Denarii’s Product-Market Fit Analysis using Superhuman’s PMF framework

At Denarii Cash, we have been engaging with our customers from day 1 to improve user experience with Denarii Cash mobile app. We took surveys from time to time and used NPS to measure the effectiveness of our mobile application and to make it better iteratively. Although we have a hunch that we have product-market fit and heading in the right direction. We still want to have measurable metrics that we can optimize and at the same time questions that we want to find an answer that always comes up in any conversation, is if the market needs another money transfer app. This post provides what we have learned so far by applying the Superhumans.com framework using Sean Elli’s Product-Market fit survey and how we will continue to improve our PMF score.

How we came to know about Scoring our Product-Market Fit?

During the investors’ engagement; relationship building, we virtually met Mohammed Almeshekah (@meshekah) from Outliers Venture Capital through an introduction from another investor, and we shared our progress update along with the customers’ feedback. During the discussion, we talked about how much users love our app, their association and the key benefits they receive.

Furthermore, we had a brief talk about how we continuously improve our product from users feedback. Mohammed liked the idea that we are focusing on being customer-centric, and he briefly shared about measuring product-market fit using a survey. He shared an article from the First Round Capital website, which is written by Rahul Vohra, Founder, and CEO of Superhuman. That tickled our curiosity, and although we measure for customer satisfaction using NPS, we thought it would be interesting to see the result if we follow the framework of Rahul to measure product-market fit. That is the reason I am creating this article to share our experience, learning and results implementing this framework.

How we used NPS for our benefit

But before we dive into the PMF framework. Thought to share our NPS progress since we introduced it last year here in Denarii. From the start, it was clear to us that we will work for the Ease of our users. So from Day 1, we made sure that we are providing what we promised – great experience, Ease, convenience, and low fees. According to Global NPS Standard, NPS Score above 0 is considered ‘Good’, a score above 50 is considered ‘Excellent’, and the score above 70 is considered to be the ‘World Class’. So we took the NPS from our users every time they made a transaction with us.

Denarii Cash Net Promoter Score Survey screenshot after every transaction

Somedays their comments made our day, saved our coffee budget, and gave us a reason to keep working harder. Other days their problems made us think about solutions, we followed up with users, personally talked to them and made sure that the inconvenience never happens again.  

Our weekly average NPS score has always stayed above 5. However, our goal is to keep above NPS 7 as the number of users in the platform and its transaction increase. And so we keep improving our product and keep digging down into the system to resolve every hurdle. Our last year’s average of NPS is 8.50 which is outstanding giving we are in the early stage of the company, and I believed that this is the result of team‘s hard work by continuously talking to the users and getting their feedback.

What is Product-Market Fit?

To present this concept, Marc Andreesen used very simple words.

Product-market fit means being in a good market with a very good product that can satisfy the needs of that market.

Deep down the product marketers and owners always know when their product is not a good fit for the market and when it is a good fit for the market. You do the marketing and see no results when there is no need for your product in the market. You see your own users opting for your competitors when your product is not good. 

Why is it important to do a product-market fit?

It is important that your product and the market align together. You will only succeed if you have a demanding product in the right market. Here I would like to mention one of Andy Rachleff’s law:

  • You take a good product to a bad market – market wins.
  • You take a bad product to a bad market – market wins.
  • You take bad products to good markets – market wins. 
  • You take a good product to a good market – you win. 

Aim for that ¼ probability where you will win so that your marketing, advertising, churn rates grow instead of falling. 

How to measure Product-Market fit?

In an article by Rahul Vohra, CEO of superhuman  mentioned,

If you can measure product-market fit then you can optimize it.

Not every person in the market is your customer. They may never be, so ideally you should engage with users who have used your product. Ask them what they think about your product? Is the product helpful for them? And what are the things they like and dislike about your product? There are various techniques to check if your product is a good fit for the market or not. Let us walk you through our journey of analyzing PMF.

