What are Product-Led Growth Metrics?

In a product-led company, your product isn’t just what you sell — it’s how you grow. That means the numbers that matter most are no longer MQLs or ad CTRs, but how people actually use and find value in your product.

These are called Product-Led Growth (PLG) metrics — the signals that tell you whether your product is driving acquisition, retention, and revenue on its own.

What Are PLG Metrics?

PLG metrics are performance indicators that measure how effectively your product itself fuels business growth.

They focus on usage, activation, engagement, and expansion, helping you understand if customers are finding real value and spreading it organically.

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In short:

PLG metrics turn product usage into a growth model.

Key Product-Led Growth Metrics

1. Activation Rate

Measures how many users reach the “aha!” moment — when they first experience real product value.

Formula: (Users who reached activation / Total signups) × 100

Example: A design tool might define activation as “first published project.”

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2. Adoption Rate

Tracks how quickly and consistently users adopt new features or modules.

Why it matters: High adoption = users see ongoing value and less churn.

3. Retention Rate

Indicates how many users continue using the product over time.

Formula: (Active users at end of period – New users) / Active users at start of period

Retention is the heartbeat of PLG — without it, growth collapses.

4. Expansion Revenue

Revenue generated from existing customers upgrading, expanding seats, or adding features.

In PLG, this is where NRR (Net Revenue Retention) shines.

5. PQLs (Product-Qualified Leads)

Leads who’ve already experienced value through usage — e.g., created a workspace, integrated an API, or invited teammates.

Why it’s gold: PQLs close faster and churn less than traditional leads.

6. DAU/MAU Ratio

Measures product stickiness.

Formula: Daily Active Users ÷ Monthly Active Users

A higher ratio = higher engagement and habit formation.

7. Virality / Network Effects

Tracks how users bring in new users.

Formula: Average number of invites or referrals per active user.

Think Slack invites or Notion share links.

How PLG Metrics Differ from Traditional SaaS Metrics

Traditional SaaS

1. Marketing generates leads
2. Sales qualifies buyers
3. Focus on MQLs, SQLs
4. Growth driven by campaigns

Product-Led Growth‍

1. Product generates leads (PQLs)
2. Product usage qualifies buyers
3. Focus on Activation, Retention, NRR
4. Growth driven by in-product experience

How to Track PLG Metrics Effectively

1. Define your “aha!” moment — what action signals product value.
2. Use event-based analytics — track actions, not just pageviews (Mixpanel, Amplitude, or PostHog).
3. Segment by behavior — cohort users by plan, role, or lifecycle stage.
4. Integrate feedback loops — pair quantitative metrics (usage) with qualitative insights (surveys).
5. Tie metrics to outcomes — e.g., activation rate linked to conversion, retention linked to revenue.

PLG Metrics MarketSprint Focuses On

At MarketSprint, we help startups identify and implement PLG metrics into their product architecture — fast.

When we build your MVP or app, we ensure:

• Every core action is tracked and mapped to activation and retention goals.
• You get dashboard-level visibility for PQLs, usage cohorts, and engagement loops.
• Analytics are embedded directly into your product, not added later.

That means you don’t just launch your product — you launch your growth engine.

Key Takeaways

• PLG metrics measure how your product drives growth, not your campaigns.
• Focus on activation, retention, and expansion over vanity metrics.
• PQLs and engagement loops are the foundation of scalable PLG success.
• Startups using PLG metrics can move faster, convert faster, and grow sustainably.

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