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A Secret KPI to Achieve & Measure Product/Market Fit

6 mins

For most startups, finding product/market fit is incredibly difficult.

It’s also a vague concept: how do you know when you’ve reached product/market fit? Especially when you’re still working on your core product?

Superhuman’s CEO Rahul Vohra became obsessed with this question in 2017, two years after his team started working on a subscription-based email service to reduce distraction and remove email anxiety. At that time, they were pre-launch and manually onboarding users.

 

Superhuman email software


He read countless blogs and spoke with many marketers, but most provided definitions that only made sense post-launch.

For instance, take this passage in Marc Andreessen’s 2007 blog post:

« You can always feel when product/market fit is not happening. The customers aren’t quite getting value out of the product, word of mouth isn’t spreading, usage isn’t growing that fast, press reviews are kind of ‘blah,’ the sales cycle takes too long, and lots of deals never close. »

Rahul started wondering whether he was asking himself the right question.

What if there was a way to measure product/market fit? What if there was a way to optimize towards product/market fit?

If you could measure it, you could work on increasing product/market fit until you reach it.

For that to work, you’d need to find a metric to track—a single indicator to work with.


The product/market fit indicator

When Rahul learned about Sean Ellis’ product/market fit indicator, things changed.

Ellis offered a simple yet powerful indicator.

Ask users, « How would you feel if you could no longer use the product? » and measure the percentage who answered « very disappointed. »

Through research involving nearly a hundred startups, Ellis identified a critical threshold of 40%.

If your product reaches 40%, you’ve attained product/market fit.

Product/Market Fit Survey


Companies that struggled to find growth almost always reported less than 40% of users who responded with « very disappointed, » whereas companies with strong traction almost always exceeded that threshold.

Of course, you cannot ask all users to answer your survey. Ellis recommends focusing on those who used the product at least twice in the last two weeks.


A roadmap to product/market fit optimization

Their team started by emailing users a link to a Typeform survey asking the following four questions:

  • How would you feel if you could no longer use Superhuman?
  • What type of people do you think would most benefit from Superhuman?
  • What is the main benefit you receive from Superhuman?
  • How can we improve Superhuman for you?


Although all four questions were necessary, the first was crucial as it returned the key performance indicator for product/market fit.

They received the following results at the time, which made it clear that Superhuman had yet to reach product/market fit.

Superhuman product marketing fit back in 2017

Source: Firstround, Rahul Vohra

These initial results inspired Superhuman to design a 3-step product/market fit engine.


Step 1: s
egment to find supporters and high-expectation customers (HXC)

The team narrowed their research to understand better their most prominent supporters, i.e., the 22% « very disappointed » group of users. They assigned a persona for each respondent, thus focusing on founders, managers, executives, and business development reps. Then, they analyzed the cohort’s responses to the four questions above.

Superhuman word cloud features

This enabled their team to understand what key aspects of their product truly mattered to their most active users. They discovered why their supporters loved the product.

Superhuman users who loved the product most appreciated Superhuman for its speed, focus, and keyboard shortcuts.

Step 2: convert hesitant users into devoted supporters with feedback analysis

The second step focused on answering another essential question: what kept people from loving the product? How could they help more people love Superhuman?

The team analyzed the users who would be somewhat disappointed without their product, purposedly ignoring those who would not.

In that cohort, they examined the results from the « How can we improve Superhuman for you? » question, which revealed one essential blocking factor holding users back from genuinely loving the product: their lack of a mobile app.

Superhuman features word cloud


The team also found some less obvious requests: integrations, attachment handling, calendar, unified inbox, better search, read receipts, etc.

With a clear understanding of their main value proposition (speed, keyboard shortcuts) and missing features (mobile app, integrations, calendar…), Superhuman’s team could funnel these insights back into how they were building the product. Implementing this segmented feedback helped the large pool of hesitant users get off the fence and move into the territory of enthusiastic advocates.

Step 3: double down on what users love and address what holds others back

Although Rahul knew what their devoted users loved and what was holding their hesitant users back, he wasn’t yet clear about navigating between the two and incorporating this feedback into the product roadmap.

