14 Jun Product market fit : building a viable business product | Lockdown talks with Vardaraj Acharya V
CIE conducted an interactive Lockdown Talks with Vardaraj Acharya V, Chief Operations Officer & Director GTM, SAP Digital Business Networks, as a part of ResilienceUnlocked series 2.0 – a Lockdown series designed for startups to tide over and unlock their potential during the pandemic.
Key Takeaways from the session
Entrepreneurs watch out for opportunities in crisis and seize them.
Example: Swiggy moved to grocery deliveries, Mercedes Benz units are not working hence they are now involved in medical equipment. Every business has a different Product Market fit (PMF). Entrepreneurs and their team should work towards brainstorming on this. This takes time but it also lets the business go a long term.
Key considerations regarding Product Market fit (PMF):
⇒ There should be a Viable , Desirable & Feasible product if you are going for PMF
- Viability: Confirmed business model that can make company real money
- Desirability: Problem identified that customer wants solved
- Feasibility: Problem/solutions which fits and solved the problem as desired
⇒ Measuring PMF
- Get NPS score from the customers
- Retention of customers
- Word of mouth: talk to customers regarding the product, get their feedback and then conclude which industry or segment of customers is liking the product
⇒ PMF is suitable for B2C models not for B2B models.
⇒ Businesses don’t need to spend much on marketing and advertising rather they should focus more on “Word of Mouth” for PMF, especially during this crisis time.
⇒ One or two year old startups, they must not run behind the number of customers, but focus on few of the customers they have, desirability of the customers, engage with them properly, get their feedback on the product, then only invest on that particular feature of the product.
⇒ PMF is a two way street, one can’t please everyone, and cater to all industries, you need to narrow down . Learn to say “NO” to prospective customers if what they want is not a part of your business, stick on to your thought, talk to customers as much as you can, take feedback. Welcome feedback but weigh before working. Be honest and upfront about your roadmap.
How to take forward your startups and products in Covid Situation?
- KYC : Know your Customers through a service mind, be creative enough and think critically in an aligned way with your business.
- Do random sample surveying before launching the consumer end users products in B level cities and then see where you fit.
- Best way to test your product before launching is to do POC with at least 2-3 customers. In Covid scenario, POC can be effective through right networking.
- Face new reality, be transparent on present situations, think big and invite crazy ideas, align your opportunities with the present crisis.
“Retention is the single most important thing for growth, especially now”
Insightful? Watch this space for more such takeaways ↑→ https://cie.iiit.ac.in/startup-jukebox/
Know more about our ResilienceUnlocked series here https://cie.iiit.ac.in/resilience-unlocked/
Until next time!
– Sunita Kumari, Team CIE