So, let’s start by understanding the Dark Pipeline at a high level.
By the way, if you are wondering who OpenView Partners is, they have the most extensive and in-depth publications on the PLG movement. Fun fact, Blake Bartlett at OpenView Partners coined the term “Product-Led Growth”. Read more about them at the link below.
So, if you're finding it challenging to convert freemium sign-ups into paying customers at your PLG company, you're not alone. In fact, only 5% of all freemium signups actually end up converting to paid customers.
Let us study the diagram presented which is from a blog post published by OpenView Partners to understand the numbers in more detail. Both free trial and freemium allow for user growth but a free trial lends itself more to a revenue orientation.
Given such a low success rate, it is simply not feasible to reach out to every single person who signs up - therefore called the dark pipeline.
Here are the three steps to address the dark pipeline.
So let’s look at how we Humanic helps you do this at scale and with precision
Now, let's Imagine a new lead is created in your self-serve product. The starting assumption is that product usage data is the basis of how these leads flow into one of these funnels:
Visitors in this funnel arrive with various motivations. Some are here to explore the product and its potential, while others may enter as a lone user that may have plans of monetization down the line.
Motivated users already have a path convert with the self-serve flow and therefore do not need sales-assist nor are they looking to talk to someone. Your focus should be to get the self-serve conversion flow to be flawless and get these sign-ups to convert to paid customers automatically and regularly!
They typically want speed and autonomy including the ability to cancel at any time for any reason. Transparency around pricing and value they get is key to getting users to sign up to self-service flows.
At Humanic, we highly recommend, organizing your users closely resembling your pricing tiers. In this example below we have three Stages (Tiers) Free, Pro and Enterprise.
There are many ways to drive sign ups to your website with Ad spend on different platforms, webinars, influencers. etc. But sign ups (as all Marketing folks know) is a vanity metric.
For more details click here for the Definitive Guide to Building a Sign Up Page
To drive PLG Growth :
At Humanic, we believe it is more effective to focus on a few most impactful user segment per product milestone (as shown below)
The following blog post the PLG nudges (Digital Customer Success)