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Product-led growth (PLG): Meaning, strategy, examples & more

Discover the meaning of product-led growth (PLG) and learn about its unique strategy, examples, and more in this comprehensive article.

February 6, 2024
Team Blitzllama

In today's competitive market, many product teams struggle to achieve sustainable growth. Understanding how to effectively drive growth is crucial. 

Teams often face challenges in implementing strategies that resonate with users. Without a clear approach, it's easy to lose sight of the target. 

However, there is a solution – Product-led growth (PLG) offers a proven methodology for fostering user adoption and retention. By prioritizing product experience, teams can unlock significant growth potential. 

In this article, we delve into the meaning, strategies, and real-world examples of PLG. Equip your team with the insights needed to drive impactful growth and stay ahead in the market.

What is product-led growth (PLG)?

Product-led growth (PLG) meaning

Product-led growth means that all teams within your business contribute to shaping the product. Your marketing team focuses on generating demand, sales on qualifying prospects, and customer success on ensuring customers' success. This approach fosters a culture centered on providing enduring customer value.

Product led growth definition

Product-led growth (PLG) is a strategy where the product drives customer acquisition, retention, and expansion. It emphasizes a user-centric experience within the product, enabling users to discover, adopt, and benefit from it independently, minimizing the need for extensive sales or marketing intervention.

What is the history of product-led (PLG) growth?

  • 1980s – 1990s: Field Sales: During this period, sales teams played a predominant role in acquiring and retaining customers.
  • 2000’s: Inbound Marketing & Inside Sales: The advent of inbound marketing and inside sales shifted focus towards attracting leads through content and qualifying them through inside sales efforts.
  • 2010–Now: Product-led Growth: With the rise of product-led growth, the product itself becomes the primary driver of customer acquisition and retention.

Who coined product led growth?

The term “product-led growth” was initially coined by Blake Bartlett at OpenView in 2016, although the underlying principles existed earlier.

SaaS pioneers such as Slack and Dropbox challenged the traditional approach by making enterprise software self-service, akin to consumer apps. This shift resonated with the B2B market, which demanded easier access to software without prolonged sales interactions.

The proliferation of self-service in enterprise software empowered individuals and teams to discover and adopt tools independently. PLG democratizes software purchasing, empowering users and teams to control their technology stack autonomously.

Now that we've established the basics of PLG, let's explore what sets it apart and makes it a game-changer for businesses.

What makes product-led growth (PLG) unique?

Product-led growth (PLG) stands out due to its emphasis on user experience and product value. This section will highlight the distinctive features that differentiate PLG from other growth methodologies, offering insights into its effectiveness for modern businesses:

What makes product-led growth (PLG) unique?

1) Product as the hero:

Product-Led Growth (PLG) stands out by placing the product itself at the forefront. Unlike traditional sales-driven models, PLG relies on the inherent strength of the product. Salespeople take a backseat as the product's features, usability, and value proposition become the primary persuaders. 

Users directly engage with the product through freemium models, free trials, or user-friendly interfaces. This approach allows users to experience the product's value firsthand, enhancing the potential for conversion.

2) Focus on user experience:

A distinctive trait of PLG is its unwavering emphasis on creating a seamless and enjoyable user experience (UX). From the first interaction to ongoing usage, PLG prioritizes intuitive onboarding, clear value propositions, and features that seamlessly address user pain points. 

By ensuring a positive user experience, PLG encourages users to explore the product, engage with its features, and, ultimately, convert. This user-centric approach distinguishes PLG from conventional models that may not prioritize user experience to the same degree.

3) Data-driven approach:

At the heart of PLG's uniqueness is its reliance on a data-driven approach. Companies leveraging PLG actively collect and analyze data and user feedback. Tracking user behavior, engagement metrics, and conversion rates allows companies to pinpoint areas for improvement. 

This iterative process of refinement, based on concrete data, ensures that the product is continuously tailored to meet user needs. The result is enhanced activation and retention rates, demonstrating the effectiveness of the data-centric approach in optimizing both the product and user journey.

4) Virality and network effects:

Many PLG products leverage the power of virality and network effects for sustainable growth. Features such as referral programs, integrations, and collaborative functionalities are strategically integrated to prompt users to invite others. 

