PLG & Success Metrics

Hi everyone! I've got a question for the folks in organizations with PLG strategies. We're dipping our toes in this arena and understand that our churn rate and NPS will look quite different for freemium or "lite" versus what we currently offer. However, I'm curious just how different they might look. Our churn rate and NPS are currently excellent so I think lower numbers (even if expected) may shock the system. It'd be helpful to have a benchmark before implementing this strategy.

If anyone is willing to share a range of what their churn rate and NPS goals are for the PLG side of the business, I'd appreciate it!

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Comments

Kathryn Moore

Thank you so much, Jeffrey! That is really helpful.

Jeffrey Nadeau

Hi Kathryn,

I recently started moving to PLG as well and a big difference is we offer monthly agreements. So we have to look at MRR vs ARR churn.

I found some good articles you can read to benchmark and as you said, it will be lower, and definitely need to set expectations with your leadership team about this.

https://www.saasgrowthhacker.com/average-churn-rate-in-saas/

https://www.cobloom.com/blog/churn-rate-how-high-is-too-high#

Thanks,
Jeffrey