🎙️ Pod Shots - Bitesized Podcast Summaries

Finding product-market fit can feel like winning the lottery. But what happens when the market moves? In a recent candid conversation on the First Round Review pod, Bob Moore, co-founder and CEO of Crossbeam, delves into the challenges and discoveries of his multi-time founder journey and shares deep insights into sustaining product-market fit amid shifting landscapes. Let’s dig in to see what founders and product managers can take away.

❓️How to Find and Keep Product Market Fit | Insights from Bob Moore

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📆 Published: September 30th, 2024

🕒 Estimated Reading Time: 3 mins. Time saved: 78 mins🔥

🎯 Seeing Product Market Fit as a Moving Target

But Bob is keen to remind us that product-market fit is like a moving target, and markets are anything but static. This resonates hard as most founders picture product-market fit as a stationary goal they’re working towards, which couldn’t be further from the truth.

During his time at RJ Metrics, Moore experienced firsthand how easily product-market fit can slip away, especially when a once-solid market suddenly shifts due to new technology or evolving customer demands. RJ Metrics started strong, but Moore saw that even when you’re in sync with the market, that alignment can fade if you’re not anticipating change.

Key Takeaways:

• View product-market fit as something that evolves over time; don’t assume it’s a one-time achievement.

• Keep close tabs on emerging tech and customer trends to avoid getting blindsided by shifts in demand.

• Regularly revisit your product’s alignment with the market, especially as you scale or move into new verticals.

• Listen to subtle cues like customer feedback or small changes in usage metrics, which can signal upcoming shifts.

• Foster adaptability in your team, so they’re ready to make changes when the market moves.

🚀 The Art of Idea Validation

Early on in Crossbeam’s journey, Moore took an unconventional route: instead of validating his idea with target users, he sought feedback from other founders. Why? Founders often understand broader market trajectories better than end users and can help shape products with more scalable potential.

Moore’s approach to idea validation goes beyond simply asking if there’s a demand for a product. Instead, he’d bring multiple ideas to founders and gauge their reactions, observing which ones prompted follow-up questions or next steps. Whilst this should never replace speaking to customers, this innovative “gut check” helped him refine Crossbeam into something built for longevity and was a practical way of playing to his strengths.

Key Takeaways:

• Validate new ideas by seeking input from founders and investors as well as end users for a fuller perspective.

• Ask other founders, “Would you start this business?” rather than just “Would you buy this product?”

• Test your idea’s potential longevity by asking, “Does this align with where the market is going?”

• Ensure you’re passionate about the idea—Moore describes his criteria as a two-part test: whether it’s intellectually engaging and if his specific experience made him suited to solve it.

• Bring multiple ideas to discussions to encourage honest, comparative feedback without “buy-in bias” from your connections.

🔄 Navigating the “Perfect Storm” of Demand

Sometimes product-market fit isn’t about hitting a target but about timing. For RJ Metrics, the rapid growth they experienced was less about a specific product pivot and more about being positioned in the right place when market demand surged.

Moore describes how, after years of bootstrapping, RJ Metrics experienced hyper-growth almost overnight, simply because the market demand caught up with the product. But while growth periods feel like a win, they also test the company’s resilience. Being able to capitalise on these moments is about being ready to scale—both the product and the team—when the opportunity arises.

Key Takeaways:

• Recognise that sometimes, patience and persistence can be just as valuable as product changes.

• Be prepared for the “perfect storm” of demand by laying down scalable systems, even when growth seems distant.

• Reinvest in R&D during slower periods, so the product is ready for rapid adoption when timing aligns.

• Build resilience into your team culture, encouraging patience and confidence for slow periods.

• Remember that timing is a major factor in scaling, so don’t lose momentum when the market finally lines up.

⚡ When Product-Market Fit Fades: Signs to Watch

Falling out of product-market fit can be subtle, even when you’re seeing some positive signals, so having the awareness to catch it early is critical. At RJ Metrics, Moore found that growth metrics—like customer churn—were lagging indicators. This meant they weren’t aware of their weakening position until they were in a full-blown plateau.

Ignoring early signals can lead to a slow decline. For example, RJ Metrics initially dismissed customer churn, chalking it up to structural issues rather than a sign of fundamental shifts in the market. In hindsight, Moore sees that recognising these signals sooner would have allowed for proactive changes that might have sustained product-market fit longer.

Key Takeaways:

• Treat customer churn as a priority signal; regular churn spikes often reflect market misalignment.

• Watch for “creeping churn” where gradual increases are dismissed as noise—this can signal deeper market shifts.

• Have an internal process for “intellectual honesty” checks, ensuring no one is rationalising away real issues.

