As a Product Marketing Manager (PMM), you’ve probably spent a lot of time tracking product-specific metrics—feature adoption, NPS scores, user engagement. And yes, those are important. But they’re not the whole story. At the end of the day, every product is meant to drive revenue. If we, as PMMs, aren’t thinking about revenue, we’re missing a huge part of our role.
Here’s a roadmap on why and how PMMs should own revenue metrics—and how this responsibility evolves as a company grows. Consider this your field guide for creating not only great products but also profitable ones.
Why PMMs Need to Think Beyond Product Metrics
Focusing only on product metrics can limit our perspective. When PMMs prioritize usability and adoption alone, they risk creating products that customers love but aren’t willing to pay for. High user engagement is fantastic, but if the product doesn’t contribute to revenue, sustainable growth is unlikely.
Imagine this: You’ve just launched a new feature, and adoption rates are off the charts. You’re thrilled! But then you hand off revenue goals to the GTM (go-to-market) team and move on to the next project. The feature is technically successful, but has it truly succeeded if it doesn’t meet revenue targets? Not really.
When PMMs own revenue goals tied to the features they build, they stay engaged post-launch, continuously optimizing based on real user feedback. It’s not just about building a good product—it’s about building a valuable product that customers want to pay for.
Making Revenue Accountability Real for PMMs
Owning revenue doesn’t mean PMMs are responsible for all company revenue. It means being accountable for the revenue directly tied to the products or features we launch, at least for the first year. We know the product’s value proposition inside out, and we pitch new features with adoption and revenue impact in mind. So why walk away after hitting product adoption metrics?
When PMMs stay engaged, they can join sales calls, hear customer objections firsthand, and work closely with GTM teams to refine both the messaging and the product itself. Sometimes, minor adjustments—like tweaking the UX or offering a free trial—can make all the difference in achieving revenue goals.
Key Revenue Metrics for Each Growth Stage
Revenue metrics evolve as a company grows, and PMMs should adapt their focus accordingly. Here’s how PMMs can drive revenue at every stage, from finding product-market fit to scaling and maximizing growth.
Stage 1: 0 to 1 (Finding Product-Market Fit)
In the early days, the goal is simple but challenging: Prove that the product meets a real need. PMMs should focus on these metrics:
- Monthly Recurring Revenue (MRR): Tracks predictable monthly income and reveals how well new features contribute to stable revenue.
- Average Revenue Per User (ARPU): Measures how much revenue each customer generates. Higher ARPU means customers see more value.
- Sales Qualified Leads (SQLs): SQLs show buying intent. They’re a reality check to ensure your product messaging is aligned with what customers need.
- Conversion Rate to Paid Plans: For freemium models, conversion rates indicate how effectively users move from free to paid.
How PMMs Can Drive Revenue in Stage 1
- Craft a Compelling Value Proposition
Make the product’s value clear to early adopters. Understand their pain points and explain how your product uniquely solves them. This messaging is essential for attracting users who see enough value to pay for the product. - Experiment with Pricing and Packaging
At this stage, experimentation is key. Work with product and sales teams to test different pricing models, bundles, or introductory offers. If users hesitate to move from free to paid, consider a limited-time discount or freemium features to encourage upgrading. - Drive Conversion from Free to Paid
Converting trial users to paying customers is crucial for early revenue growth. Create campaigns that highlight the unique benefits of the paid plan, such as email campaigns, in-app messaging, and success content that showcases the value of upgrading. - Collect and Act on User Feedback
Early adopters offer invaluable insights. Gather feedback from sales and customer success teams on why leads convert—or don’t. Use this data to refine messaging or product features that drive conversions.
Stage 2: 1 to 10 (Scaling Product and Revenue)
In this stage, the focus shifts to scaling both the product and revenue streams. PMMs need to fine-tune GTM strategies and expand customer segments.
- Annual Recurring Revenue (ARR): Provides a long-term view of revenue stability and growth.
- Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV): CAC reveals acquisition costs, while CLTV estimates long-term revenue per customer. The balance here is critical for profitability.
