4 - KPIs for Product-Market Fit (by Jeff Bussgang)

You know you've hit product market fit when you've got a product that users are engaging with in a positive fashion, that that engagement is growing over time, the cohort analysis being good evidence of that and that finally you have low churn, Ideally less than 3% a month. Remember TAVL's hierarchy of engagement which says that you want your users to complete a core action and then repeat that action, eventually moving up the pyramid and self perpetuating so that that core action and the and that loyal behavior is generating even more users over time. And the other elements to consider are the 40% test make sure that if the product were taken away, more than 40% of the users would be very disappointed or disappointed that your NPS is greater than 20, ideally in the 30s or 40s. And of course beware of false positives. TechCrunch articles, great financings and most tragically, free pies at chow. Just because Harvard Business School gives away free pies to doesn't mean they should be in the pie business. You need to consider whether your product is good enough to charge for and only then do you know if you have product market fit.