Our Approach to Testing for Product-Market Fit
Why Conversion Rate Optimisation is not a strategy for getting to Product-Market Fit, nor actually testing your Strategy.
Causality’s key tool to help Corporate Ventures rapidly get to Product Market fit is our proprietary approach to Product Market Fit Testing and Finding.
It’s a key methodology in our approach to solving the 3 Gaps: The Strategy Gap, The Execution Gap and the Growth Gap.
The Causality businesses bring together a range of services to help the C-Suite find a path to product-market fit, to more quickly and reliably drive growth and help you understand what you should be doing before you embark on CRO, if your aim is to get to product-market fit.
Conversion rate optimization (CRO) is a critical tool in full-funnel marketing. It is ideal for improving business and site performance and to key business metrics. But it's important to understand that it is not a strategy for getting to product-market fit for determining between paths to product-market fit. CRO can play a crucial role in improving the performance of your website, but it should be used in conjunction with other strategies for achieving your long-term goals.
Understanding Product-Market Fit Testing with Causality.
Product-market fit is the intersection between what your target audience wants and what your product or service provides. It's the sweet spot where your product or service satisfies the needs and desires of your target audience and sets you apart from your competitors. Achieving product-market fit is crucial for the success of your business, as it sets the foundation for your future growth and profitability.
Corporate & Business strategy level positioning can guide teams and execution. It is a dependency and key enabler of the level of success in achieving business metrics and KPI’s.
That is why we direct our Product Market Fit Testing & Finding approach towards de-risking the path to Growth and finding Product-Market Fit.
CRO agencies vs. Product-Market Fit testing with Causality.
CRO is a tactical approach to improving the performance of your website and increasing conversions. It involves using data and user research to understand why visitors are not converting and making changes to your website to improve the user experience. The goal of a CRO agency is to increase the number of visitors who take a desired action on your website, such as making a purchase or signing up for a newsletter.
While CRO can play a role in improving the performance of your website, it is not a strategy for getting to product-market fit. Product-market fit requires a more comprehensive approach that includes understanding your target audience, their needs and desires, and the unique value proposition of your product or service.
CRO can help you optimize the performance of your website, but it cannot help you get to product-market fit if your product or service does not meet the needs and desires of your target audience.
Traditional Strategy is not Truly Evidence Based.
Traditional Strategies for achieving Product-Market Fit are not truly evidence-based, quantitative and are not sufficiently reliable enough to guide data-driven decision making.
“Consumers don’t think how they feel. They don’t say what they think and they don’t do what they say.”
— David Ogilvy
Customer survey data is a valuable tool for strategy planning, but it also presents reliability challenges such as response bias and small sample size.
To overcome these challenges, we designed Product-Market Fit Testing & finding to be based on
Actual behaviour observation of their preferences online, in the context of their usual alternatives to increase reliability and actionability of customer insights.
Statistically Valid, Hypothesis-based Testing
Determining important and unmet needs they have to drive your product differentiation and customer relevance and potential for sustained competitive advantage
Deliver signals of product-market fit and potential payback periods to shorten your path to product-market fit.
We do our testing online, at scale and without traditional surveys in which participants are potentially influenced by factors such as social desirability, recall accuracy, or question interpretation.
Studies suggest significant customers are often skeptical that their feedback is used to improve products and services. Limited resources often lead to small sample sizes leading to misleading confidence intervals from low power of analysis. Our approach brings in millions of data points, rapidly and with incredible data precision.
To truly drive strategy, it is important to leverage this best-practice approach a more complete and accurate view of customer sentiment and needs. Positioning and strategy based on a testing of customer journeys and unmet needs can lead to an authentically customer-centric business.
Unlocking Iterative, low-cost experimentation and testing.
Achieving product-market fit requires a strategic approach that involves testing and iterating on your product or service, and continually refining your value proposition. Our approach allows this statistically valid testing of customer response even before you launch, for detailed product strategy or Go-To-Market pre-mortems that de-risk your growth and new venture building.
Statistically Valid Experimentation of Strategy
Conducting A/B and Split Testing tests to see what resonates with your target audience: Continuously refining your product or service is crucial for achieving product-market fit and staying ahead of the competition.
