Created: 2023-09-23
Updated: 2024-10-10
I've always been drawn to product-led SaaS businesses without even realizing it. Now, I’m ready to take the plunge and develop a product-led tool with purpose.
Right now, there’s a big change unfolding in the way we grow our businesses. We’re moving away from sales-led strategies and embracing metrics that center around product-led growth.
With this approach, your product shines bright, becoming the star player in attracting and keeping users on board.
To truly understand this shift, it’s important to know which metrics you should be tracking. Once you have a grip on these metrics, you'll be better equipped to make smart decisions for your strategy. This guide is here to help you focus on the essential KPIs. Together, we can break things down and make them easy to understand.
Let’s start this journey toward success with a product-led mindset!
Let’s dive into a super idea for boosting your product-led growth (PLG). Sharing is key, and it might be more impactful than you think!
Felipe Aranguiz from Instantly has a great tip: “One PLG initiative that worked well was to let users generate reports via our platform to later show their clients. Users started showing off their successful campaigns, and since our logo was on the report/image, it generated a viral effect.”
How awesome is that? When you let users create something amazing with your product and they share it, your product gets noticed. The more people see and talk about what you've got, the better it is for you!
You don’t need to stress about complex strategies here. What you really need is to make your product so fantastic that users feel excited to share it. This sharing vibe can help everyone involved. So, let’s get those creative ideas flowing and think about how your product can turn into the next big topic of conversation!
Things are shifting, aren’t they? Sales-led strategies are giving way to product-led growth, and if you haven’t jumped on this bandwagon yet, now's your chance. However, your sales teams are still major players in this new setup.
With a product-led approach, I recommend you keep an eye on a couple of key metrics:
You must focus on boosting both your products and sales efforts. By honing in on these metrics, you can craft a well-rounded strategy and plan. Sounds promising, right? Let’s explore the key metrics that can set you up for success in more detail.
Now that we’ve set the stage, let’s jump into how you can measure your initial success. You’ll want to concentrate on two key areas: User Acquisition Metrics and Conversion Optimization.
User Acquisition Metrics are all about how well your product draws in new users. The more people you engage, the better it is for your business. But getting users through the door is just half the job being done. The other half is keeping them around is just as important. That’s where conversion optimization comes into play.
Time to Value (TTV) is something vital to think about. TTV shows how quickly users can start benefiting from your product. When TTV is short, users get on board faster and are more likely to become paying customers. If you focus on this, you can attract more customers, and you’re creating a loyal customer base in the meantime!
Staying on top of things is important for your business. You should keep an eye on these four key metrics:
When you engage users effectively, they turn into satisfied customers who keep returning. By crafting positive experiences with your product, you're setting yourself up for success and ensuring a steady stream of recurring revenue.
But let’s be clear. You’ve got to keep delivering real value that makes users want to come back for more. Keeping track of your CSAT is a must. A high CSAT score tells you that you really get what your customers are feeling. It’s all about focusing on the user in everything you do. That’s the way to achieve great results.
So far, things have been looking good, but let's not lose sight of the long game. If we want to keep growing sustainably, here are a few key indicators to pay attention to:
The Churn Rate lets you know how many customers might leave you. This is basically your early warning system when you want to keep customers engaged and happy.
Next, there's CLV. Klipfolio nails it when they say it’s crucial for understanding future profits. It tells you how much a customer is worth throughout their entire time with your product.
When you focus on CLV, you're making choices that help keep your customers content for longer. And happy customers? They usually explore and try out new features quicker, which helps your growth take off.
Remember, these metrics are more than just cold, hard numbers. Theycan show you what’s coming next in your journey.
Using product-led strategies can really set you up for success. Let’s focus on the key metrics that matter.
Here’s to a bright and successful path ahead with product-led growth! Cheers!