What is Product-Led Growth?
Product-led growth is a business strategy in which a company uses its product as the fundamental way to acquire customers. With this model, a business offers users free access to its product with the expectation that the product itself will persuade them to become paying customers.
Some companies offer all the features in the product for a limited time. Others give users access to restricted product functionality indefinitely but charge users to upgrade to a more feature-rich version.
How to drive Product-Led Growth?
Product-led growth (PLG) is a go-to-market strategy that prioritizes the product experience as the primary driver of business growth. Being product-led means establishing your product at the center of your business. Product managers today obsess over delivering high-value experiences at every stage of the product journey instead of focusing on the number of features shipped.
By focusing on the user experience, driving adoption, leveraging free trials, enabling viral growth, measuring user engagement, and continuously iterating and improving your product, you can drive product-led growth for your business.
Focus on user experience: The user experience should be your top priority. Ensure that your product is easy to use, intuitive, and solves a clear problem for your customers.
Encourage product adoption: Make sure that your product is easy to adopt and that customers can start using it quickly without much friction.
Use in-app product marketing: Use in-app product marketing to promote the value of your product and drive conversions. This could include in-app widgets, messages, pop-ups, and prompts that encourage users to take specific actions.
Leverage free trials: Offer free trials to customers, so they can try out your product before committing to a purchase. This will give them a chance to experience the value of your product and help drive adoption.
Measure user engagement: Measure user engagement and track key metrics such as activation rate, retention rate, and product usage. Use this data to optimize your product experience and identify areas for improvement.
Continuously iterate and improve: Continuously iterate and improve your product based on user feedback and data. This will help you keep up with changing market conditions and stay ahead of the competition.
Examples of PLG Companies?
- Calendly
- Zoom
- Slack
- Airbnb
- Spotify
- Hubspot