Stepping into the Future - Product Led Growth
All the businesses out there- How is it to let the product advertise itself???
The latest BUZZ topic- PRODUCT LED GROWTH BUSINESS MODELS is all about it. From acquisition to retention and from conversion to expansion- all by the PRODUCT, alone.
Wondering what led it here? Let's take an insight into it.
During the 1980s and 1990s, the software had to be downloaded from a physical box that was expensive. This was recognized to be the SALE- LED ERA. Its sales were entirely dependent on one major decision of IT compatibility.
Next, came the MARKETING- LED ERA, wherein the software was driven out of the data and cloud. This became an in-demand thing and the costs also plummeted. It made us jump on a treadmill of demos after demos. The era should sound familiar because many businesses are still droning on about online, even though it’s rapidly declining since the software evolution continues to grow.
For the years 2010 and beyond, it’s the END-USER ERA, where things are more elastic and scalable than ever. For such users, the main decision-making criteria is all about the product being able to help in day-to-day life, and not just at the bottom line.
To fit the latest era of end user, PRODUCT LED GROWTH (PLG) is what can help you thrive.
What’s the way to the PLG GROWTH MODEL?
As per the observations along the way, it can be clearly defined as a model that relies on driving sales. It is similar to going out there and letting the customer decide, more like a direct encounter.
This growth model is not just good for the customers but also for businesses. Today, there are many big companies that have the PLG model, including all the top IPOs.
Let’s look at the 3 MAIN PILLARS of this model.
Deliver for the end-user
Since the product is the only speaker in such models, businesses shall ensure that they know about the customer’s pain points and the product is designed after recognizing and understanding them.
Deliver Value
The cornerstone of building a successful PLG business model is to remove all the potential barriers for your customers. Since relationships are always a two-way process and it involves give and take. Businesses shall be ensuring that they deliver enough value before they expect something in return. Such examples include free trial services, free premium model, etc.
领英推荐
Invest in the product with a go-to-market intent
The only intention with what businesses work is to drive acquisition, conversion, and expansion. PLG companies apply this insight into their business models to invest in their products using a go-to-market strategy. One of the best ways to ensure this is choosing robust products that allow tracking, analyzing, measuring, and understanding users’ behavior.
Trying to think of appropriate EXAMPLES? Drive there!
If you’re a SaaS business owner, here’s a powerful sign for you!
Why should you go PLG?
To move along with the fast pacing world, the businesses that are flexible enough to adapt to changes, are the ones that can stay.
Today, when marketing is the main deciding factor, PLG models can be a perfect fit because it helps you drive growth through word of mouth and is most powerful since they can turn your product into a MARKETING FLYWHEEL!
Does this mean that PLG models push the marketing costs to 0?
No, in fact, that’s the biggest misconception.
The product itself is in the front row and everyone out there is a customer, initially but that doesn’t mean that the requirement to advertise the product becomes null.
In 2021, the average organization used 110 SaaS apps, up 38% from an average of 80 apps in 2020, according to Better Cloud’s 2021 State of SaaSOps Report. Furthermore, BMC predicted 99% of organizations will be using one or more SaaS solutions by the end of 2021.
According to the report by Atomico, 49% believe that social and/or sustainability goals have become more important over the past 12 months.
If this doesn’t fuel you to rethink about your business strategy, nothing else would!
Get into the new-age era to scale your businesses- GO PLG!