Grammarly - An overview

Grammarly is an online writing assistance platform that focuses on helping users improve their written communication across various contexts.

Grammarly's value proposition: at a very high level, is its ability to provide real-time writing suggestions and corrections, enhancing the quality and effectiveness of users' writing beyond what traditional spell-checkers offer.

Their primary offerings are:

1. Grammar and Spelling Checker - Advanced AI-powered tool that identifies and corrects grammatical errors, spelling mistakes, and punctuation issues ✅
2. Style and Clarity Improvements - Suggestions for enhancing sentence structure, word choice, and overall readability to make writing more clear and engaging 📝
3. Tone Detector - Analysis of the tone of writing, helping users adjust their language to suit their intended audience and purpose 🎭
4. Plagiarism Checker - A feature that compares text against billions of web pages to ensure originality (available in premium plans) 🔍
5. Personal Dictionary - Ability to add custom words and terms to avoid false flags for industry-specific language or proper nouns 📚

What's special and their unfair advantages.

1. Brand recognition: Grammarly has become almost synonymous with online writing assistance, giving it a strong market position.
2. Continuous learning: Their AI improves with each use, learning from millions of writing samples daily.
3. multi-platform availability: Their ability to work across multiple platforms and applications (browsers, desktop, mobile, MS Office, etc.) gives them a significant edge in user convenience.

Ideal Customer Profile(s)

From some basic user research and hypothesis, we formed 4 ICPs for Grammarly.

ICP 1 - Chaitanya, a college student aged 16-23, aims to improve his academic writing and boost his grades. 👨🏻‍🎓

• His grades are dependent on error-free writing, as well as the quality and choice of words used.

ICP 2 - Sanket, a freelancer or professional aged 23-30, needs to enhance his writing and presentation skills.

• His communication skills will have a significant impact on his career growth and trajectory.

ICP 3 - Nihar, an executive, manager, or founder in his 30-40, wants to ensure all his communication is proper, precise, and impactful.

• Every piece of professional communication is crucial to his reputation.

ICP 4 - Manjuram, an author or journalist aged 40-50, wants to ensure all his writing is plagiarism-free, error-free, and of high-quality English.

• He is in the business of writing, particularly in English.

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For the ICP table, we are only considering the ICP 2 and ICP 3, as they have a higher affinity to pay, additionally, they can be reached through the channel of organic social content, which will make the CAC lower for this segment of users.

Beyond that, their frequency of usage is very high, so the chances of converting them to core or power users and making them buy subscriptions increase.

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We also define a metric - Writing Proficiency - which is rated on the below scale -

1 - Minimal Proficiency: Struggles with basic grammar, spelling, and punctuation.

2 - Limited Proficiency: Basic grammar and spelling are understood but frequently make mistakes.

3 - Intermediate Proficiency: Understands grammar and spelling; occasional errors, vocabulary is adequate.

4 - Advanced Proficiency: Strong grammar, spelling, and varied vocabulary; rare minor errors.

5 - Expert Proficiency: Excellent grammar, spelling, and style; sophisticated vocabulary, almost no mistakes.

We are not considering the geographical location as a factor, cause I believe writing mistakes are hugely part of the speed and with which the user is writing, the user is already using English as a medium to browse that sets the context that he is well versed with the language and the Grammar, using Grammarly is just about the security of not taking any risk of any error in the content.

Using the JTBD framework, we also identify the Jobs to Be Done for each of the ICP's -

For products such as Grammarly, the Primary Goal is functional, as everyone wants to be a better writer, without grammar errors and spelling mistakes. But the secondary goal can differ, with specific to what they want to achieve with better writing.

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But the desires of the users are a lot interdependent, which in general does affects the motivation of the user, so for that we are also understanding all the other factors of motivation or goals he has specific to using Grammarly

For ICP 2 - Goal priority (it decreases along the serial number.)

