What is product-market fit?
Product-market fit (PMF) describes the state in which a company has built a product that satisfies a strong, demonstrable market demand, evidenced by organic customer acquisition, high retention, willingness to pay and net promoter behaviour. PMF is the foundational milestone every startup must achieve before scaling.
PMF is typically measured by survey methods (Sean Ellis’s “40% very disappointed” test), retention curves that flatten, payback periods, NPS and organic growth rates. Pre-PMF startups should focus on iteration and learning; post-PMF startups should focus on growth.