Understanding Market Fit and Customer Needs

While it can be easily believed that customers are the ultimate experts about their own needs, there are ways to gain insights and knowledge that customers may not be aware of or able to articulate directly. While customers are the ultimate source of truth about their needs, product managers can complement this knowledge by employing a combination of research, data analysis, and empathetic understanding to gain a more comprehensive understanding of customer needs and expectations. The goal is not to know more than customers but to use various tools and methods to gain insights that can lead to building better products and delivering exceptional user experiences. ➡️ User Research: Conducting thorough user research, such as interviews, surveys, and observational studies, can reveal underlying needs and pain points that customers may not have fully recognized or articulated. By learning from many users, we gain holistic insights and deeper insights into their motivations and behaviors. ➡️ Data Analysis: Analyzing user data, including behavioral data and usage patterns, can provide valuable insights into customer preferences and pain points. By identifying trends and patterns in the data, product managers can make informed decisions about what features or improvements are most likely to address customer needs effectively. ➡️ Contextual Inquiry: Observing customers in their real-life environment while using the product can uncover valuable insights into their needs and challenges. Contextual inquiry helps product managers understand the context in which customers use the product and how it fits into their daily lives. ➡️ Competitor Analysis: By studying competitors and their products, product managers can identify gaps in the market and potential unmet needs that customers may not even be aware of. Understanding what competitors offer can inspire product improvements and innovation. ➡️ Surfacing Implicit Needs: Sometimes, customers may not be able to express their needs explicitly, but through careful analysis and empathetic understanding, product managers can infer these implicit needs. This requires the ability to interpret feedback, observe behaviors, and understand the context in which customers use the product. ➡️ Iterative Prototyping and Testing: Continuously iterating and testing product prototypes with users allows product managers to gather feedback and refine the product based on real-world usage. Through this iterative process, product managers can uncover deeper customer needs and iteratively improve the product to meet those needs effectively. ➡️ Expertise in the Domain: Product managers, industry thought leaders, academic researchers, and others with deep domain knowledge and expertise can anticipate customer needs based on industry trends, best practices, and a comprehensive understanding of the market. #productinnovation #discovery #productmanagement #productleadership

I remember the exact moment I realized that most of what I'd learned at HBS, McKinsey, & in all the startup books + blogs was kinda irrelevant: I had been struggling to find product-market fit for 2 years. Did all the things you're "supposed" to do to launch a startup - customer interviews, demand validation, doing the unscalable, prototypes, pilot agreements, you name it. Did all the right things, built the "right" product, but the market just didn't seem to pull. Sound familiar? I then heard this quote that changed how I thought about startups and business generally: “Anybody who does product design has to switch between looking at the world from two different perspectives. The first perspective is what we call Supply… all about what we make, what we build, what we put out there… And the other side is called the Demand side. The Demand side is all about what you can’t control. This is about what’s going on for the customer in their life. We don’t get to decide what’s happening to the customer, what they’re trying to do, what they value… those are all things that are out there in the real world. As modern, informed product designers, we try to be very user-centric. We like to think that we’re sitting in the demand box, trying to figure out what to build on the supply side. But it turns out that in reality, a lot of the things we think are demand really aren’t.” (Listen to the full 18-minute podcast by Ryan Singer and Chris Spiek for an example that adds color to the concept, link below.) This was the point that I realized that everything I’d done and learned was on the supply side - the things I controlled: Our product, our customer research as it relates to our product, our marketing & sales. And when I thought I’d understood what customers wanted, I was REALLY looking through the supply lens - what their problems were as they related to my product idea, not what they were actually trying to do. I’m now obsessed with demand, and am blown away by how little it is understood and discussed. → Understanding demand is the ONLY way to “build something people want” & find PMF → The main problem startups have is that they obsess over supply, but THINK they are focused on demand → When you focus on demand, you can get to a product the market pulls (oddly, the path to building a great product ISN’T by focusing on product) → Successful founders often have an intuitive sense for demand, but can’t explicitly describe it → Demand is the foundation of “jobs to be done” - a wildly powerful concept that most people think they understand, but actually don't → Many problems in modern businesses are due to designing the organization around Supply (what we do), not Demand (what the customer wants to accomplish) Ultimately, what I’m building with PMF Camp is really about helping founders find demand - which makes everything else downstream easier and intuitive. Demand rules all. The most important (& totally ignored) business concept. More to come…

