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Product-Market Fit Indicators
Quantitative and qualitative signals that indicate product-market fit — and the tests to measure them.
Syntax
business-and-strategy
// Signal | Measurement | ThresholdExample
business-and-strategy
// QUANTITATIVE PMF SIGNALS
// 1. RETENTION CURVE FLATTENING
// Plot day 1/7/30/90 retention — the curve must flatten (not reach zero)
// Benchmark: >20% day-30 retention for consumer; >80% annual for B2B SaaS
// 2. SEAN ELLIS TEST
// Survey: "How would you feel if you could no longer use this product?"
// PMF threshold: >40% answer "Very disappointed"
// 3. NPS (Net Promoter Score)
// "How likely are you to recommend?" (0-10)
// Promoters (9-10) - Detractors (0-6) = NPS
// PMF signal: NPS > 30 for B2B, > 50 for consumer
// 4. ORGANIC GROWTH / WORD-OF-MOUTH
// PMF signal: >30% of new users coming organically
// 5. REVENUE RETENTION (NRR)
// NRR > 100% means you grow revenue without adding new customers
// PMF signal: NRR consistently above 110%
// QUALITATIVE PMF SIGNALS
// □ Customers tell you they use it every day without prompting
// □ You get inbound requests you can't fulfill fast enough
// □ Sales cycles are shortening without changing your pitch
// □ Customers are recommending you to others unprompted
// □ Churn happens only when customers go bankrupt or get acquired
// ANTI-PMF SIGNALS (you don't have it yet)
// □ You need to educate customers on why they need your product
// □ Customers are polite but don't return
// □ Feature requests contradict each other
// □ MRR growth requires constant sales effort with no organic lift