Product market fit: how to make a scalable and profitable product.
You have an idea of your perfect startup but how to predict the success of it?Approximate reading time: 5 minutes.
Imagine you have an idea or hypothesis and you are determined to implement it. It is expected that the product is in demand and the conducted customer development interviews confirm the existence of a certain need in the market to be satisfied. However, how to estimate the prospect of the project avoiding huge expenses of time and money?
What is PMF?
Let's imagine a situation: you have an idea to launch a personal nutrition plan application. You have carried out several customer development interviews and made some assumptions about the jobs to be done. You have also made the expected unit economics calculations for your future project and you realize that the project has economic potential. But how to check if these calculations are correct? What if your assumption about user acquisition is too optimistic and in fact, the economy might not be viable?
How to check PMF?
Calculation of the unit economics of the project, as a rule, begins with customer acquisition cost and a lot depends on this initial indicator. So, how can you check it? For this purpose, we recommend testing using real cases such as a "fake door".
Its main point is to create an interactive prototype that would fully match the functionality of your project. You can present it to the target audience and drive traffic to it in order to test your hypothesis about customer acquisition cost. A fake door is a significant action that a user has to take to confirm that they need your functionality. For example, it can be a contact form in which they are supposed to leave their contact details or a subscription to future advanced functionality. Since your project is only at the prototyping stage, after opening the fake door, you should thank the user for their interest and kindly notify them that they will soon get access to the functionality. This maneuver will help you to save resources and quickly check your product for compliance with user expectations. When preparing a "fake door" we take into account:
creating a user flow;
planning the architecture and functionality of the future product.
The prototype can be checked anywhere and in any way as all digital marketing tools are at your service. The main things to assess are:
to what extent users are ready to purchase your product and whether it is worth investment
whether your expectations from the calculations of the unit economy are justified.
If your fan base is growing and the pre-order button is not keeping up with the volume of clicks - congratulations, you have achieved the desired product market fit. Want to test your idea? Contact us and together we will find the best solution!