10 Magic Metrics for Product/Market Fit (Inspired by Andrew Chen)

Top 10 metrics indicating that you have a product/market fit 1. Your product is sticky which means your Cohort Retention Curve is flattening 2. Your Power User Curve is smiling which means your users are engaged and they keep coming back on the product 3. You virality factor is more than 1.5 where your user becomes a source to touch your non-users 4. The ratio of Daily Active Users to Monthly Active Users > 0.5 which means your users have formed a habit of using your product almost on a daily basis 5. The daily user frequency at Day1, Day7 and Day30 > 60%, 30% and 15% respectively 6. The percentage of actives/registered > 25% 7. You have a great organic strategy to acquire new users which almost tends towards zero. This means you drive > 60% of your traffic organically without any ads or paid promotions 8. For subscription-based businesses like SaaS, you have > 65% paid user retention on an annual basis 9. You have > 4X Annual Growth Rate (AGR) 10. Your revenue or activity expands on a per user basis over time which means your user is deeply engaged or has a habit to use your product Andrew Chen, partner at Andreessen Horowitz has simplified the solution to product/market in one of his Linkedin posts and I have elaborated on those points in one of my blog https://browsee.io/blog/10-magic...