ELG section: Litmus test

Litmus test for events

The litmus test helps determine if events can serve as an effective growth lever for the product by evaluating three areas: business model, value prop and sales cycle.

Let's look at each one of them:

Business model

Ask yourself these questions:

What is your ARPU (Average Revenue Per User)?

• Low ARPU, High Volume: Products like Calendly, Zoom, Notion.
• High ARPU, Low Volume: Products like HubSpot, Salesforce, Jira.

Is your pricing model stable?

If your pricing and billing process is constantly changing, your product might not be ready for event-led growth.

Core value prop

Even the best planned events will fail if your messaging is unclear. Check if:

• You have a well-defined customer persona (Who exactly are you targeting?).
• You understand your core JTBD (Jobs-To-Be-Done) for your audience.
• Your positioning is clear—is your product solving a problem people recognize?
• Your messaging has been tested in other marketing channels.

Sales Efficiency: Can your sales team convert attention into revenue?

Answer these questions to understand if your sales team is ready to convert attention into revenue:

• What is your sales process?
• • Is it self-serve (users sign up and pay directly)?
  • Is it sales-led (high-touch process with reps)?
• How long is your sales cycle?
• • If your sales cycle is too long and inefficient, ELG may not yield positive ROI.
• Do you have a structured follow-up process?
• • Without a well optimised post-event sales funnel, all your event-generated leads may go cold.