At least once, many of us have experienced playing mobile games or using apps for free. While we're using the product or subscription, it keeps prompting us to upgrade our experience as we use it.
Have you ever paid for an upgrade? This is an example of product-led growth (PLG). This business model focuses on the product as the main driver of revenue and customer acquisition.
But it's not just mobile games anymore. Most workspaces, from enterprise-level to startups, use the same growth method to increase their customer base and revenue. PLG has dominated software-as-a-service (SaaS) companies and is expanding into other industries.
Ready to leverage PLG in your strategy? Let's explore product-led growth and why it has become a popular marketing strategy.
PLG as a marketing strategy: Why care?
USD 659 billion—that's just the projected revenue of the software market in 2023. But how did such earnings come about?
Previously, software used to be sold to customers by marketing its features. For example, a company would market its software as having certain features that make it unique and worth buying.
Product-led growth flips this notion by making the product the main marketing focus. This means that software companies now build products with a great user experience (UX) instead of trying to sell features. Hence, customers are inclined to buy them, including their add-ons, because they are easy and enjoyable.
Aside from the software industry, others such as finance, education, gaming, travel, and hospitality have also adopted PLG.
The main benefits of PLG
The idea behind PLG is to make the product itself the main source of growth. Companies focus on creating products people will love and use without being prompted or pushed. Apart from this, product-led growth methods provide several noteworthy benefits.
1. The product sells itself, practically
With PLG, customers can explore and use the product for free or cheaply. Since they experience its features firsthand, this eliminates the need for sales teams to persuade potential consumers. There's no need for long-winded pitches or product-testing phases from a client's IT department, as most of the decisions to purchase are based on the user's experience.
2. It's cost-effective
PLG eliminates most marketing and sales expenses because customers don't need to be convinced or prompted in any way to buy a product. This makes it easier for companies to cut costs and increase revenue without spending too much on advertising or hiring sales teams. You can even reduce the cost-per-acquisition (CPA) as more people use the product and upgrade to premium versions.
3. There's increased trust and customer loyalty
Product-led growth also increases customer loyalty by providing users with an excellent product they can use and enjoy immediately, leading them to recommend it further down the line.
By allowing customers to experience the features of a product before purchasing it, they gain trust in its build quality and usability. This increases customer loyalty and reduces churn rates because users feel confident about buying the product or subscribing to its services.
Simply put, product-led growth in marketing automates all the processes that would otherwise require a sales team, and it does so effectively. It's no wonder why PLG has become such a popular growth strategy for many companies.
At Wrk, we understand that product-led growth can help businesses succeed quickly and cost-effectively. That's why we strive to provide our clients with a comprehensive suite of automation services for sales, human resources, and more!
Our end-to-end solutions are designed to streamline processes so that companies can focus on what matters: creating products and services customers love and use without any prompting or pushing from the outside.
Stay ahead of the curve by booking a demo of these features at Wrk.