How Meta uses analytics to assess Product Market Fit
We take a look at Meta’s framework for measuring PMF at scale
Meta has built and continues to build some of the most prolific digital products of our time — but how do they do it repeatedly? They’ve built some duds but Meta has had a pretty impressive run in the last 20 years. The company built up their data and analytics capabilities to support their philosophy to “Build Fast and Break Things”. In this edition we look at how Meta’s analytics team helps to answer the following question for products they build:
Are we building something people want?
Answering such an open-ended and ambiguous question is hard, even for a company like Meta
- Meta needed a way to reliably and quantitatively evaluate product-market fit (PMF) for their products
- They developed a PMF Playbook that identifies 3 criteria to measure PMF: stable retention, sustainable growth and deep engagement
- I dive deep into the growth accounting framework that Meta uses to evaluate PMF for products
What is Product-Market Fit (PMF) ?
PMF is the ability of a given product to meet the needs and desires of a specific market segment…