This creates a network effect, amplifying the product's reach and value. PLG's intentional design to facilitate user-to-user connections sets it apart, creating a self-sustaining growth engine that extends beyond traditional marketing efforts.

5) Scalability and efficiency:

PLG showcases high scalability and efficiency, distinguishing it from traditional sales-driven models. The product-centric approach inherently drives acquisition and expansion. 

This streamlined process proves more efficient compared to traditional models, which often demand substantial human resources and can be slower to scale. PLG's ability to efficiently scale, driven by the product itself, contributes to its appeal as a growth strategy for companies aiming for rapid and sustainable expansion.

6) Alignment and collaboration:

PLG fosters a collaborative culture and alignment across diverse teams within a company. From product and engineering to marketing and customer success, all teams work collaboratively to comprehend user needs and contribute to building a product that fuels growth. 

This cross-functional collaboration ensures that every aspect of the product aligns with the overarching goal of driving growth. PLG's emphasis on collective effort distinguishes it as a strategy that requires cohesion among various departments to maximize its impact.

With a clear understanding of PLG's uniqueness, let's uncover why it holds such significance in today's competitive landscape.

Why is product-led growth (PLG) important?

Explore the significance of embracing Product-Led Growth in the contemporary business scenario. PLG aligns with the evolving consumer preferences, emphasizing user experience and value delivery. Unravel the reasons why this approach is crucial for product teams aiming to build sustainable and customer-centric growth strategies:

Why is product-led growth (PLG) important?Explore the significance of embracing Product-Led Growth in the contemporary business scenario. PLG

1) Lower customer acquisition costs (CAC)

Product-led growth (PLG) is crucial because it significantly reduces customer acquisition costs (CAC). By focusing on the product as the primary driver of growth, companies can streamline their marketing and sales efforts. 

Instead of relying solely on expensive advertising or outbound sales tactics, PLG leverages the product itself to attract and convert customers. This approach allows teams to allocate resources more efficiently, maximizing the impact of their marketing budgets and ultimately lowering CAC.

2) Higher retention, lower churn

PLG fosters higher user retention rates and lower churn among customers. When users experience value directly from the product, they are more likely to stick around and continue using it over time. 

By delivering a seamless user experience and continuously improving product features based on user feedback, companies can build stronger relationships with their customers. This leads to increased loyalty and a decreased likelihood of churn, ultimately driving sustainable growth for the business.

3) Higher revenue per employee (RPE)

A key benefit of product-led growth is its ability to generate higher revenue per employee (RPE). By leveraging the product to drive growth, companies can scale their operations more efficiently without significantly increasing headcount. 

This means that each employee can contribute more to the company's revenue generation efforts, resulting in a higher RPE. With a focus on maximizing the impact of every team member and optimizing internal processes, companies can achieve greater revenue growth while keeping operating costs in check.

4) Higher customer satisfaction (CSAT) and net promoter scores (NPS)

PLG leads to higher levels of customer satisfaction (CSAT) and Net Promoter Scores (NPS). When customers have a positive experience with a product that delivers tangible value, they are more likely to recommend it to others and become advocates for the brand. 

By prioritizing user feedback and continuously improving the product based on customer insights, companies can drive higher CSAT and NPS scores. This not only strengthens the company's reputation but also helps attract new customers through positive word-of-mouth referrals.

5) Innovative decision-making

Product-led growth encourages innovative decision-making within organizations. By empowering cross-functional teams to collaborate closely and iterate rapidly on product development, companies can stay ahead of the competition and adapt quickly to changing market dynamics. 

This agile approach to decision-making allows companies to experiment with new features, test hypotheses, and respond to customer needs in real-time. By fostering a culture of innovation and continuous improvement, PLG enables companies to remain agile and responsive in today's fast-paced business environment.

Having understood the importance of PLG, let's now delve into its overarching goals and objectives.

What are the goals of product-led growth (PLG)?

Delve into the specific objectives that guide the implementation of Product-Led Growth strategies. From enhancing user onboarding to fostering product virality, discover how PLG aims to achieve measurable outcomes that contribute to sustained product success:

What are the goals of product-led growth (PLG)?


