“Product/market fit means being in a good market with a product that can satisfy that market,” according to Marc Andreessen, to whom the term is often attributed.

Few indications that you have a product fit:
1. While you are demonstrating to the customer they indicate that this solves their pain point.
2. You get calls from folks, along the line.." I was referred to you by XYZ because your product does.."
3. Customer who have been beta testing your product wants to purchase licenses..
4. Customers are asking for features which are clearly bells-whistles (ie., your core product feature set is solid..)

There are some key metrics that you can measure to indicate how good your product/market fit is:

Usage: Larger amounts of data being created inside the product and longer times for users logged into the system
Return Visitors: Increased returning visitors to the site
Unique Sign-ups: Growing number of sign-ups/conversions
Increase sales activity (daily inbound calls, organic leads generated)
Lower sales cycle (if the product fits the market, people will close quicker because they know it'll meet their needs.)
How well does your product fit the market? How do you know this?

About the Author

Along with being a marketing ECO advisor at Entrepreneurcommunityonline.com, Pooja (CEO Blueknee Marketing) specialize's in developing marketing strategy, competitive analysis and pricing strategies.

You can follow my regular blog at http://blog.blueknee.com or contact me via email at pooja@blueknee.com.