Product-Led Growth: A Beginner's Guide
Yemi Oluseun
Programme & Project Director | Go-To-Market, Growth & Digital Transformation | Data, CRM & Marketing Automation | US DoS YTILI Innovation Fellow & Winner | Top 100 Tech Woman | NED & Board Advisor | Speaker
There is a new-ish concept in the growth & transformation space.
It is called "Product-Led Growth", PLG.
PLG allows users to experience the product's value in the shortest time possible for free - such that it sells itself.
Product-Led Growth is in contrast to Sales-Led Growth.
With PLG, growth happens predominantly because the user finds value in the product and wants more.
Here is how PLG takes to freemium or other growth models (e.g. AARRR) to the next level...
How PLG Works:
As Elena Verna , a PLG expert, explained at a PLG workshop hosted by Jérémy Goillot :
PLG needs three conditions to be in place to work:
PLG Success Stories:
Elena Verna gives the example of Slack 's go-to-market with PLG principles and how this enabled them to capture significant market share.
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And this is despite 微软 's unfair distribution channel advantage with Teams.
Another example that comes to mind is Jira Work Management dominance disrupted by new entrants (e.g. Asana , monday.com , Trello etc.) leveraging PLG.
But, What are the Downsides of PLG?
It can be a slower path to monetisation.
On average, users may not upgrade to paid package for 12-18 months.
The recommended way to reduce this period is "Monetisation Awareness".
Ensure it is clear to the user the additional premium functionality that would be available once they upgrade.
An example is Canva 's little crown icons next to premium elements or features.
In Summary:
If you haven't already, find ways to incorporate PLG principles into your product and customer journey.
Not just for growth alone but as a means to foster a better customer experience by reducing friction.
Have you tried PLG? What was your experience?
Feel free to say hello on Linkedin: Yemi Oluseun
?Quieres reducir tus impuestos sin tener problemas con SUNAT? Ayudo a las empresas a optimizar su carga tributaria mediante soluciones tecnológicas que aseguran un cumplimiento fiscal eficiente Co-founder eLogIA y SEVEM
1 年Thanks Yemi! ????????????
Director de IPAVisual
1 年Thanks Yemi for this information. It was very useful in my startup.
CEO @The Mobile-First Company ?? Your Business, in your Pocket | ?? Angel Investor in +40 startups
1 年Yemi Oluseun thanks for the mention, do you want to collaborate on an article on Growth.Talent blog about the workshop of yesterday? I can share my notes ;)