Product Market Fit
Criteria Overview
The purpose of this rubric is to help determine the product-market fit for your own product.
What is product-market fit? Marc Andreesen, whom the term is attributed, defines it as follows:
"Product/market fit means being in a good market with a product that can satisfy that market"
Criteria Details
Customer evidence
Customer diversity
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- Bad
-
Customers are only fellow startups in your incubator class.
- OK
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Customers include other tech companies in Silicon Valley
- Good
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Customers span around the country and outside of your network.
User engagement
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- Bad
-
Users log in once every month or two in sporadic bursts.
- OK
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Users log in several times a month.
- Good
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Users leverage the product daily to get their job done.
Bounce and churn
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- Bad
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Bounce rate is over 70%
-
Churn is not yet being measured or more data is needed to assess churn.
- OK
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Bounce rate is between 30% to 70%
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2–4% churn per month or 24–48% churn per year. Customers are actively giving you unsolicited feedback on how to improve the product.
- Good
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Bounce rate is less than 30%
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0–1% churn per month or up to 12% churn per year.
Commitment Level
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- Bad
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Users have committed and are likely to test other products in the market too.
- OK
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Users commit to your product on a month-to-month basis.
- Good
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Users commit to your product to 1–3 year deals.
Virality
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- Bad
-
All sales require outbound cold calling or networking.
- OK
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Sales are mixed between outbound cold calling and inbound leads. People start to search for solutions in your market.
- Good
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Most sales are generated from inbound leads and customer referrals.
Market
Customer need
Market size
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- Bad
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The market is not proven to exist.
- OK
- Good
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The market is huge, demanding products be built for it need.
Product
Market alignment
Polish
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- Bad
-
The product is raw and yields a feeling of amateurism.
- OK
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The product is on par with existing industry standards with no substantial delightful surprises.
- Good
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The product is clean and intuitive.
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Users fall in love with the product quickly.
