If you are immersed in the business world, it is important that you have an in-depth knowledge of the Product Led Growth strategy. Every day that passes consumers
Currently there are many tools and canals that can be used to respond to these requests. Therefore, it is essential that your business works with a good product growth strategy. But for this you will need some basic knowledge about this increasingly popular method in the business world. Something that reveals its potential and effectiveness.
Do you know what a product growth strategy is?
Product Driven Growth (PLG), also known as Product Driven Growth, is essentially a business methodology. In her acquisition, expansion, conversion and user loyalty is mainly driven by the product itself.
This strategy helps you create a company-wide alignment between teams, from production to sales and marketing to IT or finance. It all revolves around the product, an element that represents the greatest source of sustainable and scalable business growth.
The idea is that you can get the most out of contributions from your entire business after listening to different opinions. So that that can help you create better products that users find more necessary. But this process of turning a business into a product takes time and effort.
Benefits of the Product Led Growth strategy
Beyond defining what the Product Led Growth strategy means, it is important that you also know how it can benefit you. So when you discover the positive aspects that you can get if you apply it, you are encouraged to work with it.
1.- Reduced acquisition costs and product-driven growth
It is essential to start from the theory of output-driven growth, which states that if a product is good, it will infiltrate the market and he will grow up on his own. But when the product incorporates tools that promote customer acquisition, the acquisition cost is lower.
So, the methodology infers that you don’t need a marketing team to buy ad space. And that you don’t need a large sales team to sell the product. All you need is a product that is really good and attractive to customers..
A product-driven growth model will allow you to make your salespeople much more efficient. More than anything, because qualified prospects based on the products they’re looking for give sales managers a way to see how users are engaging with the item.
2.- Increase retention and additional sales
The other advantages offered by the Product Led Growth strategy are that is able to increase the retention and additional sales. But not only that, it also helps you lower the churn rate through this product driven growth.
Thus, this model helps sellers find the best prospects who are interested in what you are offering. Likewise, the brand needs to know who it is that does not find value in the product and what features could be removed, for example.
3.- Offer a better user experience
Therefore, the Product Led Growth strategy focuses on how users interact with the product. So that companies have the necessary information on user participation. And so They can determine who participates and who does not, to adjust for loss reduction and upselling activities.
Would you like to improve the user experience around growth driven by product? They find value before they pay. And they will make that payment when they see fit. Which means there is no promise of value, there is only value for the user.
4.- Scalability, credibility and visibility increased
Based on the product, it is much more scalable and very attractive to investors. This is because it is replication based, and being market driven, it gives you the potential to achieve huge economies of scale.
more brings credibility, since you offer a functional, demonstrable, stable and proven product. But not only that, but it’s also used by, in some cases, up to millions of customers who trust what you offer.
All this means that the product contributes more visibility to the brand because customers and suppliers talk about it more than other types of solutions.
On the other hand, analysts take it upon themselves to cover it in their reports, while the influencers and the media mention it. Thus offering a very high organic reach to brands.
What are the key elements of growth by product
You already know that the Product Led Growth strategy is all about creating a good product. But it’s important that you also know what components you need to have in order to be successful. Here are some of the main ones:
A.- Minimization of friction
It is important for you to know that customers are sometimes lazy when they go through certain processes. Therefore, it is essential that you work to minimize friction. Because it prevents the use and limits the adoption of products within organizations.
For this reason, it is important that you know the frictions to avoid in your strategy:
- A record it’s very complex or extensive.
- Not having the necessary onboarding and / or activation training so that new users can catch up immediately.
- Ask users to do a lot quickly.
- Place unnecessary functions or steps.
- Limitations that make it difficult for multiple users within an organization to collaborate effectively.
By creating customer teams and using analytical tools that can identify sticking points, you can identify where these issues are showing up that could limit your product growth.
B.- Demonstration of the value of what you are offering
Another key that you can’t lose sight of in your strategy is demonstrating value early on. Think about customers wanting you to tell them what your product is offering them. If you don’t do this at first, you will probably be contributing to the friction.
But it’s not just that. Note that a positive first experience is also decisive. Whether it’s getting new customer conversions or creating the kind of word of mouth marketing that buyers recommend to their friends and family.
It’s about being able to make a product easy to use and making its appeal obvious right out of the box.. In this way, the chances of success increase.
C.- Use of features and products to promote demand
You can count on some great features, but they won’t grow your business if people don’t know you have them. The same is true if users do not have access to them because they will not be able to use them effectively.
What is the real challenge? That you manage to find out what customers expect from your products to make them available to them. But consider that users have different needs and workflows. You must therefore know them well to make an offer segmented.
To do this, you can seek feedback from customers and use their ideas for actions in the app. This should give you an idea of their needs, in order for your product to be successful.
D.- Alignment of sales and marketing in the use of the product
You should also keep in mind that what you offer is what you should give to customers. If the person acquires the product with the idea of what you are offering in your ad and when they acquire it it doesn’t coincide with what you said or it’s not what they expected, you may be sure this will generate an imminent feeling of frustration.
This usually happens when the sales and marketing teams are not closely aligned with the production team. Today, you both can take advantage of the data generated by the product to improve talk time. Or to generate key business offers.
Thus, an additional sales offer can be activated when users perform specific actions. While sales can be notified to communicate and offer personalized integration. This can happen when a second user with the same corporate email address signs in.
How can you achieve a good growth strategy by product can incredibly benefit your business. You just need to know how to apply it, but if you need the help of a agency specializing in digital marketing, look no further. At Antevenio We offer you our performance, our brand image and more services.Contact us now!