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Finding	
  Product/Market	
  Fit	
  
[OMG.PMF.ASAP.]	
  
Joanna	
  Lord	
  
CMO,	
  BigDoor	
  
@joannalord	
  
NEXT	
  :	
  April	
  30,	
  2014	
  
What	
  is	
  product	
  market	
  fit?	
  
Product/market	
  fit	
  means	
  being	
  in	
  a	
  
good	
  market	
  with	
  a	
  product	
  that	
  can	
  
saUsfy	
  that	
  market.	
  
hXp://www.stanford.edu/class/ee204/ProductMarketFit.html	
  
-­‐	
  Marc	
  Andreessen	
  
A	
  repeatable	
  and	
  scalable	
  sales	
  model.	
  	
  
-­‐	
  Steve	
  Blank	
  
Achieving	
  product/market	
  fit	
  requires	
  at	
  
least	
  40%	
  of	
  users	
  saying	
  they	
  would	
  be	
  
“very	
  disappointed”	
  without	
  your	
  product.	
  	
  
-­‐	
  Sean	
  Ellis	
  
It’s	
  what	
  you	
  need	
  to	
  hit	
  before	
  
you	
  focus	
  on	
  growth.	
  
But	
  wait…how	
  will	
  I	
  know?	
  
But	
  wait…how	
  will	
  I	
  know?	
  
Oh	
  trust	
  me.	
  You’ll	
  know.	
  
BPMF.	
  	
  
Wondering	
  where	
  the	
  value	
  is?	
  
Customers	
  are	
  confused?	
  
No	
  organic	
  trac8on.	
  
Hard	
  to	
  pitch	
  startup	
  press.	
  
Long	
  sales	
  cycles.	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  …they	
  don’t	
  want	
  it.	
  
APMF.	
  	
  
Customers	
  buying	
  as	
  fast	
  as	
  you	
  can	
  
build.	
  
Your	
  understaffed.	
  
WOM	
  is	
  on	
  fire.	
  
Random	
  emails/feedback	
  thanking	
  you.	
  
Investment/press/general	
  buzz.	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  …they	
  need	
  it.	
  
So	
  how	
  do	
  you	
  get	
  there?	
  	
  	
  	
  
Lessons	
  learned	
  
from	
  a	
  few	
  
BPMFs,	
  a	
  few	
  
APMFs,	
  and	
  some	
  
NFPMFs.	
  	
  
Lesson	
  #1:	
  The	
  Market	
  Wins*	
  
*Every	
  damn	
  Ume.	
  
Team	
  
Product	
   Market	
  
What	
  maXers	
  most.	
  Let’s	
  talk	
  about	
  it.	
  
Team	
  
Product	
  
“In	
  a	
  great	
  market,	
  the	
  product	
  is	
  pulled	
  out	
  of	
  the	
  startup”	
  
-­‐	
  Andreesen	
  
What	
  maXers	
  most.	
  Let’s	
  talk	
  about	
  it.	
  
Market	
  
[important	
  liXle	
  side	
  note]	
  
1.  ExisUng	
  market	
  
2.  Resegmented	
  market	
  
3.  New	
  market	
  
4.  Clone	
  market	
  
4	
  Types	
  of	
  Market	
  	
  
Recession	
  =	
  high	
  unemployment.	
  
High	
  unemployment	
  =	
  job	
  search.	
  
Job	
  search	
  =	
  need	
  for	
  job	
  search	
  sites.	
  
Need	
  for	
  job	
  search	
  sites	
  =	
  opportunity.	
  
Opportunity	
  =	
  Success.	
  
Success	
  =	
  lots	
  of	
  fun	
  and	
  money.	
  
Lots	
  of	
  fun	
  and	
  money	
  =	
  speedboats.	
  
ASSUMPTIONS:	
  
#realtalk:	
  
Recession	
  =	
  high	
  unemployment.	
  
High	
  unemployment	
  =	
  filing	
  for	
  unemployment.	
  
Job	
  search	
  =	
  need	
  for	
  job	
  search	
  sites.	
  
