How to Set Metrics for Product Market Fit

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For us it's land and expand we're landing an expansion and we should see above 100% net dollar retention in that space. For land the metric is four quarters of increasing revenue in the segments that we defined. We also take into account other means of exchange of value meaning that if we're getting testimonials around marketing referrals advisory lighthouse sites and so forth we take that into account. The last bucket is value and value is divided into two parts one is operational value for the customer and the second bucket is satisfaction.

Our guest today is Artem Kroupenev, VP of Strategy at Augury.

Augury is a leader in a category they helped to define known as “machine health.” The company sells products that combine hardware, AI, and SaaS within industrial manufacturing.

Artem joined the team at the very beginning of its journey and helped shape strategies for how the team measured product-market fit, go-to-market, and eventually, a strategy for designing a brand new market category they could compete in.

In our conversation today, we dive deep into measurable product-market fit and category-creation strategies. Artem shares particular wisdom on:

Augury’s storyboard-based approach to product vision
How to sell to a limited pool of customers
The REV (revenue, engagement and value) model from measuring product-market fit
When founders should start exploring creating a new category to operate in

You can follow Artem on Twitter at @artemkroupenev You can email us questions directly at review@firstround.com or follow us on Twitter @firstround and @brettberson.