We surveyed 1,244 product teams over the last 6 months and uncovered a reality that blew our minds: While all product teams are trying to create products that better satisfy customer needs, over 80% of product teams do not agree on what a customer "need" even is! Teams define "needs" as exciters and delight-ers, pains and gains, specifications and requirements, features, value drivers, wants and benefits, wishes, aspirations... ...and the list goes on, as if any of these inputs will correctly inform the innovation process. Here's the problem: THEY DON'T! Just like any process, only precise inputs lead to a great result. So what is the right input? We know that people buy products and services to get a "job" done. So, let's start by defining customer "needs" as the metrics customers use to measure success when getting a job done. If we know how customers measure success, we can create solutions that help them get their jobs done better--and win in the marketplace. These metrics, which we call the customer's desired outcomes, are tied to the customer's job-to-be-done and are unique in many ways. They are: - measurable and controllable, - actionable, - unambiguous, - solution independent and, - stable over time. When listening to music, for example, a music enthusiast may want to: “minimize the time it takes to get the songs in the desired order for listening.” This is one of many outcomes associated with the job of listening to music. Using these customer inputs as customer need statements, you're able to: 1. Understand how your customer measures success. 2. Measure how well your solutions get the job done. 3. Give your team clear instructions on how to improve your solutions. Watch your team transform when they're aligned with the metrics your customers use to measure success. #CustomerNeeds #InnovationProcess

This is one of the most accurate frameworks for assessing product-market fit (PMF) I’ve seen. Thanks Jeroen Coelen for creating this! Here’s the breakdown: 1. Customer-Problem Fit: Are You Solving a Real Problem? At this foundational stage, the focus is on identifying a real, urgent problem that your target audience deeply cares about solving. The key is to listen, not pitch. Metrics to validate this stage include: Customer interviews that uncover pain points. Signals like email signups, feedback loops, and organic referrals from users identifying others with similar challenges. Success here means knowing there’s a problem worth solving—and your audience agrees. 2. Problem-Solution Fit: Can You Solve It? After validating the problem, the next step is testing if your solution effectively addresses it. This stage involves: Prototypes, MVPs, or free pilots to gather early user feedback. Indicators of success include: Engaged and satisfied users actively using your product and finding value. When retention and engagement are high, it’s a clear sign that your solution resonates. 3. Business-Model Fit: Can You Make Money? Once you’ve nailed the solution, it’s time to test the business model. Transitioning from free pilots to paid pilots or pre-orders is crucial. Metrics to measure include: Active paying users validating both the solution and pricing strategy. At this stage, success is proving that your product is more than a “nice-to-have”—it’s a must-have that customers are willing to pay for. 4. Product-Market Fit: Can You Scale? Reaching PMF is the ultimate milestone. Here’s what it looks like: The market loves your product. Users come back organically. Referrals happen without significant prompting. Key metrics include: High retention rates, repeat purchases, and glowing reviews. When you hit this stage, growth becomes sustainable and scalable with reduced marketing effort. #ProductLeadership #PMF #Growth

