Pirate Metrics, PLG, user journey

The wave in the last few years of Product Led Growth has been phenomenal, it is most commonly compared with “sales-led” – the dirty secret being that many SaaS companies are really “sales-led”.

There is also:

  • marketing led
  • customer led
  • engineering led
  • service led

But in this talk, I (cheekily) claim that behind most PLG software products is the good old “Pirate Metrics” (AARRR) anyway! If you look at some defining elements of PLG, you can always restate it in terms of AARRR and h0w that works with User Journey.

To recap, Pirate Metrics are a funnel of deepening engagement. It’s typically owned by Product Management, Customer Success and Growth teams with interlocking phases of: 

Acquisition – typically owned by marketing is the user journey up to registering with your product and logging in.

Activation – is discussed extensively in this video, the moment where the user extracts value in the product. This can also be the first moment of monetary transaction.

Retention – following up revisits to the application, typically measured in DAUs, average session length and custom (per application) engagement metrics. Of course an important metric might be (one or recurring) monetary transactions.

Referral – activities where your user is inviting and engaging other users in a virtuous circle that grows Activation and Retention. This is a key part of Product Led growth where marketing and acquisition costs are significantly subsidised (or eliminated by network effects of the users in the App). Whilst B2C apps like social networks are posters for this, B2B apps like Atlassian have been well documented as having a growth flywheel based on this.

Revenue – there is not growth without revenue! As can be seen, this can happen at one or more points elsewhere in AARRR and single or multiple times.

So we can see that PLG is very much supported by a product design that rolls up these key User Journey components. This talk tracks the journey on a timeline.

Webinar: How to Automate Product-Led Growth in APAC

With MeshAI

Tue 29th September 2022, 12:00 pm SGT (2:00pm AEST)

  • How Product Led Growth is transforming in 2022
  • Evolving your software  product’s PLG model
  • Automating PLG the who and how
  • Product-Led Go-To Market strategy
  • The PLG Automation analytics, onboarding and communications

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    Contextual & StreetHawk Inc 2022.