Product-Market Fit
Understanding Product-Market Fit
Product-market fit occurs when a startup’s product effectively addresses a significant problem or need for a target market, resulting in strong demand and customer satisfaction. Achieving product-market fit is considered a critical milestone for startups as it signals that the product has found a sustainable market and is ready for scaling efforts.
Indicators of Product-Market Fit
- High Retention Rates: Customers continue to use the product, indicating its value to them.
- Positive Customer Feedback: Users express satisfaction and recommend the product to others.
- Growing Revenue: An increase in sales and recurring revenue shows that the product meets market demand.