Product usage data to drive revenue
And increase ROI on your product-led efforts.
Whether you run lifecycle campaigns, in-product experiments, or deploy product-led sales playbooks, leveraging product usage signals to identify revenue opportunities can increase ROI on your product-led efforts.
The tactics and motions you use depend on the company stage and priorities, the size of your lead funnel, the number of customers, resources you can expend, etc. (See a related post in the comments)
Overall, if you have a B2B product-led business, you can leverage product usage data to
A. acquire new paid customers or
B. increase the customer's lifetime value
A. Product signals that indicate opportunities for acquiring new paid customers:
๐๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ผ๐ป ๐ผ๐ป ๐ฎ ๐ฝ๐ฎ๐ถ๐ฑ ๐ฝ๐น๐ฎ๐ป:
โข Segment customers by those ICPs that did not activate on their trial or
โข ICPs that activated but did not convert. Look for signals from those who visited the pricing pages or abandoned the cart.๐๐ฟ๐ฒ๐ฒ ๐๐ผ ๐ฝ๐ฎ๐ถ๐ฑ ๐ฐ๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ผ๐ป:
โข If you have a large volume of free customers, use product data to segment customers by those ICPs that hit paid plan paywalls,
โข ICPs that continually hit usage or seat limits,
โข very active ICP accounts or
โข accounts that tried a paid plan but did not convert
B. Product signals that indicate opportunities to increase customer lifetime value (LTV) work as strategies to ensure higher retention of customers and increase average revenue per account (ARPA).
๐๐ฑ๐ผ๐ฝ๐๐ถ๐ผ๐ป: Using product signals to drive adoption can help in the long-term retention of customers.
โข Low adoption of features that generally retain customers, e.g., integrations
โข Plan or feature paywalls hit, but no conversion.
โข Plan upgrades but low adoption of high-value features๐๐ ๐ฝ๐ฎ๐ป๐๐ถ๐ผ๐ป: Account expansion opportunities can be of two types - plan upsell or account consolidation
a. Upsell:
Product signals that indicate upsell opportunities may show up in the form of
โข adding more users
โข adding a new integration
โข increased usage of a certain high-value feature
b. Enterprise consolidation:
This is an advanced play for very successful PLG companies that see disjoint product usage and adoption across their paid or unpaid user accounts.๐ฅ๐ฒ๐ฑ๐๐ฐ๐ฒ ๐๐ต๐๐ฟ๐ป:
Product signals can help you proactively save accounts at a higher risk of churn. Watch out for:
โข reduced activity or downgrades of high-value accounts
โข abandonment of features or add-ons
โข the uptick in bugs/support tickets
โข declining CES / CSAT scores
How do you use product usage data to drive product-led revenue?
Interested to learn more? Book a FREE 1:1 with me.