If you are immersed in the business world it is important that you know in depth the Product Led Growth strategy. With each passing day consumers become more and more demanding. And they require real solutions to their problems and needs. Given this, companies must be at the level to be able to respond to these concerns, as well as to solve any user problems. Currently, there are many tools and channels that can be used to meet these demands. Therefore, it is essential that your company works with a good Product Led Growth strategy. But for this you will require basic knowledge about this method that is becoming more and more popular in the business world. Something that reveals its potential and effectiveness. Tunisia Phone Number List Do you know what a Product Led Growth strategy is? What is a Product Led Growth strategy Product Led Growth (PLG), also known as product-led growth, is basically a business methodology. In it the acquisition, expansion, conversion and retention of users are mainly promoted by the product itself .
This strategy helps you create a company-wide alignment between teams, from production to sales and marketing to IT or finance. Tunisia Phone Number List All of this revolves around the product, an element that represents the greatest source of sustainable and scalable business growth. The idea is that you can get the most out of the contributions of your entire company after listening to the different opinions. So that it can help you to build better products that users consider more necessary. But this process of turning the business into a product takes time and effort. Benefits offered by the Product Led Growth strategy
PLG benefitsBeyond defining what the Product Led Growth strategy means, it is important that you also know how it can benefit you. So when you discover the positive aspects that you can achieve if you apply it, you are encouraged to work with it.
1.- Lower acquisition cost and product-driven growth It is essential to start from the theory of product-driven growth, which states that if a product is good it will infiltrate the market and grow on its own . But when the product incorporates tools that encourage customer acquisition, the cost of acquiring it is lower. Thus, the methodology infers that you do not require a marketing team to buy advertising space. And that you don’t need a large sales team to sell the product. You are only going to need a product that is really good and attractive to customers . A growth model that is focused on products will allow you to make your salespeople much more efficient. More than anything, because qualified leads based on the products they want offer sales managers a way to see how users are interacting with the article. 2.- Increase retention and additional sales Other advantages offered by the Product Led Growth strategy is that it is capable of increasing retention and additional sales. But not only that, it also helps you reduce churn with this product-driven growth. Thus, this model helps sellers to find the best leads who are interested in what you offer. In the same way, the brand needs to know who are the ones who do not find value in the product and what features could be eliminated, for example. 3.- Offer a better user experience Therefore, the Product Led Growth strategy focuses on how users interact with the product. So that companies will have the necessary information on user participation. And so they can determine who is participating and who is not, to adjust the activities of loss reduction and upselling. Do you want to improve the user experience around product- driven growth ? They find value before paying. And they will make that payment when they feel it is justified. Which means that there is no promise of value, there is only value for the user. 4.- Greater scalability, credibility and visibility
Based on the product, it is much more scalable, as well as very attractive to investors. This is because it is based on replication, and being market-driven, it gives you the ability to capture huge economies of scale. It also provides credibility, since you are offering a functional, demonstrable, stable and proven product . But not only that, but it is also used by, in some cases, up to millions of customers who place their trust in what you offer. All this means that the product provides greater visibility to the brand because customers and suppliers speak more about it than about other types of solutions. On the other hand, analysts are in charge of covering it in their reports, while influencers and the media make mention of them. Thus providing a very high organic reach for brands. What are the key components of Product Led Growth You already know that the Product Led Growth strategy is basically about building a good product. But it is important that you also know what are the components that you should have to be successful. These are some of the main ones: A.- Minimization of frictio What is a Product Led Growth strategy
It is important that you are aware that, sometimes, customers are often lazy when carrying out certain processes. Therefore, it is essential that you work on minimizing friction. Because it prevents the use and limits the adoption of products within organizations.
For this reason, it is important that you know the frictions that you should avoid in your strategy:
A record that is very complex or lengthy. Not having the necessary training on onboarding and / or activation for new users to catch up immediately.Ask users to do a lot quickly.Place unnecessary functions or steps. Limitations that make it difficult for multiple users within a company to collaborate effectively. By creating customer teams and using analytics tools that can identify sticking points, you can identify where these issues are manifesting that could be limiting your product’s growth.
