RAFFIAPALM

Resources for product teams from industry experts.

Product-Led Growth (PLG)

Go-to-market strategy that relies on the product to acquire, activate, or retain customers. It is seen as one of the more cost-effective ways to create a customer base, in particular to engender organic growth and evangelism. It’s particularly popular for developer tools, as it’s always presumed developers like to try something before they believe it will work for them, as well as consumer-facing companies.

In B2B companies, it can mean using product data to drive sales actions. The idea with PLG is that people like the product so much, they use it with others, which grows the number of users organically or vastly simplifies the sales process.

— Loved: How to Rethink Marketing for Tech Products (Silicon Valley Product Group) by Martina Lauchengco

Source: Amazon Kindle

Related Stories and Excerpts:

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  2. Winning over one or two customers in each of five or ten different segments—the consequence of taking a sales-driven approach—will create no word-of-mouth effect. Your customers may try to start a conversation about you, but there will be no one there to reinforce it. By contrast, winning four or five customers in one segment will create the desired effect. Thus, the segment-targeting company can expect word-of-mouth leverage early in its crossing-the-chasm marketing effort, whereas the sales-driven company will get it much later, if at all. This lack of word of mouth, in turn, makes selling the product that much […]
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