What is product-market fit?
Product-market fit is when a product satisfies a strong demand in a market, so customers keep using it, pay for it and tell others. A common test is the Sean Ellis survey: if at least 40% of active users would be very disappointed without the product, that points to fit.
- Retention flattens instead of decaying to zero.
- Customers come back without a reminder.
- Growth comes from word of mouth.
- Sales cycles get shorter.
Frequently asked questions
How do I measure product-market fit?
Combine retention curves, the 40% “very disappointed” survey and whether customers refer others. See our guide for how to run the survey correctly.