Product-Market Fit (PMF)

Product-market fit (PMF) is the point where a product consistently satisfies a real market need with evidence in retention, demand, and repeat use. It matters because marketing efficiency generally improves when underlying value is clear and repeatable. Teams assess PMF through cohort retention, referral behavior, willingness to pay, and qualitative feedback from core segments. Practical strategy after PMF is to scale channels that preserve value perception rather than forcing growth through discounts alone. A common mistake is declaring PMF too early based on short-term acquisition spikes without durable usage signals.