2018-05-15 11:18:34 Marketing a Business English Learn about product-market fit, and discover how you can find it for your business. Whether you're working with a prototype or an idea, you... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/04/Entrepreneurs-discuss-how-to-find-a-product-market-fit.jpg https://quickbooks.intuit.com/ca/resources/marketing/build-customer-relationships-product-market-fit/ What's Your Product-Market Fit?

What’s Your Product-Market Fit?

2 min read

It’s every business owner’s dream; your products or services are so popular that you can barely keep up with the demand. This scenario is called product-market fit. When you get it right, it can be the thing that helps your business survive and thrive.

Understand What Your Customers Need

Understanding your customers is the most important thing you can do to help find the right product-market fit. When you know your audience inside and out, it’s easier to do everything from product design to marketing. Buyer personas, which are essentially profiles of your ideal customers, are a great place to start.

Once you know who you want to sell to, it’s time to start figuring out what they need. You could read online forums, conduct interviews, or simply observe your customers in public places. Look for frustrations or unmet needs. These are red flags that can help you refine your product idea so it’s more useful for your audience.

Define Your Value Proposition

As you get to know your audience, it’s easier to hone in on your value proposition. This is the feature of your product that solves an important customer need. Say you have an idea for a kids’ swimsuit. In talking to parents at a local pool, you might discover that existing swimsuits are hard to pull on over a swim diaper. With that information, you could come up with a design that snaps up the back. This value proposition should be your main focus as you design, test, and market your products.

Finding the Right Market

A great product idea is only half the battle. You also need to find a market with enough demand to support your business. Market research is a great place to start. If you want to open a toy store, you could look at demographic info to see how many families live in town. If only 5% of residents have kids, your market might not be large enough. In that case, you might decide to move to a different location or sell online to parents across Canada. It’s also a good idea to check out the competition. If similar businesses are booming, it’s a good indicator that customer demand is high.

Testing Your Product

When you’re confident in your customer and market research, it’s time to test your product. One option is to make a small batch of prototypes and send them out to people in your target customer base to try. With their feedback, you can refine the design. More importantly, you can get a sense of the market. If your testers are excited, or if they immediately start asking when they can buy the product, it’s a great sign. If their response is lukewarm, you might need to make some changes to improve customer satisfaction.

Connecting to Your Market

The final step in finding your product-market fit is connecting your product to your target customers. Usually, this happens with marketing. The key? Using your value proposition to speak directly to your customers’ pain point. If your customers are sick of dry, tasteless wheat-free cookies, your message could boil down to "gluten-free cookies that actually taste good." This strategy strikes a chord and makes it easier for your target customers to find you. When your product lives up to this promise, it leads to valuable word-of-mouth marketing and lasting customer loyalty.

For most startups, finding the right product-market fit takes some experimentation. When you find the right match, it can supercharge your growth and build the foundation for lasting success.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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