Finding "Product-Human Need Fit" in the Post-Covid Era: A Guide to Sustainable Growth

Finding "Product-Human Need Fit" in the Post-Covid Era: A Guide to Sustainable Growth

In the wake of the Covid-19 pandemic, individuals have become more vocal about their needs and expectations. They are no longer satisfied with products and experiences that do not align with their unique identities and values. The next generation of innovation must address not only the needs of the privileged few but also those who have been overlooked for far too long.

The impact of the pandemic was felt universally, but it disproportionately affected under-represented communities. As the world continues to change and evolve, new opportunities arise. However, it is crucial to dig into the human motivation behind consumer behavior and redefine the concept of "product-market fit" as "product-human need fit."

The pandemic forced people to confront their most basic needs, regardless of their previous social standing. This unprecedented time in history highlighted the urgent need to address the deprivation of basic human needs experienced by many. Movements such as Black Lives Matter, Stop AAPI Violence, and the fight for transgender rights have shed light on the unsustainable level of deprivation endured by marginalized communities.

While our constant pursuit of efficiency, performance, and achievement is commendable, it has blinded us to the fact that true progress cannot be achieved if a significant portion of our community is struggling to meet their basic needs. It is essential for businesses and innovators to recognize and prioritize these needs.

To find product-market fit, product people must focus on growth by connecting people to the value of a product once it has been confirmed to deliver value. Satisfaction alone is not enough; product-market fit is achieved when sustained growth is possible. Customers are naturally discontent, constantly seeking a better way. Their expectations evolve, and what was once considered extraordinary quickly becomes ordinary.

Rather than aiming for complete customer satisfaction, businesses should focus on reducing customer churn. Retention is a better indicator of product-market fit than satisfaction. By measuring retention rates and examining the cohort graph, businesses can determine if their product is meeting the needs of their target audience.

However, retention alone is not sufficient. Sustainable growth is an essential factor in determining product-market fit. A flattened retention curve of the key action, coupled with month-over-month growth in new customers, signifies true product-market fit. This combination ensures that the product not only retains customers but also attracts new ones.

There are two main schools of thought regarding the duration of the initial phase: the Eric Ries model and the Keith Rabois model. The Ries model emphasizes the importance of gathering customer feedback early on to understand their pain points and build a valuable solution. On the other hand, the Rabois model places more emphasis on the founders' vision and believes that customer feedback is less crucial in the early stages.

Both approaches have their merits, and a combination of a strong vision and market feedback can lead to success. Major pivots in successful companies were often guided by a new but powerful vision from their founders. However, it is important to note that relying solely on product changes to drive growth can be expensive and challenging.

The Eric Ries model is commonly seen in enterprise businesses, where founders are confident in solving day-to-day problems faced by specific customer segments. In contrast, the Rabois model is more prevalent in hardware and consumer models, where founders aim to introduce new habits or interactions to a broader market.

In conclusion, achieving product-market fit in the post-Covid era requires a deep understanding of human needs and a commitment to addressing them. By combining a strong vision with market feedback, businesses can create products that resonate with their target audience. Additionally, measuring retention rates and ensuring sustainable growth are crucial indicators of true product-market fit.

Three actionable pieces of advice for finding product-human need fit are:

• 1. Conduct extensive market research: Understand the pain points and needs of your target audience. Gather customer feedback early and often to ensure your product is solving real problems.

• 2. Balance vision and market feedback: Have a strong vision for your product but remain open to market feedback. Incorporate feedback to refine and improve your product without losing sight of your initial vision.

• 3. Measure retention and sustainable growth: Look beyond customer satisfaction and focus on retention rates. A flattened retention curve, coupled with month-over-month growth in new customers, indicates true product-market fit.

By prioritizing the needs of all individuals, businesses can truly make a positive impact in the post-Covid era. It is through product-human need fit that sustainable growth and meaningful innovation can be achieved.