A working PLG Strategy

How to Know If Your PLG Strategy is Working

Lauren Newalani

Lauren Newalani

Content Writer for Whistle with multidisciplinary experience spanning over a decade.


Table of Contents

So you have an amazing product. Check. It solves users problems and adds value to their lives. Check. You are well on your way to Product-Led Growth success. Or are you? How can you be sure that your strategy is gaining traction or if it has any traction at all? Here are a few ways to establish if your PLG campaign is paying dividends.


With PLG the Best Things in Life Are Free (Or Almost)

As a PLG-driven entity, your organization is all about organic growth as a result of happy users that spread the good news of your product far and wide and to anyone that will listen. There is always some cost associated with customer acquisition. Sales, marketing, advertising and administration all contribute to your Customer Acquisition Cost (CAC). It is common (and sensible) for organizations to know what their CAC is from month-to-month. The ultimate goal though would be to get your CAC as close to Zero as possible. If your user and sales numbers are up and your CAC figures are down, it’s fairly reasonable to conclude that your PLG strategy is working well.


Great PLG Lets Users ‘Show You The Money’

Another good indicator of a well-functioning PLG strategy is a visible increase in revenue generated over the lifetime of your customer. The Lifetime Value of a user is improved through the customer upgrading their product or expanding their stable of related products. They see the intrinsic value of the product and are more likely to consistently make purchases. They also have less reason to leave and so you should see a drop in your churn figures.


Your Revenue Numbers Tell a Story

Watch out for an uptick in Expansion Revenue. Bringing in revenue from existing customers is much more cost effective than trying to attract new customers. They already see the value and benefits and trust the company and its products. This foundation of trust is a fantastic platform to launch new products and services. This also helps keep your CAC down.


How Quickly Are You Converting Users?

Take a close look at your monthly trial conversion rate. The goal of a great PLG plan is to show users the immense value of a product in as quick a time as possible. The recognition of product value paired with a positive user experience with the company should see more Trial Users turn into Premium Users with very little effort other than good customer service and onboarding. The 14-day Free Trial period is critical to customer conversion. Your product (and customer service) need to convince the user to make the conversion to Premium asap.


Ask Your Customer

If you really want to know how users feel about the product and service, just ask them. Your online polls have the power to ask users just about anything. Feel free to test the waters about your pricing, service or product development research. You could also try some qualitative questions to explore what makes users tick or what ticks them off. Either way, you gain priceless insight into the minds of users.

If you are looking to explore and improve your PLG strategy, Whistle is always willing to help. Get in touch with our team here.

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