More than a simple go-to-market method, Product-Led Growth is a strategy. PLG concepts can be adopted by any startup, including those selling to huge enterprises or those operating in specialist vertical markets, to improve user experiences and increase go-to-market efficiency. PLG companies, such as Slack, Zoom, and Calendly, may develop quicker and more efficiently by utilizing their products to build a pipeline of active users who are then converted into paying customers.
Achieving product-led growth is a journey, it’s something we see everyday. The great product quality that this new breed of companies is producing, along with the abundance of options available, has created a general sense of impatience and scorn for bad product experiences. So, before we commit to a product today, we want to give it a try and make sure it delivers on its claims. So, what does this imply for your business?
Product-led growth, as opposed to the more common sales- or marketing-driven approaches, is a business practice that aims to “establish company-wide alignment around the product as the primary driver of sustainable, scalable business growth.”
Klipfolio’s Co-Founder and CEO, Allan Wille, puts it like way:
Product-Led Growth refers to the fact that every team in your company has an impact on the product:
- Your marketing team will wonder how to create a demand engine with our product.
- Your sales team will ask about how the product may be used to qualify leads for you.
- Your customer service team wonders how the product can assist clients in becoming tremendously successful.
How can an organization become product-led
Organizations must first define the value they provide to their customers. The value proposition must be relevant to the clients being served, and it must be supplied before a paywall is implemented. This form of pressure necessitates the involvement of all divisions of the company in the product, and each team must use the underlying product to achieve its own objectives.
While organizations built on PLG principles have an edge, any software company can improve user experiences and increase go-to-market efficiency by adopting the key tenets of product-led growth. If certain circumstances are met, it is possible for non-PLG companies to become product-led.
In order for product-led growth to actually make sense, two essential criteria must be in place:
- Simple Product: Do you have a highly sophisticated product that requires the assistance of a salesperson or a sales engagement such as a demo? or Is a freemium model or a free trial the best method for new customers or users to try out my product? This is a better fit for a sales go-to-market strategy in the latter situation. You’re enabling the product to do a lot of the work for you in a product go-to-market.
- Short-Time-to-Value: Is it clear to the customer what my product’s primary value is? value-to-time metric Because you want the user to rapidly feel the value and then promote it to their social networks. You must also be able to swiftly and without much explanation introduce that person to the product’s fundamental value proposition.
This type of shift necessitates an organizational rewiring, and all team goals must be centered on the product. Although the functions of sales, engineering, and customer success are distinct, they all emphasize how to support the product as the most sustainable growth engine.