43 t:703s ) Story Time

In this section, the speaker tells a story to illustrate the importance of identifying product market fit.

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Product Market Fit

In this section, the speaker talks about how they achieved product-market fit and encourages viewers to like and subscribe for more content.

• The speaker mentions that they had no doubt that their product had achieved true product-market fit.

• The speaker encourages viewers to like and subscribe for more content.

• The video ends with a call to action for viewers to stop watching and go build something.

Overall, this section is a brief conclusion to the video where the speaker summarizes their main point and encourages viewers to engage with their content.