Identifying your organizations market fit is extremely important for a number of reasons, such as:
- Identifying your Buyer Persona.
- Identifying your Buyers Before and After State.
- Crafting your value statement.
We here at Oyoma Africa would like to share a five steps strategy that your brand can use.
Step 1: Research Your Target Audience
In order to identify your target audience, you will need to conduct research on your target niche. If you have multiple prospective clients, segmenting each of them will help you better identify your ideal target audience.
The research process looks to achieve the following:
- Analyzing your product/service.
- Investigating your competitors.
- Selecting segmentation criteria.
- Conducting research itself. (secondary or primary)
Step 2: Identify Pain Points
In order to identify pain points, one will need to consider the following:
- Do not guess what your clients’ pain points are.
- Conducting research will best assist your brand by finding your client’s pain points.
- Identify what problems your prospective clients have previously experienced.
Step 3: Focus on one Vertical Market
Vertical markets are when the clients you are looking for are in one industry, for instance, Insurance or Manufacturing. This is essential especially if you are a start-up with a small budget.
- Identify a vertical market and focus on satisfying that group before moving on to the next.
- Look to satisfy small groups in the start as huge audiences could have financial implications.
- Narrow down services whilst ensuring the completely solve the client’s problem.
- Highlight the uniqueness of product/ service to the identified vertical market.
- Offer uniquely tailored bundles.
Step 4: Identify Your Value Proposition
Now that you have identified your client’s points, you should be able to the following:
- Figure out what they need and how to get a competitive advantage.
- Create value add that best serves the most significant and specific problems.
- Promote Product/ Service.
Step 5: Measure Your Market-Fit
- Determine TAM (total addressing market). those who will benefit from your product/ service.
TAM is calculated by multiplying your average revenue per user (ARPU) by the total potential customers in the market. When your TAM is identified, figure out the percentage of TAM that is your actual customers.