Report: 91% of SaaS companies plan to increase their PLG investment

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According to a new report from Gainsight and RevOps Squared, SaaS companies are clearly attracted to Product-Lead Growth (PLG), a go-to-market strategy that changes the way products are designed and delivered. This strategy puts the product at the forefront of the customer journey to drive acquisition, conversion, adoption, maintenance and expansion.

These objectives can be achieved by taking advantage of product usage data to deliver immersive product experiences on the PLG scale. Subscription-based SaaS businesses, which need to tailor their products to their customers’ needs at every stage of the customer journey, are a natural candidate for the PLG strategy.

According to research, 58% of SaaS-based subscription businesses already have a PLG strategy, 91% plan to increase their investment in PLG strategies, and 47% plan to double their investment in PLG.

Twelve graphs.  47% of SaaS-based subscription businesses plan to double their investment in PLG initiatives.
47% of SaaS-based subscription businesses plan to double their investment in PLG initiatives.

SaaS-based businesses are also finding success with their PLG initiatives. According to the report, the free trial using the popular PLG strategy, Product Qualified Leads (PQL), converts 25% of the time to paid customers, compared to 9% without PQL.

Meanwhile, 36% of respondents said they were using product data to predict customer brainstorming (another PLG strategy), and 38% of companies said they were taking advantage of usage data to identify expansion opportunities.

But companies don’t have to decide everything, because many aren’t tracking PLG metrics effectively – only 17% said they’re tracking time-to-value, only 26% are tracking activation rates, and only 24 % Tracking PQL.

“The results are very encouraging overall,” said Mickey Elon, CTO of PX at Gansite. “The most compelling withdrawal from all the data is that there are still many opportunities for sustainable growth for SaaS companies for PLG. As businesses mature their PLG strategies, the result will be a stronger unit of economics, moving from acquisition-led growth to sustainability-and expansion-led growth. “

For their report, Gainesite and Revops Square surveyed 600 companies of various sizes, with different annual contract values ​​and multiple industries.

Read the full report by Gainsight and RevOps Squared.

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