Product Channel Fit > Product Market Fit
🖕 to Product Market Fit
Hey everyone,
Let’s kick off another one (PS Sorry for the 2-week hiatus, been executing learnings for you 😉)
Quote of the week: “Money respects velocity, not intelligence”
We’re going to be talking about:
🔥 Why Product Channel Fit needs to be core focus
🔥 Why you’re missing out on $$ without flywheel growth
🔥 How you can build a startup in 24 days
Why Product Channel Fit needs to be core focus
We can observe 4 core models here, usually, everyone talks about the Product Market. i.e how to we build something a market of people really want and love. 90% of starts die before they get to PMF, so everyone’s focus is on minimising the path to get here
What you need to consider even more (perhaps) is Product Channel fit. In 2020 you need to work think of ideas in this order Market => Distribution => Product
i.e is there a market of people looking for a solution to a problem
if so
How can I reach those people in the most effective way possible
if so
What exactly can I sell them to solve this problem
Distribution is why Slack got bought out by SalesForce because Microsoft has a strong distribution layer. Teams has a tight-knit product/channel fit through the outlook suite which Slack doesn’t
A recent poll I ran on a popular FB group, shows similar sentiment
So the lesson to you today is to establish how to sell first and build a framework for achieving Product/Channel fit so you can achieve Product/Market fit easily. This can be through various loops from paid media, community, offline or social (that’s the game you need to play first)
Why you’re missing out on $$ without flywheel growth
Funnels are what people traditionally knew in growth. Finding people, getting them accustomed to you and then eventually getting them to pay you. The more famous one being:
Awareness - User learns of your product, blog or Ad
Acquisition - User installs or downloads app, Visits website
Activation - User signs up, or is active for some time
Retention - User comes back and uses app often
Referral - User leaves rating, talks about product, excited to use
Revenue - User is willing to pay for product
Unlike creating funnels, flywheels are built around customer happiness as the core and all the elements that drive that metric. Flywheels are all the buzz and some billion $ businesses we built around it.
Check out Atlassian's flywheel as an example
You can break this down further:
Activate: The moment your customer realizes your product is the best thing under the sun and sees full value in your product
Adopt: How customers slowly adopt your product into their lifecycle, every solution is a replacement, so they'll be now adopting your product vs their old approach/competition
Adore: This is the stage where people genuinely enjoy your product and are actually looking forward to using it. I'm very excited to use remoteworkly.co/show to send feedback to my development team vs doing 100 steps just to give them visual feedback
Advocate: At this stage your customers are bringing in new customers via online advocation, referrals or just pushing it straight to their network
Credits: Appcues
So unlike “Funnels” which are marketing focused, flywheels are completely user happiness focused, which leads to user/product lead growth aka the strongest form of growth
An exercise for you as a result of reading this is to make your own flywheel, your life flywheel as to where your job/business, social media, LinkedIn and all sit in your flywheel to success - try it and please send me back an image (I’d love to see)
How you can build a startup in 24 days
There’s a lot of things you can do in 24 days to build a fully functional business with defaults, error checks as well as frameworks to make sure your chances of success are high.
I detailed this down in a 24-day series (5 days are already launched and live) on the exact steps we’ve personally taken and seen our successful clients take, in moving a business from 0 to growth
Thank you and very excited to chat next week
PS I’d really appreciate it if you could reply back with your favourite part (if you had one) or what I can do next. If you can’t - send me your favourite Christmas snack for 2020
V - anything on growth and acquisition is great and very worthwhile.