Defining Product Led Growth (PLG)
Product Led Growth (PLG) is a business strategy that leverages the product as the main driver of customer acquisition, conversion, and expansion. In a PLG model, the product experience is at the forefront, providing immediate value that speaks for itself. The product is not just a part of the business, it is the business.
Leveraging PLG for Business Improvement
Now that we understand PLG, let’s explore how it can be leveraged to enhance your tech-enabled business.
1. User-Centric Design and Intuitive Design
In a PLG model, the user is king. The product must be designed with the user in mind, focusing on their needs, pain points, and how the product can provide a solution. This user-centric design not only attracts users but also turns them into loyal customers.
When utilizing the software, users should be able to accomplish specific objectives without the need for any specialized or intricate training. The product should be designed to allow users to intuitively navigate and use it, eliminating the necessity for training.
2. Freemium Models and Free Trials
Offering your product for free or as a free trial is a common tactic in PLG. This allows users to try out your product and see its value before making a purchase decision. It’s a risk-free way for users to test your product and for you to prove your product’s worth.
3. Easy On Boarding
In the digital age, customers no longer require salesmen to onboard them into their systems and software. In order to join and/or use popular social media sites such as LinkedIn, Instagram, Tikok, Gmail, and Facebook, an average individual would not require an expert to onboard them through the process of joining or using the platform. This is the power of product led growth.
4. Product Education
Educating users about your product is crucial in a PLG model. This could be through tutorials, webinars, blog posts, or in-app guides. The more your users understand your product, the more likely they are to use it and find value in it.
5. Data-Driven Decisions
PLG provides a wealth of data that can be used to make informed decisions. This includes user behavior data, usage patterns, feature popularity, and more. These insights can inform your product development and marketing strategies. An automated funnel can be a starting point for gaining insights on your customers.
6. Customer Advocacy
Happy customers are your biggest advocates. Encourage your customers to share their positive experiences with others. This not only improves your product’s credibility but also helps in acquiring new customers.
In conclusion, Product Led Growth is a powerful strategy that can drive significant growth for your tech-enabled business. By focusing on the user, offering freemium models, educating customers, using data, and encouraging customer advocacy, you can leverage PLG to its full potential. Stay tuned for more insights for business growth.