By Drew Cohen
If you’ve searched for an explanation of product-led growth, you’ve probably run into overwhelming amounts of material that, frankly, overcomplicate an otherwise simple topic. In this post, we’re setting out to do something a little different. We want to show how this incredibly powerful concept can fuel your SaaS company. So, let’s quickly cover the basics, and then we’ll dive into some strategies that your organization can use to hit the ground running.
What Is Product-Led Growth?
If we start by defining what product-led growth is not, why it’s so powerful quickly becomes clear. Many product experts—such as product managers or product marketers—will say that sales-led and marketing-led growth have had their time in the sun, and now it’s time for products to lead the way.
Simply put, product-led growth (PLG) is a business methodology where key pillars in a strategy—including everything from acquisition to retention—are driven by the product itself. When implemented properly, this methodology can create cross-team organizational alignment.
You may be wondering, Why would a company implement something that didn’t result in better organization alignment?
The key here isn’t just alignment, but how that alignment occurs all around the product, which is seen as the single largest source of business growth.
Productled.org explains alignment with the analogy of a prism: When light passes through a prism, it’s fractured into the colors of the rainbow. Reverse this concept and the different colors correspond to a company’s different teams which are all working together to form a single bright light resulting in a premium user experience.
Product-Led Growth’s Impact on SaaS Companies
Software-as-a-service companies have a responsibility to their customers to build reliable products that solve problems, but the teams responsible for producing, marketing, and selling these pieces of software sometimes head down the wrong path.
Whether discussing the inbound methodology, the product-led growth methodology, or any other business methodology out there, it’s critical to focus on what the organization adopting these does with this information. To me, product-led growth is about businesses focusing on making top-notch products that help their customers do their jobs more successfully. It’s a few fancy words put together to say that quality products will sell themselves. Now, as a marketer, I know that’s not completely true—sales and marketing play huge roles in the overall business puzzle—but this methodology aims to ensure that the customer-first approach is front and center.
The impact that product-led growth has had on the SaaS industry is pretty astonishing. Terms like “customer success”, “customer experience”, and “customer champion” all come from this methodology, and again, demonstrate a focus on making sure that people have A+ experiences with products. Companies like Pinterest and Warby Parker are two of my personal favorite examples of product-led companies in the B2C category. Both have an unwavering commitment to their products—one in social media and one in eyewear. Industry aside, when you think of these brands, you think of their products and that is 100 percent the result of the respective organization’s mentality.
Using Product-Led Growth to Fuel Your SaaS Company
Implementing …read more
Read more here:: B2CMarketingInsider