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What is Product-Led Growth?
17 / Feb / 2023
What is product-led growth
Product-led growth (PLG) is a marketing and sales strategy that focuses on the product itself rather than traditional sales tactics like cold calls, email campaigns and advertising.
It puts the customer experience front and centre and relies on user feedback to guide product development.
In this blog post, we'll explore the benefits of PLG, how it works, and why it's becoming increasingly popular among CMOs.
The Benefits of PLG
- Reduced customer acquisition costs, as customers, often discover and adopt products on their own.
- Increased engagement and retention through personalized experiences tailored to the user's needs.
- Easier optimisation of products based on real data-driven insights, leading to better outcomes.
- Increased longevity for the product due to continual improvement and growth over time.
Product-led growth has several advantages over traditional marketing and sales approaches.
For one, PLG focuses on customers’ actual needs rather than trying to convince them to buy something they don’t need or want.
This leads to higher customer satisfaction levels as well as greater loyalty.
Additionally, since PLG relies heavily on user feedback for product improvement and innovation, companies can continually update their products based on customer preferences and demands.
This helps them stay ahead of the competition by ensuring their products remain relevant in an ever-changing market.
How Product-Led Growth Works
At its core, product-led growth is all about putting the product first when engaging with customers.
That means providing a great user experience from start to finish—from discovery through purchase—and using data from customer interactions to refine that experience over time.
Companies should focus on creating a seamless onboarding process that allows customers to get up and running quickly while also offering support that addresses any potential issues they may have along the way.
Additionally, collecting valuable insights via surveys or focus groups can help identify areas where improvements can be made or new features developed in order to provide an even better overall user experience.
Why CMOs are Turning to Product-Led Growth
Today more than ever, customers are looking for solutions that meet their needs without breaking the bank or requiring excessive effort on their part.
As such, companies need to be able to offer a great product at competitive prices in order for their business models to survive in today’s market—something which PLG can help achieve by streamlining processes and focusing on delivering value.
Additionally, with data from customer interactions driving innovation and refinement of products over time, companies will be able to keep up with changing consumer preferences much more effectively than if they were relying solely on traditional sales tactics such as cold calls or email campaigns.
Product-led growth is quickly becoming one of the go-to strategies for CMOs looking for ways to increase revenues without sacrificing quality or customer satisfaction levels.
Why product-led growth is the future of SaaS
- Product-led growth puts the focus on delivering great customer experiences, driving engagement, and creating personalized experiences tailored to user needs.
- It also allows for easy optimization based on real data-driven insights and continual improvement over time.
- This results in increased lifetime value for customers, as well as lower acquisition costs for companies.
As a B2B business, you should consider using ABM (Account-Based Marketing) and PLG (Product-led Growth) together because it can help to maximize customer success and loyalty.
By utilising both strategies, B2B businesses can gain a better understanding of their customer's needs and preferences, as well as find opportunities to increase customer engagement through tailored experiences.
ABM helps build relationships with target accounts and understand their needs, while PLG ensures that the right product is being delivered to the right account in order to create longer-term customer loyalty.
This combination of strategies allows for optimisation of customer experiences on a granular level, leading to increased profitability for the business.
By focusing on delivering an exceptional user experience from start to finish—and leveraging data from customer interactions for ongoing improvement—companies can ensure they remain competitive in an ever-changing market while continuing to deliver value at every step of the way.
If you're looking for ways to drive more revenue while keeping your customers happy at the same time, then product-led growth might just be what you're looking for!