Post by account_disabled on Mar 4, 2024 4:57:38 GMT -5
Customer metrics Churn Rate - The percentage of customers who cancel or do not renew their subscription in a given period. A low churn rate indicates that customers find consistent value in the product. Customer Lifetime Value (LTV): The total revenue of a customer over their lifetime. A high LTV demonstrates the product's ability to generate long-term value from each customer. Customer Acquisition Cost (CAC) - Cost to acquire a new customer. Understanding CAC ensures that your margins and profitability per customer are healthy. Net Promoter Score (NPS) - Metric that measures customer satisfaction and loyalty. A high NPS means that customers are satisfied enough to recommend your product. . Revenue metrics Annual Recurring Revenue (ARR) - Total annual revenue from existing recurring contracts.
ARR demonstrates the company's overall momentum and growth. Monthly Recurring Revenue (MRR) - Total monthly revenue from recurring contracts. MRR shows ongoing momentum and trends at a granular level. 3. Engagement metrics Canada Phone Number Product Usage Frequency: How often customers use your product. A high frequency of use indicates adherence. Time Spent in Product – Total time customers engage with your product. A longer time shows that your product is valuable to users. Feature Adoption Rate - Percentage of users who adopt and use new features. High adoption means that new features provide value. 4. Growth and conversion metrics Number of Signups - Total number of new users signing up for your product.
Registrations quantify demand and market potential. Activation Rate - Percentage of signups who engage in key product behaviors. High activation demonstrates that the product is a good fit for the market. Free to Paid Conversion Rate - Percentage of free users who convert to paid plans. A high conversion rate confirms that the product provides the expected value. Trial to Demo Conversion Rate – For sales-driven parts of the funnel, high demo booking rates indicate user interest. Tips for PLG success Here are 3 tips from Philippe Lehoux , CEO of Missive , for startup founders who are considering a PLG model: 1. Talk to customers You have to talk to your customers, because sometimes you add everything, but you're just missing one little feature that sets you apart. When you have these conversations with your customers, your mindset will be to try to understand their problems rather than trying to impose your solution.
ARR demonstrates the company's overall momentum and growth. Monthly Recurring Revenue (MRR) - Total monthly revenue from recurring contracts. MRR shows ongoing momentum and trends at a granular level. 3. Engagement metrics Canada Phone Number Product Usage Frequency: How often customers use your product. A high frequency of use indicates adherence. Time Spent in Product – Total time customers engage with your product. A longer time shows that your product is valuable to users. Feature Adoption Rate - Percentage of users who adopt and use new features. High adoption means that new features provide value. 4. Growth and conversion metrics Number of Signups - Total number of new users signing up for your product.
Registrations quantify demand and market potential. Activation Rate - Percentage of signups who engage in key product behaviors. High activation demonstrates that the product is a good fit for the market. Free to Paid Conversion Rate - Percentage of free users who convert to paid plans. A high conversion rate confirms that the product provides the expected value. Trial to Demo Conversion Rate – For sales-driven parts of the funnel, high demo booking rates indicate user interest. Tips for PLG success Here are 3 tips from Philippe Lehoux , CEO of Missive , for startup founders who are considering a PLG model: 1. Talk to customers You have to talk to your customers, because sometimes you add everything, but you're just missing one little feature that sets you apart. When you have these conversations with your customers, your mindset will be to try to understand their problems rather than trying to impose your solution.
