Chasing (and finding) product-market fit

Product-market fit is a crucial yet elusive concept in the startup world, often cited as the leading reason for startup failures due to a lack of market need. While the concept is intuitive—suggesting that a product must deliver value to users who want it—measuring and achieving product-market fit can be challenging. Experts suggest that product-market fit is both a tangible metric and a perceptible feeling, often indicated by retention rates, customer demand, and sustainable growth. Various frameworks exist to quantify it, like Lenny Rachitsky's definition matrix and Tribe Capital's nuanced approach, which includes growth accounting and cohort analysis. Retention, a key indicator, is emphasized over other metrics, as it reflects user value and continued product use. Despite being difficult to pin down, product-market fit is not static; it evolves with market changes and scaling, requiring continuous iteration and adaptation. Founders are advised to focus on relevant metrics unique to their business, avoid premature growth, and continuously refine their understanding of customer needs to achieve and maintain product-market fit.