When we launched our first product, monitor.website.io, a set of tools for monitoring online services (website, database, and other services), we had no traffic. We knew there was a demand for our product, but we didn't know the best way to invest our time and resources into marketing.
If you're like us, you don't have a dedicating marketing team or an unlimited budget to throw at marketing. You understand that the marketing decisions you make early on will determine if your company thrives or dies.
This is where product market fit comes into the picture which will abbreviate as PMF in this article.
PMF is the process of determining which marketing channels will provide you consistent customer growth to reach profitably. The other part of PMF is getting product feedback early on in the process to help remove assumptions and improve your product.
Taking a closer look we have,
In the world of online marketing you have more choices than ever before.
When we launched our first product, we decided to use a mix of paid and organic marketing strategies. We split our resources between cultivating community through social media and spending time planning paid advertising via Adwords and sponsored podcasts.
Without having a good way to measure success, we ended up sinking more time and resources into marketing strategies that provided little to no value. To make matters worse, we made incorrect assumptions that sent us in the wrong direction, instead of helping us reach PMF.
Despite using Google analytics, we still couldn't easily tell which marketing strategies were most effective and how our customers were using our product. We researched other tools on the market, but it seemed more suited for larger businesses with dedicated marketing team.
Last year, we built our own analytics tool that provides real-time insight into PMF metrics. The goal was to help us determine which marketing strategies had the best ROI and get product feedback in order to take actionable steps to reach PMF.
Using our platform, analytics.website.io, you can gain insights into which marketing strategies have the best user engagement.
For example, if you're running a blog, you can analyze which articles are getting the most visitors, page views and how your users are engaging with your site.
By segmenting our data by “/blog” articles we see which content the users are reading and how many users engage with a call to action, such as subscribing to a newsletter or signing up for an account.
Additionally, we can use product market fit analytics to identify which marketing channels are the most effective. If we segment our data by paid marketing channels we get the following report,
By tracking engagement metrics for each channel, you can identify which channels are driving the most engagement and adjust your marketing budget accordingly.
Finding product market fit and using analytics to measure the effectiveness of your marketing strategies is crucial to the success of any startup. For us, using analytics.website.io allowed us to identify the right channels to reach our customers, and improve our product and help us achieve product market fit.