Product-market fit is a critical concept in Lean Startup methodology, and understanding how to achieve it is paramount. Coined by Marc Andreessen in a 2007 blog post, product-market fit is defined as being in a good market with a product that can satisfy that market. Despite its importance, detailed guidance on achieving product-market fit is often lacking in many articles.
Product Market Fit Pyramid
The Product-Market Fit Pyramid, a framework introduced in The Lean Product Playbook based on extensive experience provides a structured approach to defining and achieving product-market fit. This actionable model comprises five key components, forming layers of a pyramid, each directly influencing the levels above and below. These components are your target customer, your customer’s underserved needs, your value proposition, your feature set, and your user experience (UX).
To navigate the path to product-market fit, the Lean Product Process, outlined in The Lean Product Playbook, offers a step-by-step, iterative approach based on the Product-Market Fit Pyramid. This process facilitates articulating, testing, and revising key hypotheses, enhancing the product-market fit progressively.
The Lean Product Process consists of six steps:
- Determine your target customer
- Identify underserved customer needs
- Define your value proposition
- Specify your MVP feature set
- Create your MVP prototype
- Test your MVP with customers