Product-Led Growth Goals
Proven Product-Led Goal templates for outcome-focused teams
In a Product-Led Growth strategy, the product is the primary vehicle behind the customer journey. This means that the product is involved in every stage of the customer journey, from acquisition to expansion, and this journey starts as soon as a customer engages with the product.
You should define key PLG Goals and Metrics for each stage
ACQUISITON ($0-$1k MRR)
ENGAGEMENT (10k-100k MRR)
Goal: Drive new feature adoption
KR 1: Reach 10.000 CTA click rate about new feature
KR 2: Get %70 usage rate from CTA
KR 3: Reach %35 feature adoption rate
Goal: Convert users to loyal customers
KR 1: Increase number of repeat logins by %30
KR 2: Increase number of invitation by user by %30
KR 3: Reach %80 90-Day retention rate
PLG Metric Glossary
Activation Rate helps companies determine how quickly and effectively their new users are achieving perceived value. It measures the number of new users that have performed a predetermined “key action” within a set period of time, where the key action is assumed or known to deliver initial customer value.
#ACTIVATED USERS / #TOTAL USERS IN PERIOD
The ARR metric is a way to measure the recurring revenue that a customer has with a company over the course of a 12-month period. This metric is most commonly used by software as a service (SaaS) businesses and other subscription-based businesses that have a minimum contract duration of 12 months. The ARR metric is calculated in different ways depending on the type of contract, but the basic math is relatively simple.
Average Selling Price (ASP) is the average price a given product is sold for. This metric can be applied narrowly to a product or service or, more broadly, to an entire market. It’s a common metric, often used to compare businesses or channels and is particularly interesting as a reflection of what consumers will pay for similar products or services.
#REVENUE / #SALES COUNT
Customer Acquisition Cost
Especially for SaaS companies, it is a metric that identifies new customers and calculates how much these customers will cost. Thanks to this metric, SaaS companies can calculate how their customers will affect their company budget. CAC is usually figured for a specific time range, such as a year , a month (it changes according to companies).
CAC needs to be more explained. To give an example, let’s say you own a company. Your company needs new customers. So, how can you use the CAC metric?
#NEW CUSTOMERS (Number Of People)
Close Rate is the percentage of Leads who entered the sales funnel and are now “Closed Won” Customers. This is one of the most ubiquitous sales conversion metrics and is a strong indication of product market fit, pricing, and sales execution. It’s also a key metric in aligning your marketing, sales, and product teams.
#WON CUSTOMERS / #TOTAL LEADS
Trial Conversion Rate measures the percentage of users that have converted to a paid account from a trial period. Commonly referred to as Free Trial to Paid Conversion Rate, this metric indicates product value by measuring the number of users that find enough value in the product to pay for it. Trial Conversion Rates vary based on the type of trial you use. In SaaS, the standard practice is to either have a freemium product or a free trial period that usually spans a couple weeks.
#CONVERTED USERS / #TOTAL USERS IN PERIOD
You have customers using an application that you use or make for your company. But, are all these customers unique users who are really active in your product?
You can use DAU (Daily Active Users) and MAU (Monthly Active Users) metrics to answer this question.
The DAU metric is a key performance indicator for many online businesses and SaaS companies. This metric stands for Daily Active Users (DAU) and represents the number of unique users who visit your site or use your app each day.
Similarly, the MAU metric stands for Monthly Active Users (MAU) and represents the number of unique users who visit your site or use your app monthly. The MAU metric is calculated on a monthly basis and to find the MAU metric, you must divide the total DAU by the number of days in the month.
Product stickiness is called the DAU to MAU ratio, a measure of how often customers return to your app!
Employee Net Promoter Score (eNPS) is a method built around the Net Promoter Score (NPS) to measure employee loyalty. It measures how willing your employees are to recommend their workplace to their family or friends.
eNPS is calculated using the following formula: eNPS = percentage of Promoters minus percentage of Detractors. The result can range from -100 to +100.
%PROMOTERS – % DETRACTORS
Lifetime Value (LTV) metric indicates the total revenue a business can reasonably expect from a single customer account. It considers a customer’s revenue value and compares that number to the company’s predicted customer lifespan. Businesses use this metric to identify their most valuable customer segments.
AVG MRR PER USER x CUSTOMER LIFETIME
A Marketing Qualified Lead (MQL) is a universal metric used by marketing teams to measure the quality of leads they generate and pass to sales. Most marketing teams have targets associated with MQLs that include number of MQLs and acceptance rate, for example, leads that go on to become Sales Accepted Leads.
Sales Cycle is the count of the number of days or months it takes on average to close a deal. This metric can be helpful when creating sales forecasts, measuring sales efficiency, and speaking with investors. It is often referred to as the Average Deal Cycle and is usually expressed in months.
#TOTAL SALES DAYS / #TOTAL SALES COUNT
Time to Value (TTV) measures the duration between when a user selects your product and the moment they initially realize the value of your product. Value usually means that the setup process is completed and the first usage of the product is successful.
#CONVERTED USERS / #TOTAL USERS IN PERIOD
Useful PLG Resources
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