Glossary
What is product-market fit?
Product-market fit (PMF) is when a product satisfies a strong market demand: a specific group of customers wants it, uses it, pays for it and tells others. Marc Andreessen described it as being in a good market with a product that can satisfy that market. Before it, growth tactics rarely stick.
Signs of product-market fit
- Users keep coming back without reminders (retention curves flatten).
- New customers arrive by word of mouth.
- Customers complain when it breaks.
- A common survey test asks users how they'd feel if they could no longer use it; a high share answering "very disappointed" suggests fit.
Before and after
| Before PMF | After PMF |
|---|---|
| Talk to users, change the product | Scale what works |
| Small launches to learn | Big launches and channels |
| Churn is high | Retention holds |
How launches help
Launches and directories bring a stream of new users from different audiences. Watching who stays tells you which segment fits best, which sharpens your ideal customer profile.
Example
A tool launched for marketers sees most marketers leave, while a small group of recruiters use it daily. The founder repositions for recruiting; retention and referrals rise.
FAQ
How do I know I have product-market fit?
Retention holds, users refer others and growth starts pulling rather than pushing.
Can you lose product-market fit?
Yes, when markets or competitors change.
Should I market before PMF?
Enough to get users to learn from; heavy spending usually waits.
What is the 40% test?
A survey asking users how they'd feel without the product; if around 40% or more say very disappointed, it's often read as a sign of fit.