The complete PLG metrics framework with benchmarks from 80 product-led SaaS companies. What to measure, how to track it, and dashboard template included.
TL;DR
Product-led growth sounds simple: Let the product sell itself.
But how do you measure if it's working?
I analyzed 80 product-led SaaS companies to identify which metrics actually predict success. Most track 30+ metrics. The successful ones focus on these 12.
This is your complete PLG metrics framework -what to measure, how to calculate it, benchmarks for your stage, and a dashboard template you can implement today.
Metric #1: Signup Rate
What it measures: Percentage of website visitors who sign up for free trial/freemium.
Formula:
(Signups / Website Visitors) × 100
Benchmarks:
| Stage | Poor | Good | Excellent |
|---|---|---|---|
| <£100K ARR | <1.5% | 2-4% | >5% |
| £100K-£1M ARR | <2% | 3-5% | >6% |
| £1M-£10M ARR | <2.5% | 4-6% | >7% |
| £10M+ ARR | <3% | 5-8% | >9% |
Why it matters: Low signup rate = leaky top of funnel. Fix marketing message, landing page, or positioning before optimizing downstream.
How to improve:
Metric #2: Organic vs Paid Signup Mix
What it measures: What percentage of signups come from organic (SEO, referral, word-of-mouth) vs paid channels.
Formula:
Organic % = (Organic Signups / Total Signups) × 100
Benchmarks:
| Stage | Organic % | Interpretation |
|---|---|---|
| <£100K ARR | <20% | Normal (paid required early) |
| £100K-£1M ARR | 30-50% | Good PLG motion building |
| £1M-£10M ARR | 50-70% | Strong PLG, word-of-mouth working |
| £10M+ ARR | >70% | Excellent, sustainable PLG |
Why it matters: PLG relies on product driving growth. If you're 90% paid signups, you're sales-led, not product-led.
Goal: Increase organic % over time.
Metric #3: Time to Value (TTV)
What it measures: How quickly users reach "aha moment" (the action that predicts retention).
Formula:
Median time from signup to completing "aha action"
"Aha actions" vary by product:
Benchmarks:
| Stage | Poor TTV | Good TTV | Excellent TTV |
|---|---|---|---|
| Simple SaaS | >7 days | 24-72 hrs | <24 hrs |
| Complex SaaS | >14 days | 3-7 days | <3 days |
Why it matters: Users who reach "aha moment" in <48 hours convert to paid at 3.4x rate vs those taking >7 days.
How to improve:
Metric #4: Activation Rate
What it measures: Percentage of signups who reach "aha moment."
Formula:
(Users who completed aha action / Total signups) × 100
Benchmarks:
| Product Complexity | Poor | Good | Excellent |
|---|---|---|---|
| Simple (e.g., Loom) | <40% | 50-70% | >80% |
| Medium (e.g., Notion) | <25% | 35-55% | >65% |
| Complex (e.g., Salesforce) | <15% | 25-40% | >50% |
Why it matters: Activated users are 10x more likely to convert to paid than non-activated users.
How to improve:
Metric #5: Free-to-Paid Conversion Rate
What it measures: Percentage of free/trial users who convert to paid.
Formula:
(Paid conversions / Free signups in cohort) × 100
Benchmarks:
| Trial Length | Poor | Good | Excellent |
|---|---|---|---|
| 7-day trial | <3% | 5-10% | >12% |
| 14-day trial | <5% | 8-15% | >18% |
| 30-day trial | <8% | 12-20% | >25% |
| Freemium (no time limit) | <2% | 4-8% | >10% |
Why it matters: Core PLG metric. Low conversion = product doesn't prove value in trial.
How to improve:
Metric #6: Expansion MRR
What it measures: Revenue from existing customers upgrading tiers or buying add-ons.
