The Road to Market Product Fit: From Problem to Solution


Hatched by Glasp

Aug 27, 2023

4 min read


The Road to Market Product Fit: From Problem to Solution


Creating a successful company is not just about having a great product, but rather understanding the market and the problems faced by your target audience. In this article, we will explore the concept of Market Product Fit and how it is crucial for building a $100M company. We will delve into the key requirements for achieving Market Product Fit, including understanding the market category, identifying the target audience, recognizing their problems and motivations, and creating a compelling value proposition. Additionally, we will discuss the iterative nature of the search for Market Product Fit and the importance of qualitative and quantitative indicators in determining success.

Understanding the Market:

Before developing a product, it is essential to thoroughly understand the market. This involves categorizing your product and identifying the specific audience within that category. By breaking down the target audience into multiple personas, you can gain a deeper understanding of their needs and preferences.

Identifying Problems and Motivations:

The real problem lies within the market and the audience, not within the product itself. Therefore, it is crucial to identify the problems faced by your target audience related to the category. Understanding the motivations behind these problems is equally important. By determining why these problems are significant to your audience, you can create a more compelling solution.

Creating a Compelling Value Proposition:

To achieve Market Product Fit, it is essential to have a clear and concise core value proposition. This value proposition should directly tie to the core problem identified within the market. By expressing the value proposition in the simplest terms possible, you can effectively communicate the benefits of your product to the target audience.

Time to Value and Stickiness:

Two critical aspects of Market Product Fit are the time it takes for the target audience to experience value and the stickiness of the product. The quicker a user can realize the benefits of your product, the more likely they are to become engaged and satisfied. Additionally, understanding the natural retention mechanisms of the product and why customers will stick around is crucial for long-term success.

The Iterative Journey to Market Product Fit:

Achieving Market Product Fit is not a linear process but rather an iterative journey. It involves cycles of iteration where you start with a market, build an initial version of the product, analyze who derives value from the product, and then redefine both the market and the product. By continuously refining and improving the fit between your product and the market, you can move closer to Market Product Fit.

Quantitative and Qualitative Indicators:

To determine the strength of your Market Product Fit, it is essential to consider both qualitative and quantitative indicators. Qualitatively, the Net Promoter Score (NPS) can provide valuable insights into how likely your audience is to recommend your product to others. However, qualitative information carries a higher risk of false positives, so it is important to consider it alongside quantitative measures.

Retention Curves and Direct Traffic:

Quantitatively, retention curves and direct traffic are valuable indicators of Market Product Fit. For most B2C and B2B products, flat retention curves are indicative of a strong Market Product Fit. Additionally, direct traffic, resulting from word-of-mouth recommendations, demonstrates that your product is effectively solving your audience's problems and generating interest.

Actionable Advice:

  • 1. Start with the market: Instead of focusing solely on your product, prioritize understanding the market, identifying problems, and recognizing the motivations of your target audience. This will lay the foundation for a successful Market Product Fit.
  • 2. Iterate and redefine: Market Product Fit is an ongoing process of iteration and refinement. Continuously analyze who derives value from your product, redefine your market, and make necessary adjustments to your product to improve the fit.
  • 3. Combine qualitative and quantitative indicators: To assess your Market Product Fit accurately, consider both qualitative and quantitative indicators. Use qualitative indicators like NPS alongside quantitative measures such as retention curves and direct traffic to gain a comprehensive understanding of your fit in the market.


Achieving Market Product Fit is crucial for building a successful company. By understanding the market, identifying problems and motivations, creating a compelling value proposition, and continuously iterating, companies can improve their fit with the target audience. By considering qualitative and quantitative indicators, businesses can gauge the strength of their Market Product Fit and make informed decisions to drive growth and success.

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