Hey Friends, Welcome to Episode 79 of the MarketCurve newsletter - today I’ll show you how to use product-influenced revenue as a metric to drive your SaaS PLG motion
Early-stage PLG teams need to have a clear KPI to measure performance. They are tied across the 4 core levers of acquisition, engagement, retention & monetization. All 4 of these are in turn tied to revenue metrics like ARR, Net Dollar Retention, CAGR, Expansion Revenue.
So the KPI for your PLG team needs to be an outcome-based one and not a function-based one. Outcomes that directly affect your core metrics.
One such outcome-based KPI is product-influenced revenue. And this is a subset of what is known as Natural Rate of Growth. The Natural Rate of Growth is a metric describing the company rate of growth in the absence of any paid marketing or outbound sales motions.
The product-influenced revenue is a subset of Natural Rate of Growth. It tracks the revenue generated directly from the product and excludes revenue from sales / marketing based efforts.