Boost PLG SaaS User Activation by 35%: Proven Tactics

Introduction

Step into the world of spreadsheet innovation with Alberto Manassero, the growth maestro behind Rows - a startup boldly challenging Excel and Google Sheets. From killing the homepage to embracing AI, discover how Rows is revolutionizing user activation in the competitive SaaS landscape.

Rows experienced a hockey stick growth curve, leaping from 50,000 users after four years to an astounding 1 million users in just one additional year, showcasing the power of their innovative approach to spreadsheet software.

Imagine turning 35% more of your website visitors into active users. That's exactly what Rows achieved by radically rethinking their user activation strategy. In the cutthroat world of Product-Led Growth (PLG) SaaS, where your product is your primary salesperson, user activation isn't just important—it's the lifeblood of growth. Rows strategy is a masterclass in PLG activation, offering hard-won insights that any SaaS company can leverage to supercharge their growth trajectory.

Understanding and Optimizing the "Aha" Moment

The "aha" moment - when a user truly grasps the value of your product - is critical in PLG SaaS.

For Rows, this pivotal moment revolves around data integration. Alberto explains:

"The moment in which the user is prompted by our data action funnel, our data action wizard, where you can actually connect one of your tools to Rows is definitely one of the 'aha' moments."

Balancing Activation Metrics

Identifying this moment is just the first step. The real challenge lies in striking the right balance with your activation metric. Alberto notes:

"An activation metric should not be too easy to reach, of course, because otherwise, you overfit your user base, the visitors of your website. If anyone is able to activate, then 'activate' becomes meaningless. On the other hand, they need to be enough to represent a statistically significant sample and be actionable in terms of data analysis."

Alberto suggests that an ideal activation rate should be between 5% and 15% of users. This range ensures that the metric is meaningful and provides a large enough sample for analysis.

For Rows, focusing on data integration as their key activation metric aligns with their value proposition and correlates strongly with user upgrades. As Alberto explains:

"We decided to focus on the integration also because integration is the best proxy we have so far for upgrades. So, people who use the integration upgrade very likely, and this is actually very important for us."

Strategies for Shortening Time-to-Value

Reducing the time it takes for users to experience value is crucial for improving activation rates. Rows took a bold approach to this challenge.

Immediate Product Access

One of Rows' most impactful decisions was eliminating their product homepage. Alberto shares:

"About a year ago, actually, we took a very drastic decision and we killed the homepage. So what I mean is that we killed the product homepage. Once you type rows.com on your browser address bar, you will land immediately on the spreadsheet, a full working spreadsheet."

This bold move led to a significant increase in conversion rates:

"We had a sharp increase in conversion rates, even meaning sign-up rates. So, for people, the chance of trying the spreadsheet right away, just after typing in the browser the website, increased the conversion rate up to 20% to 35%."

The impact of this change was dramatic. Alberto reveals:

"It took us more than four years to get 50K users and then one year to get 1,000,000. So we definitely hit a hockey stick in this user growth, and that was mainly because of this way to cut the time to value."

Dealing with Increased Traffic

However, this approach comes with challenges. Alberto explains:

"The cons are that basically you have a lot of people, right, who are trying the product, but they don't stick. And the idea is that while before we had people that went through all the sign-up and obviously showed very good intent in using Rows and we also had more data about their marketing, about their role, their spreadsheet proficiency or whatever, we were able to target a bit more and a bit better obviously the first experience."

To counteract this, Rows shifted focus to attracting high-intent traffic, particularly targeting marketers. Alberto elaborates:

"Our main focus, our ideal customer profile is marketers. So everything we are making on them or all the efforts that we're making in the marketing side is trying to attract and work with to work to bring marketers to Rows. They are most likely to use integrations because marketers generally have a very broad toolkit in terms of CRMs, Google Analytics, Facebook ads, LinkedIn ads, and whatever."

Converting Product-Qualified Leads (PQLs) to Paying Customers

Converting PQLs into paying customers is a critical step in the PLG journey. Rows' approach here offers valuable insights for other SaaS companies.

The Importance of Timing

When it comes to converting PQLs, timing is everything. Rows discovered that the conventional approach of immediate follow-up wasn't effective for their product. Alberto explains their new approach:

"Now what we do is, especially in the sales-led playbook, we try to contact them right after the seventh day or after the fourth session, when we think that the user is more sticky, more engaged. They had the chance to actually discover the product and test it and see the value in it. And this actually improved a lot the contact rate and the conversion rate to paid."

This delayed approach has significantly improved both contact and conversion rates. It allows users time to explore the product, understand its value, and potentially encounter challenges that the sales team can then address.

Understanding Usage Patterns

This strategy demonstrates the importance of understanding your product's usage patterns. Alberto explains:

"Rows is not a product that you are likely to use every day. It's more like a product that you use to build a specific solution or a specific automation and then obviously automate it and then you let it go. And you go back to it when you have other needs or other projects."

