Product Led Growth is the only future?

Consumers self-educate themselves before they buy any product.?

You could argue our decisions are influenced by our inner circle, but given the rise of information and penetration of the internet, the idea of inner-circle influence is fading

Image Credits: bvp.com

The preferred mode of getting to know about the product is self-educating through YouTube influencers, blogs they follow, and specific searches.

So, the funnel flows like this:-

1. Felt the need for a product - Need
2. Searched for the product online - Awareness
3. Compare and read reviews - Interest
4. Watched multiple review videos on YouTube - Desire
5. Decide - Action
6. Buy - Action

And this is where ‘product-led’ companies play their games.

The challenge for ‘sales-led’ approach was rising acquisition cost, product experience, and self-education, which ‘product-led’ growth often addresses.

Product-Led growth strategies help companies to:-

• Lower CAC.
• Twice RPE.
• Smoothen and shorter sales cycle.

Image Credits: Open View Partners

There are 3 pillars of product-led growth, and below is how you can do it.

Image Credits: Jungle Top

There are multiple metrics to check whether your ‘product-led growth’ has a better success ratio or not, my favorite one is user feedback which measures:-

• Customer Satisfaction Score (CSAT): whether a product or the feature is satisfied the consumer.
• Customer Effort Score (CES): how much effort did the customer have to put into completing particular action, e.g., purchasing the premium model.
• Net Promoter Score (NPS): Very famous, how likely your customer will recommend your product, often measured on a scale of 0-10.

However, there is a long list of product-led growth success metrics apart from user feedback, and a few of them are:-

1. Expansion revenue - in case you’re upselling, cross-selling, or having add-ons, the revenue generated from those activities are termed expansion revenue.
2. Avg. Revenue per user - Monthly recurring revenue/ number of customers.
3. Customer Lifetime value - Expected revenue from each consumer over a duration of their account’s lifetime.
4. Net Revenue Churn - the percentage of monthly recurring revenue that your business lost in a given period net of the revenue that you gained through existing customers upgrading their plan or buying add-ons
5. Net Revenue Retention - recurring revenue generated from existing customers over a set period

In case you’re thinking about how to build a ‘product-led growth’ company, here is a useful guide for you Your Guide To Product-Led Growth: Theory, Examples & Resources | Chameleon

Image Credits: Chameleon.io

Product-led growth is evolving based on consumer interaction with products and the ecosystem, now the question is, will Sales-Led Growth be only limited to the B2B sector? Your opinions comments please.

#plg #productledgrowth #product #productmarketing #marketing