Method category: Evaluative product experiment
How to Use This in GLIDR
The Product/Market Fit Survey is a single-question survey that helps you figure out if you've reached product-market fit with a specific segment of your users.
In GLIDR, you can set up this survey and track it in an Experiment. Set your success metric to match the recommended value -- 40% or more say "very disappointed" -- and in the Run phase, add Evidence - Other for the survey itself. You can attach the raw data plus any qualitative responses you get if you asked an open-ended follow-up question. Finally, in Analyze, see if you hit the target and then figure out how to tweak your product, market, or both.
Learn more about each of those aspects of GLIDR:
Product/Market Fit Survey
Article excerpted from The Real Startup Book
The Product/Market Fit (PMF) survey specifically asks the customer, “How would you feel if you could no longer use [this product]?” with a multiple choice response. The survey is often used as a proxy metric for PMF. If 40 percent or more customers answer they would be “very disappointed” without the product then it is assumed the product is ready for marketing to the entire segment that answers that way.
- What are the demographics of our customer segment?
- Will significantly increasing marketing spend (to a specific segment) result in a successful outcome?
- Can the market I’m in sustain my business?
- Can my product meet the needs of that market?
- Value proposition
"Product-market fit" is a term originally coined by serial entrepreneur and VC Marc Andreessen in his epic post "The Only Thing that Matters." In short, it refers to being in a good market with a product that can satisfy that market. If you really have it, typically you will be stretched to the limit with resources in order to deliver the product.
Having achieved product/market fit, you can safely say that you have fully proven the value hypothesis, where the value hypothesis is the key assumption that underlies why a customer is likely to use your product. Andy Rachleff of Wealthfront argues that you should achieve PMF before searching for venture money.
Product/market fit is also a proxy for customer excitement. Customers recommend you more frequently if you've achieved it.
This survey technique gives you a quantitative measure of whether you've achieved PMF.
Sean Ellis recommends sending the PMF survey question to people who have:
- Experienced the core of your product offering
- Used your product at least twice
- Used your product in the last two weeks
Setup form on website: .5-1 day
Prepare a longer survey containing the question below: 2-3 days (see closed-ended survey for more details)
- Optionally pre-segment your users, so that you can track how different segments respond to this survey question.
- Present your existing users or customers with the following survey question, either independently or as part of a larger survey:
How would you feel if you could no longer use [product]?
- Very disappointed
- Somewhat disappointed
- Not disappointed (it isn’t really that useful)
- N/A – I no longer use [product]
3. Send the survey using any of the following: Email, Survey.io, Typeform, Google Forms, Intercom
If over 40 percent of your users are saying that they would be “very disappointed” without your product, you are building a “must have” product for your initial customers. You can also include an open-ended follow up question to understand why the user answered this way.
Look for differences in qualitative responses between very disappointed and somewhat disappointed for extra clues. Most likely, either product or market segment need to be improved.
- If part of a longer survey, take into account that answers may be skewed based on previous questions.
- Don't ask too early. It only makes sense to use this technique to measure something that's actually possible.
- Make sure you have a large enough sample population to make asking this question worthwhile (aim for at least 30 people you can ask).
- “Survey.io is necessary but not sufficient for product/market fit. You better have 40 percent, but it’s not the only metric you need.” @TriKro
- " If you aren't sure if you have product-market fit, you probably don't. Use this quantitative validation technique to track your progress." @LaunchTomorrow
- "Achieving product/market fit isn't a goal in its own right. Know your product's role in your customers' lives and the market as a whole." @LaunchTomorrow
- Got a tip? Add a tweetable quote by emailing us: email@example.com
- Hitenism: 731 Slack Users Reveal Why It’s So Addictive
- Got a case study? Add a link by emailing us: firstname.lastname@example.org
- The Pmarca Guide To Startups - Part 4: The only thing that matters
- Startup Marketing: The Startup Pyramid
- GrasshopperHerder: False Positives and Product-Market Fit
- SlideShare: Measuring and Understanding Product-Market Fit
- Startup Marketing: Using Survey.io
- Fast Company: Why You Should Find Product-Market Fit Before Sniffing Around for Venture Money
- Cobloom Blog: How to Find Product-Market Fit
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