What is Product-Market Fit?
Product-Market Fit (PMF) occurs when your product meets a real customer need so well that demand seems to take care of itself. Marc Andreessen described it as “being in a good market with a product that can satisfy that market.”
Signs of Product-Market Fit
- Users actively recommend your product to others
- High retention rates and low churn
- Organic growth without heavy marketing
- Customers would be “very disappointed” without your product
- Sales cycles shorten over time
How to Achieve Product-Market Fit
- Start with a clear problem hypothesis
- Build and launch quickly
- Measure user engagement and retention
- Talk to customers constantly
- Iterate based on feedback
- Focus on your best customer segment
Measuring Product-Market Fit
- Net Promoter Score (NPS)
- Sean Ellis survey: “How would you feel if you could no longer use this product?”
- Retention curves
- Organic growth rate