Make it or Break it - Insights for achieving Product-market fit

This presentation was used in talks in various startup and SMB events, focusing on achieving product-market fit by prioritizing customer needs over your solution. It stresses the importance of engaging with your target audience directly. It also provides techniques for interviewing customers, leveraging Jobs To Be Done for insights, and refining product positioning and features to drive customer adoption.

1. Make it or Break it
Insights for achieving Product-Market Fit

resonate.digital

2. About
User research and digital product design
company.
Davor Čuljak
Co-founder, Managing partner
Insights for achieving
Product-Market Fit

3. What is a Product-Market Fit?
PMF is the point where the solution aligns perfectly with the needs of the target
customers

4. Product-Market Fit
Represents a significant improvement over how
customers are doing things today


— they’re willing to SWITCH

5. The problem: Watch a movie
Go to the video store nearby…
The problem: Watch a movie
Stream it, on demand. Watch N times more movies.

6. The problem: Get a ride
Call, look for it. Anticipation.
Problem to solve: Get
Click on a button. Transparency.

7. Product-Market Fit

8. Product-Market Fit

9. Product-Market Fit

10. Product-Market Fit
Sustainable business ??????

11. Product-Market Fit
Represents a significant improvement over how
customers are doing things today


— they’re willing to SWITCH
— and buy it at a FAIR PRICE

12. Insights ??????

13. (re)Focus on the Problem
01

14. 01 – (re)Focus on the Problem
We’re all in love with our Solution
It’s the best. Just to release a feature or two and it will grow.


Share option
My ❤ Solution
API
Better onboarding
“AI magic”

15. We’re blinded with the love
for our Solution

16. We’re blinded with the love for our Solution
How to diagnose it?
•Adding more features
•Solution bias: Attached to our ideas (“If all you have is a hammer, everything
looks like a nail”)
•“Our solution is great, we just need to find the right customer”

17. 01 – (re)Focus on the Problem
My Solution
The Problem

18. 01 – (re)Focus on the Problem
My Solution
The Problem
Become obsessed with the problem

19. 01 – (re)Focus on the Problem
My Solution
The Problem

20. 01 – (re)Focus on the Problem
My Solution
The Problem
Opportunities in steps before … after

21. 01 – (re)Focus on the Problem
My Solution
The Problem
Opportunities in steps before
... alternative(s) …
… after

22. Open ourselves to new
thinking.

23. 01 – (re)Focus on the Problem
How can I make my Solution
better?
How can I better solve the
problem for my customers?

24. Talk to customers about the
problem
02

25. “But we are already talking to customers!”

During sales Customer support Feedback collection • • • • • •
Mostly about our solution
02 – Talk to customers about the problem

26. 02 – Talk to customers about the problem
Why is talking about the problem to customers important?
•To understand if the problem is worth solving.
•How are they solving the problem today, what steps do they take.
•What are their biggest challenges.

27. 02 – Talk to customers about the problem
Existing Churned New

28. 02 – Talk to customers about the problem
Existing Churned New

29. 02 – Talk to customers about the problem
Interviews with the real users
✕Not our friends
✕Not our family
✕Not our board
✕Not our customer support
✕Not our sales
✕…

30. Platforms for recruiting target users — like UserInterviews.com

Recruiting candidates

31. 02 – Talk to customers about the problem
•Recruit participants based on their recent or frequent experience with the
problem.
•Ignore demographics (in most cases).
•Set a 45-minute interview.
•Offer an incentive. A gift card up to $50 dollars.


The interview

32. 02 – Talk to customers about the problem
The interview

33. 02 – Talk to customers about the problem
Q: When was the last time you had to [the problem]?
The interview
A: “It was 2 weeks ago, when one of my team members
had a birthday … “
“send a gift card”

34. 02 – Talk to customers about the problem
Q: When was the last time you had to [the problem]?
The interview
A: “It was 2 weeks ago, when one of my team members
had a birthday … “
→The Critical moment
method
→Use case
→Anchor for the interview

35. 02 – Talk to customers about the problem
Q: Jenny, can you walk us through what you did back then, step by step?
The interview
A: “Well, as always, I start by putting the list of my teammates to
the spreadsheet, and then I …“
Step 1 Step 2

36. 02 – Talk to customers about the problem
Q: What was important to you when you were sending the gift card?
The interview
A: “To be sure that a recipient likes the gift.“
Need

37. 02 – Talk to customers about the problem
Q: What was important to you when you were sending the gift card?
The interview
A: “To be sure that a recipient likes the gift.“
Need
→Need: Maximize the likelihood of
recipient to like/use the gift

38. 02 – Talk to customers about the problem
Q: … and anything else?
The interview
A: “I needed flexible delivery options.” →“Fluffy metrics”
→flexible, optimal, easy, user friendly, etc.
What do you mean by flexible?

39. Steps
Needs
Insights on how customers are solving the problem today.

40. Steps
Needs
Jobs-To-Be-Done (JTBD) (Problem = Job)
JTBD — Innovation theory

41. Jobs-To-Be-Done (JTBD)
JTBD — Innovation theory
Customers have jobs (problems, tasks), and they “hire”
products (or services) to help them accomplish these jobs.
JTBD encourages businesses to shift their focus from product features or
demographics to understanding the fundamental problems or goals that customers
are trying to address.

