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Medium
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The Engagement Expansion Engine
- In the SaaS cloud era, activation was already essential for driving retention and engagement, making it crucial for PLG companies.
- Monetization in the AI-driven era is shifting towards usage-based pricing, with activation now impacting revenue more profoundly than ever before.
- Activation, not onboarding, delivers value, especially with modern AI experiences providing instant value to users.
- User engagement is a key growth lever, with activation feeding engagement to impact the P&L.
- The Engagement Expansion Engine decouples growth strategies from account numbers, focusing on engagement through product usage.
- Key strategies for boosting engagement include use case transition and deep workflow integration within tools.
- AI demands full responsibility for user outcomes, with a focus on delivering valuable outcomes to drive long-term engagement.
- High quality outcomes drive user engagement and revenue growth in the AI-driven era.
- Deep workflow integration and leveraging proprietary data are crucial for superior outcomes and engagement.
- AI-native companies leverage high velocity and rapid decision-making to outcompete non-adapting rivals.
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