A company should always try to ensure that they have understood what the proper user buying journey is before they start funneling resources into different sales generation methods.
One of the key ways to accomplish this is by running controlled experiments to identify how often prospects convert to paid customers within a certain sales medium. After a customer converts, I ascribe to the AARRR framework of acquisition, activation, retention, referral, and revenue. This lets me understand how well this customer is engaging with the platform and if they find it meaningful enough to refer to it to their cohort and stay on board.
It's not only important for a prospect to convert to a paid customer but also for them to show a high level of engagement with the platform within the first three months of usage. If there is greater than 70% engagement on the platform within the first three months, that is a good indicator of high product market fit, and this should be validated by a high retention rate afterward.
Experimenting with different sales outreach methods at first and then measuring the efficacy of these methods to determine PMF is a good way of determining what would be the optimal go-to-market fit.
#ProductMarketFit #GoToMarketStrategy #UserEngagement #CustomerJourney #ControlledExperiments #AARRRFramework #RetentionRate #CustomerSatisfaction #BusinessGrowth #SalesOptimization
One of the key ways to accomplish this is by running controlled experiments to identify how often prospects convert to paid customers within a certain sales medium. After a customer converts, I ascribe to the AARRR framework of acquisition, activation, retention, referral, and revenue. This lets me understand how well this customer is engaging with the platform and if they find it meaningful enough to refer to it to their cohort and stay on board.
It's not only important for a prospect to convert to a paid customer but also for them to show a high level of engagement with the platform within the first three months of usage. If there is greater than 70% engagement on the platform within the first three months, that is a good indicator of high product market fit, and this should be validated by a high retention rate afterward.
Experimenting with different sales outreach methods at first and then measuring the efficacy of these methods to determine PMF is a good way of determining what would be the optimal go-to-market fit.
#ProductMarketFit #GoToMarketStrategy #UserEngagement #CustomerJourney #ControlledExperiments #AARRRFramework #RetentionRate #CustomerSatisfaction #BusinessGrowth #SalesOptimization
