2 min - Jun 14, 2023

What is the Sean Ellis Test? Pablo Srugo on the Metric Stack Podcast

In this episode of the Metric Stack Podcast, co-hosts Allan Wille and Lauren Thibodeau interview special guest Pablo Srugo, Principal at Mistral Venture Partners, and discuss the Sean Ellis Test for measuring product-market fit. An experienced early-stage VC focused on seed-stage investments, Pablo shares his insights and expertise in evaluating startups at the pre-product-market fit stage.

He explains that the Sean Ellis Test is particularly relevant for startups with a small team and customer base but are yet to achieve product-market fit. He emphasizes the importance of measuring product-market fit before raising a Series A funding round.

The Sean Ellis Test, named after its creator, is a simple one-question survey to assess product-market fit. The question asked is: “How would you feel if you could no longer use our product?” Respondents have three options: very disappointed, somewhat disappointed, or not disappointed. The metric suggests that a company has achieved product-market fit if over 40% of respondents choose “very disappointed.”

Pablo discusses the importance of segmenting the customer base and sending the survey to the appropriate subset of users. He notes that the metric is most suitable for direct-to-consumer and B2B SaaS companies with a substantial customer base, allowing for statistically significant results. Engaged customers who have recently used the product are the ideal survey recipients, as their opinion carries more weight.

Furthermore, Pablo advises consistent measurement of the metric to track trends over time. By identifying the specific customer segments with the highest product-market fit, companies can focus their positioning and messaging efforts to attract more of those customers.

Allan and Lauren also touch upon the potential challenges of survey fatigue and the need to keep surveys concise. They discuss how the Sean Ellis Test can be integrated into a broader survey strategy to avoid overwhelming customers with excessive surveys.

Overall, the Sean Ellis Test offers a straightforward and effective way for startups to assess their product-market fit and make informed decisions about their growth strategies.

Listen to the full podcast episode for more in-depth insights and examples of the journey to finding product-market fit.

Full episode here: https://www.klipfolio.com/metric-stack/episode/11/pablo-srugo

 

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