Product-Market Fit
Glossary

What is product-market fit?

The term Product-Market Fit describes the fact that a product matches market needs. 

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When a product has Product-Market Fit it starts 'resonating' with buyers and market traction picks up. Marc Andreessen describes Product-Market Fit as:

"you can always feel product/market fit when it’s happening. The customers are buying the product just as fast as you can make it — or usage is growing just as fast as you can add more servers. Money from customers is piling up in your company checking account. You’re hiring sales and customer support staff as fast as you can."

Product-Market Fit is a desirable state for all products. The idea applies at various levels, starting with Problem-Solution Fit and ideally leading towards a good Business-Market Fit.

Indications of good Product-Market Fit are:

  • Sales friction decreases
    Little explanation is needed to convince customers to buy. You start skipping sales slides, demos get shorter and prospects tell you right away "oh yes, I need this".

  • Retention decreases
    Users are happy with the product and keep coming back.

  • Users turn product advocate
    Prospects start requesting the product from their boss because it solves their problem. Users start recommending the product to other users. 

  • Users request similar enhancements
    The majority of user requests for improvement are somewhat similar. Feature voting shows a clear ranking. The majority of user feedback pointing consistently to the same direction. The user base centers in on a few typical/ideal personas.