1. Want to write better, without grammar errors, or spelling mistakes, while doing professional tasks. - (Primary Goal)
2. Increase earning potential through better jobs/clients - (Secondary Goal)
3. Career Growth and better opportunities - (Tertiary Goal)
4. Building a professional network and reputation by proper communication - ( Least Prioritised Goal)

For ICP 3 - Goal priority (it decreases along the serial number.)

1. Want to write better, without grammar errors, or spelling mistakes, while doing professional tasks, and enhance business communication - (Primary Goal)
2. Maintain leadership image and influence - (Secondary Goal)
3. Facilitate business growth and partnerships - (Tertiary Goal)
4. Strengthen the personal brand, maintaining the tonality while communicating - ( Least Prioritised Goal)

User Goal Validation from Chrome extension reviews :)

(Couldn’t find extremely relevant ones, but fit the basic behaviors of our ICPs)

Onboarding Teardown

(We are choosing ICP 2 for teardown)

grammarly onbording GrowthX.pdf

Activation Metrics Hypothesis

0. Landing Page Interaction (based on the teardown)

• Hypothesis: The user needs to verify a set number of texts on the landing page within their first visit to be considered an active user.
• Explanation: Users who actively engage with the text verification tool on the landing page are more likely to recognize Grammarly’s value, leading to a higher likelihood of installing the Chrome extension.
• Metrics to Monitor:
• • Number of texts verified on the landing page.
  • Conversion rate from landing page interaction to Chrome extension download.

1. Weekly Correction Count

• Hypothesis: The user needs to make 250 corrections across email, WhatsApp, Slack, Notion, Word, and documents within 7 days to be considered an active user.
• Explanation: Reaching 250 corrections in the first week indicates that the user is actively engaging with Grammarly’s core functionality across multiple platforms, suggesting a higher likelihood of continued use.
• Metrics to Monitor:
• • Total corrections per platform.
  • Time taken to reach 250 corrections.
  • Engagement rate across different platforms.

2. Custom Dictionary Usage

• Hypothesis: The user needs to add a specific number of words or slang to Grammarly’s custom dictionary within 7 days to be considered an active user.
• Explanation: Users who personalize their Grammarly experience by adding custom words are more engaged, as this action shows they are tailoring the tool to better fit their needs, indicating deeper interaction.
• Metrics to Monitor:
• • The number of custom words added.
  • Frequency of custom word usage in corrections.

3. Waiting for "All Done" Screens and Premium Pop-Ups

• Hypothesis: The user needs to encounter a set number of "All Done" screens and premium pop-ups within 7 days to be considered an active user.
• Explanation: Frequent interaction with "All Done" screens and premium pop-ups suggests that users are engaging deeply with Grammarly’s features, which could increase their interest in upgrading to premium.
• Metrics to Monitor:
• • Number of "All Done" screens displayed.
  • Frequency of premium pop-ups viewed.

4. GrammarlyGO Text Insertions

• Hypothesis: The user needs to generate and insert a set number of GrammarlyGO texts into their documents within 7 days to be considered an active user.
• Explanation: Active use of GrammarlyGO indicates that the user is exploring advanced features, which is a strong indicator of their engagement and potential interest in premium offerings.
• Metrics to Monitor:
• • Number of GrammarlyGO texts generated.
  • Number of GrammarlyGO texts inserted into documents.

5. Document Upload and Verification

• Hypothesis: The user needs to upload and verify a specific number of documents within 7 days to be considered an active user.
• Explanation: Users who frequently upload and verify documents are likely to find significant value in Grammarly’s services, making them more inclined to continue using the platform and potentially upgrade to premium.
• Metrics to Monitor:
• • Total documents uploaded.
  • Document verification completion rate.

