Essential PLG metrics - PLG series - #2

"You can't improve what you don't measure"

I collected some of the most important PLG Metrics to measure.

Time To Value (TTV)

• "The time it takes for users to reach the "aha moment" that shows the value of the product to their business."
• How to calculate: take the average number of hours/days till activation.

Virality

• The number of new users that each existing user can successfully convert.
• How to calculate: Average no. of invitations sent by each customers * average conversion rate (%)

Product Qualified Leads (PLQs)

• Users who already experienced the "aha moment", the product's value.
• How to calculate: Use engagement scoring

Free-to-Paid Conversion Rate

• % of users who transition from free usage to paid
• How to calculate: paid users / users on trial and free version

Expansion revenue

• Revenue from users being upsold/cross-sold
• How to Calculate: basically MRR/ARR from existing customers

Average Revenue Per Customer/User

• Revenue we can expect to make from an individual user
• How to calculate: MRR / # users

Net Promoter Score (NPS)

• Customer satisfaction - % of active users having a positive experience
• How to calculate: NPS calculation

Is there any essential metrics that you think I missed? Pls share in comment; what is the no. 1 PLG metric you measure?

In this PLG series I'm posting my own experience and research findings about Product Led Growth. The goal is to give back to the community, so I'm happy to tailor the posts more to my audience's needs. Just drop a comment to give feedback.

Link to next PLG post: https://www.indiehackers.com/post/market-segments-plg-series-3-62acf2d756