How did Facebook achieve product market adaptation

If the product is not loved by the users, no experiment can lead to sustainable growth! - "growth hacker"

Now that we know a few ways to breed hackers, we can adjust and try. Before testing, however, you must first ensure that your products are qualified, in demand, and can be accepted by the market. This is the first step of growth hackers.

  • Use customer feedback, rigorous testing, and in-depth data analysis to assess whether the product has achieved Product Market Matching (PMF).

1. PMF before growth

1.1 What is PMF?

PMF (Product-Market Fit) refers toIn a good market, a product can satisfy that market[2] The overlapping part is fulfilled in many products and marketsMarket demandThe product.

There are three common types of PMF or a combination of several types of PMF, e.g. B. Airbnb, which combines the first and third types to meet new needs for boats in the existing (travelers) market (who live in ordinary houses). No hotel) [2]:

PMF typeTarget the marketexample
Better product experienceAlready exists, but the existing productUser experienceStill not good enoughMeitu Xiuxiu
Use market segmentsBut it already existsSome of the needs are not metmarketUber (will rent drivers to car owners who want to make extra cash)
New marketUsers before the product was bornI don't know there is such a demand@ On Weibo (Realize interaction with celebrities or brands)

1.2 Why implement PMF?

The first step for growth hackers is to understand whether the product has reached PMF, whether it is essential for users, and whether it can deliver the core value users need before entering the fast-paced experiment.Why implement PMF at all?

  1. If you enter the growth phase quickly before realizing PMF, it will instead have negative effects

BranchOut is a professional social networking site set up by Facebook. It is compared to LinkedIn and is intended to enable users to create a website on the site by linking their work contacts.Career network. The team used Facebook's invite feature to allow users to share the app with their friends on Facebook. By optimizing the invitation function, BranchOut users could be increased from 400 W to 2500 W within 3 months.

However, after the user entered, it turned out to be of no use. Soon, BranchOut's users were quickly lost and eventually purchased for 200W.

It can be seen that the market it is targeting already exists but cannot provide a better product experience and PMF cannot be reached. Therefore, after spending in the tens of millions, it still cannot achieve sustainable growth.

  1. Only when PMF is implemented can the product continue to grow

Marc Andreessen divides the startup life cycle into two parts: before finding PMF and after finding PMF [2]. After the PMF is found, the user can fully determine the value of the product. They can then become a loyal user and recommend the product to those around them, resulting in a word-of-mouth effect.

2. Evaluate PMF: In search of aha moments

As mentioned above, before you can grow, you must first assess and adjust your products to achieve PMF. In "Growth Hacker", Sean summed this up asFind aha moment (aha moment)The aha moment of a product refers to the moment the product lights up the user's eyes. It is the moment when the user really discovers the core value of the product and realizes that the product is indispensable.

The definition of the aha moment in [3] is as follows:

A sudden comprehension that solves a problem, reinterprets a situation, explains a joke, or resolves an ambiguous percept is called an insight (i.e., the Aha! Moment).

According to a product, Aha can be a function, a usage scenario, and an experience provided by the product. If the user runs X, some of the result indicators we look out for (salary rate, retention rate, etc.) have improved, then X is the product's aha moment.

In terms of Aha Moment and PMF, I personally understand it as -

  • By assessing whether there is aha at all times, you can judge whether the product is achieving PMF
  • Finding the aha moment is the way to adapt the product to achieve PMF

2.1 Assessment of the existence of the aha moment

Judging whether aha exists at any point is actually judging whether the product has achieved PMF, which is mentioned in the bookIndispensability survey

The first method is a simple onequestionnaireThe main topic is:

How disappointed will you be if this product is not available tomorrow?

(1) Very disappointed

(2) A little disappointed

(3) Not disappointed

(4) Inapplicable products have been abandoned

If more than 40% of the responses are "very disappointed", it means the product is essential enough already and the next step should be to drive growth. If it's between 25% and 40% then the product may need to be fine-tuned; if it is less than 25%, the target user group may be incorrect or there is no requirement for the product itself to function.

The questionnaire also contains other questions. Through this survey, you can understand whether the current product exists / whether users are experiencing the aha moment and whether it has core values.

The second way is to measure user retention rate by monitoring user retention rate, churn rate, and other indicators to assess whether the product has a core value. For example, the percentage of users who are active three times a week, regardless of whether their secondary retention reaches 30%, etc.

2.2 Find the aha moment

Look for the aha moment, that is, use the data to find the reason why the aha moment is not realized and how to realize it, including the following methods:

  • Do more customer surveys, including interviews and field research, and really talk to customers / prospects

Etsy is a craft trading platform. In the past, employees could attend craft fairs in different locations, communicate with potential buyers, invite them to the website and understand their motivations. It was through this offline communication method that EtsyCommunity is the most important experience for usersSo the company opened an online message board, strengthened community building, and grew rapidly.

  • againstInformation transferWithProduct changesConduct efficient experiments

Fast experimentation is a difficult requirement for growth hackers. There are usually two types of experiments: information transfer and product modification.

Information transfer experiments refer to experiments aimed at improving the way information is communicated. Sometimes it's not that the product itself has no value, rather the way the value is conveyed to potential customers is wrong. The A / B test of information transfer can help you find a better way of transferring information. For example, Didi significantly increased the conversion rate by changing the text on the page for receiving discount coupons. Google tested the different blue colors of links and found the blue with the highest click-through rate.

Product changes are generally more complicated and require more work from developers. This type of experiment is generally prioritized, favoring "low hanging fruit" that are convincing and easy to modify.

  • In-depth analysis of user data

In-depth intervention in the user portrait, behavioral preferences and behavioral habits of the user is the most important way to find aha moments and even changes the direction of the entire product.

For example, Facebook found that users who added at least 7 friends in 10 days had the highest retention. Hence, it focused on customizing the website design to encourage users to add more friends on the website. For example, Instagram used to be a location-based social network called Burbn. While analyzing user behavior logs, they found that many features of the product were of no interest with one exception: photos. When they found that photo sharing was a user's aha moment, they cut off all features except photos, comments and likes, reposted and renamed Instagram and it was a huge hit.

3. Summary

  • The first step of growth hackers: use customer feedback, rigorous experimentation, and in-depth data analysis to assess whether the product has achieved a product market adjustment (PMF).
  • Three kinds of PMF, better product experience, market segment opening and brand new experience
  • The aha time of the product is the moment when users really discover the core value of the product and realize that the product is indispensable
  • By assessing whether there is aha at all times, you can judge whether the product is achieving PMF
  • Finding the aha moment is the way to adapt the product to achieve PMF

Reference

  1. "Growth Hacker" by Sean Ellis

  2. PMF: Why does the Silicon Valley god think it's the "only thing that matters" for startups?

  3. Beeman K M. The aha! Moment: The Cognitive Neuroscience of Insight [J]. Current Directions in Psychological Science, 2009, 18 (4): 210-216.