Product Market Fit

This post aims to define and clarify the concept of product-market fit (PMF). Recently, I came across a pyramid diagram that effectively visualized and helped me understand what PMF truly means and where it fits in the broader context.

Here the PMF is the puzzle we solve so as to fullfill underserved needs of a customer by defining our value proposition that the product offers.

How to Identify Value Proposition

A value proposition is a short statement that communicates why buyers should choose your products or services.

I think there are 2 ways to identify value proposition . We start with a hypothesis : identify target customer and underserved need . Once this is done we have 2 ways

1. Talk to Potential Customers: Engage with your target audience by asking open-ended questions, as suggested in the book The Mom Test. This approach helps uncover the true needs and pain points of your customers.
2. Build an MVP (Minimum Viable Product): Develop a basic version of your product quickly, and deploy it to your target customers. Monitor their usage, gather feedback, and make iterative improvements based on their responses. This method is costlier but provides direct insights into what works and what doesn’t.

Typically, you’ll gain a clear understanding of your value proposition after around 10 user interviews.

So the Value proposition can look like :

Based on the above approach, here’s a tailored value proposition:

For companies who struggle with return on investment in ads and social media platforms our product is a AI web-based automation software that automates creation of optimized ads resulting in quality leads.

This statement indicates that our product is a B2B solution designed to enhance lead generation through automated ad creation.

• For companies struggling with ROI on ads and social media platforms: Our AI-driven web-based automation software creates optimized ads to improve your return on investment and generate quality leads.

This highlights that our product addresses challenges in ad performance and social media presence.

Value Proposition Canvas

Our value proposition canvas emphasizes the time and cost savings, increased efficiency, and potential for more business that our solution offers.