Attract users:

  • Showcase your product's value through organic channels such as social media, blogs, and industry forums.
  • Implement content marketing strategies to educate and attract your ideal customers about how your product solves their pain points.
  • Offer freemium plans or free trials to allow potential users to experience your product firsthand before committing to a purchase.

Reduce sales friction:

  • Enable users to explore your product at their own pace without heavy reliance on sales teams.
  • Provide comprehensive documentation, tutorials, and self-service resources to help users onboard smoothly.
  • Minimize barriers to entry by simplifying the signup process and eliminating unnecessary steps.

Increase signups and activations:

  • Convert visitors into active users by highlighting your product's core value proposition upfront.
  • Encourage users to complete key actions that demonstrate their interest and engagement with the product.
  • Implement personalized onboarding experiences to guide users through the initial setup and activation process.


Deliver Aha! moments:

  • Help users quickly understand how your product addresses their specific pain points and delivers tangible benefits.
  • Design intuitive user interfaces and workflows that facilitate seamless navigation and discovery of key features.
  • Leverage interactive tutorials, tooltips, and in-app messaging to highlight valuable functionalities and use cases.

Drive product adoption:

  • Encourage users to explore advanced features and functionalities beyond the basics to maximize their value from the product.
  • Provide contextual prompts and recommendations based on user behavior to guide them towards deeper engagement.
  • Foster a community where users can share best practices, tips, and success stories to inspire others and foster loyalty.

Increase user activity and retention:

  • Create personalized experiences tailored to each user's preferences, goals, and usage patterns.
  • Offer incentives such as rewards, badges, and exclusive content to encourage regular usage and participation.
  • Proactively address user feedback and iterate on product improvements to ensure ongoing relevance and satisfaction.


Convert free users to paying customers:

  • Showcase the value of premium features and exclusive benefits available through paid plans.
  • Implement tiered pricing models that cater to different user segments and usage levels.
  • Offer flexible upgrade options and pricing incentives to incentivize users to transition to paid subscriptions.

Optimize pricing and packaging:

  • Conduct market research and gather user feedback to inform pricing decisions and packaging strategies.
  • Test different pricing tiers, discount structures, and billing cycles to optimize revenue generation and user satisfaction.
  • Monitor key metrics such as conversion rates, churn rates, and lifetime value to fine-tune pricing strategies over time.

Increase average revenue per user (ARPU):

  • Identify upsell and cross-sell opportunities based on user behavior, usage patterns, and preferences.
  • Introduce add-on features, premium support services, or customization options to upsell existing customers and increase ARPU.
  • Continuously analyze pricing data and customer feedback to refine monetization strategies and maximize revenue potential.

Overall growth:

Scale efficiently:

  • Implement scalable infrastructure, processes, and automation to support rapid user growth and revenue expansion.
  • Invest in scalable customer support solutions such as chatbots, knowledge bases, and community forums to handle increasing user volumes efficiently.
  • Leverage data-driven insights and predictive analytics to anticipate user needs, identify growth opportunities, and mitigate risks proactively.

Build strong product-market fit:

  • Continuously gather user feedback through surveys, interviews, and user analytics to validate product-market fit and identify areas for improvement.
  • Iterate on product features, usability, and performance based on user insights and market trends to maintain relevance and competitiveness.
  • Foster a culture of experimentation and innovation within the product team to adapt to evolving customer needs and market dynamics.

Create product advocates:

  • Cultivate a community of passionate users who are invested in the success of your product and eager to share their positive experiences with others.
  • Encourage user-generated content, referrals, and testimonials to amplify your brand's reach and credibility.
  • Recognize and reward loyal advocates through loyalty programs, ambassador programs, and exclusive perks to incentivize continued advocacy and loyalty.

Now that we've outlined the goals of PLG, let's explore the various frameworks available for implementing this growth strategy effectively.

What are the various product-led growth (PLG) frameworks?

Explore the diverse frameworks that serve as blueprints for implementing product-led growth (PLG) strategies. This section offers insights into popular PLG frameworks and how they can be tailored to suit your company's unique needs:

1) Activate, Start, Discover, Convert, Scale (ASDCS) framework

The ASDCS framework delineates the fundamental stages of the user journey, guiding product teams in optimizing each phase for enhanced user engagement and conversion.

