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An overview of product-led growth & why it matters
With technological advancements scaling every year, it has become critical for companies to implement strategies that bring them lasting success. Invariably, several enterprises adopt advertising-focused and direct sales or subscription-based business models, hoping to make massive waves in the industry.
But several others can bring success faster, like the product-led growth model (PLG). If you refer to a reliable PLG blog, you will understand why this method is the new best option among scores of SaaS companies. It keeps the focus on end-users, allowing them to use the product without restrictions in the hope of converting them into leads.
The following is a quick look at what this concept truly means and why it should matter to existing and new companies.
What it means
As its name suggests, product-led growth is a strategy or model that relies on the product or service itself as the chief initiator of client acquisition, lead conversion, and business development. It is primarily adopted by scores of SaaS companies that depend on a conduit of active product users to leverage their sales by turning them into paying customers.
Look at the concept with this example: Popular service providers like Dropbox and Slack give users direct access to the products right at the beginning without restrictions. They allow people to experience the product’s value themselves rather than promising it later. Ultimately, the strategy wins customers, attains referrals, and can generate business growth a lot faster.
Benefits of PLG
There are scores of perks that you can enjoy when you focus on a product-generated growth strategy, regardless of what you sell. Consider the following examples for a more distinct idea of these advantages.
- Customer satisfaction – At its core, this unique method relies on the users referring the product to more potential customers, ensuring that companies reach their targets more efficiently. Therefore, it solidifies consumer loyalty and satisfaction vastly, boosting growth and brand value.
- Scalability – Companies with trouble scaling can use this method to segment existing users and target those most likely to convert to sales. This way, they can scale rapidly and achieve higher growth rates in no time.
- More excellent retention – Since the users are already familiar with the product, it becomes easier to retain their loyalty by initiating essential changes to boost customer retention and satisfaction.
- Lower CAC – The cost-to-acquire-customer is far lower in this strategy due to the virality the best products enjoy with their existing users. Invariably, this is also an impressively cost-effective business model that can help companies grow.
Finding a GTM orchestration platform
Firstly, understand that a go-to-market strategy is one wherein businesses detail how they plan to approach, engage, and convince clients to invest in their products and services. Secondly, note that the sole aim of this plan is to gain a competitive advantage in the marketplace.
Finally, know that perhaps the most informative PLG Blog can be found on a reliable and reputable orchestration platform that can help traditional businesses turn into growth-led ones with ease.
So, by partnering with such consortiums, GTM teams can effectively segment their product users to understand which ones are more likely to convert to paying customers. It helps them convert leads and scale new heights more efficiently and quickly, achieving the sales and growth goals without many hurdles.