OpenView 2021 Product Benchmarks Report
About ATTACH
- Author: OpenView
Introduction
Most compaines are in expansion stage, with 48% of them between $1M-$10M ARR.
Product-Led adoption
What is PLG?
PLG is an end-user focused growth model that relies on the product itself as the primary driver of custoemr acquisition, conversion and expansion.
Product-Led Growth is Your Secret Weapon ATTACH
Free offerings moved up market
Developer-focused models are most likely to adopt a product-led approach. Developers prefer to try products before they buy them.
Key Product-Led Metrics
- Activation: Activation is the moment when your product delivers on the value that is promised. Sometimes referred to as the Aha Moment, it’s when someone understands why they would use a product. e.g. Typeform qualifies their activation metric as five unique response to a Typeform.
- PQL: Free users who meet a threshold of significant actions token to qualify for sales outreach. e.g. For an OpenView portfolio company, spending >30 min in the application in your first or second visit makes you a PQL.
Activation Rate benchmarks: average around 33%.
PQL adoption isn’t growing:
- because of remote work in 2020.
- lack of experienced talent.
- PQLs don’t typically result in an impact on top-lin revenue for a quarter or so.
PLG ORganizations ATTACH
When does a growth team emerge?
no surprise taht having a growth team amkes you more likely to be high-growth.
Conversion: Where Marketing and Sales Come in ATTACH
Web-to-free account Conversion Rate
- 2% at least
- 4% median
Free-to-paid account Conversion Rate
- 5% at least
- 10%-12% mediam
- 25%-27% at most
Outreach to free accounts is shrinking 90% are outreach to free users.