Four Concepts for Startup

Leave a comment

September 15, 2012 by huionn

Market Validation, Customer Validation, Product/Market Fit and Customer Acquisition Cost.

What are the relationship between these concepts?

IMHO, Market Validation is to test the market and Customer Validation is to validate that there is Product/Market Fit which can significantly reduce Customer Acquisition Cost.

Product/Market Fit involves product features, limitations, pricing, available other options etc. It is possible that there is a market demand yet the product fails to fulfil the customers’ need.

If a product does not have good product/market fit, it has to depend on sales pitch by salesperson in engaging customer aggressively. This results in high customer acquisition cost (salary of sales team + marketing cost).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: