Interim Executive Tips on Product Market Fit
For sustainable market growth, interim executives help you find a good product by measuring and analyzing data.
Every product has that initial customer growth that is exciting, explosive and quick. It’s a real ego booster for entrepreneurs and young businesses, and doesn’t require much work. However growth from natural adoption does eventually slow down.
To continue riding that growth wave, interim executives and the company’s growth team formulate strategies that focus on getting a good product market fit.
Interim executive growth tips: Product market fit
To measure your product market fit, there are two things you need to do:
- Create metrics that define the value customers get from your product or service
- Measure repeat usage of that metric
So if, for example, your business is a bookstore, customers get value from you when they purchase a book or read a story from your bookstore. Also, considering people on average finish reading a book every month, you would expect a repeat purchase monthly. Therefore, your value metrics are book purchases and stories while the ideal frequency is every month.
Once you can define the value and repeat usage of your product, you can analyze whether or not you have a product market fit.
Interim executive growth tips: Retention
Create a metric/time graph where you have the value matric on the vertical axis and the time your business has been operating. If you notice the line is going down (like the blue line in the graph to the right) that means your retention is low and you don’t have a bad product market fit.
But on the other hand, if you’re noticing almost 50% of customers coming back for more (like the green line in the graph), you’re heading in the right direction. Any product will have that initial drop in repeat users, but only good ones will be able to keep the level steady afterwards.