Weave-in the mindset: Product - Led growth

Product-led is more than a strategy, it’s a mindset, and the best companies create this as a culture in every function and every step.

With rapidly advancing trends, the software industry is continually changing. Companies marketing in the B2B SaaS space are seeking new ways to expand and scale their business.

However, despite the market appearing to be saturated, how do you attain an efficient growth rate? What should you do if your marketing efforts don't appear to be cutting it, and no one is even aware of how good your product is?

Product-led growth (PLG) is a buzzword in the startup world right now. The end-user is at the center of the PLG strategy to bring a product to market. In order to remain relevant, software companies must adapt and embrace the present end-user democracy.


What is Product-Led Growth (PLG)?

Many in the product and marketing industries believe that the future will be product-led.

“Product-led growth is a go-to-market strategy that relies on product usage as the primary driver of acquisition, conversion, and expansion.”

Put in simple terms, PLG is a strategic approach in which all efforts are directed at improving the product experience, from engineering to sales and marketing.

We are now in the end-user era, where value-driven growth is expected. Freemium users, word-of-mouth recommendations, and influencer marketing are all ways to bring in new customers. We now have the option to choose from a variety of case-specific offers that produce value before asking the customer to pay for it, thanks to new businesses arising from inventive product solutions with distinct use case scenarios.

Today, SaaS is growing at a breakneck pace. As we look at a robust go-to-market, one thing becomes clear: the end-user product experience is the cornerstone. The core notion of product-led growth emphasizes the importance of identifying important trigger points that users face while executing daily tasks.

Why go for Product-led growth?

Product-led is more than a strategy, it’s a mindset, and the best companies create this as a culture in every function and every step.

Traditionally, consumers learn about a product via advertisements on social media sites. They then contact product sales teams and, if the product satisfies their needs, they buy it. However, it is a time-consuming procedure, and the customer won't be able to sample the product. Instead, they continue to explain their stance and persuade themselves on the product's value. Unfortunately, it’s often all rhetoric and no action.

On the other hand, in product-led businesses, advertisements aren't the main mode of communication. Product-led growth is distinguished by the fact that the product itself guides and introduces customers to their first sales funnel activities. Everyone who interacts with a product is a customer in this case, and everyone adopts at their own pace. Marketers use knowledge sharing, thought leadership, and value-driven content strategies to inspire customers to get interested in the product and play with it.

Let’s better understand this with a simple flow chart:

The mantra of Product-Led Growth

It’s a known fact, to be a success story, you need to analyze data and understand people’s requirements.

Thousands of gleaming fresh items are now available with only a few clicks or taps, fully democratizing software purchase. Personal productivity is now the deciding factor—will this product genuinely benefit me on a day-to-day basis?

The Driver of Product-led Growth: The End-user 

As already mentioned above, this is an end-user-centric era. To be truly product-led, your product must provide immediate value to its consumers and solve their problems in a way that is unmatched by your competitors.

Address end-user issues:

Successful software applications cater to a specific persona and their problems.

Executives and end-users are two possible faces for any software application. And they have quite different perspectives of discomfort.

For example, typically, executives seek to boost ROI by upgrading a low-performing KPI. This is a common fare for business people. End users, on the other hand, are frequently wanting to automate or simplify a time-consuming job.

Make the product easily available

End users are constantly on the lookout for answers to their problems. It's your obligation to make it simple for people to locate your product.

Which screens do your end-users spend most of their time on at work?

Salesforce is where sales representatives live. Shopify is the home of online merchants. Chrome or Slack are the tools of choice for knowledge workers. Smartphones are the lifeline of non-desk employees.

Make it simple to start

You have to make it possibly simple for end-users to start using your product once they find it. No waits, no loopholes, no commitments – are the keys. Self-service signup and onboarding are in high demand from customers.

Provide value prior to paywall

When an end-user is set up on the product, the problem that has led him to you must be promptly solved and before the paywall pushes in. Consider yourself a customer: how often do you pay for an app or a subscription before you've used it? You seek value before making a purchase. Your customers expect the same from you.

How to pitch in Product-Led Growth?

Making end-users the center of your company's activity is a perfect way to start. It is critical to shift the entire organization's mindset: not supervisors, but the users will henceforth make decisions.

Outline roles and responsibilities

Note that henceforth each individual employee has an impact on the product. The entire company contributes to product development. Customer Success is in charge of communicating with consumers, getting input, and understanding what they currently lack. This way, everyone shares equal responsibility for the success of the product.

Evaluate the product

Because your major purpose is to provide value regardless of the circumstances, you must ensure that everything runs smoothly.

Take a pause and consider the following questions:

  • What do my users require, and what value are they looking for?

  • Is my product a viable option for them?

  • What features can be added, and what can be changed?

Apply analytics & monitoring

You want to build excellent user experiences through product-led growth, which is difficult without tracking your progress. Net churn, customer lifetime value, virality, product-qualified leads, and average revenue per user are some of the most essential KPIs. In general, align your company's and product's goals.

Make new product tests

Working on managing your expectations is also a good idea at this point. However, in order to please users, you must carefully examine the input you receive and make rapid improvements.

Take note that product-led experimentation is a never-ending process.

The bottom line: it's all about solving a user’s problem

Your product will drive itself to success and make your users happy if you have the correct mindset and make data-driven decisions.

Eduard Klein, a Growth Expert, believes the rise of the end-user is as follows:

"You need to focus not on the buyer but on who uses the product in the end. Allowing the product to guide the user through the onboarding is critical if you want to keep the acquisition cost and the churn rate low. User interfaces have to be intuitive, clean and personalized to keep the user’s attention while showing your product." 


Reference

Product-Led Growth: How to Build a Product That Sells Itself - Wes Bush