Quantitative fit indicators

Measuring product-market fit requires tracking specific metrics that reveal whether customers truly value your product:

• Growth rate serves as the primary indicator: companies with strong fit typically see 20-30% monthly growth in early stages without significant marketing spend.
• Cohort retention curves should flatten rather than continuously decline, showing that users who stick around tend to stay.
• Net Promoter Score (NPS) above 50 indicates strong advocacy, while Customer Acquisition Cost (CAC) to Lifetime Value (LTV) ratios exceeding 3:1 suggest sustainable unit economics.
• Usage frequency matters too: products with fit see daily or weekly active usage from core users.
• Referral metrics provide crucial signals. When users organically recommend your product, creating a viral coefficient above 1.0, growth becomes self-sustaining.^[1] Track how many new users come from existing user referrals versus paid channels.