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Building a Startup: How to find the Product-Channel Fit?

How to find Product-Investor Fit

Finding the ideal product-market fit is a tremendous success for any business, and it should never be taken for granted. It means you have identified a critical sweet spot in the market that could potentially lead to strong and lasting growth. However, simply relying solely on that product-market fit isn’t enough. You must take additional steps to evaluate how you can reach out to your target audience and ensure they are aware of your offering.

This is when you need to find the right product-channel fit for your startup! As a founder, product-channel fit helps you develop your product right and consider the right channels to promote it.

What is Product-Channel Fit?

In the world of modern business, the product-channel fit is an incredibly important concept to understand. Put simply, it’s the notion that a business’s products and services must be well suited for its chosen distribution channels – if not, sales could suffer as a result. Product-channel fit is often difficult to achieve, as understanding a customer’s desired experience requires thoughtful strategy.

When launching a new business, founders often need to consider a variety of channels through which their products and services will be sold. While it is necessary to ensure that any product or service offered is suitable for the chosen channel, it is also important to remember that this flexibility can only go one way—products can be changed for various channels, but channels cannot be changed for products. 

This means that different marketing channels have certain nuances of their own, especially social media channels and search engines. Keeping this in mind, you can only tailor your marketing strategies and practices according to the active algorithms of the channel. Either you need to experiment with different marketing techniques or straight away shift from one channel to another if you don’t see things working out.    

No matter what, it pays off to do comprehensive research and select the optimal channel from the very start. 

The PESO model illustrates the Paid, Earned, Shared, and Owned media channels that can work for businesses. However, as mentioned above, not every media and marketing channel works well for all sorts of businesses. Startups often prefer to make a mix of marketing practices out of this in order to gauge potential leads from all over the media landscape. 

Looking at this diagram, you can clearly understand how the PESO model works. Every type of media has its own practices and nuances, startups must try out what works best for them but not waste time or resources if things don’t work out. 

Here is how you can effectively find the right product-channel fit:

Reverse Engineering

As a founder of any business, one of the most important steps in the process is to reverse engineer consumer behavior in order to find that crucial product-channel fit. This is easier said than done, as there are numerous facets to consider, such as understanding who your target audience is and how best to reach them. One key element that should not be overlooked is analyzing how much time they are consuming media via any means. With so many channels available these days, such as traditional and digital marketing, television and radio broadcasts, reviews websites, and social media platforms – it can be challenging for businesses to get an accurate picture of their audience’s media habits.

Fortunately, there are various research companies that offer products that measure audience ratings across all forms of media (including both offline and online sources). Additionally, many businesses use polls or surveys to gather data about their customers’ usage rates concerning certain channels. Relying on this type of information when making decisions about where and how to market products can be invaluable in maximizing a business’s chances for success in finding a product-channel fit. 

If founders pay attention to the amount of time their target audiences spend consuming media from any available channel – then their corresponding finances will benefit accordingly! By integrating this knowledge into strategic marketing plans, founders can make better decisions about how best to reach those potential customers, giving them more bang for their buck.

Making an effort to stay ahead of trends regarding customer behavior within different channels will also keep them agile enough to take advantage of changes quickly when they arise. Timely observations can lead a founder toward greater success! Ultimately, focusing on customer behavior across multiple forms of media creates a clear roadmap toward finding that elusive product-channel fit – something brands shouldn’t miss out on!

A/B Testing

A startup’s marketing strategy can make or break its success, so A/B testing is essential to ensure that founders are adhering to the metrics that will ensure your company succeeds. A/B testing allows entrepreneurs to understand what works best for them when it comes to promoting their product or service without wasting any time and resources. This process allows them to try out one marketing channel while simultaneously learning from two other channels as well. By implementing A/B testing, founders can test out various strategies on multiple audiences and then pick the most efficient channel for their particular type of product for achieving a greater ROI.

The data obtained from A/B tests provides a clear picture of which channels have worked the best in terms of engagement with users and how exactly those channels were used by the audience. Altogether, this enables founders to find cost-efficient and effective marketing tactics that bring sustainable results over time compared with relying on mere instinct. In short, A/B testing is essential in order for startups to maximize their return while avoiding potential losses associated with investing in ineffective methods.

Performance Tracking

Finding the right product-channel fit is an integral part of a successful promotional strategy. No matter what your product or service may be, neglecting to track performance can lead to a disappointing outcome. By tracking marketing performance data, you can more accurately assess which channels and practices are the most effective for promoting your startup. Platforms like Google Ads, SEO, content marketing, and influencer services – all of these must be tracked to truly understand the success rates associated with each marketing effort. 

This will help create transparency so that marketers and founders can factor this in while making decisions regarding which channels should take priority when launching an advertising campaign. Performance tracking is essential to identify what changes must be made in order to find the right product-channel fit for your startup. Knowing where allocated resources are being used most effectively can mean the difference between failure and success. Therefore, it’s important to never forget about performance tracking when finding the optimal product-channel fit for your product or services.

Consider Emerging Channels

As a founder, you may be feeling overwhelmed by the number of marketing channels available today. Every year, new platforms, technologies, and trends join the mix, making it difficult to focus on the ones that really matter. But while it’s tempting to stick with tried-and-true methods of promotion—social media, and traditional channels—this could be a huge mistake. The pace of change in the marketing world means that emerging channels can often be even more effective at spreading the word about your brand than established ones. 

Emerging channels also make it easier to create viral content and engage with target audiences at scale. By investing in emerging marketing practices early on, you can make sure your startup stands out from the crowd and takes advantage of new opportunities for growth. Investing in data strategy isn’t just about keeping up with trends – it’s about staying ahead of them and getting a leg up on the competition.

With that said, founders should also keep an eye open for potentially underutilized strategies like influencer advertising that can give their startup an edge over competitors who are reluctant to try something new. Ultimately, experimenting with multiple marketing strategies will ensure your brand stays relevant and resonates within its respective market — delighting potential customers in the process. New ideas are essential for success so don’t forget to try new avenues as they offer new big opportunities to not only boost your sales but also your image in industries too! 

You never know what becomes your next big break; like us, you can surely not ignore it!


Product-channel fit plays an essential role in growing and scaling a startup in the right direction. A startup needs an active growing user base in order to survive in the market. This is when marketing comes into the frame but we cannot ignore that not all marketing channels work perfectly for all types of promotions. Founders cannot waste their resources while experimenting with marketing practices to acquire users. Hence, you must find the product-channel fit to make things work for your business. 

Marketing alone cannot benefit all startups in reaching their growth goals. Thus, founders need to find the right investors to raise funding for better growth and scaling. To do so, you must understand how product-investor fit works and can be achieved. Building a startup is all about consistency, research, planning, and timely execution of effective strategies.

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