Find an Ideal Launch Segment and Value Proposition to rapidly monetize, and expand to find new customer segments to power growth
Refine Your Value Proposition: Your value proposition is the unique combination of features, benefits, and customer experience that sets your product or service apart from your competition. Bringing this data to the C-Suite, even pre-launch if necessary, is a powerful competitive advantage and enables true data-driven decision making in the C-Suite.
Refining your value proposition at the strategy level is crucial for achieving product-market fit and standing out in your market.
The Importance of Continuously Adapting Your Strategy:
Achieving product-market fit is a continuous process that requires ongoing effort and refinement. The depth and breadth of your level of Product-Market Fit can slip! Your target audience, market, and competition are continually evolving, and your product or service must evolve with them.
Continuously refining your strategy and approach to product-market fit is crucial for staying ahead of the competition and ensuring the long-term success of your business.
Understanding the Game-Changer: Pre-Testing Strategic Options with Product-Market Fit Testing (PMFT)
Navigating the world of startups is much like sipping a fine wine—it's an acquired taste, and you want to make sure you’ve chosen the right bottle before indulging. And while there’s no sommelier for startups, there's something equally invaluable: Product-Market Fit Testing (PMFT).
Benefits of PMFT: A Gentle Introduction for the Skeptical
De-risk Your Investment:
Before you sink resources into a product, wouldn't you want to know if it has a potential audience waiting? PMFT can save you from the build before you test scenario. PMFT even help guide product roadmaps based on the returned hypothesis results.
Traditional market research? That’s so 1999. PMFT provides contemporary, actionable insights without making your wallet wince.
Pivot Before You Have To:
The early bird might get the worm, but the early adapter gets the market share. By identifying gaps and opportunities early, you're setting your ship on a more favorable wind.
Streamline Your Strategy:
Ever tried assembling furniture without instructions? Building a startup without PMFT feels quite the same, but with higher stakes.
Proposed Use-cases: Unlocking the 'Four Fits' Potential
Imagine developing a game-changing tech tool, only to realize your target demographic prefers offline purchasing. PMFT ensures your distribution channels are in sync with your product.
If your product is a jigsaw piece, then your company’s vision is the box image. PMFT ensures that your piece fits the bigger picture, aligning your product with your company's long-term goals.
Stiff competition is like an overzealous photobomber—it can overshadow your big moment. Using PMFT, ascertain where you stand in the competitive landscape, and find that unique angle that sets you apart.
Product-Value Proposition Fit:
The best products solve real problems. PMFT helps you refine the problems your product aims to solve, ensuring your offering isn’t just a solution looking for a problem.
Validating between Various Strategic Options:
Market Segment Analysis: Testing market segments with PMFT can identify which groups are most likely to adopt your product, allowing for a targeted launch strategy.
Pricing Strategy: Price too high and you risk alienating potential customers. Price too low and you undervalue your offering. PMFT can guide you toward that sweet spot where value meets viability.
Feature Prioritization: All features might seem indispensable in the brainstorming room. PMFT can tell you which features your audience would genuinely appreciate, and which ones might just be gilding the lily.
Go-To-Market Strategy: The big launch is the crescendo of your startup's symphony. PMFT can help ensure you hit the right notes, bringing your product to market with aplomb and precision.
Embarking on a startup journey without the insights of PMFT is a bit like setting out on a road trip without a map. Sure, there’s an adventurous charm to it, but wouldn’t you rather know there’s a gas station around the next bend?
After all, in the fast-paced world of startups, it’s not just about the journey, but also reaching the destination—efficiently and effectively. Cheers to strategic foresight!
What is Causality's approach to Product-Market Fit?
Causality uses a unique framework that emphasizes actual behavior observation, statistically valid hypothesis testing, and a digital-first approach to achieve a precise product-market fit.
How does Causality differentiate from traditional strategies?
Unlike traditional strategies that rely on assumptions or mere customer surveys, Causality bases its insights on real-time online behavior, utilizing cutting-edge technology and digital tools to achieve product-market fit.
Why is a digital-first mindset crucial in today's business landscape?
A digital-first mindset, as promoted by Causality, allows businesses to map out customer journeys in real time, anticipate market shifts, and remain relevant in an ever-evolving marketplace.
Product-Market Fit: A scenario where a product meets the actual needs and desires of its intended market.
Digital-first: Prioritizing digital tools and online platforms in a business strategy.
Agile: A project management and product development approach that prioritizes flexibility and collaboration.
Statistically valid: Data or results that are likely to be accurate and reliable because of the methodology used.