What is Product-Market-Channel fit?
Once a startup is past the Product-Market fit (PMF) stage -- i.e. it is established there is a need for the product in the market -- it still needs to find the right distribution channel to reach its ideal customer profile in an efficient manner in order to become a sustainable business.
Once such a channel has been figured out by the business, it can be said to have achieved Product-Market-Channel fit (PMCF).
Example:
For instance, a company selling eco-friendly home cleaning products has achieved PMF by addressing the demand for sustainable household items.
To achieve PMCF, the company must now identify and use channels where eco-conscious consumers are most likely to be found. Possible channels can be organic product fairs, eco-friendly online marketplaces, and social media groups dedicated to sustainability.
Components of PMCF:
1. Effective Channel Identification: Understanding and selecting a list of channels where the target customers are most active and receptive.
2. Message and Channel Synergy: Tailoring marketing messages to suit the specificities of each chosen channel.
3. Measurement and Adaptation: Continuously gathering data from these channels and adapting the approach to improve the unit and customer economics.
Measuring PMCF:
The success of PMCF can be gauged by metrics such as unit & customer profitability as output metric, and higher conversion rates, and improved customer feedback on channel-specific campaigns, as input metrics.