- Foodbevy
- Posts
- Weekly Update September 19th
Weekly Update September 19th
Product Market Fit Calculator for CPG Brands
Hey ,
Happy Monday! I see a lot of brands struggling right now, and they're trying to diagnose the issue. When this happens, I always recommend they go back to their customers to identify if they have Product Market Fit or not.
I encourage you to use my CPG Product Market Fit Calculator to measure this metric for your brand and figure out how to improve. This applies to both product and service companies.
PS. If you were forwarded this newsletter, please
.
Product Market Fit Calculator for CPG Brands
Have you ever looked around and wondered why some products are huge successes and other “good” products fail? The key commonality for successful companies is finding product market fit (PMF), and it should be your #1 focus as a brand.
I became fascinated with the concept of PMF, but it wasn’t until I read the work of Rahul Vohra that I found the crucial piece I’ve been missing: a concrete way to measure product market fit for CPG companies. The calculator you’ll find below is an adaptation of Rahul’s work, so I want to make sure to give him full credit for doing the heavy lifting.
For Food and Beverage brands, product market fit is when you create a product that aligns with strong consumer demand, driving to increased velocity and strong repeat sales.
Ok, now that we understand what product market fit is and why it’s important, let’s break down how to measure it. Rahul’s core insight - which I also find brilliant - came from Sean Ellis who ran growth for Dropbox. He said:
Ellis established a magic number and a clear benchmark: 40%.
Companies that struggled to find growth almost always had less than 40% of users respond "very disappointed" — whereas companies that grew most easily almost always exceeded that threshold.
Jordan Buckner
Foodbevy
THIS WEEK'S OPPORTUNITIES
- Apply Now, deadline is extended to September 30th
- Win $20,000 in cash and prizes. Must be a woman-owned brand. Apply by October 3rd.
- Download a free affiliate program brand kit from Rexxy.
- Learn why it's better to work with Nano-Influencers from Saral (article).
-
is a 3PL that credits itself with fast fulfillment and low fees for CPG brands. Request an introduction.
- Black Ink Ops helps growing CPG brands scale by providing a suite of solutions addressing the non-revenue generating tasks that are time consuming, requires capital and often a distraction. Request an introduction.
NEW PODCAST EPISODE: 60. Accelerators and Incubators
There are dozens of incubators, accelerators, and programs for emerging CPG brands and it's difficult to know when and if you should apply. I sit down with Michelle Breyer, CMO of SKU to discuss the benefits and differences of programs. We also discuss criteria to evaluate if a program is right for you.
DISCOUNTS
- NielsenIQ
Byzzer platform provides data for emerging CPG brands. You can
.
- Mindful Goods
is an awesome Amazon expert that can quickly get you started or optimize your pages for strong ROI.
use code FOODBEVY.
- Maverick Lab
allows you to create individually personalized videos (with a customer's name)
- Chop
is a
that allows you to drive in-store trial, collect customer shopping data, and build customer profiles to further drive your business. Foodbevy members save 20% off. E-mail me for the discount.
- Stripe
is now providing $70,000 in fee-free processing for new and EXISTING customers.
The Accountrepreneur
is your go-to outsourced CPA and CFO firm for the food and beverage industry. Receive
- Airtable
can store information in a spreadsheet that's visually appealing and easy-to-use, but it's also powerful enough to act as a database that businesses can use for customer-relationship management (CRM), task management, project planning, and tracking inventory.
With your help we're building an amazing community of Food and Bev entrepreneurs helping each other!
Jordan
Reply