How to measure and achieve product-market fit
Product-market fit describes how well your product meets the demand of a viable market. (That is a textbook definition, anyway.) Here is another definition that we like better: Product-market fit is when your product is something that people really want to buy and you have enough customers to support your growth over time.
Finding product-market fit is vital to getting product development right. Maybe this seems obvious — who would build a product that no one wants to buy? No one. At least, not intentionally. But it happens more often than you might think.
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You can find countless cautionary tales. Many well-meaning founders and product builders have put passion above product-market fit. Those that do so often confuse their own excitement for a solution to a problem that may not exist in the market. If a product does not fit, it tends to fail.
Product-market fit is essential to lasting product success. It is like a special ingredient with no substitutions. But the process of finding it (and recognizing when you have) is not always straightforward. Many product experts have shared their take on what product-market fit really looks like. As a product builder, it is wise to seek out varied perspectives to inform your understanding of the topic. But this guide will walk you through the fundamentals as a start.
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Why is product-market fit important?
You can have a brilliant idea. A compelling story. A talented product team. And even a fully functional product that manifests all of these things. But if no one wants to buy what you are offering, then you will not get anywhere. This is why product-market fit matters.
While you may think product-market fit is primarily a startup issue, it is just as important for established companies with successful product portfolios. New and existing products require the same level of attention to product-market fit.
Some startups fall into the trap of conflating early enthusiasm from a few people with a real market opportunity. For established businesses, the challenge is looking beyond positive feedback and requests from a few to an actual need by many. No matter how innovative you believe your idea is or how badly someone wishes your product had a certain feature — this does not mean you should build it.
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In both scenarios, product-market fit is a counterbalance to egos and excitement. If you cannot confirm that enough demand exists to sustain growth and eventually turn a profit, it will be hard to win. Maybe even impossible. Finding product-market fit requires you to question what you think you know and prove how you will succeed. This is challenging, ongoing work — it is core to ensuring your long-term success and continuously delivering product value.
Of course, those other elements still contribute. A solid strategy, bold leadership, and a high-achieving product development team — getting all of these strong building blocks in place bodes well for the future of any business.
Certain frameworks can also help you to validate your likelihood of product-market fit success. For example, completing a proof of concept upfront is one way to examine the feasibility of your product idea from multiple angles. Aha! software includes this template:
