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StrategyPMM

Product-Market Fit (PMF)

The degree to which a product satisfies a strong market demand — the point where growth becomes pull-based rather than push-based.

Product-market fit is the state in which a product meets the needs of a market so well that customers are actively pulling it — recommending it, returning to it, and being retained without aggressive intervention. Sean Ellis popularised the '40% test': if 40% or more of your users would be 'very disappointed' if your product disappeared, you likely have PMF. For B2B SaaS, PMF indicators include low churn, strong expansion revenue, organic referrals, and deals that close faster than average.
Related terms
Go-to-Market Strategy (GTM)

The plan that defines how a company will launch a product or enter a market — including audience, messaging, channels, and motion.

Ideal Customer Profile (ICP)

A detailed description of the type of company most likely to buy, succeed with, and expand your product.

Churn Rate

The percentage of customers or revenue lost over a given period.

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