  • Activation: Simplify the onboarding process to facilitate seamless user sign-up and initial interaction with the product.
  • Start: Provide users with immediate value upon their first interaction, demonstrating the product's utility and relevance.
  • Discover: Employ guided tours, tutorials, or tooltips to assist users in exploring the product's features comprehensively.
  • Convert: Implement clear calls-to-action and incentives to prompt users to upgrade to premium features or subscriptions.
  • Scale: Continuously refine the product experience to accommodate evolving user needs and usage patterns.
ASDCS framework
Source: Hotjar

2) Product-led growth flywheel

The product-led growth flywheel illustrates the cyclical nature of growth driven by positive user experiences, emphasizing the significance of delivering value to users to stimulate organic growth.

  • Deliver value: Focus on developing a product that addresses genuine user needs and delivers tangible benefits.
  • Drive adoption: Encourage active user engagement and facilitate word-of-mouth referrals through exceptional user experiences.
  • Facilitate expansion: Provide avenues for users to upgrade accounts, invite others, or expand product usage within their organizations.
  • Capture feedback: Continuously solicit user feedback to iterate and enhance product features iteratively.
  • Optimize processes: Streamline onboarding, support, and upgrade processes to minimize friction and optimize user experience.
Product-led growth flywheel

3) Product-led growth loops

Product-led growth loops leverage user actions to catalyze further engagement and expansion, particularly effective for products with inherent virality or network effects.

  • Identify triggers: Determine key user actions or triggers initiating growth loops, such as inviting new users or sharing content.
  • Facilitate sharing: Provide seamless sharing mechanisms to amplify product reach and encourage user participation.
  • Incentivize participation: Offer rewards or exclusive features to motivate users to engage in growth loops actively.
  • Optimize virality: Continuously analyze user behavior to optimize product features and maximize the impact of user actions.
Product-led growth loops

4) Hook model

The Hook Model aims to create habit-forming products by leveraging triggers, actions, variable rewards, and investments to foster user engagement and loyalty.

  • Trigger: Identify internal and external triggers prompting user action, such as notifications or emotional cues.
  • Action: Design intuitive user flows facilitating seamless product engagement.
  • Variable Reward: Provide unpredictable rewards to sustain user interest and encourage repeated product usage.
  • Investment: Encourage user investment in the product to strengthen commitment and attachment over time.
Hook model

5) Product-led growth funnel

The product-led growth funnel visualizes the user journey from awareness to conversion, highlighting key stages of acquisition, activation, retention, monetization, and advocacy.

  • Acquisition: Increase brand visibility and attract potential users through strategic marketing and content efforts.
  • Activation: Simplify onboarding processes to deliver immediate value and encourage product usage.
  • Retention: Provide ongoing support and personalized experiences to foster user loyalty and engagement.
  • Advocacy: Encourage satisfied users to become brand advocates through referrals and positive testimonials.
  • Monetization: Offer premium features or subscriptions to generate revenue from active users.
Product-led growth funnel

6) Single point of truth

A single point of truth serves as a centralized data repository, ensuring consistency, accuracy, and transparency in decision-making processes across organizations.

  • Data integration: Consolidate data from disparate sources to create a unified view of information.
  • Data governance: Establish rules and protocols for data management to ensure accuracy, security, and compliance.
  • Collaboration: Foster cross-functional collaboration to promote shared understanding and accountability.
  • Continuous improvement: Regularly review and update processes to adapt to evolving business needs and data requirements.
Single point of truth
Source: Hotjar

Now that we've discussed frameworks, let's dive into practical steps for integrating PLG into your company's product strategy.

How to implement product-led growth (PLG) into your company's product strategy?

Discover actionable strategies for integrating product-led growth (PLG) principles into your company's product development and marketing efforts. This section provides a roadmap for implementing PLG effectively:

How to implement product-led growth (PLG) into your company's product strategy?

1) Define your product-led vision

Start with your "why": Clearly articulate the problem your product solves and the unique value proposition it offers to your target users. Define how your product addresses their pain points and fulfills their needs.

Outline your ideal customer journey: Visualize how users will discover, adopt, and expand their usage of your product. Map out key touchpoints and interactions to ensure a seamless and engaging experience throughout their journey.

