Strategy & Growth

Product-Market Fit

The degree to which a product satisfies strong market demand.

Full Definition

Product-market fit (PMF) is the degree to which a product satisfies a strong market demand. It's often described as the moment when customers are actively seeking out your product, retention is high, and word-of-mouth drives growth. Marc Andreessen defined it as 'being in a good market with a product that can satisfy that market.' PMF is typically measured through retention rates, NPS scores, and organic growth.

Examples

  • 1Slack achieved PMF when teams refused to stop using it even when asked
  • 2The Sean Ellis test: 40%+ of users would be 'very disappointed' without your product

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