The Product-Market Fit Radar - the framework we’ve developed to help companies find and measure product/market fit. You will learn the 4 Dimensions of The Product-Market Fit Radar, that collectively indicate whether your company found product-market fit: Activation - are new users becoming active users? Engagement - how engaged are your active users? Retention - are you giving your users enough reason to come back? Loyalty - are your users happy enough to become your promoters?

2. Pavlo Pedenko
Growth Manager at Preply,
Co-founder at GMS
Yaroslav Stepanenko
PMM at MacPaw,
Co-founder at GMS
The Product - Market Fit Radar

3. Agenda

4. Agenda
• What is Product-Market Fit

5. Agenda
• What is Product-Market Fit
• How to measure Product-Market Fit

6. Agenda
• What is Product-Market Fit
• How to measure Product-Market Fit
• The Product-Market Fit Radar:

7. Agenda
• What is Product-Market Fit
• How to measure Product-Market Fit
• The Product-Market Fit Radar:
• Activation

8. Agenda
• What is Product-Market Fit
• How to measure Product-Market Fit
• The Product-Market Fit Radar:
• Activation
• Engagement

9. Agenda
• What is Product-Market Fit
• How to measure Product-Market Fit
• The Product-Market Fit Radar:
• Activation
• Engagement
• Retention

10. Agenda
• What is Product-Market Fit
• How to measure Product-Market Fit
• The Product-Market Fit Radar:
• Activation
• Engagement
• Retention
• Loyalty

11. Agenda
• What is Product-Market Fit
• How to measure Product-Market Fit
• The Product-Market Fit Radar:
• Activation
• Engagement
• Retention
• Loyalty
• Bonus:

12. Agenda
• What is Product-Market Fit
• How to measure Product-Market Fit
• The Product-Market Fit Radar:
• Activation
• Engagement
• Retention
• Loyalty
• Bonus: Product-Market Fit Assessment

14. PRODUCT-MARKET FIT

15. How to Measure
Product-Market Fit?

16. Product-Market Fit?
What’s in between?

17. It is clear who the target customer is and you bring those
right customers in.
TRUE FALSE

18. It is clear who the target customer is and you bring those
right customers in.
It is clear which specific customers’ needs your
product is to serve.
TRUE FALSE

19. It is clear who the target customer is and you bring those
right customers in.
It is clear which specific customers’ needs your
product is to serve.
Your value proposition gets traction.
TRUE FALSE

20. It is clear who the target customer is and you bring those
right customers in.
It is clear which specific customers’ needs your
product is to serve.
Your value proposition gets traction.
Your product does have the right features to serve the needs
of the target customers.
TRUE FALSE

22. FIT=

23. (statement 1 = “true”)
FIT=

24. (statement 1 = “true”)
+
FIT=

25. (statement 1 = “true”)
(statement 2 = “true”)
+
FIT=

26. (statement 1 = “true”)
(statement 2 = “true”)
+
+
FIT=

27. (statement 1 = “true”)
(statement 2 = “true”)
(statement 3 = “true”)
+
+
FIT=

28. (statement 1 = “true”)
(statement 2 = “true”)
(statement 3 = “true”)
+
+
+
FIT=

29. (statement 1 = “true”)
(statement 2 = “true”)
(statement 3 = “true”)
(statement 4 = “true”)
+
+
+
FIT=

30. (statement 1 = “true”)
(statement 2 = “true”)
(statement 3 = “true”)
(statement 4 = “true”)
FIT=
+
+
+
+

31. (statement 1 = “true”)
(statement 2 = “true”)
(statement 3 = “true”)
(statement 4 = “true”)
(statement 5 = “true”)
FIT=
+
+
+
+

32. Product-Market Fit?
What’s in between?

33. Question:

34. What to measure?
Question:

35. Answer:

36. Answer:
Have a customer
on the Radar

37. Product-Market Fit?
What’s in between?

38. 4 Key Areas

39. 4 Key Areas
4 Key Areas
1. Activation - are new users becoming active users?

40. 4 Key Areas
4 Key Areas
1. Activation - are new users becoming active users?
2. Engagement - how engaged are your active users?

41. 4 Key Areas
4 Key Areas
1. Activation - are new users becoming active users?
2. Engagement - how engaged are your active users?
3. Retention - are you giving your users enough reason to come back?

42. 4 Key Areas
4 Key Areas
1. Activation - are new users becoming active users?
2. Engagement - how engaged are your active users?
3. Retention - are you giving your users enough reason to come back?
4. Loyalty - are your users happy enough to become your promoters?