Set measurable goals: Identify key metrics such as user acquisition, activation, conversion, and retention that align with your product-led vision. Establish clear benchmarks to track progress and evaluate the effectiveness of your PLG initiatives.

2) Design for delightful experiences

Focus on user-centricity: Conduct thorough user research and gather feedback to understand your users' needs, pain points, and motivations. Use insights to inform product design and development decisions.

Create an intuitive onboarding experience: Design a frictionless onboarding process that guides users to the core value proposition of your product quickly and effortlessly. Remove barriers to entry and highlight key features that demonstrate immediate value.

Make the product a marketing channel: Leverage product features such as freemium plans, referral programs, and social sharing to drive organic growth. Encourage users to become advocates for your product by providing incentives for referrals and sharing positive experiences.

3) Foster user engagement and activation

Incorporate in-product guidance: Provide interactive tutorials and tooltips within the product to help users explore its full potential and achieve their desired outcomes. Offer contextual guidance based on user actions to enhance their understanding and usage of key features.

Personalize the user experience: Tailor product features, content, and communication based on user behavior and preferences. Use data-driven insights to deliver targeted recommendations and personalized messaging that resonates with each user segment.

Build communities: Create forums, discussion boards, or user groups where users can connect, share experiences, and learn from each other. Foster a sense of belonging and facilitate peer-to-peer support to enhance user satisfaction and retention.

4) Optimize for conversion and expansion

Communicate value proposition clearly: Clearly articulate the benefits of upgrading to paid plans and highlight the additional features and functionalities available. Use persuasive messaging and visual cues to encourage users to explore premium offerings.

Offer flexible pricing: Provide a range of pricing and subscription options to cater to diverse user needs and budgets. Allow users to choose plans that best suit their requirements and usage patterns.

Use data-driven insights: Analyze user behavior data to identify upsell and cross-sell opportunities. Recommend relevant features and upgrade options based on user preferences and past interactions to maximize conversion rates and revenue.

5) Continuously iterate and improve

Track key metrics: Monitor key performance indicators (KPIs) and user behavior data to measure the effectiveness of your PLG initiatives. Identify areas for improvement and prioritize efforts based on data-driven insights.

Conduct A/B testing: Experiment with different product features, user flows, and messaging to optimize conversion rates and user engagement. Test hypotheses and iterate based on performance metrics to refine your PLG strategy.

Gather user feedback: Solicit feedback from users through surveys, interviews, or feedback forms to gain valuable insights into their needs and preferences. Use feedback to inform product enhancements and address pain points effectively.

Now that we've discussed the implementation process, let's examine real-world examples of companies that have excelled through Product-Led Growth.

Examples of product-led growth (PLG) companies

Uncover real-world success stories of companies that have effectively embraced Product-Led Growth. From industry giants to emerging startups, explore how these organizations have leveraged PLG to achieve remarkable growth and establish a lasting connection with their user base:

1) Calendly

Calendly, a widely-used scheduling tool, epitomizes the principles of product-led growth with its intuitive interface and seamless user experience. Here's how Calendly utilizes PLG:

Frictionless onboarding: Calendly offers a straightforward onboarding process, allowing users to sign up and start scheduling meetings within minutes. The intuitive interface guides users through the setup process, eliminating barriers to adoption.

Calendly onboarding

Viral loops: One of Calendly's key growth drivers is its viral loop mechanism. Users can easily share their Calendly links with others, expanding the platform's user base organically. As more individuals experience the convenience of scheduling with Calendly, the network effect amplifies its reach.

Calendly viral loops

Feature expansion: Calendly continuously introduces new features and integrations based on user feedback and market demand. By addressing user pain points and enhancing functionality, Calendly reinforces its value proposition and keeps users engaged over time.

Calendly feature expansion

2) Slack

Slack revolutionized workplace communication by offering a centralized platform for team collaboration. Here's how Slack exemplifies product-led growth:

Self-service onboarding: Slack's self-service onboarding allows teams to create accounts and start communicating instantaneously. By eliminating the need for extensive training or implementation support, Slack accelerates user adoption and fosters organic growth within organizations.

