The State of Product Growth 2024

Discover the industry report from 40+ product growth teams at B2B SaaS companies.

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Jonathan Anderson
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No two companies do product growth quite the same. 

This report hopes to shed a little light on how product growth work is planned, completed, and assessed across different organizations. By learning more about how different teams approach growth, we can all learn from each other.

And more participated in the State of Product Growth Report.

How can you use this report? 

  • Learn how Product Growth teams are structured, including the benefits and challenges of centralized and decentralized teams.
  • Learn where to focus. Discover which parts of the funnel teams focus on, and which experiments are worth trying.
  • Find out how Product Growth teams measure success Learn about other team’s key initiatives and metrics

The landscape of product growth has become a critical focus for technology professionals, especially within B2B SaaS companies. With over 40 product growth teams surveyed, the "State of Product Growth 2024" report unveils significant insights that help understand the dynamics shaping this area. This blog post dives into the core aspects that are pivotal for tech professionals at software companies: team structure, funnel focus areas, technology and tools, and metrics and milestones.

Who participated in this report?

Just how product-led are we?

Even distribution of how product-led teams are today (self-reported).

61% of growth teams expect to be more product-led by next year. 18% of teams plan to be less product-led by incorporating hybrid sales-led motions. 

Pricing Approach & Customer Profiles

Most participants had product or product leadership backgrounds.

We are beginning to see a split between functional PMs and growth PMs, who focus on improving growth metrics.

Let’s dive in.

Product Growth Team Structure

One of the report's key findings is the variety in the structure of product growth teams: Who is on the team, who they report to and whether the teams are centralized, decentralized or hybrid. 

Most product growth teams include a PM, a Designer, and 4+ engineers. Larger teams have product marketers, growth marketers, and data analysts.
Most product growth teams report up to the CPO, but not all.

Centralized vs. Decentralized Teams

Companies have been experimenting with centralized, decentralized, and hybrid structures, each with its own advantages and challenges.

Are Product Growth teams centralized, decentralized or hybrid?

Centralized teams enjoy clearer communication channels and a more focused approach, ensuring that strategies align closely with the company's goals. However, they might suffer from a lack of visibility into other departments' contributions and initiatives.

On the other hand, decentralized teams benefit from broader impacts across the organization, fostering innovation and autonomy. But, the scattered focus and the need to manage different planning cycles can detract from a unified growth strategy.

Hybrid approaches try to balance these aspects, aiming for flexibility and broader impact while maintaining some level of central control.

Diverse Structures of Product Growth Teams: Centralized, Decentralized, and Hybrid Models.

Funnel Focus Areas

Product growth teams are increasingly zeroing in on specific funnel areas: Acquisition, Activation, Retention, and Revenue. A team’s focus is tailored to the company's stage and specific needs, with many teams emphasizing activation and conversion in a trial period.

Not surprisingly, activation strategies, such as improving onboarding processes and user engagement, are prevalent among growth teams aiming to convert new users into active customers.

Primary Focus Areas within the Product Growth Funnel
The most common area of focus? The homepage and onboarding checklists.

Experimentation Culture

For many product growth teams, experimentation is a cornerstone of their ‘test everything’ growth strategy. Others have yet to start their experimentation journey. 

Very broad range for how teams rated their experimentation culture. Some teams test everything, others nothing.

There is a positive correlation between the number of experiments conducted and a team’s perception of being product-led – underscoring the significance of an embedded experimentation culture. From rapidly validating ideas to meticulous funnel optimization, experimentation is an important aspect of building a solid foundation for product growth.

Ideas for new growth initiatives or experiments can come from anywhere, but internal brainstorms, best-in-class companies, and competitors were the most fruitful sources.

Technology and Tools

What’s in our product growth tech stack? 

The report highlights a significant reliance on analytics, product management, and design tools. Moreover, tools for A/B testing, digital adoption, and customer data platforms (CDPs) can play a significant role in enabling teams to move faster. 

However, the report also indicates a challenge in integrating these tools to create a coherent technology ecosystem that supports data-driven decision-making.

Product Analytics and Design and Collaboration tools are essential. Other tools, like AB testing, Digital Adoption, and CDPs were less common.
Product Usage and User Feedback ranked #1 and #2, showcasing the desire amongst Product Growth teams to marry quantitative with qualitative data.

Our favorite tools? 

Product Growth Metrics and Milestones

Measuring the right metrics is fundamental to understanding the success of product growth initiatives. When teams were uncertain about which metric to measure, it created significant organizational challenges. 

The report indicates a strong emphasis on activation rates, conversion rates, and customer retention metrics. These KPIs help teams gauge the effectiveness of their strategies and make data-informed decisions to steer product growth in the right direction.

Additionally, setting clear milestones and aligning them with overarching business goals ensures that growth efforts contribute positively to the company's success.

Product Growth teams measure success in different ways, but Activation rates and Conversion rates are the most common.

Navigating the Future of Product Growth

The "State of Product Growth 2024" report provides insights for product growth teams and leaders who want PLG to succeed within their organizations. 

Understanding the nuances of team structures, focusing on the right areas of the funnel, leveraging technology effectively, and measuring the right metrics are all crucial to building a robust strategy.

Product growth teams can foster a culture of growth that propels their products and companies forward by learning from the experiences and strategies of other teams.

While no two companies approach product growth in the exact same way, sharing insights and best practices can help us move this function forward.

Happy growing.


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