How to structure PLG features in your pricing tiers...
Using Airtable as an example
There are 3 feature types to understand:
🔵 Acquisition Features (User Growth)
🟣 Activation Features (Usage Growth)
🟢 Monetization Features (Revenue Growth)
Here is how to think about and use each type:
🔵 Acquisition Features
→ Eliminate friction to activation
These features increase the number of opportunities for a new user to get value from the product.
For Airtable, this is unlimited bases.
This gives new users many attempts to experiment with different use cases without barriers.
→ Enable multiplayer mode
The idea here is give users the power to invite peers into the product.
For Airtable, it's unlimited read-only users.
💡 Acquisition features almost always go into the free tier.
🟣 Activation Features
→ Deliver first value (Aha Moment)
The key here is to provide everything a user needs to create the habit of coming back into the product.
For this, there needs to be some complete element of value.
For Airtable, this means creating an end-to-end use case with a base, an extension, a sync, and then pulling it all together in the interface designer.
💡 Activation features end up in almost all pricing tiers - depending on the level of activation you are trying to drive.
🟢 Monetization Features
→ Capitalize on the activation
→ Setup 2nd-level "Aha moments"
These features go hand-in-hand with activation features.
It's all about knowing when enough value has been created with strong enough habits to make the purchase a no-brainer.
For Airtable, this is once a user or team has at least 1 end-to-end value use case with the activation features.
💡 To uncover these features, leverage your usage data and experimentation to hone in on defining your minimum activation metrics.
Ben Wilentz
Founder, Stealth Startup