42. Steps
Needs
Jobs-To-Be-Done (JTBD)
JTBD — Innovation theory

43. Importance Satisfaction
Satisfaction Gap
Opportunity = f(importance, satisfaction)
Measure the opportunity of each discovered need
JTBD — Innovation theory
Need

44. Steps
Needs
Focus on high-opportunity needs

High-opportunity needs → focus on those to get closer to PMF
JTBD — Innovation theory

45. JTBD — Innovation theory

46. AwareGO — Cybersecurity Awareness
Training Platform

Example – AwareGO
What to do next?
•Make a game (gamification of learning)?
•Build phishing simulations?
•Integrate with other solutions?
•Introduce new types of content?
•…

47. Research with CISOs (target persona) was done

Job: Train employees against cybersecurity threats

Example – AwareGO

48. Discovered high-opportunity needs revolving around measuring the risk and getting
actionable insights.


Example – AwareGO
Minimize the time to assess the risk profiles of the company, departments, and individuals
Maximize the number of data points for each threat area
…
Maximize the relevance of training for each employee
…
Increase the number of actionable insights for our executive reporting
…

49. New solution: Human Risk Assessment

•Innovation → 1st on the market with a
solution that can measure human
behavior and give actionable insights
•Used by The Big Four and the world’s
largest enterprises

Example – AwareGO

50. 02 – Talk to customers about the problem
Interview tips!
•You’re there to listen → let participants do the talking
•Go with the conversation flow → your script is just a checklist
•Repeat the interviewee’s name → build rapport
•Use the mirroring technique → to gain deeper understanding
•Use the power of silence → they will fill the silence
•Use “How” and “Why” appropriately

51. Key insights for getting closer to Product-Market Fit
•Be obsessed with the problem, not the solution
•Talk to customers about the problem, methodologically (JTBD)

52. Talk about your solution
03

53. 03 – Talk about your solution
My Solution
The Problem
Interview Part I

54. 03 – Talk about your solution
My Solution
The Problem
Interview Part I
Interview Part II

55. Customers are in the right
mindset.

56. 03 – Talk about your solution
Q: Jenny, now I want to show you a potential solution.
Interview Part II
Q: Can you please share your screen, and show us how would you [the problem] by
using this solution?
A: “Oh, sure. I am so excited to see your innovative solution!”

57. Landing Page Mockup Working product Prototype

58. 03 – Talk about your solution
How to do it?
•Make clear you’re testing the product,
not the participant
•Ask them to think aloud
•They cannot hurt your feelings. You’re a
professional.
•On their questions answer back with a
question.

59. Discovering how well our
solution fits their needs.

60. YSS — AI-assisted dental procedures
simulation

Example – YSS
Initial solution:
•Mobile app
•Users make simulations and share them
with their friends and family
•Users find a dental clinic in the app’s
directory

61. Research with Patients and Dental Clinics was done

Example – YSS
Interview Part I Interview Part II
Problem (patients): Get a perfect smile

Problem (clinics): Get more leads
Shown the prototype of the solution

62. No Product-Market Fit was confirmed
Example – YSS

63. Example – YSS
Steps
Visit dental clinic’s
website
Check clinic’s credibility

64. A pivot was suggested
•A website plugin for dental clinics
•Clear business model, confirmed value
for businesses and patients
•1st customer: world-leading provider of
teeth whitening products (Bliss Oral
Care)

Example – YSS

65. 03 – Talk about your solution
By using this methodology, we discover valuable insights

→About the problem:
•How it’s being solved today (steps,
competitors, tools, workarounds, ...)
•High-opportunity needs
→About our solution:
•What meets their needs
•Where are the gaps – opportunities to
improve & innovate

66. Insights
Insights applied to the product

67. Insights
Insights applied to the website and
storytelling
USP
Definition
Decision criteria

68. It’s a journey
04

69. 04 – It’s a journey
Product-Market Fit is a moving target ??????
•Macroeconomics conditions change.
•New competitors emerge.
•New technological advancements.
•Customer preferences/behaviours/needs change.

70. 04 – It’s a journey
This is where many companies fail! They stop being
focused on the problem, trying to understand users’
needs.

71. 04 – It’s a journey
A better understanding of the problem and user needs
Stagnation in
growth
Focusing on a specific user segment
Repositioning (new comms, product improvements)
Growth slows down
Discover new needs, introduce
new products

72. 3. Ideate1. Empathize
2. Define
5. Test
4. Prototype
User-centric approach in solving
problems and creating innovative
and effective solutions
Design Thinking

73. 04 – It’s a journey
Keep a close eye on key metrics
•NPS (Net Promoter Score)
•Conversion rate / Activation rate
•Retention / Returned users

74. Summary
Key insights for getting closer to Product-Market Fit
•Be obsessed with the problem, not the solution
•Talk to customers about the problem, methodologically (JTBD)
•Validate your solution with customers
•It’s a journey, so do it continuously (moving target)
•Keep an eye on key metrics

75. Build products that
resonate with your customers
Thank you for listening!
Feel free to reach out ??????

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