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

Top 10 metrics indicating that you have a product/market fit

• Your product is sticky which means your Cohort Retention Curve is flattening
• Your Power User Curve is smiling which means your users are engaged and they keep coming back on the product
• You virality factor is more than 1.5 where your user becomes a source to touch your non-users
• 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
• The daily user frequency at Day1, Day7 and Day30 > 60%, 30% and 15% respectively
• The percentage of actives/registered > 25%
• 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
• For subscription-based businesses like SaaS, you have > 65% paid user retention on an annual basis
• You have > 4X Annual Growth Rate (AGR)
• 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-metrics-for-product-market-fit-conversions-and-customer-retention/