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Product Market Fit

You cannot target everyone at once. As a startup, you should use a Selective Specialization strategy. Create "Targeting Profiles" by layering your notes:

  • Primary Target: Millennial Restaurant Owners needing Social Media & Branding (High growth, fast decision cycle).
  • Secondary Target: Gen X Dentists needing Web Development & UX (Higher ticket, longer-term stability).
  • Tertiary Target: Boomer Business Owners needing Digital Transformation/Consulting (Education-heavy, high trust requirement).
  1. Discover customer insights
  2. define customer problems
  3. define solution concepts
  4. deliver & test solutions

Product-Market Fit is the overarching goal---ensuring your product matches market demand. But in a business plan, you document the analysis and decisions about fit mainly in

PMF

Product Market Fit Meaning​

PMF

Product-market fit for a marketing agency business occurs when the agency's services effectively meet the needs and demands of its target market. This means the agency has identified a market with a clear need for its services and has tailored its offerings to satisfy that market's requirements. Achieving product-market fit involves understanding the specific needs of potential clients, ensuring the agency's services are a "must-have" for them, and continuously gathering feedback to refine and improve those services.

fit vs interest​

In the sales process, "fit" and "interest" are two important factors that salespeople must consider when engaging with potential customers.

"Fit" refers to whether the product or service being sold is a good match for the customer's needs, goals, and budget. If there is a good fit, the customer is more likely to have a positive experience with the product or service and to become a repeat customer in the future.

"Interest" refers to whether the customer is genuinely interested in the product or service being sold. A customer may have a good fit with the product or service but may not be interested in it for various reasons, such as lack of understanding, competing priorities, or budget constraints.

Both fit and interest are important factors to consider in the sales process. Salespeople need to ensure that there is a good fit between the product or service and the customer's needs, goals, and budget. They also need to generate and maintain the customer's interest in the product or service by demonstrating its value, benefits, and unique selling points.

When both fit and interest are present, the sales process is more likely to be successful, resulting in a satisfied customer who is more likely to become a repeat customer and an advocate for the product or service. However, if either fit or interest is lacking, the sales process may be more challenging, and the customer may be less likely to make a purchase or to become a repeat customer in the future.

target audience​

Be precise and define a subniche. Narrow down who your ideal customer would be, and ensure that all your messaging and the thought process behind your services and pricing reflects this. For example, if you're a life coach, don't simply advertize yourself as a life coach helping women. What specific women do you work with? Over-50's? Millennials who need help with dating? Having a clear target enables you to take a focused approach, and also allows you to charge more for your service because of your niche specialism.

Targeting Attributes​

  • re-targeting data
  • site data
  • purchase funnel info
  • publisher 3rd party data pass
  • BT segments
  • demographics (age, gender)
  • geographic

Who is my Ideal Customer?​

| Ideal Customer Profile | ICP | A description of the type of company that is a perfect fit for your product (based on industry, size, etc.). |

Ideal Customer Profile​

In sales, ICP stands for Ideal Customer Profile. It refers to a detailed description of the type of company or individual that would benefit most from your product or service and is likely to become a long-term, loyal customer. The ICP helps sales and marketing teams target qualified leads effectively, ensuring that efforts are focused on the most valuable prospects. A well-defined ICP is essential for streamlining targeting,

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Who is my Ideal Customer?

How is Product-Market Fit Measured?​

Quantitative:

  • NPS score
  • Churn rate
  • Growth rate
  • Market share

Qualitative:

  • Word of mouth. (As Andreesen says, if your customers talk about your products with others, they effectively become your product's sales reps.)
  • Calls from the media or industry analysts come in much more frequently, and coverage of your product and company increases.