Rahul realized two things:

  • If you only double down on what users love, your product/market fit score won’t increase
  • If you only address what holds users back, your competition will likely overtake you


The only logical thing to do was to split the product roadmap in two:

  • What users love: keep building for more speed, more shortcuts, and more automation
  •  What holds users back: develop a mobile app, add integrations, introduce a calendar, and other requested features


To prioritize amongst these projects, Superhuman’s team used a simple cost-impact analysis: they labeled each potential project as low/medium/high cost and similarly with low/medium/high impact.

Having refocused their product team, Rahul created an OKR where the only metric was the disappointed percentage to ensure they continually increased their product/market fit score.

Superhuman product market fit score evolution


And it paid off. When Rahul and his team started this journey, their product/market fit score was 22%. After reorienting their product strategy, they achieved a staggering 58%.


Words of wisdom from Rahul and over to you

To wrap it up, I’m sharing two quotes from Superhuman’s CEO Rahul Vohra.

« To increase your product/market fit score, spend half your time doubling down on what users already love and the other half addressing what’s holding others back. »

It’s simple yet powerful. Too many product teams scatter their efforts needlessly instead of concentrating on what their supporters love and addressing what their more hesitant users ask for.

« Investors who advise early-stage teams should avoid pushing for growth ahead of product/market fit. As an industry, we all know that this ends in disaster, yet the pressure for premature growth is still all too common. Startups need time and space to find their fit and launch the right way. »

This one is essential. Pressure for growth is natural in most early-stage startups.

However, optimizing for product/market fit should be a clear priority, as we’ve seen too many examples of well-funded startups abruptly disappear in sad stories.

All image credits go to Firstround and Superhuman.

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Related Posts

Understand the biggest drivers of ad profitability

6 mins

What makes ads profitable?

There’s always been a certain mystery about this million-dollar question.

So, I decided to seek the answer.

Back in 2014, Paul Dyson, founder of the econometric consultancy Data2Decisions, conducted an analysis that revealed the drivers of ad profitability.

This analysis identified and ranked the ROI multiplier effects of various different advertising considerations.

However, the media landscape has changed dramatically since these past analyses were carried out in 2014.

Fortunately, Thinkbox commissioned Paul Dyson (now co-founder of Accelero) in 2023 to revisit his analysis, taking into consideration the massive shift towards online search advertising and digital advertising in general.

Searching through hundreds of studies, Accelero collated around 28,000 global campaigns, of which about 7,000 were UK campaigns. This very robust sample was used to identify the variables that most influence ROI.

What are the biggest, predictable drivers of ad profitability?

I was very surprised by the findings of Accelero’s 2023 study.

 

N°1: 👀 BRAND SIZE: UP TO 20x ROI MULTIPLIER

I know, I know. That is not what any of us wanted to hear.

Unfortunately, the study showed that brand size is massively important.

In fact, it’s the most powerful driver of ad profitability.

That’s a pretty solid argument to use in front of « brand awareness » skeptics.

Bigger brands get much better absolute returns on their advertising.

The bigger you are, the more effective your ads, thanks to existing awareness and affinity. Often, you’re just reminding people to buy.

Your existing customer base is also much more likely to buy new products or services – because customers already know and trust you.

Brand size is inextricably linked to brand health, or “power”.

Kantar research has consistently shown that stronger, meaningfully different brands are more likely to grow. In particular, Kantar showed that brands with strong differences are especially likely to see higher advertising returns.


N°2 – 📝 GREAT CREATIVES – UP TO 12x ROI MULTIPLIER

Second only to the size and strength of a brand is the quality of the advertising itself. There can be dramatic differences between the efficacy of the best and worst ads. Many award-winning ads are not easily linked to the brand, and others have a shock factor but fail to trigger the right emotional response. The best ads manage to combine being both creative AND effective.

The magic doesn’t come from button pressing and knob twisting in an ads dashboard.

It comes from great ads that are noticeable and memorable and cause an emotional response that drives action.

