Last week’s CEO Mastermind triggered a good discussion on Product Market Fit again – and it has kept me thinking since.
It reminded me of my interview with Shikhar Shrestha, CEO of Ambient, who said this about it.
‘Over time, the success or failure of a SaaS company really depends on the strength of the product market fit.’
What fascinates me is this: What defines that strength? How can we ensure we start off with the strongest possible product market fit and maintain it over time? Cause at the end, it’s a moving target, right?
To answer that question, I thought about the key questions to raise – questions that I’ve seen working magically over time in my career:
- What’s the specific problem we optimize for, and what’s the desired outcome it needs to exceed expectations on?
- For a given customer, do they use our product every time the problem occurs, and does it solve their product every time?
- Would our customers care if we took the product away from them today?
Why these questions?
- Focus: We must answer the first question to avoid going off in all directions – too wide, no depth. That’s not sustainable.
- Value: A ‘no’ on the second question means our customers will not perceive it as highly valuable.
- Critical: A ‘no’ on question three means it’s not a high priority for them – it’s nice to have at best. Dangerous territory.
A positive answer provides the core ingredients to create something remarkable, something the right customers will be prepared to pay a premium for.
Question for you to reflect upon:
How would you score the product market fit strength of your SaaS product?
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