The Four Tell-Tale Signs of Product Market Fit

Product Market Fit (PMF) is the concept of finding a perfect balance between the customer’s needs and your product offering. When you achieve PMF, it means that your product or service is meeting the needs of the market—it’s a win-win situation for both you and your customers. It’s also one of the most important steps to success for any business, as it puts you in a better position to retain customers. So what are some of the tell-tale signs that you’ve achieved PMF? Let’s take a look.

Step : Retaining Customers

Retention is key when it comes to achieving Product Market Fit. Retaining customers helps ensure that you will have consistent revenue coming in from long term customers instead of always having to scramble for new ones. There are several strategies you can use to enhance customer retention, such as providing excellent customer service, offering discounts or loyalty programs, and creating high quality content to keep them engaged with your brand. Additionally, iterating on your product or service can also help retain customers as they will appreciate being able to get timely updates and improvements on their favorite products or services.

Tell-Tale Signs of PMF

The four main tell tale signs that indicate you’ve achieved PMF are Cohort Retention Curves Flattening Above 0%, Explosive Growth Through Word of Mouth, High Customer Acquisition Cost Efficiency Ratio (CACER), and Positive Results from a Sean Ellis Survey. Cohort retention curves indicate which percentage of users are continuing to use your product over time; if this curve flattens out above 0% then it means that people are using your product regularly. Furthermore, explosive growth through word of mouth means that people love your product so much that they want to share it with their friends and family. A high CACER ratio indicates that the cost associated with acquiring new customers is lower than the lifetime value generated by those same customers; this is an indication of healthy growth and sustainability for your business. Finally, positive results from a Sean Ellis survey means that more than 40% of respondents think they would be “very disappointed” without access to your product/service—another great sign!


Achieving Product Market Fit is essential for any business looking to succeed in today’s competitive market. By understanding the four main tell-tale signs of PMF—cohort retention curves flattening above 0%, explosive growth through word of mouth, high CACER ratio, and positive results from Sean Ellis survey—you can gauge whether or not you have achieved this coveted status. Additionally, employing strategies like providing excellent customer service, offering discounts or loyalty programs, creating high quality content to keep them engaged with your brand, and iterating on your product or service will help retain customers so you can continue achieving PMF year after year!

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