A Product Market Fit Show | Startup Podcast for Founders How to tell if you have true product-market fit—& what to do if you don't. | Matt Watson, Host of Product Driven
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Mar 20, 2025 
In this engaging discussion, Matt Watson, host of Product Driven, dives into the nuances of achieving true product-market fit. He explains why metrics like demo to close are critical indicators. Discover why the Sean Ellis test surpasses NPS in gauging market resonance. Matt emphasizes retention as the best long-term metric, though it can take time. He also shares insights on recognizing when to pivot or persist, highlighting the importance of asking the right questions to customers for authentic feedback.
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Demo-to-Close Ratio as PMF Indicator
- Measure early product-market fit in B2B SaaS by analyzing your demo-to-close ratio.
- A ratio above 40% suggests strong resonance, while below 20% or 15% indicates significant work is needed.
Growth Without Perfect PMF
- Significant growth is possible without perfect product-market fit, especially for bootstrapped companies.
- True product-market fit fuels venture-type exponential growth needed to reach substantial revenue milestones.
VinSolutions' Rapid Growth Challenges
- Matt Watson's company, VinSolutions, achieved rapid growth and product-market fit with its CRM for car dealers.
- Growth became challenging to manage, leading to customer issues due to installation delays and impacting sales team morale.