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How well does your product fit the market? January 16, 2012

Posted by Ian Cheng in Funding.
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Pooja

“Product/market fit means being in a good market with a product that can satisfy that market,” according to Marc Andreessen, to whom the term is often attributed.

Few indications that you have a product fit:

1. While you are demonstrating to the customer they indicate that this solves their pain point.

2. You get calls from folks, along the line..” I was referred to you by XYZ because your product does..”

3. Customer who have been beta testing your product wants to purchase licenses..

4. Customers are asking for features which are clearly bells-whistles (ie., your core product feature set is solid..)

There are some key metrics that you can measure to indicate how good your product/market fit is:

Usage: Larger amounts of data being created inside the product and longer times for users logged into the system

Return Visitors: Increased returning visitors to the site

Unique Sign-ups: Growing number of sign-ups/conversion

Increase sales activity (number of inbound calls, number of organic leads etc)

Lower Sales cycle (if the product fits the market, customers will buy relatively easily)

How well does your product fit the market?

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