Product market fit (PMF)
Product market fit (PMF) happens when a startup’s product perfectly meets the needs and demands of its target market, driving strong customer adoption, retention, and sustainable growth. It is a critical milestone indicating product viability and market validation, enabling startups to focus on scaling and expansion confidently
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A SaaS startup building a project management tool initially struggled with adoption due to misaligned features and targeting. Through extensive customer interviews, feedback loops, and iterative product adjustments focused on simplifying essential workflows, the startup refined its solution to better address small business pain points. Within nine months, the company saw a 3x increase in active users and a significant boost in customer retention rates, indicating strong product-market fit and setting the stage for growth funding.