Everyone’s talking about how product marketing is the most important marketing function. But to me, it’s NOT because we own positioning and messaging. It’s because we own insights and research. Why? Because research powers insights, and insights drive segmentation, targeting, positioning, and messaging. Without the foundation of strong insights, you are never going to generate strong positioning or GTM strategies. In fact, research is one of the top topics my PMM coaching clients bring up - they’re eager to understand how to gather meaningful insights and make research part of their workflow. The good news? Research doesn’t have to be a scary black box - even if you’ve never owned a research project before. The key is understanding the types of research and when to use each one based on your organization’s stage and goals. Here’s a quick breakdown: 1️⃣ Customer Research What: Deep understanding of your target customers' needs, their "jobs to be done" (JTBD), and how they make decisions. How Often: Major efforts annually; smaller updates quarterly. 2️⃣ Competitive Research What: Insights into your competitors’ strengths, weaknesses, and how they solve similar JTBD for your target customers. How Often: Monthly or at least quarterly. 3️⃣ Market Research What: A broader look at market trends to identify your most viable customer segments and position against emerging threats or opportunities. How Often: Once or twice a year, depending on your industry. The bottom line? If you’re a PMM, you should spend at least 20% of your time on research. If you’re in an outbound PMM role, gaining exposure to research will help you build a well-rounded skill set that elevates your career. In 2025, I’ll be diving deeper into research to answer questions like: ❓ When should you choose interviews over surveys? ❓How many customer interviews are enough? ❓What’s the difference between segmentation and personas? ❓How should PMMs collaborate with product teams on research? ❓Why is SWOT analysis outdated, and what’s better? Now, I’d love to hear from you: ❓ What research questions have been on your mind? Drop them in the comments - I might tackle them in a future post! #research #productmarketing #marketing #careercoach #tech

Continuing my thought on finding product-market fit. If you're looking for PMF, ask customers about their problems, but change how you listen to them. Most of the time, customers will tell you solutions they want, not core problems. These solutions can be tactical, too specific, or even wrong. But, the key is to go after the essence behind their proposed solutions. That's the root cause, the true problem worth solving. That's where real value lies.

Misunderstanding Customer Needs = Innovation Failure Most innovation efforts fail because companies don’t truly understand what their customers want. They optimize existing products, chase trends, and build features based on gut instinct—turning innovation into a frustrating, costly guessing game. But it doesn’t have to be that way. This past Wednesday, I had the fun privilege of sharing "Lean JTBD"—how to unlock the secret of making products customers love—with 39 entrepreneurs and business leaders in a TIGER 🐯 Talk at Innovate New Albany. Big thanks to Neil Collins for hosting! Three takeaways: 1️⃣ People don’t buy products and services; they hire them to get their jobs done. 2️⃣ Customers CAN tell us what they want—if you ask the right questions. 3️⃣ If you don’t understand the “job” your customers are hiring your product/service to do, and where their needs remain unmet, then you’re inevitably missing the mark. And that's a completely avoidable mistake. Don’t ask customers what features they want; ask what they need to accomplish. That’s where true innovation starts; not with a "good idea." If you want to make innovation a repeatable business process, it has to start with understanding customer needs. The fastest way to innovate with confidence? Identify your target customers’ important unmet needs—before building anything. This eliminates guesswork and ensures strong market fit—at concept creation. Want to put these insights into action? I'm creating a free PDF: "The Lean JTBD Playbook"—a three-step guide to help you: ✔️ Choose the right growth strategy for product differentiation ✔️ Redefine your market for innovation ✔️ Obtain customer insights that matter Coming soon! Drop a comment or DM me with 'PLAYBOOK' and I’ll send it your way once it’s ready. #Jobstobedone #Innovation #ProductStrategy #differentiation #CustomerNeeds

According to CB Insights, the #1 reason startups fail (42%) is "no market need" – meaning they built a product without truly validating the problem. Applying a dose of reality to early stage VC investing means that in 2024, nearly $3 billion was invested in solutions that no one wants. What’s the anecdote to building a product with no market need? Intense curiosity. Too often founders fall in love with their solution rather than deeply understanding their customer’s pain. Research from Harvard Business Review and Startup Genome shows that companies who rigorously validate the problem before scaling grow 3–5x faster than those fixated on their first product idea. Likewise, CB Insights found that startups with strong problem-market fit grow revenue 3–5x faster than those without. The message is clear: startups that validate problems early via MVPs avoid wasted resources and accelerate growth. Fall in love with the problem, not your solution. What keeps you focused on solving the customer problem? Let me know what works for you. Next week I’ll publish a newsletter article on how to fall in love with the problem, not your solution. Subscribe to learn more. #StartupAdvice #ProductMarketFit #VentureCapital #Entrepreneurship #MVP