Product-led Growth (PLG) is a popular SaaS business methodology where the product primarily drives a business’s success and growth. Acquisition of revenue, expansion of revenue, and retention are mainly led by delightful experiences of the product.
The term product-led in marketing is the inclusion of product-led growth principles in a company’s marketing strategy to achieve better acquisition, retention, and expansion. It prioritizes the product as the core of the overall marketing machinery.
A product-led business model places the product at the core of the business, driving the most important pillars of growth—acquisition, retention, and expansion. The product is also leveraged as the most important sales, marketing, and customer service channel for the company.
PLG in sales refers to applying product-led growth principles to the sales function of a company to achieve sales acceleration. It provides product-qualified leads (PQLs) to the sales team and improves conversion and retention.
PLG metrics are parameters that can help track the performance of your product-led growth (PLG) strategy, informing business decisions and product development strategies.
PLG tools are part of a SaaS company’s tech stack that help make key operations smoother, from user acquisition to user retention. Because a SaaS company using PLG go-to-market strategy relies on its product to acquire customers, these PLG tools help make their product shine.
A PLG CRM is a customer relationship management tool for companies with a product-led go-to-market strategy. The PLG CRM gives insights into your user accounts and data, providing you with their product usage data. It can further be used to categorize the customer’s buyer journey stage and ultimately result in a better customer relationship and optimized revenue.
PLG companies or product-led growth companies are SaaS businesses using their product to drive growth, customer acquisition, and customer retention.
An ‘aha’ moment is the first time a user understands the value proposition your product offers them, usually accompanied by a sudden realization or insight.
A freemium model gives potential customers free access to limited features of a product, with no time restrictions. On the other hand, a free trial gives prospects a specified period of time to try the features (limited or complete) of a product.
First-party data is the data you directly obtain from your customers through Google Analytics, tracking user behavior on the website and your product, customer feedback, and the likes. Third-party data is data that comes from outside of your organization through web cookie tracking and third-party data marketplaces.