3 no-no metrics for PLG that everyone's using

how many, how long.

As product-led growth (PLG) continues to gain momentum in the SaaS industry, companies are increasingly focusing on identifying the right metrics to measure the success of their PLG strategies. While there are many metrics that companies can use to track their growth, not all of them are created equal. In fact, some metrics can be misleading and may even lead companies in the wrong direction. Here are the top three metrics I have personally seen getting more attention than they deserve -

1. Total Signups

Total signups is a metric that measures the number of users who have signed up for a product or service. While this metric can give companies a sense of the popularity of their product, it does not necessarily indicate the success of their PLG strategy. This is because many users who sign up for a product may never actually become active users or customers. In fact, a high number of signups can even be a warning sign that the company is not effectively targeting the right users or that the product is not delivering on its promises.

What’s more worrying is that a lot of companies continue to report on Signups and nudge the VC world to expand the banks. I couldn’t find a recent example, but a good example from the past is how in 2012, Path, a social networking app, boasted five million registered users. However, it was later revealed that the company had been sending spammy text messages to users' contact lists without their permission in an attempt to boost its user base. The company faced backlash from users and ultimately had to settle with the Federal Trade Commission over the deceptive practice.

2. Time on Site

Time on site is a metric that measures the amount of time that users spend on a website or product. While this metric may seem like a good indicator of engagement, it can be misleading because it does not take into account the quality of the user's experience or whether the user is actually accomplishing anything meaningful. In fact, users who spend a long time on a site may actually be struggling to find what they are looking for, which can lead to frustration and ultimately churn.

In 2014, Groupon CEO Eric Lefkofsky famously stated that the company's customers were spending too much time on its site, indicating that the site was too complicated and difficult to navigate. The company ultimately revamped its site to make it more user-friendly and saw a significant increase in conversions and revenue.

3. Pageviews

Similar to time on site, Pageviews is a metric that measures the number of times a web page has been viewed. While this metric can give companies a sense of the popularity of their content, it does not necessarily indicate the success of their PLG strategy. In fact, a high number of pageviews can even be a warning sign that users are struggling to find what they are looking for and are clicking around aimlessly. In 2013, Upworthy, a website that curates viral content, boasted over 100 million pageviews per month. However, the company later admitted that it had fallen into the trap of "clickbait" headlines and had sacrificed the quality of its content in order to drive traffic. The company ultimately had to pivot its strategy to focus on creating more meaningful content and engaging with its audience in a more authentic way.

As PLG continues to grow in popularity, it is important for companies to identify the right metrics to track their success. While there are many metrics that can be useful, it is important to avoid metrics that can be misleading or do not provide a complete picture of the user experience.