Slack onboarding

In-product education: Slack provides in-product tutorials and tips to help users maximize the platform's capabilities. From setting up channels to integrating third-party apps, Slack empowers users to explore advanced features at their own pace, driving deeper engagement and retention.

Slack in-product education

Community engagement: Slack cultivates a vibrant community of users who share best practices, troubleshoot issues, and exchange ideas. Through user-generated content and peer-to-peer support, Slack reinforces its position as the go-to platform for modern workplace collaboration.

Slack community engagement

3) Notion

Notion offers a versatile workspace that combines notes, documents, databases, and collaboration tools in one platform. Here's how Notion embraces product-led growth:

Personalized onboarding: Notion's flexible onboarding process allows users to tailor the platform to their specific needs and preferences. Whether organizing personal tasks or managing team projects, Notion adapts to diverse use cases, making it indispensable for individuals and organizations alike.

Notion onboarding

Iterative improvement: Notion continuously refines its product based on user feedback and evolving market trends. Through iterative updates and feature enhancements, Notion stays responsive to user needs and maintains its competitive edge in the crowded productivity software landscape.

Notion updates

Seamless integration: Notion seamlessly integrates with popular productivity tools and platforms, enabling users to streamline their workflows and centralize their workspaces. By interoperating with existing tools and services, Notion enhances user productivity and fosters stickiness within its ecosystem.

Notion integrations

4) Zoom

Zoom emerged as a frontrunner in the video conferencing space, catering to the needs of remote teams and virtual classrooms worldwide. Here's how Zoom drives product-led growth:

User-centric design: Zoom's user-centric design prioritizes simplicity and reliability, ensuring a seamless meeting experience for participants across devices and locations. With intuitive controls and minimal friction, Zoom democratizes video conferencing and attracts users of all technical proficiencies.

Zoom user-centric design

Scalable pricing model: Zoom offers a freemium pricing model that allows users to host unlimited one-on-one meetings and group meetings with up to 100 participants. By removing barriers to entry and offering transparent pricing tiers, Zoom encourages widespread adoption and viral spread among users.

Zoom pricing

Ecosystem expansion: Zoom fosters an ecosystem of integrations and extensions that enhance its core functionality and extend its utility across diverse use cases. From virtual backgrounds to third-party app integrations, Zoom empowers users to personalize their meeting experiences and unlock new possibilities for collaboration.

Zoom app marketplace

Having gained inspiration from successful PLG companies, let's shift our focus to the key metrics that measure the effectiveness of a product-led approach.

What are some of the important product-led growth (PLG) metrics?

Explore the essential metrics and key performance indicators (KPIs) that measure the success of product-led growth (PLG) initiatives, providing valuable insights into user behavior, product engagement, and overall business performance:





Example Calculation

Website to Signup Conversion Rate

The percentage of website visitors who sign up for your product.

Measures the effectiveness of your website in converting visitors into users.

Divide the number of signups by the total website visitors and multiply by 100.

If your website had 1000 visitors and 100 signed up, the conversion rate is 10%.

Raw Signup Numbers

The total number of users who sign up for your product.

Indicates the growth of your user base over time.

Count the number of users who sign up within a specific period.

If 500 users signed up this month, your raw signup number is 500.

Activation Percentage Through Your Ah-ha Moment

The percentage of users who reach the 'ah-ha' moment where they experience the core value of your product.

Shows how successful your product is at engaging users.

Divide the number of users reaching the 'ah-ha' moment by total signups, multiplied by 100.

If out of 200 signups, 100 users reach the 'ah-ha' moment, the activation percentage is 50%.

Number of Active Users

The total number of users who engage with your product within a specific time frame.

Indicates the health and popularity of your product.

Count the number of unique users who interact with your product within the defined period.

If 1000 users engage with your product this week, your active user count is 1000.

Retention Over Time

The percentage of users who continue to use your product over time.

Measures the stickiness of your product and user satisfaction.

Divide the number of retained users by total users at the beginning of the period, multiplied by 100.

If you had 1000 users last month and 800 are still active this month, the retention rate is 80%.


Measures the virality of your product by quantifying how many new users each existing user brings in.

Indicates the organic growth potential of your product.

Subtract one from the average number of invites sent by each user.

If on average, each user invites 0.8 new users, the K-factor is 0.8 - 1 = -0.2.