Qualifying PQLs

Rows emphasizes thorough qualification of PQLs before they enter the sales pipeline. Alberto provides an example:

"For example, it's actually easier for us if we know that they are using a specific CRM, and they are marketing teams, and they are from a certain company. We already know which CRM they're using, and we are able to showcase to them some sort of template to download right away or right after the sign-up. This way, they see the value immediately and can try the product in the best way possible."

Leveraging Analytics and Tools for Growth

A robust analytics stack is crucial for driving growth efforts in PLG SaaS. Rows' approach here is both sophisticated and streamlined.

Rows' Analytics Stack

Alberto outlines Rows' analytics stack:

"Our analytics stack is made by two big components, let's say. The first one is Mixpanel, so this is actually our main source of truth in terms of product analytics and usage. And the second one is a data warehouse built on top of BigQuery, where we basically store our backend events and also all the external events that come from the product, from the sign-up page, and obviously, from sales-led motions or support, and everything that is actually an external product event that we store on the data warehouse."

In addition to these core components, Rows also uses HubSpot as their CRM and Intercom for in-product communication and onboarding.

Innovative Use of Analytics

Alberto describes an innovative use of their analytics:

"One thing that we actually did, which was very useful, was to use Mixpanel as an alerting system to understand and get in touch with specific cohorts of users. So, it's not just about monitoring or tracking the usage, but it's also about segmenting users on Mixpanel based on the fact that they, I don't know, invited five teammates in the last two weeks. And then we immediately get in touch with them by email, automated, or by direct outreach, saying, 'Okay, you are in the right spot. You are doing this. Do you need help with anything else? Do you need help with setting up your team account?'"

Collecting and Utilizing User Feedback

Gathering and acting on user feedback is essential for continuous improvement in any SaaS product, but it's particularly crucial in a PLG model where the product itself is the primary driver of growth.

Multi-Faceted Feedback Collection

Alberto describes Rows' approach to gathering user feedback:

"We have a very standard approach to user feedback, which is obviously the direct NPS survey or the direct satisfaction survey. So, every time you connect a service, every time you do something that is a very specific milestone in the product, you will receive an NPS or a CSAT survey that will ask you, 'How did it go?' 'What do you think about this?'"

In addition to these surveys, Rows also conducts qualitative research:

"We try to get in touch with users that are very active or users that churned, especially after the activation phase, to understand what they did in the product, what they liked in the product, what they didn't like, and how we can improve. We do this on a weekly basis."

Acting on Feedback

Importantly, they don't just collect this feedback - they act on it. Alberto shares their process:

"We have a weekly meeting, a weekly sync with the product team where we discuss the feedback from the week, what are the main problems or issues that people encountered, and how we can improve the product."

Key Lessons for Improving User Activation

Drawing from their experience, Rows offers four key lessons for SaaS companies looking to improve user activation:

1. Simplify the experience: Alberto explains, "The first lesson we learned is to keep things simple. Rows is a very complex product, and when we launched, we actually had a lot of things going on. So, there was a lot of clutter in the product, and this obviously didn't help. So, we learned to remove everything that was not necessary, and we focused on the main value proposition and making it as easy as possible for the user to understand what Rows is and how it can help them."
   
   

2. Timing is crucial: Understanding when to reach out to users and when to let them explore independently is key.
   
   

3. Balance data with intuition: Alberto notes, "We use a lot of data, and it's obviously very important to track and monitor everything, but sometimes the data might not tell the whole story. So, it's important to combine the data with your intuition and your understanding of the product and the users."
   
   

4. Be patient: Alberto emphasizes, "Rows is a product that takes time to understand, to build, and to use. So, we learned that sometimes it's okay to let users take their time to discover the product and to reach the 'aha' moment. It's important not to rush them, but to guide them through the journey in a way that feels natural and helpful rather than forced."

Conclusion

Optimizing user activation in a PLG SaaS environment is an ongoing process of refinement and learning. By focusing on clear "aha" moments, reducing time-to-value, strategically engaging PQLs, leveraging analytics, and continuously incorporating user feedback, you can significantly improve your activation rates and overall growth trajectory.

Rows' journey offers valuable lessons for other SaaS companies:

1. Don't be afraid to make bold moves if they align with your product-led strategy.
   
   

2. Understand your product's usage patterns and tailor your engagement strategies accordingly.
   
   

3. Use analytics not just for retrospective analysis, but for proactive, real-time engagement.
   
   

4. Collect feedback consistently, but more importantly, act on it regularly.

   
   

5. Remember that activation is not just about getting users into your product, but about getting them to experience its core value as quickly as possible.

As you reflect on your own user activation strategies, consider: What's your product's true "aha" moment? How can you shorten the path to that moment? Are you timing your engagements effectively? How can you better integrate your data sources for more comprehensive insights?