Glossary · Strategy

Product-Market Fit (PMF)

Product-market fit is the moment a product clearly satisfies a real market's demand — usage retains, customers refer others, and demand outpaces your ability to serve it. A common signal is the Sean Ellis test: at least 40% of users would be 'very disappointed' without the product. Before PMF, the priority is learning; after it, the priority is scaling.

Related terms

North Star Metric

The single metric that best captures the core value a product delivers to customers.

Retention

The rate at which users keep coming back and continue to get value over time.

Minimum Viable Product (MVP)

The smallest version of a product that lets you learn the most about a key assumption.

Value Proposition

A clear statement of the specific value a product delivers to a specific customer.

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