Need	
  for	
  job	
  search	
  sites	
  =	
  opportunity.	
  
Opportunity	
  =	
  Success.	
  
Success	
  =	
  lots	
  of	
  fun	
  and	
  money.	
  
Lots	
  of	
  fun	
  and	
  money	
  =	
  speedboats.	
  
#realtalk:	
  
#realtalk:	
  
I	
  lost	
  two	
  years*	
  trying	
  to	
  
force	
  a	
  market.	
  
*all	
  my	
  savings	
  
*angel	
  investment	
  
*all	
  my	
  relaUonships	
  
*poliUcal	
  currency	
  
*confidence	
  
*about	
  a	
  million	
  other	
  things	
  
#2.	
  Realize	
  your	
  product	
  is	
  not	
  the	
  product.*	
  
*your	
  business	
  model	
  is.	
  
#realtalk:	
  
#realtalk:	
  
#realtalk:	
  
Finding Product/Market Fit
Finding Product/Market Fit
#3.	
  Start	
  at	
  the	
  pain	
  point	
  
Forget	
  the	
  vitamin,	
  be	
  the	
  painkiller.	
  
#realtalk:	
  
#realtalk:	
  
Help	
  you	
  connect	
  with	
  customers	
  in	
  new	
  ways.	
  
Help	
  you	
  engage	
  them	
  throughout	
  their	
  lifecycle.	
  
Help	
  encourage	
  social	
  advocacy.	
  
#realtalk:	
  
Help	
  you	
  connect	
  with	
  customers	
  in	
  new	
  ways.	
  
Help	
  you	
  engage	
  them	
  throughout	
  their	
  lifecycle.	
  
Help	
  encourage	
  social	
  advocacy.	
  
Feed	
  your	
  CRM.	
  
Increase	
  your	
  VPC.	
  
Drive	
  referrals.	
  
#4.	
  Ask	
  all	
  the	
  quesUons	
  
•  Who	
  needs	
  your	
  soluUon?	
  
•  Who	
  would	
  pay	
  for	
  your	
  soluUon?	
  
•  Who	
  approves	
  that	
  charge?	
  
•  What	
  are	
  they	
  doing	
  now	
  to	
  solve	
  for	
  that?	
  
•  What	
  is	
  the	
  dream	
  soluUon?	
  
•  The	
  minimum	
  soluUon?	
  
•  What	
  other	
  problems	
  stem	
  from	
  this	
  problem?	
  
•  How	
  would	
  they	
  feel	
  if	
  it	
  was	
  solved?	
  
•  How	
  much	
  of	
  their	
  monthly	
  budget	
  would	
  they	
  put	
  toward	
  a	
  soluUon?	
  
•  If	
  presented	
  with	
  a	
  soluUon,	
  what	
  could	
  stop	
  them	
  from	
  using	
  the	
  soluUon?	
  
•  What	
  are	
  their	
  shooUng	
  for?	
  
•  What	
  are	
  their	
  professional	
  goals?	
  
•  What	
  roadblocks	
  are	
  they	
  facing	
  when	
  aiming	
  for	
  those	
  goals?	
  
#5.	
  Be	
  skepUcal.	
  
#realtalk:	
  
What	
  do	
  I	
  mean	
  “skepUcal?”	
  
•  What	
  if	
  they	
  aren’t	
  right?	
  (you	
  know	
  who	
  I	
  mean)	
  
•  What	
  if	
  that	
  one	
  person	
  is	
  right?	
  	
  
•  What	
  if	
  your	
  first	
  three	
  validaUng	
  points	
  didn’t	
  exist?	
  
•  What	
  if	
  the	
  most	
  constant	
  thing	
  vanished?	
  
•  What	
  if	
  your	
  primary	
  persona	
  didn’t	
  exist?	
  
•  10th	
  man	
  rule/argumentaUve	
  theory/odd	
  man	
  out	
  theory	
  :	
  do	
  it	
  
For	
  the	
  love	
  of	
  goodness	
  gracious:	
  	
  
Embrace	
  and	
  reward	
  skepUcism.	
  
