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Finding Product-Market Fit
Reading signals that you are building what the market wants
They say "you will know when you reach PMF," but it can actually be measured with quantitative metrics. Use indicators like the Sean Ellis test (40% rule), retention curves, and NPS to determine PMF achievement, then establish growth strategies.
Action Steps
1
Measure the percentage of users who would be "very disappointed" without the product using Sean Ellis test
2
Check if weekly/monthly retention curves flatten
3
Monitor if organic growth (word-of-mouth, referrals) occurs
4
If PMF is not achieved, readjust core features or target customers
Pros
- ✓ Growth accelerates after PMF is achieved
- ✓ Marketing efficiency improves dramatically
Cons
- ✗ Requires a long and uncertain period to achieve PMF
- ✗ Market changes can invalidate existing PMF
Use Cases
Product direction review 3-6 months after MVP launch
Preparing PMF proof materials before Series A fundraising