Formula:
Monthly revenue from upgrades, upsells, add-ons
Benchmarks:
| Stage | Expansion as % of New MRR | Interpretation |
|---|---|---|
| <£100K ARR | <10% | Normal (focus on acquisition) |
| £100K-£1M ARR | 15-30% | Healthy expansion motion |
| £1M-£10M ARR | 30-50% | Strong PLG, customers expanding |
| £10M+ ARR | >50% | Excellent, expansion > new |
Why it matters: Best PLG companies grow more from expansion than new customers.
How to improve:
Metric #7: Cohort Retention (Month 1, 3, 6, 12)
What it measures: Percentage of customers still active N months after signup.
Formula:
(Customers active in Month N / Customers who signed up in Month 0) × 100
Benchmarks:
| Retention Period | Poor | Good | Excellent |
|---|---|---|---|
| Month 1 | <60% | 75-85% | >90% |
| Month 3 | <40% | 55-70% | >80% |
| Month 6 | <30% | 45-60% | >70% |
| Month 12 | <20% | 35-50% | >60% |
Why it matters: Retention > acquisition for PLG. If users churn, growth stalls.
Metric #8: Net Revenue Retention (NRR)
What it measures: Revenue retained from a cohort including expansion and churn.
Formula:
(Starting MRR + Expansion - Churn - Contraction) / Starting MRR × 100
Benchmarks:
| Stage | Poor NRR | Good NRR | Excellent NRR |
|---|---|---|---|
| All stages | <90% | 100-120% | >130% |
Why it matters: NRR >100% = you can grow without new customers (from expansion alone).
Best PLG companies: 120-150% NRR
Here's the exact dashboard we use:
| Metric | This Week | Last Week | 4-Week Avg | Target | Status |
|---|---|---|---|---|---|
| Signups | 142 | 138 | 135 | 150 | 🟡 |
| Activation rate | 58% | 54% | 56% | 60% | 🟢 |
| Free → Paid conversions | 12 | 9 | 11 | 15 | 🟡 |
| Expansion MRR | £2,400 | £1,800 | £2,100 | £2,500 | 🟢 |
| Churn (count) | 8 | 12 | 10 | <10 | 🟢 |
| Metric | This Month | Last Month | 3-Mo Avg | Target | Trend |
|---|---|---|---|---|---|
| Total MRR | £84,200 | £81,400 | £79,800 | £90K | ↗️ +3.4% |
| New MRR | £12,400 | £11,800 | £11,200 | £15K | ↗️ +5% |
| Expansion MRR | £7,200 | £6,400 | £6,800 | £8K | ↗️ +12% |
| Churned MRR | -£3,200 | -£4,100 | -£3,600 | <-£3K | ↗️ -22% |
| Net New MRR | £9,200 | £7,700 | £7,600 | £12K | ↗️ +19% |
| NRR | 112% | 108% | 110% | >110% | ↗️ |
Cohort retention by signup month:
| Cohort | Month 1 | Month 3 | Month 6 | Month 12 |
|---|---|---|---|---|
| Jan 2025 | - | - | - | - |
| Dec 2024 | 82% | - | - | - |
| Nov 2024 | 84% | 68% | - | - |
| Oct 2024 | 79% | 64% | 52% | - |
| Sep 2024 | 81% | 66% | 54% | 48% |
| Aug 2024 | 78% | 62% | 51% | 45% |
What to look for: Are newer cohorts retaining better? (Good sign -you're improving product)
Option A: Google Sheets (Free)
Download our template: [Link to template]
Setup time: 2-3 hours Maintenance: 1 hour/week to update Best for: <£500K ARR, <100 customers
Option B: Notion Database (£8/mo)
More flexible than Sheets, easier to collaborate.
Setup time: 3-4 hours Maintenance: 30 min/week (automated data pulls) Best for: £500K-£2M ARR
Option C: BI Tool (£50-£200/mo)
Tools: Metabase, Retool, Hex
Setup time: 8-12 hours Maintenance: Auto-updates with SQL queries Best for: £2M+ ARR, need real-time data
Want automated PLG metrics tracking? Athenic connects to your data sources and maintains real-time PLG dashboards -tracking all 12 metrics automatically and alerting you to concerning trends. See how it works →
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