#6.	
  Minimum	
  sellable	
  product.*	
  
*	
  Versus	
  MVP.	
  	
  
#realtalk:	
  
THE	
  DREAM.	
  
#realtalk:	
  
MVP.	
  
#realtalk:	
  
MSP.	
  
#7.	
  Double	
  back…a	
  dozen	
  Umes.	
  
…aka	
  checking	
  your	
  hypotheses.	
  
#realtalk:	
  
What	
  do	
  I	
  mean	
  “validate?”	
  
•  Troll	
  feature	
  request	
  forms	
  (yours	
  and	
  others)	
  
•  Visit	
  tradeshows,	
  shake	
  hands,	
  ask	
  them	
  what	
  challenges	
  they	
  are	
  facing	
  
•  Get	
  a	
  CAB	
  early,	
  grow	
  it	
  steadily	
  
•  Get	
  your	
  prototype	
  into	
  customer	
  hands	
  as	
  quickly	
  as	
  you	
  can	
  
•  Do	
  retros	
  on	
  market	
  failures	
  –	
  awkwardddd,	
  but	
  valuable	
  
•  Do	
  retros	
  on	
  lost	
  deals,	
  cancelled	
  customers	
  
•  Write	
  your	
  assumpUons	
  on	
  a	
  wall	
  and	
  revisit	
  them	
  frequently	
  
For	
  the	
  love	
  of	
  goodness	
  gracious:	
  	
  
Don’t	
  base	
  anything	
  on	
  what	
  is	
  listed	
  a	
  trend	
  to	
  watch.	
  
#8.	
  Repeat	
  arer	
  me:	
  acIvaIon	
  &	
  retenIon.	
  
Everything	
  else	
  comes	
  arer	
  PMF.	
  
AcquisiUon	
  
AcUvaUon	
  
RetenUon	
  
Revenue	
  
Referral	
  
hXp://www.slideshare.net/Startonomics/startup-­‐metrics-­‐for-­‐pirates-­‐presentaUon	
  
McClure’s	
  Startup	
  Metrics	
  
AcquisiUon	
  
AcIvaIon	
  
RetenIon	
  
Revenue	
  
Referral	
  
hXp://www.slideshare.net/Startonomics/startup-­‐metrics-­‐for-­‐pirates-­‐presentaUon	
  
McClure’s	
  Startup	
  Metrics	
  
#9.	
  Architect	
  for	
  speed	
  
#realtalk:	
  
What	
  do	
  I	
  mean	
  “architect	
  for	
  speed?”	
  
•  Plug	
  and	
  play	
  plauorms	
  as	
  much	
  as	
  you	
  can	
  
•  Don’t	
  build	
  too	
  deep	
  too	
  early	
  
•  Think	
  flexibility	
  from	
  the	
  get	
  go	
  
•  Your	
  first	
  processes	
  should	
  be	
  around	
  iteraUon	
  
•  Your	
  first	
  hires	
  should	
  pride	
  themselves	
  in	
  their	
  ability	
  to	
  adapt	
  
•  Culture	
  should	
  reward	
  fluidity	
  	
  
For	
  the	
  love	
  of	
  goodness	
  gracious:	
  	
  
Don’t	
  build	
  for	
  progress	
  sake.	
  
#10.	
  Validate	
  QualitaUvely,	
  Verify	
  QuanUtaUvely	
  
#realtalk:	
  
So	
  you	
  have	
  PMF,	
  now	
  what?	
  
Growth	
  &	
  Product	
  Vision	
  
Next	
  up…	
  
Growth.	
  
Product	
  Vision.	
  
hXp://svpg.com/product-­‐market-­‐fit-­‐vs-­‐product-­‐vision/	
  
Don’t	
  forget…it’s	
  not	
  opUonal.	
  
Thank	
  you!	
  
QuesUons?	
  
Joanna	
  Lord	
  
CMO,	
  BigDoor	
  
@joannalord	
  
NEXT	
  :	
  April	
  30,	
  2014	
  

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