Market Traction

Having established the target market, traction is the measure of how well that market is responding to the product or service on offer. It requires some form or advertising and marketing and should be measured against the extent of that outreach (8 out of 10 customers in our survey said…).

In the early stage of product development traction may be measured in responses to teaser adverts, expressions of interest, crowdfunding raises etc and is a measure of the effectiveness of the company communications as well as the product or service itself. These should not be confused with sales but are an indicator that product-market fit has been achieved and basis on which future revenue streams can be estimated.

Post-commercialisation market traction is also measured in actual sales as well as the analysis of the pipeline or funnel (the stages through which a prospective customer interacts, such as from reading a website, through enquiry, negotiation and sale).