Product Market Fit

An experimentation process of finding customers in a target market with a problem that your product can address

For the early stage startup, the first milestone in executing a GTM strategy is reaching product/market fit. Essentially, product/market fit is an experimentation process of finding customers in a target market with a problem that your product can address, for a price (or total cost of ownership) below the level of value that’s provided in exchange.

A lot has been written about product/market fit, so we won’t spend much time going over it here. We suggest reading “

12 Things About Product-Market Fit⁠

” by Tren Griffin, and “

Product/Market Fit⁠

: What It Really Means, How to Measure It, and Where to Find It” by Eric Jorgenson, for more detailed overviews.

A broader but related concept, company/market fit, may be more relevant, since it combines pain-product fit and customer-message fit ideas.

In the early stages of GTM, finding product/market fit is critical, while a scalable, repeatable customer acquisition process is less so. However, after you find the perfect product/market fit, you should focus on optimizing your customer acquisition process to reach ideal customers in a scalable, repeatable, and profitable way.

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