 

N°3 – 💵 BUDGET SETTING (ACROSS GEOGRAPHIES): UP TO 5x ROI MULTIPLIER

Optimizing budgets can be a highly effective means of delivering a higher ROI multiplier.

Some countries are simply more profitable than others, and media prices vary by geography, as do distribution channels, profit margins, and product consideration.

Brand size can also vary significantly. Allocating budgets across geographies in an optimum way can increase media profitability by up to a factor of 5.


4 – 💰 BUDGET SETTING (ACROSS PORTFOLIOS): UP TO 3x ROI MULTIPLIER

Different brands within a given portfolio will have different ROI potential.

Bigger brands will deliver a higher ROI simply because they have wider distribution (physical availability) or awareness (mental availability).

Therefore, prioritizing the bigger brands in a portfolio will lead to a higher ROI for your budget. This can provide a x3 multiplier on ROI.

N°5 – 📺 MEDIA MIX: UP TO 2.5x ROI MULTIPLIER

It’s well documented that campaigns using more than one media channel benefit from media multiplier effects – the evidence Accelero found is no different, suggesting that simply by using a multimedia strategy, there’s a potential ROI multiplier of 2.5.

Optimizing the media mix can pay major dividends, both in terms of how much brands invest in individual media channels (e.g., TV vs. OOH vs. online) and how much is invested in specific formats and placements (e.g., online display vs. online video, Facebook vs. YouTube, etc.).

However, the relative opportunity to improve profitability through mix optimization is smaller than ensuring you have invested money in brands with high potential returns and ads that work.

6-10 🙌 AND THE REST… (<2x ROI MULTIPLIER)

As you can see in the table below, marketers generally tend to overestimate the relative importance of media mix allocation, balancing brand vs. performance marketing and targeting, while they tend to underestimate the importance of brand size, creative quality, and budget setting across geographies and portfolios.

But this is not to supersede the role of media planning.

The majority of the elements on the chart all belong to the world of planning and strategy and collectively deliver the potential for huge ROI multipliers.

If you’re not optimizing budgets, brand/performance ratios, or buying the most cost-effective audience, then you’re missing out on low-hanging profit multipliers.

 

The analysis showed that in today’s media landscape, expertise and talent are crucial.

A strong creative strategy combined with an optimized media plan is the most effective path to profitable growth.

Instead of focusing solely on cost, we should prioritize value.

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2 mins

Copywriting tips to increase conversion

6 mins

We know that people don’t read online; they scan.

You only have a few seconds to capture their attention.

This means that your copy matters even more.

Today, I’m sharing 8 copywriting tips to help you increase conversion.

👋 Make it about them

Too many websites brag about their products and services.

Features. Awards. New features. New awards.

Good, but what’s in for me? What’s in for potential customers?

Instead, you should talk about how you solve problems for clients.

How do you address their pain points?

What’s the « before » situation? What’s the « after » situation?

That’s how you write a hero section.


✂️ Cut the fluff

People are busy.

They don’t have the patience to read long paragraphs.

Cut them short. Remove words that don’t add value.

Hook them as quickly as possible.

Take a sentence. Remove adjectives. Remove adverbs.

Make it punchier.


🔎 Break long paragraphs into digestible chunks

Readability is key. Especially on mobile devices where space is restrained.

Instead of writing long, descriptive paragraphs, aim for punchier, shorter bits of text that convey value efficiently.


🙏 Deliver maximum value

What’s in for your clients?

Your website should address your clients’ pain points.

Focus your copy on solving problems.


✋ Handle objections

What are the top 5 objections that your customers will most likely raise?

Use them in your copy. Anticipate objections.

And watch your conversion rate increase.

🙌 Make it very relatable

Relate your product to something your customers can relate to.

This can be done using analogies, metaphors, and comparisons.

You can also refer to everyday situations that your users experience.


🥊 Make it (super) punchy

Steal concepts from poetry. Add rhythm. Give your copy a voice.

Make it fun and easy to understand.


🎯 Don’t be vague; be specific

Some businesses require more hard proof than others.

If you have great numbers to share, use them.

