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Product Market Fit
Definition
Throughout its development, a product goes through several revisions. It achieves product-market fit during this stage of development when the products and services it offers are in line with and satisfies client demands, expectations, and desires.
Example
Instagram was started as a check-in app, for users to share their location, plans, & photos. It was then called Burbn. Later on, it narrowed down to being only a photo-sharing app. And on 1st day itself, it attracted 25K users. It only kept shooting up constantly. In a little more than a month, it reached over 1 million downloads.
Caveat
A product or service hits its PMF either when its ‘retention’ curve starts becoming flat or if it’s receiving extremely strong word of mouth (WoM).