Saved by Ted Glasnow and
How to know if you've got product-market fit
“Do a cohort analysis. Look at a group of people that tried your product in a period of time (e.g. during one month). Then look at how many of those people continue to use your product later (e.g. 12 months later). You will have a fairly deep drop-off on the first month, that’s OK. What you want to know is, does it flatten somewhere? If it flattens... See more
Lenny Rachitsky • How to know if you've got product-market fit
“Plot the % active users over time (for various cohorts) to create a retention curve. If it flattens off at some point, you have probably found product/market fit for some market or audience.
— Brian Balfour
Lenny's Newsletter • How to know if you've got product-market fit
What to look for Post-Product:
1) Retention: Users stick around 2) Surveys: Users say they’d be very disappointed if your product went away 3) Exponential organic growth 4) Cost-efficient growth 5) CAC < LTV 6) Customers clamor for your product 7) People are using it even when it’s broken
1) Retention: Users stick around 2) Surveys: Users say they’d be very disappointed if your product went away 3) Exponential organic growth 4) Cost-efficient growth 5) CAC < LTV 6) Customers clamor for your product 7) People are using it even when it’s broken
Lenny's Newsletter • How to know if you've got product-market fit
What to look for Pre-Product:
1) Visible excitement
2) People are willing to pay for it now
1) Visible excitement
2) People are willing to pay for it now