- Pipeline Value: Shows potential revenue from current leads. PMMs can adjust strategies based on conversion rates.
- Tokens or Credits Consumed (for usage-based models): For usage-based pricing, tracking tokens or credits consumed offers insights into engagement and potential upsell opportunities.
How PMMs Can Drive Revenue in Stage 2
- Optimize Targeting and Segmentation
Not all customers generate the same revenue. Work with data teams to identify high-value segments and focus marketing efforts there. Tailor campaigns and prioritize features that resonate with these segments. - Enhance Cross-Functional Collaboration
As the company scales, it’s essential for PMMs to work even more closely with sales, customer success, and GTM teams. Attend sales meetings to understand customer objections and collaborate with customer success to address pain points. - Experiment with Upsell and Cross-Sell Strategies
To increase ARR and CLTV, introduce upsell and cross-sell campaigns. If your product has add-ons or premium tiers, show customers how these upgrades provide added value, using case studies, email campaigns, or webinars. - Monitor Usage Patterns for Insights
For usage-based models, tracking tokens or credits consumed reveals engagement levels. Create content or messaging that encourages users to explore more features, increasing usage and revenue.
Stage 3: 10 to 100 (Maximizing Growth and Market Share)
At this mature stage, the focus is on maximizing growth, capturing market share, and increasing revenue per customer.
- Monthly Transactional Users (MTUs): Shows how many users engage in paid transactions. High MTUs indicate both customer satisfaction and revenue stability.
- Average Contract Value (ACV): Measures revenue per contract, often for enterprise customers. Increase ACV by positioning premium offerings or bundling features.
- Expansion Revenue: Tracks revenue from upselling or cross-selling to existing customers.
- Churn Rate: Indicates the percentage of customers who stop subscribing. Reducing churn helps maintain a steady revenue stream.
- LTV
Ratio: Balances acquisition costs with customer lifetime value, a crucial metric for profitable scaling.
How PMMs Can Drive Revenue in Stage 3
- Focus on Customer Retention and Expansion
Retaining customers is cheaper than acquiring new ones. Work closely with customer success to understand why customers churn and develop content or features to address these issues. Identify opportunities for expansion revenue by promoting add-ons or premium features. - Create Customer Success Content
Support high-value contracts by educating customers on product benefits. Develop advanced training materials, case studies, and regular feature updates to keep customers engaged and increase ACV and expansion revenue. - Refine Positioning for Competitive Advantage
As the market matures, competitors emerge. PMMs should analyze the competitive landscape and adjust positioning to highlight the unique value of their product. Showcase unique integrations, superior support, or industry-specific solutions. - Use Customer Insights to Reduce Churn
Analyze churn data to identify why customers leave. Create campaigns or educational content to address these issues, like a welcome series that provides tutorials, best practices, and support resources. - Maximize LTV
Ratio for Sustainable Growth
Focus on balancing acquisition costs with customer lifetime value. Drive initiatives that increase CLTV—like upselling and improving retention—to ensure each customer relationship remains profitable.
The Practical Path Forward for PMMs
Owning revenue metrics doesn’t mean giving up on user engagement or product adoption. Instead, it’s about integrating those goals with a revenue-driven mindset to make sure every action contributes to the company’s financial success.
- Align Product Messaging with Revenue Goals
Always connect product benefits to customer outcomes that lead to revenue. Ensure you’re not just building products users engage with but products they value enough to pay for. - Stay Engaged Beyond Launch
To impact revenue, PMMs should stay involved post-launch. Collaborate with sales and customer success to gather feedback, make adjustments, and refine the customer journey. - Continuously Optimize
Treat revenue metrics as dynamic targets. Monitor performance, iterate on messaging, and adapt based on what drives revenue at each stage.
The Bottom Line: PMMs who own revenue metrics—from finding product-market fit to scaling to maximizing growth—are uniquely positioned to create products that users love and are willing to pay for. After all, a product that doesn’t drive revenue isn’t just an engineering challenge; it’s a marketing one.
Build products that not only engage but also sell. Sell products that grow your company.