Your Active User Growth Rate

The rate at which your active user base is growing.

Reflects the overall growth trajectory of your product.

Calculate the percentage change in active users from the previous period.

If you had 1000 active users last month and 1200 this month, the growth rate is (1200-1000)/1000 * 100 = 20%.

Free to Paid Conversion Rates

The percentage of free users who upgrade to paid plans.

Indicates the effectiveness of your pricing strategy and product value.

Divide the number of users who upgrade to paid plans by total free users, multiplied by 100.

If 50 out of 500 free users upgrade, the conversion rate is 10%.

Raw Number of Paid Customers

The total number of customers who are paying for your product.

Shows the revenue potential and financial health of your product.

Count the number of customers on paid plans.

If you have 200 paying customers, your raw number of paid customers is 200.


The total income generated from your product.

Measures the financial success and sustainability of your product.

Sum up the revenue from all paying customers.

If each paying customer contributes $50, your revenue with 200 customers is $10,000.

Understanding the metrics is crucial, but leveraging the right tools can streamline your PLG journey. Let's explore some of the best tools available.

What are some of the best tools that can help in your product-led growth (PLG) journey?

Explore a curated list of tools and platforms designed to facilitate and optimize your product-led growth (PLG) efforts. This section highlights essential tools for user analytics, product onboarding, and customer communication, empowering your team to drive sustainable growth:

1) Blitzllama


Blitzllama streamlines user feedback with its in-product survey capabilities. It enables product teams to gather valuable insights directly from users, helping refine product offerings swiftly. With Blitzllama, teams can capture user sentiments in real-time, facilitating rapid iterations and enhancements. Its intuitive interface empowers teams to delve deeper into user needs, fostering a customer-centric approach to product development.


June. so emerges as a cornerstone for product analytics, offering comprehensive insights into user behavior and product performance. Its robust analytics engine empowers teams to dissect user interactions, uncovering valuable patterns and trends. Armed with actionable data, product teams can make informed decisions, steering product development in alignment with user expectations. June. so's intuitive dashboard simplifies complex data, enabling teams to glean actionable insights effortlessly.

3) Appcues


Appcues stands out as a catalyst for enhancing product engagement, offering a suite of tools to drive user adoption and retention. Its versatile platform empowers product teams to design personalized user experiences, fostering deeper engagement throughout the customer journey. With Appcues, teams can create interactive walkthroughs, tooltips, and announcements, guiding users seamlessly through product features. By leveraging Appcues' dynamic engagement tools, product teams can fortify user satisfaction and loyalty.

4) Intercom


Intercom emerges as a linchpin for orchestrating customer success, enabling product teams to cultivate meaningful relationships with users. Its robust messaging platform facilitates proactive communication, empowering teams to address user inquiries and concerns promptly. Through targeted messaging and personalized support, Intercom helps nurture customer satisfaction and loyalty, driving long-term value for the product. With Intercom, product teams can foster a customer-centric culture, prioritizing user success at every touchpoint.

5) Hubspot


Hubspot empowers product teams with robust CRM capabilities, facilitating seamless customer relationship management. Its intuitive interface centralizes customer data, enabling teams to track interactions and nurture leads effectively. With Hubspot's automation tools, teams can streamline sales and marketing processes, optimizing conversion pathways and driving revenue growth. Hubspot's comprehensive analytics empower teams to measure campaign performance and refine strategies, fostering continuous improvement across the customer lifecycle.

With these tools at your disposal, your product team is well-equipped to embark on a successful Product-Led Growth journey, transforming the way your product is perceived and adopted in the market.


In conclusion, Product-led Growth (PLG) emerges as a potent strategy for product teams. It fosters user-centric approaches, driving engagement and adoption. PLG prioritizes seamless user experiences, fueling organic growth and retention. 

Examples like Calendly and Zoom underscore its effectiveness in scaling products. By focusing on intuitive interfaces and value delivery, PLG empowers users to explore features autonomously. This self-serve model reduces friction and accelerates user onboarding. 

As product teams embrace PLG, they cultivate a culture of continuous improvement and innovation. By leveraging user feedback and data-driven insights, PLG paves the path for sustainable growth and market leadership.