EP9: How to Know You Have Product-Market Fit

Episode 9 June 25, 2020 00:30:51
EP9: How to Know You Have Product-Market Fit
In Demand: How to Grow Your SaaS to $1M ARR and Beyond
EP9: How to Know You Have Product-Market Fit

Jun 25 2020 | 00:30:51

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Show Notes

Product market fit is often talked about like it is a specific destination. A place you arrive at once and know that you’ve arrived. But the reality of growing a SaaS company is that you may not know if you have product-market fit or if you have it, you may not know how good the fit really is.

In this episode of In Demand, Asia Orangio of DemandMaven shares the seven best indicators for when you’ve found product-market fit and how to take action if you haven’t reached them yet. 

TLDL: 

  1. It feels like you are guiding a boulder down a mountain, not pushing it up the mountain. 
Prospects are willing to pay right now and they don’t bat an eye about the price Retention and active users improve with every new cohort of paying customers  Running a product-market fit survey and getting 40% of your customers saying they would be very disappointed if your product disappeared
  1. Very Disappointed 
  2. Somewhat disappointed 
  3. Not disappointed at all
When one new customer generates two or more customers Cost to acquire a customer is under a third of the lifetime value of a customer You constantly hear about how great your product is 

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