What is Product-Led Growth?

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Over the past decade, there has been a shift in both consumer demand and market supply. Buyers want to educate themselves and expect to be treated with a high degree of personalization . On top of all that, people want instant gratification and are quick to abandon products that don’t provide it. The result is an erosion of user patience and this is where product-led growth comes in. Do you know what it is?

So what does this mean for future products?

The fact is that a great customer experience has always been key to success. If the customer wanted to buy a new product, they would talk to a salesperson. If they were lucky, they were knowledgeable and empathetic and helped them buy the best product for their needs. Thanks to the Internet came the ever-increasing ability for early digital marketers to measure results and get growth metrics like engagement and acquisition.

But people no longer want to interact with salespeople or marketing campaigns, clinical nurse specialist email database not at the expense of experiencing the product they are buying. To keep up with the market and get ahead of the curve, companies must reshape their marketing, sales and service strategies and fundamentally rethink the roles of their customer-facing teams.

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Sales- and marketing-led growth had its time. The future is product-led growth.

In this post we will see:

What is product-led growth?
Metrics for product-led growth and principles to understand
Benefits of product-led growth

What is product-led growth?
Product-led growth (PLG) is a business methodology where user acquisition, expansion, conversion, and retention are primarily driven by the product itself. It creates company-wide alignment between teams, from engineering to sales and marketing, around the product as the greatest source of sustainable and scalable business growth.

PLG is about leveraging contributions from across your company to build better, more necessary products—not about creating an autocracy.

Think of it as the democratization of the product: Like any effective democracy, product-led growth requires traditional decision-makers to open up the decision-making process to a broader, more diverse group of stakeholders. Does this create more difficult and complex discussions? Yes. Do difficult and complex discussions lead to better and more innovative business decisions? Absolutely.

Of course, companies don’t become products overnight. Becoming a product is a process and a journey that requires a change in mindset at both the individual and company level. It takes time, effort and commitment.