• When customer acquisition costs start to rise, assess if your product or positioning is still resonating.

• Look at the broader context: if you feel competitors are getting less sophisticated, it might be a sign you’re missing shifts they’re already addressing.

🛠️ Innovative Approaches to Pricing and Early Partnerships

Moore’s “joint jam sessions” introduced a unique way to build early product engagement without traditional pricing pressure. By inviting two potential partners to a collaborative demo, Moore found that he could sidestep the usual single-user limitations and kickstart product adoption in groups.

This approach helped Crossbeam develop a viral adoption cycle before the product was fully built. By letting users see value through their own data interactions, Moore minimised the friction of early adoption and avoided needing a paid tier until product fit was further validated.

Key Takeaways:

• Delay pricing decisions when possible to encourage early adoption without financial barriers.

• Use “group demos” to create instant network effects and collaborative buy-in from potential users.

• Test product viability and demand by creating scenarios where users experience the product’s value firsthand.

• Avoid “single-player” demo modes in products designed to be used collaboratively; invite partners to see the ecosystem potential from day one.

• Think of pricing as a late-stage choice; ensure the value is clear before setting limits or fees.

🤝 Merge or Compete? Knowing When to Join Forces

One of Moore’s most unconventional moves was the merger of Crossbeam with competitor Reveal. Traditionally, merging two scaling private companies is rare, but Moore recognised that both companies needed access to each other’s customers for full market value.

By joining forces with Reveal, Crossbeam could offer customers a seamless experience that neither could deliver independently. This decision required Moore to set ego aside, but it ultimately created more value for both companies’ customers and allowed them to compete more effectively in a crowded market.

Key Takeaways:

• Consider mergers when both companies’ value propositions are complementary but reliant on each other for full impact.

• Evaluate when competition may be causing harm to the customer experience.

• If combining forces provides a network effect, it’s likely more valuable than remaining separate.

• Be prepared to set aside ego to pursue what benefits the market and your customer base most.

• Prioritise customer needs in these decisions; the best mergers create stronger user experiences and fuel growth.

🧠 The Power of Intellectual Honesty

Perhaps the most profound takeaway from Moore’s journey is the emphasis on intellectual honesty—a willingness to question assumptions, even when they validate our beliefs or make us comfortable. During RJ Metrics’ toughest times, Moore realised that being truly honest about the state of the business might have saved them earlier.

Intellectual honesty means recognising when optimism blinds you to critical challenges. For Moore, this mindset enabled him to make pivotal decisions at Crossbeam and recognise early on when his assumptions needed revisiting.

Key Takeaways:

• Regularly challenge core beliefs about the market, your product, and even your team’s performance.

• Develop a company culture that values feedback loops and transparency, even on uncomfortable topics.

• When something feels “off” in metrics or feedback, pursue it until you find the root cause.

• Be especially wary if your confidence in past assumptions overrides signals indicating they may no longer be valid.

• Intellectual honesty isn’t just about humility—it’s about continuous alignment with reality, which is essential for long-term success.

Final Thoughts

Bob Moore’s journey shows that finding and keeping product-market fit is an ongoing process. From being ready when the market shifts to adopting non-traditional validation and customer acquisition tactics, Moore’s experience underscores the importance of flexibility, honesty, and an openness to unconventional strategies.

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📅Timestamps:

• [00:00:30] Product market fit challenges.

• [00:04:58] Founder market fit exploration.

• [00:08:09] Founders' empathy and market understanding.

• [00:10:08] Founder bias and investment decisions.

• [00:14:06] Microsites for lead generation.

• [00:15:44] Content generation strategies and ideas.

• [00:18:41] Intrinsic virality of Crossbeam.

• [00:22:22] Data analytics for e-commerce.

• [00:25:30] Product market fit evolution.

• [00:28:06] Modern data stack revolution.

• [00:30:42] Business pivoting strategies.

• [00:35:04] Spin out of RJ Metrics.

• [00:38:52] Intellectual honesty in business.

• [00:40:17] Intellectual honesty in entrepreneurship.

• [00:42:27] Intellectual honesty in business.

• [00:47:27] RevOps conversations leading to partnerships.

• [00:48:30] Founder-led sales and network effects.

• [00:51:23] Product market fit validation.

• [00:55:05] Account mapping process challenges.

• [00:58:00] Network effects in product growth.

• [01:00:27] Viral growth through joint sessions.

• [01:03:19] Network effect in B2B software.

• [01:06:11] Merger of scaling private companies.

• [01:10:02] Customer integration and collaboration challenges.

• [01:14:10] French work ethic in startups.

• [01:15:55] Intellectual honesty in decision-making.