Product-Market Fit (PMF) 

Product-Market Fit (PMF) is the point at which a company’s product or service successfully satisfies strong market demand, evidenced by sustained customer adoption, retention, and revenue growth. It indicates that the business has built something people want, are willing to pay for, and can scale sustainably. 

Signs of product-market fit include: 

• High customer retention and repeat usage. 

• Low churn rate. 

• Positive word-of-mouth referrals. 

• Consistent month-over-month revenue growth. 

• The business struggling to keep up with customer demand. 

Startups often pivot or iterate their offerings multiple times before achieving PMF. Metrics like Net Promoter Score (NPS), Monthly Recurring Revenue (MRR) growth, and user engagement trends are used to gauge product-market fit.