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Estd 4.22.2023
Based on the insights from our saas pricing book, Price to Scale, the answer is yes—a range of usage-based metrics are key indicators for PLG companies to know when a user is ripe for conversion or upsell.
Here are some of the primary metrics and signals highlighted in the book:
• Usage Thresholds:
– Metrics such as the number of events tracked or the degree of feature engagement can indicate that a user is taking full advantage of the product, hinting that they could benefit from a higher tier.
– When usage reaches set thresholds, it’s a strong signal that a user’s needs are growing.
• Team-Based Engagement:
– Actions like inviting additional team members or expanding the number of users indicate that the product is becoming integral to the workflow.
– This team expansion can be a signal to consider upsell opportunities that support larger, collaborative environments.
• Feature or Collaboration Limits:
– Hitting limits on certain bundled features, such as collaboration limits in lower packages, is a natural moment to approach the user.
– These limits are deliberately set in the packaging design to create a path for users to move to a higher, more robust package when their needs exceed the entry-level offerings.
The book emphasizes that these signals—whether derived from increased usage, team engagement, or feature limits—should be used to guide a thoughtful sales touch. This is because an upsell should come as a naturally integrated response to an increased need rather than a hard sell. In Effect, the upsell process is designed to align with the moment when customers are clearly deriving enough value from your product that a higher tier would further meet their expanding requirements.
In summary, our saas pricing book, Price to Scale, advises that PLG companies monitor key metrics like usage thresholds, team invitations, and collaboration limits. These metrics are essential to determine when a customer is ready for a sales touch or upsell offer, ensuring that any conversion strategy aligns with the genuine needs of the user.