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A successful value proposition requires fit between what the company offers and what customers want.
Fit happens in three stages:
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At this stage you identify jobs, pains and gains that are relevant to customers, and you design value propositions that you believe can address them.
You prototype multiple value propositions to find the one which produces the best fit. However, the fit you achieve is not yet proven and exists mainly on paper.
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During this stage you validate the assumptions underlying your value proposition, and discover what customers really care about. This is a long and iterative process.
Product-market fit happens when you have evidence that your product is creating value for customers and getting traction in the market.
Metrics to look at include: user growth, retention, engagement, and monetization.
Check these ideas for detailed metrics:
https://dsta.sh/xwX2D2TsH3t817yKA8
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Every company needs a sound business model. You need to pair the value proposition with a business model that creates value for your company.
During this stage there's a lot of back and forth between designing the value proposition and the business model.
Fit happens when you generate more revenue than it costs you to deliver the value proposition.
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