Pattern Breakers Andy Rachleff on “How to Know If You’ve Got Product Market Fit”
80 snips
Dec 2, 2019 AI Snips
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Product-Market Fit Defined
- Product-market fit is achieved when a startup proves its value hypothesis.
- This involves identifying the 'what, who, and how' of the product.
Measuring Consumer Product-Market Fit
- Look for exponential organic growth, driven by word-of-mouth, as a key indicator of product-market fit for consumer products.
- Use Net Promoter Score (NPS) as a secondary measure, but be aware of outliers.
Measuring Enterprise Product-Market Fit
- Calculate sales yield (contribution margin/sales team cost) to assess enterprise product-market fit.
- A sales yield greater than one suggests a strong fit.