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Erickson: Product-market fit will be product teams' primary metric within five years

Daniel Erickson · 20VC: How To Scientifically Measure Product-Market Fit, How To Efficiently and Accurately Segment Users Into Cohorts, Why Investors Analysing CAC's at Pre-Seed Is Not Useful & How To Determine Between Customer Feedback to Accept vs Reject with Daniel Eric · Jun 5, 2020 · at 24:21

Daniel Erickson, founder of ViableFit, predicts the future of product-market fit measurement and his company's trajectory during a interview on 20VC.

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“In five years, PMF will be the main metric that product teams track to gauge success, much like NPS now is for support and operations teams. ViableFit will have rocketed out of the tech industry and gained a foothold in enterprise companies across all industries.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

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Opinion
Erickson: Seed stage is definitely too early to measure CAC and LTV
“So in my opinion, at least, seed stage is definitely too early to start measuring CAC and LTV, but they're still super important to keep in mind.”
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Insight
Erickson: Google and Zoom succeeded by building faster horses
“Sometimes users want a faster horse. Google and Zoom are both great examples of that.”
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Insight
Erickson: Discard product feedback from non-disappointed survey respondents
“You should discard the feedback that you receive from the users who would not be disappointed if they could no longer use your product. They're not really your target market or your audience, so it's best to just politely thank them for their feedback and shif…”
Daniel Erickson Jun 5, 2020 ▶ 16:40 20VC: How To Scientifically Measure Product-Market Fit, How To Efficiently and Accurately Segment Users Into Cohorts, Why Investors Analysing CAC's at Pre-Seed Is Not Useful & How To Determine Between Customer Feedback to Accept vs Reject with Daniel Eric
Insight
Erickson: Early-stage founders should prioritize low dilution over high valuations
“So I would say in the early stages, at least, don't worry too much about valuation. It's a good idea to keep an eye on dilution, but it's better to raise less at a lower valuation and a lower dilution than to raise at a larger amount at a high valuation early …”
Daniel Erickson Jun 5, 2020 ▶ 22:15 20VC: How To Scientifically Measure Product-Market Fit, How To Efficiently and Accurately Segment Users Into Cohorts, Why Investors Analysing CAC's at Pre-Seed Is Not Useful & How To Determine Between Customer Feedback to Accept vs Reject with Daniel Eric
Insight
Erickson: Product Roadmaps Should Balance Core Strengths with Long-Tail User Fixes
“Your roadmap should be automatically prioritized as you come up with project ideas, and it should help you strike a balance between investing in your strengths and working on the long tail of features and fixes that will help turn less enthusiastic customers i…”
Daniel Erickson Jun 5, 2020 ▶ 5:10 20VC: How To Scientifically Measure Product-Market Fit, How To Efficiently and Accurately Segment Users Into Cohorts, Why Investors Analysing CAC's at Pre-Seed Is Not Useful & How To Determine Between Customer Feedback to Accept vs Reject with Daniel Eric
Disclosure
Regulatory shifts forced Eaze in and out of product-market fit
“Ease had product market fit in the previous market, medical only, but in 2018 we had to deal with both a changing market and regulations that forced us to change our delivery model. We spent the next couple of years moving in and out of product market fit, whi…”
Daniel Erickson Jun 5, 2020 ▶ 6:49 20VC: How To Scientifically Measure Product-Market Fit, How To Efficiently and Accurately Segment Users Into Cohorts, Why Investors Analysing CAC's at Pre-Seed Is Not Useful & How To Determine Between Customer Feedback to Accept vs Reject with Daniel Eric
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