What is one of the essential prerequisites you need to figure out before thinking about growth?
It is the Product Market Fit (PMF).
PMF means that your product satisfies the demands of that particular market. Without a PMF your business will deliberately fail at some point of time.
Your product has a robust PMF when,
-You see an actual demand getting generated for your product
-Your monthly active users (MAUs) and daily active users (DAUs) increase Month over Month
-You are thinking about the broader picture of how to acquire, retain, and expand your customer base
-You are an expert (or soon to become one) in your market segment
How do you know that your users are gaining value from your product?
Measure the retention rate of your product. A high retention rate means that your users are more sticky to the product. Higher retention is also an indication that your product has a good value proposition when compared with your competitors.
Growth starts happening when you connect more people to the current value of your product.
Again, to re-emphasize, a great product with a stellar product-market fit is the crux of your business.
We’ll see more about the importance and how-to’s of retention towards the end of this series.