Measuring Product Market Fit

# Measuring Product-Market Fit - All Guest Insights

*46 guests, 64 mentions*

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## Adam Grenier
*Adam Grenier*

> "One of the biggest pieces of advice I'm giving to people that are like, "How should we adjust our marketing with the economic changes and things like that?" I was like, "Start by assuming you no longer have product market fit, because you had product market fit in a different market." It's a different market now, so you have to start over."

**Insight:** Product-market fit is not static; changes in the external economic environment can effectively reset your PMF even if the product remains the same.

**Tactical advice:**
- Assume you no longer have PMF when the market shifts significantly
- Re-evaluate your customer base rather than just looking for new acquisition channels

*Timestamp: 00:00:00*

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> "It's probably the biggest flag that I see with a lot of companies that claim to have product market fit, which is your TAM and your product market fit are not using the same definition."

**Insight:** A common mistake is conflating a large Total Addressable Market (TAM) with actual product-market fit within that market.

**Tactical advice:**
- Ensure your definition of PMF aligns with the actual audience you are targeting within your TAM
- Map out what you need to see from early adopters to gain confidence in broader PMF

*Timestamp: 00:39:07*


## Ben Williams
*Ben Williams*

> "Starting with that narrow focus and building around community engagement... was important because of this kind of depth verse breadth approach and that depth-first approach that Snyk took was important to be able to effectively validate the solution on the path to product market fit."

**Insight:** Finding product-market fit often requires a 'depth-first' approach, focusing on a narrow persona and use case before expanding.

**Tactical advice:**
- Focus on a single persona and context (e.g., Node.js developers) to validate the solution
- Avoid going too wide too early to ensure the product nails the initial use case

*Timestamp: 00:17:14*


## Benjamin Lauzier
*Benjamin Lauzier*

> "If you don't have product market fit, and if you don't have a good enough growth strategy for at least one side of your marketplace, just forget about all this marketplace stuff. Focus on this core exchange of value, go deep with one side of the marketplace and see if you can rely on some crutch, some hack for the other side for time being."

**Insight:** Pre-product-market fit marketplaces should ignore complex marketplace dynamics and focus entirely on the core exchange of value and a growth strategy for one side.

**Tactical advice:**
- Focus on the 'hardest side' of the marketplace first (usually supply).
- Use hacks or 'crutches' (like Craigslist) to jumpstart the easier side while proving the core value proposition.

*Timestamp: 00:08:46*

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> "The metric that I like the most is a predictor of liquidity. So your liquidity might be, it's typically a measure of demand utilization... how many of those searches with intent actually turn into a transaction. So, it's your field rate of your intentful demand typically, and that's really indicative of the net output of your marketplace."

**Insight:** Liquidity is best measured by the 'fill rate' of intentful demand, which represents the efficiency of the marketplace's matching engine.

**Tactical advice:**
- Identify 'intentful' users (e.g., those searching with specific dates or locations).
- Track the conversion rate from intent to transaction as the primary output metric.

*Timestamp: 00:18:26*

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> "It's what I call a market health metric, and this is basically think of your proxy that is the best predictor of your liquidity... For Lyft and for Uber, it was ETAs. So, we knew that if the closest driver was at least two minutes away from you or closer, then we had hit a ceiling, you were more than X person likely to convert and book a ride."

**Insight:** A 'market health metric' is a leading indic