The 5 Most Common Mistakes in Product-Led Growth (And How to Avoid Them)

👋 Welcome to Inspired Momentum!

Product-led growth (PLG) is one of the most effective strategies for scaling your business, but even the best teams can fall into common traps that slow growth or hurt retention. Avoiding these pitfalls can save you time, money, and frustration.

In this issue, we’ll explore:

1. The five most common mistakes teams make in PLG.

2. Actionable strategies to avoid or fix them.

3. Real-world examples of what works (and what doesn’t).

Let’s dive in and ensure you’re on the path to success!

🚩 Mistake #1: Overcomplicating Onboarding

The Problem:
If your onboarding process is too long or complicated, users will abandon your product before they realize its value.

How to Fix It:

• Simplify your onboarding to focus on one key action that drives value (e.g., setting up an account or completing a task).

• Use onboarding checklists, tooltips, and interactive guides to lead users through the process.

• Test onboarding flows regularly to identify friction points.

💡 Example: Slack’s onboarding encourages users to invite teammates and send messages immediately, demonstrating value within minutes.

🚩 Mistake #2: Ignoring Time-to-Value (TTV)

The Problem:
Users who take too long to experience the product’s value are less likely to stick around.

How to Fix It:

• Highlight your product’s core benefit as quickly as possible.

• Remove unnecessary steps between signup and first value (e.g., skip non-critical setup tasks).

• Track TTV and optimize it over time.

💡 Example: Canva lets users start designing immediately with pre-made templates, reducing TTV to seconds.

🚩 Mistake #3: Focusing on Features, Not Benefits

The Problem:
Bombarding users with all your product’s features can overwhelm them and obscure its value.

How to Fix It:

• Focus on your product's core benefits, not every feature it offers.

• Introduce advanced features gradually once users are already engaged.

• Use clear, benefit-focused messaging in your onboarding and marketing.

💡 Example: Duolingo starts users with a simple first lesson to build confidence before introducing advanced features like leaderboards.

🚩 Mistake #4: Misaligned Metrics Across Teams

The Problem:
If teams are tracking conflicting KPIs, it can create silos and hurt overall performance.

How to Fix It:

• Define a North Star Metric (NSM) that all teams work toward (e.g., activation rate, retention rate).

• Align sub-goals across teams to ensure they contribute to the NSM.

• Use shared dashboards to keep everyone on the same page.

💡 Example: At HubSpot, all teams aligned around the NSM of customer success, with marketing, product, and sales contributing to a unified user experience.

🚩 Mistake #5: Neglecting Feedback Loops

The Problem:
Failing to collect and act on user feedback can lead to blind spots and missed opportunities for improvement.

How to Fix It:

• Use in-app surveys or tools like Hotjar to collect user feedback.

• Analyze user behavior data to identify pain points and opportunities.

• Regularly update your product based on feedback and communicate changes to users.

💡 Example: Notion frequently surveys its users and rapidly iterates on feature requests, keeping its community engaged and loyal.

🛠️ Quick Checklist: Are You Avoiding These Mistakes?

1. Is your onboarding simple, focused, and friction-free?

2. Are you optimizing Time-to-Value for new users?

3. Are you emphasizing product benefits over features?

4. Are your teams aligned around shared metrics and goals?

5. Do you have feedback loops in place to continuously improve?

If you’re unsure about any of these, now’s the time to take action!

🚀 Real-World Success: How Calendly Avoided PLG Pitfalls

Calendly grew rapidly by avoiding these common mistakes:

1. Simplified Onboarding: Users can start scheduling meetings with just a few clicks.

2. Optimized TTV: Immediate access to core scheduling features.

3. Benefits-Focused Messaging: Clear emphasis on “saving time” rather than technical features.

4. Aligned Metrics: Teams worked toward increasing active user rates.

5. Continuous Feedback: User insights shaped new features like team scheduling.

Your Takeaway: Follow Calendly’s example by prioritizing simplicity, speed, and alignment.

💡 What’s Next?

Start by auditing your current PLG strategy. Identify which mistakes might be holding you back and take one small step toward improvement this week.

📣 Let’s Collaborate!

What’s been the biggest challenge in your PLG journey? Reply to this email and share your experience—I’d love to feature your insights in a future issue!

Until next time,
Filippo

P.S. Share this newsletter with someone building a PLG strategy—it might save them from these common pitfalls!