43. What is most
important?

44. What is most
important?
1. Activation?
2. Engagement?
3. Retention?
4. Loyalty?

45. Building a product
a lot of customers want

46. is NOT
Building a product
a lot of customers want

47. a single variable problem
is NOT
Building a product
a lot of customers want

48. Pay attention
to all of them

49. HOW?

50. Focus on a customer
HOW?

51. Have a customer on the radar
Focus on a customer
HOW?

53. 4 Dimensions

54. 4 Dimensions
1. Activation

55. 4 Dimensions
1. Activation
2. Engagement

56. 4 Dimensions
1. Activation
2. Engagement
3. Retention

57. 4 Dimensions
1. Activation
2. Engagement
3. Retention
4. Loyalty

58. Activation

59. • Activation is a moment when a new user takes a specific action to get
value out of a product.
Activation

60. • Activation is a moment when a new user takes a specific action to get
value out of a product.
• Activation metric answers the question “What percentage of new users
have experienced the value of your product?”
Activation

61. • Activation is a moment when a new user takes a specific action to get
value out of a product.
• Activation metric answers the question “What percentage of new users
have experienced the value of your product?”
• Percentage of new users who have experienced your product’s
value = # of specific actions divided by # of new users.
Activation

62. • Activation is a moment when a new user takes a specific action to get
value out of a product.
• Activation metric answers the question “What percentage of new users
have experienced the value of your product?”
• Percentage of new users who have experienced your product’s
value = # of specific actions divided by # of new users.
• For example: 100 completed first purchases / 1000 new users = 10%
of new users who got the value of Ecommerce product X.
Activation

63. How to identify activation
metric?
Question:

64. What is a positive
activation rate indicator?
Question:

65. Activation
30%
0% 100%

66. Engagement

67. • Engagement rate is the level of a user’s commitment to your product.
Engagement

68. • Engagement rate is the level of a user’s commitment to your product.
• Engagement rate answers the question “How engaged are your active users?”
Engagement

69. • Engagement rate is the level of a user’s commitment to your product.
• Engagement rate answers the question “How engaged are your active users?”
• Engagement rate = # of key actions divided by # of active users.
Engagement

70. • Engagement rate is the level of a user’s commitment to your product.
• Engagement rate answers the question “How engaged are your active users?”
• Engagement rate = # of key actions divided by # of active users.
• For example: 10 000 000 songs listened to / 100 000 000 MAU = 10%
Engagement rate for the music streaming service.
Engagement

71. What is a positive engagement
rate indicator?
Question:

72. Engagement
50%
0% 100%

73. Retention

74. Retention
• Retention rate is the metric that helps you understand whether you are
giving your users enough reason to come back.

75. • Retention rate is the metric that helps you understand whether you are
giving your users enough reason to come back.
• Retention rate answers the question “How many of your active users
return to your product over time?”
Retention

76. Retention Curve

77. 100%
%Active
Days
Retention Curve
75%
50%
25%
0%
0 5 10 15 20 25 30

78. 100%
%Active
Days
Retention Curve
75%
50%
25%
0%
0 5 10 15 20 25 30

79. Loyalty

80. Loyalty
• You know whether you have enough loyal and enthusiastic
customers, who recommend your product to other potential buyers.

81. How to Measure?

82. NPS

83. “How likely is it that you would recommend
[Product X] to a friend or colleague?”

84. DETRACTORS PASSIVES PROMOTERS
NET PROMOTER SCORE = %PROMOTERS - %DETRACTORS

86. What is a positive NPS?
Question:

87. NPS
35
0% 100%

88. SO,

89. Product-Market Fit

90. Users have experienced the value of your product.
ACTIVATION
Users find value in your product.
ENGAGEMENT
Users are given enough reason to come back.
RETENTION
Users are loyal and enthusiastic and are willing to recommend your
product to other potential buyers.
LOYALTY
TRUE FALSE

91. Activation + Engagement + Retention + Loyalty
Product-Market Fit
=

93. Why these 4?

94. • None of them is a vanity metric.Why these 4?

95. • None of them is a vanity metric.
• All of them are about a customer.
Why these 4?

96. • None of them is a vanity metric.
• All of them are about a customer.
• All of them are about the value
of your product.
Why these 4?

97. • None of them is a vanity metric.
• All of them are about a customer.
• All of them are about the value
of your product.
• All of them are actionable.
Why these 4?

98. • None of them is a vanity metric.
• All of them are about a customer.
• All of them are about the value
of your product.
• All of them are actionable.
• All of them are measurable.
Why these 4?

99. Product/Market
Fit Assessment
TAKE THE ASSESSMENT
Is your company achieving
product-market fit?