How did we do a Product-market fit at Denarii Cash?

At Denarii Cash, we have acquired a good amount of users that came out from multiple iterations of our user acquisition testing, which gives us an indication that there is a need for products in the market. However, not every user that we acquired used our product regularly. Following the PMF journey of Rahul Vohra, we segmented down our users for the PMF. We chose the segment of users who have used our product more than once. As they have experienced sending money and they can give us better insight into what we need to do.

Denarii Cash survey for PMF

Then we created a survey of questions using google form that could help us in identifying PMF of Denarii Cash. In this quest we used Sean Ellis’s prime indicator, asking your users directly “How would you feel if we no longer provide our services?” and then quantify the responses that opted for ‘very disappointed’ and ‘somewhat disappointed’. According to Ellis, 40 is the magic number. If your percentage of users who will be very disappointed is more than 40%, then you are going in the right direction. 

We also wanted to know what are the things that our users love most about us. And what are the things they want us to improve to make their user experience better than before? And we could not miss this chance by not checking our ratio on word of mouth.

So here is the survey that we created for our users: 

  • How did you first discover Denarii Cash?
    • Facebook
    • Friend, Family or Colleague
    • Blog
    • Search Engine
  • How would you feel if you could no longer use Denarii Cash?
  • What is the main benefit that you receive from Denarii Cash?
  • How can we improve Denarii Cash for you? 
  • What is your job title?
  • Have you recommended Denarii Cash to anyone?
    • Yes
    • No

Question 1: How did you first discover Denarii Cash?

Our first question was on how did they discover Denarii Cash. It’s important to know which platform, campaign or strategy is helping in user acquisition. 

More than 63% of users mentioned that they came to know about us only from Facebook. It indicates how helpful this platform has been to our company in spreading the words and making ourselves visible to such a huge community. 

More than 29% of users heard about us from their friends, colleague, or family member. Now this 29% is our acquisition from word of mouth. 

People are 90% more likely to trust and buy from a brand recommended by a friend” – Invespcro

This gives us an indication of where we need to double down on our customer acquisition. And how we can further improve the other channels such as search engine and content creation from our blog.

Question 2: How would you feel if you could no longer use Denarii Cash?

Our next question was the backbone of our PMF scoring. It was going to segment users into three main categories. According to Sean Ellis, the magic number for product/market fit was 40%. Companies that struggled to find growth almost always had less than 40% of users respond “Very Disappointed” in the survey, whereas companies with strong traction almost always exceeded that threshold. Here is the response from our users: 

It is exciting to see the results that we achieved Elli’s 40% rule. Our percentage of users who will be very disappointed if they could no longer use the Denarii Cash app is more than 46%. That means we are fulfilling the need of the market, and people love Denarii Cash.

Now, these were not only the simple percentage of users for us. We segmented users based on their responses. E.g. Users who will be very disappointed are our loyal users, and they are keeping Denarii Cash on the run. Users who will be “Somewhat Disappointed” are the ones who can be turned into loyal users by making their Denarii Cash experience better than before.

For us to understand the “Somewhat Disappointed” and “Not Disappointed” segment, we looked at the job title of these segments of users to further dig down on for whom our product is working and on which designation segment we need to work on. 

Segment 1: Users who will be Very Disappointed

And the top 5 job titles that we found were Business Development (25%), Hospitality (20%), Healthcare (11%), Managers (10%), and Administrators (10%).  From this, we knew the segments where there is a need for Denarii Cash and the people are happy with our product. There is one thing common in this segment, all of them are mostly busy and have no time to stand in line to send money home. 

Segment 2: Users who opted for ‘Somewhat Disappointed’ or ‘Not Disappointed’

It was important for us to check the job titles of these users. So we applied the same procedure and refined the job titles by dividing them into main categories. And astonishing results are the following:

Top categories who opted for ‘Very Disappointed’ are also in the category of users who said that they will not be disappointed or somewhat disappointed. Without wasting another minute of our time on astonishment we got up to feed our curiosity and so we gathered the results of what these users would like us to improve in Denarii Cash. Summary of which you can see below.

