It’s the dream of every entrepreneur for their company to grow fast, a growth that is healthy, measurable, sustainable, and manageable. The company will significantly achieve growth through product-led growth (PLG).
PLG is a marketing strategy that makes your product the center of acquisition, retention, and business expansion. It’s a strategy that will allow your business to grow efficiently by using its products to create users who become paying customers.
PLG marketing is a go-to-market strategy that will attract and retain customers, and it benefits all parties because:
- When your product does the talking, you can shift that energy into making your business more effective.
- A self-serve model puts your sales team at ease since the customers value your products without much effort.
- An excellent product experience will lead customers to reuse the product and refer it to a friend.
Product-led growth strategy is cost-effective for long and short-term goals, ensuring sustainable and consistent business growth. Here are the advantages of using PLG marketing for your business.
Advantages PLG Marketing
PLG is marketing. It is very beneficial to your business over its growth strategy. Its advantages benefit your customers, your team, and your business.
Fast and Efficient Growth
The PLG approach will enable your company to grow fast and efficiently by allowing your clients to try your products for free. It converts active users into prospective customers. Some companies are adapting the strategy to attract customers, and after some time, they become paying customers who talk about the product to their peers.
The free model strategy attracts more users, widening your reach. Most free model users have product experience, so they know your product value before purchasing and can pay when ready. Since the users know the value of your product, it retains them, and later they are converted to paying customers.
The more users try your product, the less time you will use generating leads trying to convince them to buy it.
Better User Value
With product-led growth, you have a platform to show the user the value of your product, which is different from telling them. Once they see the value of your product, they build trust in it and use it as their best solution.
However, if the users don’t find value in your product, they will stop using it, and you will be on the market for only a short time. But once you use the PLG strategy, you will discover where the value of your product lies and how to showcase it to the users.
It Lowers Customer Acquisition Cost
The PLG strategy reduces customer acquisition costs by:
- It reduces customer acquisition needs: companies using the PLG don’t go after attracting masses of new customers because they give their current users a lifetime value.
- Cuts down marketing budget: since customer acquisition is built on the product, the company doesn’t need to invest heavily in marketing. Most customers are acquired through referrals from existing customers, lowering the marketing costs.
- Getting qualified leads: PLG is focused more on product-qualified leads. Most users have shown an interest in using the product, making them more valuable than new first-time prospects.
- Getting enormous revenue from existing users: the PLG strategy ignites more revenue from existing customers who have trust in the product because of their experience.
Have Time to Focus on the Product
With PLG, it gives you and your team time, resources, and reasons to focus on improving your product. You can use the time and resources you would have used in marketing to develop your product. Since the free users will only pay for the product after they find it worthwhile, your primary focus should be on boosting your product to retain more customers.
Excellent Sales Cycle
Unlike traditional marketing, which was slow, PLG speeds the sales by:
- It provides a broader entry of your product to the market by the use of free trial models allowing the users to value your product before paying for it.
- Implementing a signup process speeds up users’ time to upgrade to the paying option.
- An efficient sales strategy since the users have tried your product and love it. It allows your sales team to have time to focus on finding new users.
For PLG marketing to be effective, you don’t have to focus on building the best product but on taking action based on what your users think about it. Since the product will speak for itself, you should focus on customer satisfaction because if they like it, they will become lifetime customers and refer it to their friends, hence growing your market.