Product-Market Fit with Personas

Learn how to use customer lifetime value to improve product-market fit and influence new product and feature development.

Enhancing Product-Market Fit

What data is your team using to develop new products? Likely they are analyzing historical product usage or purchase behavior. While this data is useful, it doesn’t always highlight your company’s underserved customers, nor is it necessarily reflective of your future customer base.

What if your product team could predict how your customer base will change over time? What if your product team knew that a certain group of customers was extremely valuable, but the products they bought didn’t truly meet their needs?

Retina Personas categorize clients’ customers by their predicted lifetime value and by statistically meaningful attributes. Not only does this help product teams validate product-market fit for their highest value customers, it also helps them identify other high value segments that might benefit from new products or features.

Case Study

Problem: The client was not able to determine product-market fit for all segments of their customer population.
Retina solution: Run Retina Personas on the client’s data to divide their customer base into segments based on their lifetime value, purchase behavior, and other attributes.
Results: Based on Personas, the client uncovered products that weren’t resonating with their customers that they could deprecate. In addition, the client conducted informational interviews on populations that had medium to high LTV and low adoption rates. As a result, they gained ideas for new products, product features, and marketing materials.

ROI Tracking

Cost Savings

Clients can spend acquisition dollars on prospects that will have the highest product market fit. Clients can also spend product budget on developing new product lines and features that better suit their customer base.

Increased Revenue

By deprecating products with low product market fit, the client saw a 23% increase in average CLV.

Opportunity Cost

Without Personas, the client would continue spending time and effort promoting and creating products that had low product-market fit and were drawing in low LTV customers.

How to Implement

  1. Run Personas product on customer data.
  2. Review results to discover segments with high LTV and low adoption and segments with low LTV and high adoption.
  3. Set up informational interviews with segments with high LTV and low adoption and consider deprecating products that are highly adopted by low LTV customers.
  4. Measure the increase in average CLV.