Achieving Product-Market Fit: Insights from Superhuman and Microsoft

Kazuki

Hatched by Kazuki

Sep 09, 2023

3 min read

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Achieving Product-Market Fit: Insights from Superhuman and Microsoft

Introduction:

Product-market fit is the holy grail for startups and established companies alike. It signifies the point at which a product aligns perfectly with the needs and desires of its target market. In this article, we will explore two different approaches to achieving product-market fit. We will first delve into Rahul Vohra's framework for measuring product-market fit, as shared in his interview with First Round Review. Then, we will explore how Microsoft's Human Insights Library (HITS) creates a living body of knowledge to support the development of user-centered products. By combining these insights, we can gain a comprehensive understanding of how to drive success in the market.

Measuring Product-Market Fit: Rahul Vohra's Framework:

Rahul Vohra, the CEO of Superhuman, identified a simple yet powerful way to measure product-market fit. He suggested asking users, "How would you feel if you could no longer use the product?" and measuring the percentage of users who answer "very disappointed." Vohra found that a magic number of 40% indicated strong product-market fit. By focusing on users who recently experienced the core of the product, Superhuman was able to assess their fit more accurately. This approach allowed them to uncover different markets where their product resonated strongly.

Segmenting Users: Julie Supan's High-Expectation Customer Framework:

To further enhance their understanding of customer needs, Superhuman turned to Julie Supan's high-expectation customer (HXC) framework. Supan suggests that the HXC represents the most discerning person within the target demographic. By catering to the needs and expectations of this customer segment, startups can create a product that attracts a passionate user base. By filtering survey responses based on the top themes that emerged from a word cloud analysis, Superhuman was able to identify the key features and benefits that delighted their customers.

Doubling Down on What Users Love and Addressing What Holds Users Back:

An important insight from Superhuman's journey was the need to strike a balance between doubling down on what users love and addressing their pain points. Simply focusing on what users love may not lead to an increase in the product-market fit score. On the other hand, solely addressing what holds users back may give competitors an opportunity to overtake you. Superhuman found success by spending half their time enhancing what users already loved and the other half on addressing the barriers that hindered user satisfaction.

Microsoft's Human Insights Library (HITS):

Microsoft's HITS provides a powerful tool for researchers and product teams to unlock their collective UX power. HITS is a network of connected evidence and insights, authored and curated by research and data science teams. It allows users to trace connections between individual insights and access the evidence that supports them. By synthesizing insights and integrating curation into the daily research practice, Microsoft ensures the durability and reuse of knowledge across time. HITS not only solves short-term needs but also provides long-term value.

Conclusion:

Achieving product-market fit is crucial for the success of any product. By combining Rahul Vohra's framework for measuring fit and Superhuman's focus on user segmentation and addressing user needs, startups can increase their chances of finding product-market fit. Additionally, Microsoft's HITS demonstrates the importance of creating a culture that supports the use of a knowledge library to drive user-centered product development. To summarize the key takeaways from these insights:

  • 1. Measure product-market fit by asking users how they would feel if they could no longer use the product. Aim for a magic number of 40% of users answering "very disappointed."
  • 2. Segment users to identify the most passionate and discerning customers. Cater to their needs to build a strong user base.
  • 3. Strike a balance between doubling down on what users love and addressing their pain points. Allocate time and resources to both aspects for continuous improvement.

By incorporating these actionable advice into your product development strategy, you can increase your chances of achieving product-market fit and launching your product successfully.

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