To understand why users loved Denarii Cash, we again segment of those who would be very disappointed without our product. This time, we looked at their answers to the third question on our survey: “What is the main benefit that you receive from Denarii Cash?

Question 3: What is the main benefit that you receive from Denarii Cash?

Here are some of the responses the stood out from the survey:

“I don’t have to go to money exchange personally as I can send money thru Denarii app in a safe and most convenient way”

“Fast transaction, easy to send money”

“Save time, very easy to use in just few steps”

“Fast and easy”

“easy to use”

“Easy,quick sending online even at midnight if emergency “

“Fastest way to send money”

Using word cloud, the users who loved our product most appreciated Denarii Cash for its Ease of use, convenience, and lower fees.

With this deeper understanding of the product’s appeal, we turned our attention to figuring out how we could help more people love Denarii Cash by going to question of;

Question 4: What are the things that we need to improve?

This question focuses on the things we need to improve so that we can double down on the things users love about Denarii Cash so we can retain them. To have a clear view on things to focus on, we looked at the responses of all the users.

Responses

Following are some responses from our users: 

“Denarii is one of a good app for remittances or money transfers. For now,, I cannot suggest any for improvements as it is really in its better services.keep up.”

“Nothing for me I’m satisfied with denari.”

“The 2% additional for card transactions is too much. Like if you send a big amount of money it can cost around a hundred dirhams. And not all users can link their bank account with the app.”

“To increase the list of countries that can benefit using the app. Option for over the counter in case a person does not have a bank account to link.”

Right now we have 13 banks linked with Denarii Cash. However, we see a need to add more banks to our system as a huge percentage of users are asking for that. Also users want us to open Denarii Cash services to more countries as right now we are providing services to 11 countries only. Besides, it appears that a good number of users are already satisfied with our product. We assume that these users are the ones who said that they will be very disappointed if we stop our services. 

Our next step is to convert the users who said that they will “Somewhat Dissapointented” and “Not Disappointed”. Focusing on these particular segments will help us know and implement services that this segment of users wants from Denarii Cash so that they will be disappointed if we stop giving our services. But on the other hand, it’s entirely probable that some of these folks will never be very disappointed without our product no matter what we do.

Analysis of users who opted for ‘Somewhat Disappointed’ and ‘Not Disappointed’

Word Cloud of responses we got from the two segments:

From these segments ‘Add more banks‘, ‘Increase Transfer Limit’, ‘Credit Card Charges’, ‘lesser fees‘ are among the common responses of users.

Question 5: Have you recommended Denarii Cash to anyone?

Our last question was to know if users have recommended our product to others or not. It was just to know our ratio on Words of Mouth.

“A customer talking about their experience with you is worth ten times that which you write or say about yourself.” ― David J. Greer, Wind In Your Sails

From the responses of the user, it was clear that 97.7% of users have recommended Denarii Cash to other users. These results are amazing because even the users who said that they will “not be disappointed” if we stop our service also referred Denarii Cash. Mainly because of its convenience, ease, and other benefits that even they could not neglect. 

How the product-market fit helped us?

Previously we used to check our number of signups, transactions, NPS, referrals, our reach, and the number of users in various segments, e.g. several users who use our product regularly, users who have only used once and the number of users who never used.


But now as we checked our product-market fit score, many other things became clear. E.g. things we need to focus on, something we need to double down on, things we need to avoid. This can help us acquire more market share. Though we have an excellent PMF scoring, we will continuously work on this and continuously measure and optimize our PMF score inline with our NPS. But for now, team and I working hard to delight more of our users and work towards providing more value to our consumers.

Read About: What makes Denarii Cash unique?