{"id":109565,"date":"2024-10-24T22:24:22","date_gmt":"2024-10-25T05:24:22","guid":{"rendered":"https:\/\/thegood.com\/?post_type=insights&p=109565"},"modified":"2025-05-21T09:24:15","modified_gmt":"2025-05-21T16:24:15","slug":"product-market-fit","status":"publish","type":"insights","link":"https:\/\/thegood.com\/insights\/product-market-fit\/","title":{"rendered":"What Comes After Product Market Fit?"},"content":{"rendered":"\n

Finding product-market fit is a big achievement for any SaaS organization, but it can leave you feeling lost. It\u2019s like the adage of the dog that finally catches the car. Now that you have it, what do you do with it?<\/p>\n\n\n\n

Many leaders think the solution is straightforward: \u201cJust scale up!\u201d they say.<\/p>\n\n\n\n

In truth, it\u2019s not that simple. Product-market fit isn\u2019t a single moment in time. It\u2019s a state that you must maintain, even as the market and your customers change. If you\u2019re not careful, you could lose it.<\/p>\n\n\n\n

Let\u2019s explore product-market fit and what to do once you\u2019ve found it.<\/p>\n\n\n\n

Product-Market Fit Definition<\/h2>\n\n\n\n

Before we get too deep into the post-product-market fit part of your lifecycle, let\u2019s get on the same page.<\/p>\n\n\n\n

Product-market fit is the point where your product satisfies a strong market demand. It happens when your target customers recognize your product as the ideal solution to their problem. This recognition leads to organic growth.<\/p>\n\n\n\n

Essentially, it\u2019s the point where you\u2019ve created something people want and are willing to pay for.<\/p>\n\n\n\n

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Source<\/a><\/em><\/figcaption><\/figure>\n\n\n\n

There is a misconception that product-market fit happens at the $1M ARR mark, but product-market fit is not a revenue stage. It can happen at any income level.<\/p>\n\n\n\n

A trusted way to gauge if you have found product-market fit is the 40% test by Sean Ellis<\/a>. It is a pretty straightforward assessment using a customer survey question, \u201cHow would you feel if you could no longer use [product]?\u201d<\/p>\n\n\n\n

If more than 40%<\/a> of your surveyed customers answer \u201cvery disappointed,\u201d then you have found product-market fit. It\u2019s a leading indicator of what portion of users really value your product.<\/p>\n\n\n\n

Product-market fit is often considered the milestone that signals your product is ready to scale. It\u2019s not just about acquiring customers, though\u2014it\u2019s about retaining them because your product consistently delivers value.<\/p>\n\n\n\n

What Comes After Product-Market Fit?<\/h2>\n\n\n\n

Once you find your place in the market, the next obvious step is to scale up. But that comes with a caveat: You have to scale without losing product-market fit. <\/em><\/p>\n\n\n\n

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\u201cProduct-market fit is a key milestone to reach, but it\u2019s often misinterpreted as being a static moment in time,\u201d say Fareed Mosavat and Casey Winters<\/a>, product leaders from companies like Eventbrite, Pinterest, Grubhub, Instacart, and Slack.<\/p>\n\n\n\n

\u201cThe reality is that your customer base is always changing and consumer expectations are always growing. Once you get [an] initial product-market fit, you not only have to keep it, but also expand it.\u201d<\/p>\n\n\n\n

If you focus too hard on acquisition and fail to refine your product, there\u2019s a chance you could lose product-market fit. Obviously, that\u2019s disastrous.<\/p>\n\n\n\n

Smart leaders who find product-market fit are wise to protect it to avoid losing market share. They continue to iterate on their product so customers always see it as the ideal solution.<\/p>\n\n\n\n

Sean Ellis, head of growth at companies like Dropbox, LogMeIn, and Eventbrite, and the guy who coined the term \u201cgrowth hacker,\u201d says it perfectly:<\/p>\n\n\n\n

\u201cThe mistake that many marketers make is that they are optimizing for short-term conversions. They think it\u2019s all about maximizing clicks and sign-ups. But if the product isn\u2019t truly great at delivering on the promise, then you will likely lose these people anyway.\u201d<\/p>\n\n\n\n