Product Market Fit Explained (Clear & Concise)

May 14, 2021

If you want to learn more about product/market fit, you came to the right place.


In this article, you’ll get product market fit explained in a clear and understandable way.


Product/Market Fit is the degree to which a product satisfies a strong market demand. Here’s a pyramid that summarizes the product market/fit concept.


In this context, the market section is comprised of the following elements:

  • Target Customer – these are users that will most likely benefit from your product; you’ll want to create a profile of your ideal customer
  • Underserved Needs – these are needs that aren’t being served adequately by companies in a market or industry


Also in this context, the product section is comprised of the following elements:

  • Value Proposition – this is your plan for how your product will meet customer needs better than the alternatives
  • Features - after you define your value proposition, specify what functionality your minimal viable product will include
  • User Experience (In other words, Testing your Minimal Viable Product with Customers) – this involves soliciting feedback from potential customers with the use of surveys, one-on-one interviews, group interviews, and more.


How to measure Product/Market Fit

Ask yourself these questions to measure how well your product satisfies a market:

  • Have you validated that the needs that you believe your customers have really exist?
  • Are the needs of your customers important or urgent enough for them to purchase from you?
  • How adequately do the functionalities of your product address the needs of your customers?
  • How well are customers interacting with your marketing efforts?
  • How quickly do customers make up their minds about a purchase?
  • What is your customer retention rate? This is the rate at which customers maintain a relationship with your business.
  • What percentage of customers have unsubscribed or stopped using your product?



📚 "The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses" – Eric Ries

📚 "The Four Steps to the Epiphany: Successful Strategies for Products that Win" –  Steve Blank

📚 "Running Lean: Iterate from Plan A to a Plan That Works" – Ash Maurya

📚 "Testing Business Ideas: A Field Guide for Rapid Experimentation" - David J. Bland & Alexander Osterwalder

📚 "The Lean Product Playbook: How to Innovate with Minimum Viable Products and Rapid Customer Feedback" - Dan Olsen


Some links in this article are affiliate links.


Get resource suggestions related to career advancement, AI tools, entrepreneurship training,  website creation, course creation, video production, and more!

We hate SPAM. We will never sell your information, for any reason.