“If the customer doesn’t scream, then you don’t have product market fit.”
We are looking at companies that can mess everything up and still succeed because the customer pulls the product from their hands.
Take the iPhone for instance.
If Apple stopped making them, the consumers would go nuts.
How do I know when I have product market fit?
There are 4 heuristics…
2 for consumer.
1) Exponential organic growth and the only way you can get this is by word of mouth.
2) Net promoter score which is a proxy for word of mouth.
2 for enterprise.
1) Sales yield (contribution margin of a sales team divided by total cost of sales team). Sales yield > 1 is when you’ve hit product market fit.
2) Proof of concept trial. 30 days limited to try it to see if customer still buys it after 30 days. At the end of 30 days then you pull the trial no matter what. If the customer doesn’t scream then you don’t have product market fit.
If they’re not gonna buy it at the end of 30 days then they’re not going to buy it.
A huge mistake is pitching a potential customer idea and the customer doesn’t like the idea so then trying to iterate on the product to build something that the customer would like. By definition that is writing consensus and it leads to a mundane outcome.
It feels like the right thing to do but it is the absolute wrong thing to do.
You want to go out and find the people who love what you’re doing.
Not convince the no to become a yes.