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4 mins

Protect and grow your SEO in the AI era

6 mins

OK let’s face it: SEO is at serious risk.

Not only do you have to compete with floods of AI-generated content, but Google itself (and other search engines will follow) now uses AI in search results, further removing the need to visit any website.

According to Adweek, Google’s AI Overviews alone could result in declines ranging from 20-60% of total organic traffic for publishers.

People also use ChatGPT, Gemini, or Perplexity to search for information online, which oftentimes means that they don’t visit a single website in the process.

So, what do you do?

My first advice is to create content that’s deeper than what AI can do.

🧠 Part 1: The « deep content » strategy

Not all content or queries are at risk of being stolen by AI.

We need to differentiate between two types of topics:

  • « Shallow » topics are easily answered by AI
  • « Deep » topics aren’t easily answered by AI


« Shallow » topics are questions and queries that any LLM-based chatbot can answer. A good example of that is « How do I reset my iPhone? ».

Such topics make it hard for marketers to deliver any value that ChatGPT wouldn’t be able to communicate instantaneously.

That’s the kind of topic and traffic that AI will easily steal away.

« Deep » topics, on the other hand, cannot quickly be answered by AI chatbots.

They require more profound expertise and first-hand experience.

They call for detailed, nuanced answers.

They can’t be summarized in 10 lines.

Here are some examples of « deep topics »:

  • Proven customer service strategies in the banking sector
  • How to run a video content audit
  • Create a self-sufficient garden


These are examples of topics where marketers can really add value.

Such topics can benefit from real-life experience and expert advice.

They don’t have a single, 5-line, pre-determined answer to them.

These are the kinds of topics you should prioritize in your content and SEO roadmap.

Because such topics require higher-quality answers and content, your company is more likely to rank for these keywords and be quoted by AI chatbots and voice assistants, further increasing traffic.

Becoming the industry reference on « deep » topics is one way to futureproof your online presence and traffic.

Let’s move on to strategy number two.


🏘️ Part 2: Grow with community-led content

AI chatbots provide answers based on training data and information available online. They usually rephrase or reuse someone else’s content.

Do you know what AI cannot do (at least, yet)?

Interview people. Gather their thoughts. Collect expert points of view.

Make your content community-driven.

Invite experts, customers, locals… Have them empower your content.

Make them the center of your content strategy and you’ll have one excellent reason why people should visit your website.

Community-powered content cannot be easily replicated.

This type of content relies on tangible social proof.

Look at this example from Shopify.

There are many women looking to start a business as a mom.

Did Shopify write a generic article to answer that?
No, they relied heavily on their community.

Here are some examples of community-led content:

  • (Gardening company)

15 farmers share how to become self-sufficient in a year

  • (Sportswear company)

Pro runners’ advice for running your first marathon

  • (Beauty company)

Summer 2024: our customers’ best morning routines for a glowing skin


👀 Part 3: Build authority and a following

Search engines prioritize authority.

It’s central to Google’s E-E-A-T guidelines.

Content that integrates expert points of view gets rewarded.

Content produced or written by experts wins search results.

  • Health? Doctors.
  • Sales? Salesmen.
  • Marketing? Marketers.
  • Real estate? Agents.
  • Entrepreneurship? Entrepreneurs.


It’s not always easy to find « experts » in your field, but you get the idea.

The more credibility and authority your content creators have, the better.

Shopify does this really well with their « founder stories ».

Instead of publishing generic content about how to create a business around toys, Shopify published an actual interview of how this entrepreneur found success in this business.

 

🎥 Part 4: Don’t play fair, make videos

Did you know that YouTube is the world’s second-largest search engine?

It boasts 2.5 billion logged-in monthly users.

Do you know what ChatGPT and others cannot do?

Answer questions with videos. They can’t. At least for now.

AI chatbots beat you on written content? Create video content.

Video content is hard to imitate. It’s a great way to distinguish yourself from what other companies and AI chatbots do.

Videos also perform well on Google’s search results. They create a deeper connection with your audience.

Video marketing is a solid strategy to fight AI on search results.


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5 mins

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