Being a Product Manager requires structured and organized thinking. Frameworks and toolkits are a handy and effective way to approach problems. Product Managers learn about many and develop their own throughout their product careers and share some of those with you today. Main takeaways: - The importance of PMF. - Common misconceptions about PMF. - How to achieve PMF for your product.

1. Finding Product-Market Fit (PMF)
by Amazon Sr PM
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6. My Background
● MBA from Booth School of Businessin Chicago,IL
● 8+ years of Product Experience AcrossAmazon,SurveyMonkey,EAB& Ebay
● 5+ years in BusinessConsulting with TCSwith leading clients like- GE Capital. GE
Healthcare & Charles Schwab
● Worked in 3 Continents- India(Bangalore), US (Stamford & San Francisco) & now in
Canada (Toronto)

7. Agenda
▪ Importance of Product Market Fit (PMF)
▪ Company Examples
▪ Product Market Fit Framework
▪ Did my Product achieve PMF?
▪ Common misconceptionsabout PMF
▪ Conclusion

8. Product Market Fit (PMF)
“ Product-market fit is all about putting
a product that satisfies the market
need. You find the needs that are not
being catered for, and you create a
product unique to such needs” – Marc
Anderson
“You have found product/market fit
when you can repeatably acquire
customers for a lower cost than what
they are worth to you” – Elizabeth
Yun
Pic credit: Gust De backer

9. Importance of Product Market Fit (PMF)
● “Did you know that 42% of startups fail because no one wants to buy their product?
For corporations, nearly 80% of new products fail each year for the exact same
reason. So why are we still developing products no one wants?”
● Product Market Fit (PMF) scare is real because it costs companies millions $$
annually to chase it and realize it’s not there. Product Market fit is like a mirage, the
more you chase & force fit,more away it goes from you.

10. Companiesthat have achieved PMF(Asof today)

11. Uber PMF Timeline
Launched as
luxury ride
hailing service in
SFO in 2010
In 2011.
launched to
other US cities &
started with
mobile App
Company faced
driver availability
& reliability
issues &
invested heavily
to solve
In
2013,launched
Uber X & start
of sharing
economy
model
By 2014, Uber
had expanded
to more than
100 global
cities
Uber then
expanded to
Food delivery
& freight
transportation

12. Companiesthat Lost PMF (over time)

13. CommonMisconceptionsAbout PMF
● We have Beta customers for our Product,great we have PMF
● We got rave reviews from one of our clients/customers, we have PMF
● We just sold 3 premium versions of our Product,I think thisis it, we have PMF
● Our customers are discoveringour product on their own, it must have achieved PMF
● We had an excellent marketing webinar showing benefits of our product & many
leaders signed up for it, we have PMF
**All these are myths or I would say good starts towards achieving PMF, but not actually
PMF.

14. Framework for PMF
1. Define your Target Customer
2. Find the underserved needs of that
Customer
3. Define your Value Proposition
4. Specifyyour MVP with key features
5. Build your MVP
6. Testyour MVP with actual customers
before scaling
**Key thing to note is that above is an
iterative process & not a linear one-
meaning there can be back & forth
betweenthe stages. Whenin doubt, apply
Working backwards from the Customer
principle.
Pic credit: Mind the Product

15. Framework for PMF
Market Size:
● Market size is a key component of
product-market fit—if the market isn’t
large enough, it won’t be able to
sustain your business. If you know (or
suspect) the market has changed, it’s
worth it to conduct that research again
● The sign of a good market for your
product is a SOM that’s large enough
to be profitable for your company
while remaining realistic for your
businessmodel.
Pic credit: Hubspot

16. Did my Product achieve PMF?
● There is no single metric that will tell you about PMF, usually it’s a combination of
qualitative & quantitative metrics. Finding PMF requires long term thinking on part of
companies& its leaders and not just try it out for few months.
● Qualitative- Word of mouth from customers, Calls about your Product from news &
mediaagencies
● Quantitative- NPS score, Growth rate, Market share, Customer Lifetime value (LTV/CAC
ratio), Churn rate & others(depending on industry)

17. Did my Product achieve PMF?
Signsof PMF:
● Exponential organic growth — if your product shows high
levels of sales, conversion and user engagement, that’s a
strong sign of Product-Market fit
● Very High User Retention — if your product is retaining at
least 40% of the customers over a long period, you have a
strong sign of Product-Market fit
● A three to one return on customer acquisition cost — if the
cost to acquire the customer is 3 times less than the lifetime
value then you have signs of Product-Market fit. (e.g.
spending $1 to acquire a customer with a lifetime value of $3)
● 40% of your customers will be “very disappointed” if your
product is removed from the market
● Customers are clamoring for your Product -The customers
are buying the product just as fast as you can make it.
Reporters want to talk to you about the hot new product
Pic credit: Adam Fisher from Medium

18. Conclusion
● Achieving PMF is not a one-time event, but an ongoing process.
Companies must be willing to continuously iterate and improve their
product based on customer feedback and market trends.
● This involves regularly testing new features, analyzing user behavior, and
making data-driven decisions to optimize the product for the target
market.

19. Thank you!
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