May 27 2022
Product-market fit is all about finding the combination of a use case and a persona that consistently gets value from your product. If you built a product that doesn't have product-market fit yet, you want to use your retention to find specific personas and use cases that deliver ongoing value.
This is because retention is the measure of the ongoing value your product is generating. If you extract your users with the best retention you can quickly reverse engineer what is your best persona and use case.
Once you know have this information you can:
For instance, when we first started building June we launched with a very broad positioning: "Instant analytics reports on top of Segment".
Once we got our first couple hundred users, we learned that founders of B2B Saas companies at the seed stage had the best retention. We used this information both to focus our roadmap and concentrate our marketing efforts to acquire more founders that raised a seed round.
Product-market fit is a moving target
As B2B Saas companies grow, they have a natural tendency to keep building and bundling more products as part of their core offering. Each new product needs to find its own product-market fit.
I learned the most reasonable way of doing it from the Collison brothers. In a talk to our YC batch, they shared their common-sense approach to product building.
Here's how it works:
Patrick shared that to this day when Stripe decides to build a new product, their product managers tend to still follow a similar approach.
In this week's update, we're introducing a new insight into the Retention report. This new card gives you your most retained users, so you can use these ideas to build your product.
Alberto Incisa della Rocchetta
Product & Growth
SOC 2 Type II