How to Leverage AI to Personalize Product-Led Growth at Scale

Author

Filippo Ferri
January 04, 2025

👋 Welcome to Momentum Inspired!

Personalization has become a game-changer in Product-Led Growth (PLG). Users expect tailored experiences that fit their needs—but how do you scale personalization without manual effort?

The answer: Artificial Intelligence (AI).

AI can help you:

  1. Increase activation & engagement by delivering the right experiences at the right time.

  2.  Boost retention by identifying at-risk users before they churn.

  3. Drive upsells by recommending the best plan based on user behavior.

Let’s explore how AI can supercharge your PLG strategy! ðŸš€

🤖 5 Ways AI is Transforming PLG

  1. AI-Powered Onboarding: Faster Activation

    💡 Why it matters: Users who struggle during onboarding often churn. AI can personalize the flow based on user behavior.

    📌 Example:

    • Notion suggests relevant templates based on the industry users select during signup.

    • Grammarly personalizes the onboarding process by asking users what they write (emails, reports, social media).

    ✅ How to Implement It:

    • Use AI-driven chatbots (Intercom, Drift) to guide new users.

    • Track where users drop off and dynamically adjust onboarding steps.

  2. AI-Powered User Engagement: Smart Nudges & Reminders

    💡 Why it matters: Many users abandon products before reaching key activation points. AI can trigger contextual nudges to bring them back.

    📌 Example:

    • Duolingo’s AI-driven reminders keep users coming back with personalized streak alerts.

    • Calendly suggests the next meeting based on previous scheduling behavior.

    ✅ How to Implement It:

    • Use AI-powered email automation (Customer.io, HubSpot) to send behavior-based emails.

    • Implement in-app nudges to highlight unused features based on user behavior.

  3. AI-Powered Churn Prediction: Reduce Drop-Off Rates

    💡 Why it matters: AI can predict churn risk before users actually leave—giving you time to act.

    📌 Example:

    • Zoom identifies inactive users and sends personalized re-engagement offers.

    • Spotify detects drop-off patterns and suggests new content to keep users engaged.

    ✅ How to Implement It:

    • Use AI-powered analytics tools (Mixpanel, Amplitude) to track early signs of churn.

    • Offer exclusive discounts or incentives to at-risk users.

  4.  AI-Powered Upselling & Expansion: Smarter Monetization

    💡 Why it matters: Not every user is ready to upgrade simultaneously, and AI can identify the best upsell opportunities.

    📌 Example:

    • Slack tracks usage patterns and suggests upgrades when teams hit message limits.

    • Figma recommends enterprise plans when large teams collaborate frequently.

    ✅ How to Implement It:

    • Use AI-driven pricing suggestions (like ProfitWell) to recommend the best plan.

    • Trigger in-app upgrade prompts based on feature usage.

  5. AI-Powered Support: Automating Customer Success

    💡 Why it matters: AI-powered chatbots reduce friction by answering user questions instantly—without human support.

    📌 Example:

    • Intercom’s AI chatbot resolves common questions without needing a human agent.

    • Gong’s AI listens to sales calls and provides insights for improving conversions.

    ✅ How to Implement It:

    • Set up an AI chatbot to handle FAQs and onboarding.

    • Use AI-powered search to help users find relevant support articles.

🚀 Case Study: How Grammarly Uses AI to Drive PLG Growth

Grammarly is a perfect example of AI-powered PLG.

🔹 Personalized onboarding → Users specify writing goals, and AI tailors the experience.
🔹 AI-driven nudges → Grammarly highlights missed corrections to keep users engaged.
🔹 Smart upsell → Free users see premium suggestions to push upgrades.

🎯 The result?
Grammarly scaled to 30M+ daily active users with AI-powered personalization at every stage.

🚀 Your Takeaway: AI can enhance every step of the PLG funnel—from onboarding to retention.

💡 Quick Wins to Implement AI in Your PLG Strategy Today

✅ Identify one user journey step where AI could reduce friction (onboarding, engagement, retention).
✅ Test AI-powered chatbots for onboarding & support.
✅ Use AI-based churn prediction to re-engage at-risk users.
✅ Implement AI-powered upsell nudges to improve conversion rates.

📣 Let’s Talk!

How are you using AI in your PLG strategy? Reply to this email—I’d love to feature your insights in a future issue!

Until next time,
Filippo

P.S. Know someone interested in AI-driven growth? Share this issue with them! ðŸš€

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