Product Market Fit
User Retention – Locate different cohort or groups of users i.e. dates wise or location wise any demography
Find a stable line of users for long period of time
1. If the curve of user retention is declined to zero at a certain time – No fit – Leaving the platform
2. If the curve of user retention is flattering Fit tending to zero – declining continuously – using the platform
3. If user retention curve is smiling – decreased and increased meanwhile – increasing user base and return users – Will cause because of network effects – time depends on niche short or long
Urgent Problem + Important Problem = Good Strategy for Product Market Fit
What to Grow
- Help to Focus
- Help to Make Decisions
- Whatsapp: Messages Sent
- Airbnb: Number of Nights
- eBay: Value of Merchandise
- Product Hunt: Number of Page CTR
Northstar Metric = Value to User
Good Northstar Metric is Value for User + Multiple Stakeholders in Product i.e. if the product is marketplace then the value for both buyer and seller – Smooth and Value Added Transaction for both stakeholders.
- Can divide user engagements to set goals to achieve targets for each KPI
- Get Aha moment faster initial first engagements may be marketing – inspired user by experience – Tik Tok and Robinhood stock trading
- The desire for J shape growth – will get if have good product-market fit
- Avoid sustained growth
How to Grow
- In Funnel – Understand – Identify – Execute
- Even smaller growth is hope – Keep experimenting
- A/B Test Multiple Versions- for key metrics
- Reduce friction – Follow Fly Wheel growth will be accelerated by the word of mouth of satisfied users
- Limit options – start smart
- Retarget
- Clear Call To Action
- Urgency – Inventory alerts someone else will buy – repeat for all stakeholder – Think of procrastinate mindset and put related urgent inputs
- Localization
Targeting
- Target users for behavior
- Easy entry points
- Educate users to use the feature
- Find relevant platform where future users spending time now to attract
- Target on right for maximum engagement
Good Practices
- Network Effects
- Invite Friends for Early Access
- Invite Friends for Discount Codes
- Invite Friends for 7-Day Free Access
- Show Happy Customers
- Show Credibility
- Branding – Color Shops for Brand Recognition – Follow same color pattern for faster brand recognition
Unique App
Telegram – Encrypted
This article is an excerpt from an online session conducted on the topic of “Marketing Strategy for a Startup”, for details of the speaker please see the comment.
