A new form of growth has replaced the sales and marketing-based growth model: product-led growth. SaaS consumers are confident in their ability to explore and solve problems independently. They know what they want to achieve, and if your solution can help them achieve those goals, it’s far more powerful than having a knowledgeable sales team.
Product-led SaaS companies don’t need a large sales crew to generate sales. A high-value product leads to customer acquisition and delight, which leads to growth. But, what is product-led growth? This article will help you understand the concept of product-led growth, and its benefits.
Product-led growth (PLG) in Brief:
Product-led growth or PLG is a SaaS business technique in which your offering and its continual improvement drive attention, lead generation, conversion, retention, and upselling. Therefore, rather than relying on intense sales and marketing to drive and retain consumers, you focus on developing your product to assure consumer success and sustainable growth.
Product-led growth necessitates the entire team’s participation, not just product marketing, and engineering. To properly appreciate customers, design the necessary features and enhancements, support patrons, and effectively explain the quality of your offering, all departments of your organization must communicate with one another.
Now that you know the answer to, “what is product-led growth?”, it is time to understand the benefits of using the PLG strategy.
Some of the advantages of relying on product-led growth for your SaaS business include:
1. Reduces Dependence on Sales Team:
Emphasis on PLG allows customers to serve themselves in the sales process rather than counting on your sales personnel. Almost 75% of B2B buyers prefer to buy using an app or website rather than a salesperson. They are accustomed to conducting their homework and selecting goods to trial.
Consumers should be able to visit your platform and promptly establish that your offering is the solution they are looking for if you use a self-serve strategy.
2. Saves Money For The Business:
It may quickly become unsustainable when you depend solely on advertising and marketing to generate leads, convert consumers, and retain customers. Many different things have to happen simultaneously to keep the revenue engine operating profitably. This can swiftly erode your cash with meager results.
Instead of just producing traffic and leads that only yield up to a 5% conversion rate, you must focus on enhancing your offering and gaining organic recognition and progress by keeping users delighted and using their experience to create additional leads through product-led growth.
3. Allows You To Harness Referrals and Word-of-Mouth:
Consumers will advocate for you as a result of product-led growth. When you consistently service and assist them, they will be able to assist you in developing influential case studies, evaluations, recommendations, and referrals for your product. This is far more effective than your team’s efforts to find new clients.
If you are a SaaS business trying to hit your sales target out of the park, PLG would be the ideal strategy implementation. A successful shift towards PLG will also help ensure lower advertising and customer acquisition expenditure. At the same time, you’ll generate a brand advocate in every consumer of your product or service.