Alright, so you’re in that startup sweet spot—or maybe not-so-sweet spot—where you’re still figuring out if your product really resonates with the market. And the big question is: How do you balance developing your product while also getting customers to actually use it?

Finding product-market fit is a journey, but getting there is about striking the right balance between making your product amazing and making sure people know it even exists. Think of it like cooking for a dinner party while simultaneously trying to get people to show up—if you focus too much on the food, you might end up with a fantastic meal that no one gets to taste. On the flip side, if you focus too much on getting people there, you might be left with a lukewarm dish that doesn’t quite hit the mark.

In today’s post, I’m diving into how you can balance product development and customer acquisition by using feedback loops that let you do both without losing momentum. Let’s jump in!

1. Start with the Basics – What’s Working and What Isn’t?

Before diving into either product development or customer acquisition, you need a clear idea of what’s already working and what’s not. You don’t want to waste time developing features that don’t matter, and you don’t want to go all-in on marketing if the product isn’t resonating with early users.

Pro Tip: Talk to your initial customers. Find out what they love, what’s confusing, and what would make them come back. If you’ve already got some users, this is gold. If you don’t, focus on getting a small group on board just to start collecting feedback.

Analogy Alert: Think of this like opening a restaurant: you’d want to know if people love your signature dish or if it needs more seasoning before you send out a million flyers inviting everyone in.

Key Takeaway: Figure out what customers value most about your product so you can prioritize both development and marketing around it.

2. Use Feedback Loops – Let Your Customers Help You Build

Feedback loops are the magic sauce that can help you improve your product while acquiring customers. By listening to what your users say, you can create a cycle of improvement that serves both product development and customer acquisition.

Set up regular feedback touchpoints with customers—whether it’s through surveys, in-app feedback, or even quick one-on-one chats. Use this feedback to adjust the product, then communicate those improvements in your marketing to attract new users who value those updates.

Pro Tip: When you add a feature based on user feedback, let your customers know. It shows you’re listening and makes them feel invested in your growth. Plus, they’re more likely to spread the word if they feel they’ve had a hand in shaping your product.

Key Takeaway: Feedback loops let you build a better product while also showing potential customers that your product is evolving based on real needs.

3. Prioritize “High-Impact” Features – Don’t Overload Your Product

When you’re in the early stages, it can be tempting to keep adding features in the hopes that something will stick. But instead of overwhelming users with an endless list of bells and whistles, focus on high-impact features that add clear value.

Ask yourself, “What’s the one thing my product can do to solve a key problem for my target users?” Focus on perfecting that core feature and any other small improvements that directly support it.

Red Flag: If you’re adding features just to “keep up” with competitors, take a step back. More isn’t always better. It’s better to have a smaller product that excels at solving a problem than a complicated one that’s confusing to new users.

Analogy Alert: Imagine you’re a chef and you’ve decided to put 20 ingredients into a dish because you think it sounds fancy. But if those ingredients don’t actually work together, the dish falls flat. Keep it simple, and make each ingredient count.

Key Takeaway: Focus on features that enhance the product’s core value rather than adding extras just for the sake of it.

4. Get the Word Out – Customer Acquisition Is a Growth Tool, Not a Vanity Metric

If you’re working on product-market fit, customer acquisition shouldn’t just be about getting big numbers; it should be about attracting the right users. Find those early adopters who genuinely need what your product offers, as they’re the ones who will give you the most valuable feedback.

Look for targeted channels where your ideal users hang out—think niche social media groups, targeted ads, or partnerships with influencers in your field. By bringing in users who align with your vision, you’re more likely to get feedback that helps you refine your product.

Pro Tip: Focus on quality over quantity with early customer acquisition. Ten engaged users who provide valuable feedback are better than a hundred who only check out the product once.

Key Takeaway: Customer acquisition isn’t just about numbers; it’s a chance to bring in users who will help you refine the product.

5. Create a Communication Plan – Let Your Customers Know About Every Improvement

Once you start making changes based on feedback, communicate those changes. A lot of early-stage founders assume that customers will just “see” what’s new in the product, but a clear communication plan can make all the difference.

Whether it’s through a simple email, an in-app message, or a social media post, let users know what’s new and why it’s valuable. Show them that you’re not just listening to feedback—you’re acting on it. This keeps your current users engaged and helps potential users see that your product is constantly evolving to meet real needs.

Pro Tip: Share testimonials from users who appreciate the improvements. It builds trust with new users and reinforces loyalty among existing ones.

Key Takeaway: Make it easy for customers to see that you’re committed to ongoing improvement. A little communication goes a long way in building trust and engagement.

6. Measure What Matters – Track Metrics That Reflect Product-Market Fit

In the early stages, it’s easy to get bogged down by vanity metrics like total downloads or sign-ups. But to balance product development with customer acquisition effectively, you want to track metrics that show whether your product is genuinely resonating with users.

Some great metrics to keep an eye on include:

* Retention Rate: Are users coming back?

* Engagement Rate: Are they actually using the product regularly?

* Net Promoter Score (NPS): How likely are they to recommend it?

By focusing on metrics that measure customer satisfaction and retention, you’ll know if your product is getting closer to product-market fit—and you’ll have insights on where to focus your next round of improvements.

Key Takeaway: Track metrics that show real engagement and customer satisfaction. They’ll guide both product and acquisition strategies.

Wrapping It Up: Building and Selling Go Hand in Hand 🎯

Balancing product development and customer acquisition while seeking product-market fit is all about synergy. By gathering feedback, prioritizing high-impact features, focusing on quality customer acquisition, and communicating every improvement, you’re setting up a system where each action reinforces the other.

Remember, finding product-market fit isn’t about making every customer happy right away. It’s about developing a product that truly resonates with the right people. And that takes time, patience, and an ongoing commitment to listening, refining, and evolving.

Ready to supercharge your startup journey? Join my FREE Startup Launch Course! 🌱

Click here to register

Filled with webinars, one-on-one consultations, an engaged community, and workshops, this course is designed to help you find and maintain product-market fit. Sign up today and take the guesswork out of balancing product development and customer acquisition!

Sign off with a smile, Startup Coach Manoj

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit manojthomas.substack.com