PYROS Deep Dive: Product-Market Fit

How do you know you're on the path towards Product-Market fit?

We'll explore what Product-Market fit is, how companies know they've achieved it, and some early signals in beta or pre-launch through what we're calling 'Problem-Solution Fit'

Transcript

1. problem-solution fit regan davis BUILD | deep dive #4 PYROS
2. regan davis product leader from chicago, il BACKGROUND Sr. Director of Product @ SpotHero EIR @ 1871 Advisor, Coach regandavis.com VP of Product @ Jellyvision VP of Product @ info.com
3. product market fit regandavis.com
4. regandavis.com organic growth • ‘K-score’ or Virality — people sharing your product themselves (credit: Lean Analytics, Yousef Benjamin)
5. regandavis.com “I think the right initial metric is ‘do any users love our product so much they spontaneously tell other people to use it?’ —Sam Altman, CEO @ OpenAI
6. regandavis.com retention • plot the % of active users over time • look for a fl attening curve (credit: Lenny Rachitsky)
7. regandavis.com disappointment if you left Survey Question: • “How would you feel if you could no longer use [Product]?” (credit: Superhuman Product Market Fit survey)
8. regandavis.com “For enterprise businesses, at the end of your free trial, you should pull the trial. If the customer doesn’t scream… if they aren’t desperate, you don’t have PMF.” —Andy Rachleff, CEO @ Wealthfront
9. regandavis.com cost-efficient growth • ‘Burn rate’ • CAC < LTV (credit: Lenny Rachitsky)
10. (credit: Lenny Rachitsky) regandavis.com
11. regandavis.com irrational behavior (credit: Lenny Rachitsky) • Users using your product in ways you don’t expect. • Harnessing strange behavior patterns.
12. marc randolph co-founder, Netflix regandavis.com upending the business model finding fit by
13. regandavis.com January March May July September November DVD Sales DVD Rentals (credit: “It’ll Never Work”, by Marc Randolph)
14. regandavis.com it takes time While others… • Net fl ix: 1.5 years • Segment: 1.5 years • Airbnb: 2 years • PagerDuty: 2 years • Superhuman: 3 years • Amplitude: 4 years Some found product- market fi t immediately. (credit: Lenny Rachitsky)
15. problem solution fit regandavis.com
16. regandavis.com visible excitement
17. regandavis.com visible excitement • “Where have you been all my life?” • “I wish I had thought of this.” • Genuine smiles, eyes widening as they use the demo
18. regandavis.com take my money
19. regandavis.com willingness to pay • If you can get people to put down money before you have a product • If they willingly give you references to contact (social payment) • If they give you testimonials to use (credit: Ash Maurya - Running Lean)
20. regandavis.com using it while broken
21. dan schmidt CEO, DoubleLoop regandavis.com creating a slack community testing problem-solution fit by
23. • Self-selected early adopters and high likelihood to have PM-Fit • You can directly interact and probe on feature requests async (and bonus - engineers hear from customers) • You have a relationship to test for willingness-to-pay without a sales team. why build a community?
24. what to ask regandavis.com
25. talk to people
26. regandavis.com (credit: Lenny Rachitsky, Matt Gallivan) talk to 6-12 active users • Walk me through the last time you did X [where X is some essential function of your product]. • For each key decision you made along the way, tell me a bit about why you made those decisions. • What are the different products you use to do X? What are the best and worst parts of using those products? • The last time you did X using this product, why did you use it instead of something else? • Why did you try this product in the fi rst place? What were you hoping it would do for you? How well has it delivered on that hope?
27. regandavis.com (credit: Lenny Rachitsky, Matt Gallivan) listen for… genuine enthusiasm recognition of explicit, superior value compared to alternatives
28. regandavis.com (credit: Lenny Rachitsky, Matt Gallivan) DON’T ASK what features do you want?
29. ready for launch regandavis.com
30. regandavis.com PYROS Launch requirements
31. regandavis.com example pitch deck
32. regandavis.com
33. regandavis.com
34. questions? NEXT STEPS regandavis.com/speaker regandavis.com/feedback @regan on slack regandavis.com download feedback contact