???Harmonizing Product-Led Growth with Sales: A Strategic Approach for B2B Success

After reading Elena Verna 's amazing blog post on when to add Sales to your Product-Led Growth (PLG) strategy, we wanted to add in our experience on why integrating sales into the PLG model becomes crucial for tapping into diverse market segments and sustaining long-term growth. Think of it as adding some extra spices to your favourite dish to make it even more delicious – that's what integrating sales into PLG can do for your business.

PLG Recap ??

Product-Led Growth (PLG) in the B2B sector is like having a superpower. It's the backbone that supports modern business strategies, scaling effortlessly while collecting a treasure trove of data. This data-driven approach not only enhances the product but also aligns perfectly with the preferences of contemporary users who seek efficiency and simplicity.

In essence, PLG's magic lies in its ability to seamlessly adapt to changing market needs, positioning companies for continuous growth and evolution.

Why You Should Add Sales ??

Integrating sales is like adding a dynamic duo to your superhero team. It's not just about closing deals; it's about building relationships and understanding complex needs that an automated system might overlook. Sales bring a personalized, human touch, crucial for deepening client relationships and navigating intricate negotiations.

When you Should Add Sales ??

Introducing sales should be a strategic decision, not a reactive one. It's ideal when you start noticing your product attracting a more diverse audience or when you're dealing with market segments that require a more hands-on approach. This transition should feel as natural as a company's evolution, aligning with your product’s growth and market response.

When Sales Add Value ??

It's crucial to recognize that while PLG is effective for straightforward, low-complexity products, sales become pivotal when dealing with higher complexity or higher Average Order Values (AOV).

1. When the Price Tags Get Bigger: If your product's starting to see deals over $10K, it's like you're playing in the big leagues now. This is where a sales team can step in, helping to handle those more complex chats and negotiations.
2. Complex Products Need a Human Touch: Got a product that's super complex? A sales team can be your storytellers, helping customers really understand and value what you've created.
3. Navigating the Big Company Maze: When you're aiming to get your product into those giant companies, a sales team can be like your guide through the labyrinth, dealing with all those tricky internal rules and security checks.
4. Trailblazing in New Markets: Launching something totally new and innovative? Sales can be your ambassadors, educating the market and getting people excited about your groundbreaking product.

What to Look Out For ??

In the context of integrating sales into a PLG strategy, timing is crucial. The best time to introduce sales is often influenced by specific developments within the company or market:

1. New Features or Products: If you release a new feature or product that attracts a different audience who benefits from a direct sales approach.
2. Organic Expansion into New Segments: When your existing product naturally moves into a new market segment that requires a more hands-on sales strategy.

Remember, the introduction of sales should be a response to clear market signals and customer demands, not just a result of company growth ambitions. Look for direct customer inquiries for more comprehensive services, or a significant presence in market segments traditionally driven by sales, as indicators that it's time to integrate a sales approach.

How to Avoid Internal Channel Conflict ??

Let's talk about mixing sales into your Product-Led Growth (PLG) strategy. It's like adding a new ingredient to your favorite recipe; you want it to enhance the flavor, not overpower it. The trick is to avoid the kitchen chaos of conflicting channels.

• Establish Sales Floors: Set clear boundaries for when your sales team should step in. Decide which deals are big enough to need a personal touch, leaving the smaller ones to your efficient self-serve channel.
• Implement Upsell Multipliers: When customers shift from self-serve to sales, ensure the deal gets a boost. This is like adding value to their journey, making sure the sales team's involvement brings tangible benefits.
• Quota Relief for Sales: Encourage your sales team to prioritize customer needs by offering incentives for guiding customers to the right channel, whether it's self-serve or a direct sale. Sales are quota-driven, but you also want to make sure they do what's right by the customer and don’t ‘force’ them into an enterprise sales contract.
• Adopt a Product-led Sales Approach: Start with a sales strategy that supports and builds upon your existing self-serve model. This way, you're not just selling; you're enhancing the customer's journey with your product.

???What Does it All Mean??

Mixing sales into your PLG doesn't have to be a juggling act. With the right strategies and a mindset of collaboration, you can create a harmonious environment where both sales and PLG not only coexist but thrive together.

Once again credit to Elena Verna for the original thought piece ! If you aren't subscribed to her Substack, you should be!