Product Market Fit bb

💙 hi 💙

It’s me, Bailey, rewriting this Intro on Sunday evening for your fun little Monday morning surprise, sweet Angel Monarch reader 🦋 

A series of unfortunate events occurred on Friday, as I entered the final Mercury Retrograde of 2023 with no heat, a leaky kitchen pipe, and a destroyed kitchen cabinet from mold from that leaky kitchen pipe. The bad news? I definitely wasn’t feeling Fri-Yay (and our heat’s still out). The good news? Bad things come in sets of 3 (???), so Madelyn & I had a pretty fun, fresh, and festive weekend after that‼️

Now, let’s talk about Product Market Fit 😍

Wait stop ✋🏼 Bailey what is that

Amazing question!

Product Market Fit, or PMF as I’ll call it from here on out, is one of the most important yet difficult aspects of launching a business.

Imagine you've created a product or service. You think it's absolutely FANTASTIC! But.. how do you know it's what the people (ie: the markets) really want? That's where PMF comes in - a guiding star for businesses trying to navigate the complexities of consumer needs and wants.

Elusive Yet Essential: Understanding PMF

At its core, PMF is about aligning your product perfectly with market demand. But defining PMF isn't straightforward, and there's no one-size-fits-all description. Some people, like Mark Andreessen, view PMF as a scenario where your product satisfies a robust market. Sam Altman of OpenAI, on the other hand, sees it as creating something users love SO much they'd advocate for it spontaneously.

Yet, these definitions, despite their wisdom, are very hard to tangibly measure at scale. How do you quantify love letters from customers or accolades like 'Entrepreneur of the Year'? This lack of concrete measurability makes PMF an elusive target for many entrepreneurs.

Rahul Vohra: A Beacon in the PMF Fog

Enter Rahul Vohra, the founder of Superhuman, who offers a refreshing take on PMF with a tangible metric. He suggests a simple yet powerful method: ask your customers, "How would you feel if you could no longer use the product?" and only offer three segments: Very Disappointed, Somewhat Disappointed, and Not Disappointed.

If at least 40% say they'd be "very disappointed," you're likely on the right track. This approach, rooted in measurable customer feedback, gives entrepreneurs a quantifiable target.

Vohra didn't stop there. He dove deeper into customer segments, focusing on those who valued the product most. By tailoring Superhuman’s offerings to these specific groups and addressing their unique needs, he moved closer to that magic 40% threshold, transforming customer feedback into a strategic roadmap!

Why PMF Actually Matters: Beyond Metrics

But whyyyyy all this fuss about PMF? BECAUSE it's the foundation on which successful scaling is built. A product with PMF has proven its worth in the market, making subsequent growth stages, like customer acquisition and scaling, significantly smoother and more effective. It’s about ensuring your product isn’t just a flash in the pan, but something that fulfills a genuine, ongoing market need.

💡 A PERFECT example of pivoting based on user feedback to find PMF? INSTAGRAM YOU GUYS

The first prototype of Instagram was called Burbn, which was inspired by the cofounder’s love of fine whiskeys and bourbons. It was literally taking a pic of your Bourbon and tagging your location (very similar to Untappd today). BUT they didn’t find PMF for a wider market, because the app was too niche AND tried to accomplish too many things at once. The simplified and more general Instagram app was launched on October 6th, 2010, and racked up 25,000 users in ONE DAY.

Conclusion: The PMF Compass

Wrapping up: Best thing to remember from this article is that PMF isn’t just about hitting numbers, it’s about creating a product that resonates deeply with your target audience. It's a journey of constant learning, adapting, and evolving based on customer feedback. Whether you're a budding entrepreneur or leading an established business, keeping an eye on PMF is crucial. It ensures that your product remains not just relevant, but essential, in an ever-changing market landscape. So, as we sail into the future, let PMF be your compass, guiding your product to the shores of success.

Until next time,

Bailey

Sources:

• Main source is the wonderful Founder’s Journal podcast hosted by Alex Lieberman, the cofounder and chair of Morning Brew

• Also this Investopedia article