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9 Key PLG Statistics You Need to Know in 2024

There are countless business strategies out there, but one method shines particularly bright in 2024: product-led growth (PLG). This user-centric approach puts the product in the driver’s seat, letting it evolve naturally in accordance with the customer’s needs rather than with the direction of a sales team.

This article explores 9 key PLG statistics that prove the effectiveness of this new approach.

1. Adoption Rate

Gainsight reports that 58% of companies and 77% of companies worth at least $250 million employ PLG tactics. The first businesses to let the product guide its own development saw major returns, which led to more and more entrepreneurs adopting the practice.

2. User Retention

Since the PLG approach focuses on what the customer needs, it sees high user retention metrics. Customers tend to be more satisfied with the product so they keep coming back.

3. Company Growth

Openview claims PLG companies are growing at a rate of 50% compared to previous years, while others have a rate of just 20%.

One possible driver of this skyrocketing growth is user satisfaction. A customer that enjoys a product is much more likely to recommend it to a friend, who then recommends it to one of their friends, and the cycle continues.

4. Investment

According to Statheap, 91% of companies already using PLG methods plan to increase their investment in it. This means businesses see the strategy as worthwhile to expand.

5. Conversion Rates from Free to Paid Users

Users see the value of the product quickly and switch to the paid version faster than they normally would. This is because the product has been so optimised by feedback that it’s in a perfect state to attract new users.

6. Research

Gainsight says 39% of companies are researching how to implement PLG methods into their existing structure or how to design a new structure around the strategy.

This is a significant statistic because it reveals that entrepreneurs believe the strategy is a worthwhile use of their resources.

7. Time to Value

Companies report that PLG methods significantly decrease their time to value, or the speed at which users realise the value of the product. This is because these strategies focus on user onboarding and immediate value delivery.

8. Reasons for Not Adopting PLG

According to Gainsight, if a company doesn’t adopt PLG strategies, 42% of the time it’s only because their product isn’t ready for it yet. 24% of the time it’s because the product requires complex configuration.

Therefore, if an entrepreneur isn’t using product-led growth strategies, it’s just because it’s not the best solution for their individual case. This says a lot about the method: most businesses believe there’s value in it.

9. Industry Relevance

Gainsight reports that only 4% of entrepreneurs say PLG isn’t relevant to their industry, meaning most entrepreneurs can use these strategies to enhance their business.

Should You Use PLG Tactics?

In truth, PLG is not for every product—but it does work for most. If you are unsure about whether the method would benefit your company, ask a trusted consultant who has worked with PLG before. Don’t wait. This strategy can help your company’s growth skyrocket.


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