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How to Understand the Product Market Fit in E-Commerce Growth
11 Nov 2021
By Maya Puspita
Achieving product market fit (PMF) is the single most important aspect of any early stage company. Product market fit applies to all of these situations. But more importantly, each marks an important stage that your company will need to address. At Costanoa, we like to think of product market fit as akin to a journey. Successful companies understand this and apply the right approaches to address these myriad challenges at each stage.
There is a strong consumer demand for E-Commerce solutions. To be able to satisfy this demand, we should understand the product-market fit and find the right products and services to cater to it.
Achieving product market fit (PMF) is the single most important aspect of any early stage company. Product market fit applies to all of these situations. But more importantly, each marks an important stage that your company will need to address. At Costanoa, we like to think of product market fit as akin to a journey. Successful companies understand this and apply the right approaches to address these myriad challenges at each stage.
There is a strong consumer demand for E-Commerce solutions. To be able to satisfy this demand, we should understand the product-market fit and find the right products and services to cater to it.
The market is different from country to country and also from product category to product category. This means that we need different strategies in order to get a clear picture of what features will appeal clients the most.
It is important to understand the products-market fit to determine the demand for your product. This will help you know what customers want to buy and help you focus on good features first. This gives you a better chance of getting them interested in your product, at which point you can make sure to market it effectively.
The E-Commerce business model growth story is formed from the combination of product and market fit, resulting in a seamless web platform. It can be understood by examining the following three stages :
1. Getting to your first initial set of successful customers.
- You have a clear definition of the problem and solution (with well-defined use cases). You've created a minimal viable product the smallest solution needed to land customers.
2. Scaling with a predictable selling motion.
- A clear definition of your target customer, both organization (by size, sector, existing systems, etc.) and persona (role, title). A core group of happy and referenceable customers in your target market segment.
1. Getting to your first initial set of successful customers.
- You have a clear definition of the problem and solution (with well-defined use cases). You've created a minimal viable product the smallest solution needed to land customers.
2. Scaling with a predictable selling motion.
- A clear definition of your target customer, both organization (by size, sector, existing systems, etc.) and persona (role, title). A core group of happy and referenceable customers in your target market segment.
3. Strong tailwind that makes it hard to keep up with demand.
- Customers become passionate advocates that not only drive high retention rate (well over 100% including upsell/growth), but are so successful that your reputation spreads.
- Customers become passionate advocates that not only drive high retention rate (well over 100% including upsell/growth), but are so successful that your reputation spreads.
Finding product market fit takes time and hard work, but most importantly requires a different approach at different stages of PMF. To be successful with PMF you will need to change your approach at each stage to successfully address the next stage of challenges.