The Importance of Building a Great Product and Finding the Right Fit

The Importance of Building a Great Product and Finding the Right Fit

When it comes to startups and business success, the common advice we often hear is to "build a great product." While this is an important piece of the puzzle, it is far from the full picture. In fact, building a great product is just the beginning. The real key to success lies in finding the right fit in multiple areas.

One of the most commonly mentioned aspects of finding the right fit is product market fit. This refers to the alignment between a product and the needs of a specific market. While product market fit is essential, it is not the only thing that matters. We have taken this concept to the extreme and developed tunnel vision, believing that product market fit is the be-all and end-all of success. However, the difference between companies that thrive and those that struggle lies in their ability to make four essential pieces fit together: Market Product Fit, Product Channel Fit, Channel Model Fit, and Model Market Fit.

Market Product Fit refers to the alignment between the target market and the product itself. This means understanding the needs, desires, and pain points of the target market and creating a product that addresses those effectively. Without this fit, even the best product will struggle to gain traction.

Product Channel Fit is the alignment between the product and the channels through which it is marketed and sold. This includes understanding where and how your target market prefers to discover and purchase products. In today's digital age, social media platforms like Instagram have become the new search engines for experiences and products. It is crucial for businesses to adapt and leverage these platforms to reach their target audience effectively.

Channel Model Fit focuses on the alignment between the channels utilized and the overall business model. This means finding the right channels that not only reach the target audience but also align with the business's goals and objectives. It's not just about being present on social media; it's about utilizing the right channels that align with the business's mission and values.

Finally, Model Market Fit refers to the alignment between the overall business model and the market in which it operates. This means understanding the dynamics of the market and ensuring that the chosen business model is sustainable and scalable within that market. Without this fit, even a well-aligned product and channel strategy may struggle to generate long-term success.

In today's economy, the focus has shifted from traditional goods to experiences. Consumers, especially millennials, prefer spending their money on experiences rather than tangible products. The experience economy has become a key driver of success for businesses. Consumers now discover and search for experiences on platforms like Instagram, making social media the new search engine for experiences.

This shift towards experiences is driven by the desire for connection and togetherness. In a world where more teens report feeling lonely than ever before, the need for real-life experiences that foster relationships and create memories is greater than ever. Attending events and participating in experiences increases sociality and happiness, according to research from Cornell University.

Businesses must adapt to this new reality and prioritize creating experiences worth remembering. Maya Angelou's words ring true: "People will forget what you said, people will forget what you did, but people will never forget how you made them feel." This mantra should guide every business's mission. The common thread tying businesses together in the experience economy is their mission to produce memorable experiences.

In conclusion, building a great product is just the beginning of the journey to success. Finding the right fit in multiple areas, including market product fit, product channel fit, channel model fit, and model market fit, is crucial for long-term success. Additionally, businesses must recognize the shift towards the experience economy and prioritize creating memorable experiences for their customers. To thrive in this new era, businesses must embrace their mission to produce experiences worth remembering.

Actionable Advice:

• 1. Conduct thorough market research to understand the needs and desires of your target audience. This will help you create a product that aligns with their preferences and addresses their pain points effectively.

• 2. Leverage social media platforms like Instagram to reach and engage with your target audience. Understand how your audience discovers and purchases products and adapt your marketing and sales strategies accordingly.

• 3. Align your overall business model with the dynamics of the market in which you operate. Ensure that your business model is sustainable and scalable within that market to achieve long-term success.