Key Metrics to Track for Grammarly:

1. Drop-off Rate During Onboarding/Initial Setup:
2. • Why Track: Onboarding is a crucial step for user activation. A high drop-off rate during the initial setup (e.g., using Grammarly in browsers, integrating with Gmail, etc.) can indicate friction points that may deter users from fully adopting the tool.
   • Focus: Identify and streamline pain points in the onboarding flow to improve activation rates.
3. Retention Rate by Acquisition Source:
4. • Why Track: Understanding which acquisition channels (e.g., referrals, ads, organic search) lead to the most loyal users helps optimize marketing spend. Referrals and word-of-mouth (WOM) are expected to be strong channels, so tracking retention from these sources is vital.
   • Focus: Compare retention rates across channels to prioritize high-value acquisition strategies.
5. Time to First Active Use (e.g., First Document Correction):
6. • Why Track: Users who engage with Grammarly shortly after signing up are more likely to become sticky. Measuring how quickly users make their first correction can highlight the effectiveness of the onboarding and initial user experience.
   • Focus: Shorten the time to first active use to boost early engagement and long-term retention.
7. Read Rate on Emails:
8. • Why Track: Engaged users are more likely to open and interact with emails. Tracking email open and click-through rates can provide insights into how well users are connecting with the content and features highlighted in the communication.
   • Focus: Increase the relevance and personalization of emails to drive higher engagement.
9. Read Rate on In-App Notifications:
10. • Why Track: Users who frequently engage with in-app notifications are typically more involved with the platform. Measuring read and interaction rates can help refine the notification strategy.
    • Focus: Optimize in-app notifications to enhance user engagement and highlight key features.
11. Number of Document Corrections Per User:
12. • Why Track: The frequency of corrections made by a user is a strong indicator of platform engagement. Users who correct more documents are likely to see greater value in Grammarly.
    • Focus: Encourage regular use by highlighting the impact of corrections on writing quality.
13. Time Spent Using Grammarly (Monthly):
14. • Why Track: Time spent on the platform is a key indicator of user value and satisfaction. A higher monthly usage time suggests that users find Grammarly essential for their writing tasks.
    • Focus: Identify ways to increase the platform’s utility to boost the time spent on it.
15. Number of Users Providing Reviews/Feedback:
16. • Why Track: User reviews and feedback are crucial for building trust and improving the platform. A higher number of reviews can indicate strong user engagement and satisfaction.
    • Focus: Encourage satisfied users to leave reviews to build social proof and attract new users.
17. Referral Rate Among Active Users:
18. • Why Track: Referrals are a powerful growth channel. Users who refer others are usually highly satisfied and see significant value in the platform.
    • Focus: Promote referral programs among retained users to leverage WOM for growth.
19. Uptime & Reliability of Grammarly Services:
20. • Why Track: Technical reliability, such as real-time corrections and seamless integrations, is critical to user satisfaction. Any downtime or errors in key functionalities can lead to frustration and churn.
    • Focus: Ensure high uptime and quickly address technical issues to maintain user trust and retention.
21. Time from the Sign up to the 1st “AHA!” moment the user experiences:
22. • Why Track: Technical reliability, such as real-time corrections and seamless integrations, is critical to user satisfaction. Any downtime or errors in key functionalities can lead to frustration and churn.
    • Focus: Ensure high uptime and quickly address technical issues to maintain user trust and retention.

Quantitative Metrics to Track:

• DAU/WAU Ratio: Tracks the stickiness and regular engagement of users.
• DAU, WAU, MAU (separately): Measures daily, weekly, and monthly active users.
• New Users Per Week & Cohort Analysis: Monitors user growth and retention over time.
• Stickiness Ratio (DAU/MAU): Indicates how often users return to the platform.
• Net Promoter Score (NPS): Gauges overall user satisfaction and likelihood of referral.
• Correction Use Cases Per User Per Day Per Application: Analyzes user interaction across different platforms.
• Average Onboarding Demo Completion Rate: Measures the effectiveness of onboarding.
• Activation vs. Subscription vs. Retention Rate: Tracks user journey through different stages.
• Cohort Analysis of Subscription Users: Assesses retention among premium users.
• Feature Usage Metrics: Evaluate the usage, impact, and efficiency of various Grammarly features.

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