What does Product Market Fit mean and how does the product manager take advantage of it?


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What is Product Market Fit and how can I take advantage of it? 

When you launch a new product on the market it is usually to satisfy a need or solve a problem, but… do people care? Well, that’s the Product Market Fit and when something fits into the market and people like it, the traction is noticeable. If you want to discover how to apply this methodology of a digital product manager, keep reading.


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What is Product-Market Fit?


Product Market Fit is the process of adjusting the product in the market and being able to evaluate the profitability of the company knowing if the product meets the needs of the people. It is confirmed when the client validation process verifies that you have located a group of potential clients and that they react positively to your service or product; you offer something that really interests a group and you start selling it.

It is based on three concepts:

  • A customer willing to pay for your service or product.
  • What it costs you to get the finished product is less than what you will receive for it.
  • Check that the market is receptive to our business idea and can be profitable.

Especially when starting a Startup, company or a business project it is essential to achieve the Product Market Fit since without it it will not be possible to become a reality. It is where more resources and work must be put when starting to create the company. It must be borne in mind that once we achieve our Product Market Fit we cannot forget about it and not pay attention to it again, it is a business value that must always be updated and observed because the needs and trends and trends of the population change every day.

But really the relationship between product and customer becomes Product Market Fit when your sales are no longer destined to the type of segmentation you want for your customers to go to how fast you are able to sell or how quickly you are getting new customers .

What does Product Market Fit mean and how does the product manager take advantage of it - ebook resource

Stages of the Product Market Fit

First there is a stage called Customer Discovery, when you are reflecting and choosing the type of customer you want. Then, it goes to a Customer Validation stage , when that fit between customer and product occurs, when it starts to sell and everything devised is working and it really starts to grow.

In short, Product Market Fit seeks to first reach a target market segment, it aims to estimate the potential that the Startup can reach and to achieve this it has a set of tests with which to assess whether it can move to another stage (of business growth).

What does Product Market Fit mean and how does the product manager take advantage of it - product market

How do you avoid failing in your early years of a product launch?

When what we offer is of interest to the market, we can have more resources to launch the business project and grow even more. But if it seems so easy to follow these steps: why do almost all companies fail in their early years and only a few remain?

The same happens with products and those that manage to survive do so by adapting day by day to the problems that arise in companies, to the new needs of customers and modify their products and services to offer something of true value to their customers. . There is no single plan for success, not two. It is necessary to have different strategies and crisis plans to solve the multitude of problems that arise in the business environment , whoever does not have a calendar and crisis plan for each of the possible problems that can occur almost certainly will fail.

If you liked this article please share it and you are interested in learning about this methodology, we recommend our Postgraduate course in Digital Product Manager . Join an international community with a pioneering methodology in the sector!

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