What is product/market fit and how to measure PMF cover image

What is product/market fit and how to measure PMF

A basic understanding of how we can measure product/market fit using metrics.

Profile image of Oleg Yakubenkov
Dec 04, 2019 • 11 min read
4.53 (15)
Lean Startup
Product Vision
Minimum Viable Product (MVP)
Product Definition

Summary

Marc Andreessen, in one of the definitions of product-market fit discussed in this article, notes that (PMF) is when 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 and money from customers is piling up in your company checking account. The PMF concept is important when working on a new product, as it helps build a successful business around. However, it's alleged that few understand the concept and can measure product-market fit using metrics. Let's read about some of the most common product/market fit definitions and their advantages and disadvantages here.

Takeaways

  • Achieving product/market fit means that you have found a market segment where customers choose your product to solve their problems.
  • It is important to understand that product/market fit is just an intermediate point on the road to building a successful business around your product.
  • Marc Andreessen defines Product/market fit (PMF) as when 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.

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