16 min
7 | Product-Led Growth (PLG) Requires Revenue Team Alignment Good Revenue
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- Business
It's critical to think through the product-led growth (PLG) business model before you build. Whether you start with PLG or add it on to an existing go-to-market model / product, you'll still need strong marketing & sales -- and a viable business model -- to succeed.
Key takeaways:
PLG centers the customer’s needs and product experience - which is refreshing to anyone who’s had to use badly designed and/or poorly functioning technology in a work setting. PLG doesn’t have to be freemium but it often is. The theory being that if people can try out your product, they’ll love it and eventually pay you for it. This is a nice theory but if you didn’t price & package your offering correctly, people are not going to pay you enough to make the business model work. PLG can be a huge growth driver for your company. It’s a way to lower the cost of acquisition.It’s also a cost-effective way for competitors and new entrants to gain market share, so PLG isn’t something you should ignore. It’s not enough to assume the revenue will just flow without strategic commitments on your end. You need a unified strategy/goals for Product + Marketing + Sales if you want to win with PLG.
You have two options:
You start a new company or product with PLG. Starting with PLG is easier than adding it in later. You have a product, sold by marketing and sales, and you want to add PLG because customers want self-serve or likely because a new market entrant is nipping at your heels and you need to compete.
In either model:
PLG is a one team strategy whether you start with PLG or with sales. Do not pit teams against each other. Make sure product, marketing, and sales all have the same goals if you want to win.Talk to customers. PLG isn’t a substitute for knowing your customers and figuring which customers have the potential to convert to paid vs customer segments that will only use free or low end plans.All customer segments are not the same. Prioritize high revenue potential customer segments if you want to grow revenue. That pipeline is worth more vs generic signups. Packaging & pricing features correctly is a PLG must. If you want paid customers, you need to orient your monetization strategy around your best-fit segments. Optimize for customers who love your unique value and are willing to pay for it instead of one-size-fits all packages.
_
Where to find Neeta:
https://www.linkedin.com/in/neetabidwai/
_
Where to find Good Revenue:
https://dfnstrategy.com/goodrevenue
Sound by RPS Audio
Hosted on Acast. See acast.com/privacy for more information.
It's critical to think through the product-led growth (PLG) business model before you build. Whether you start with PLG or add it on to an existing go-to-market model / product, you'll still need strong marketing & sales -- and a viable business model -- to succeed.
Key takeaways:
PLG centers the customer’s needs and product experience - which is refreshing to anyone who’s had to use badly designed and/or poorly functioning technology in a work setting. PLG doesn’t have to be freemium but it often is. The theory being that if people can try out your product, they’ll love it and eventually pay you for it. This is a nice theory but if you didn’t price & package your offering correctly, people are not going to pay you enough to make the business model work. PLG can be a huge growth driver for your company. It’s a way to lower the cost of acquisition.It’s also a cost-effective way for competitors and new entrants to gain market share, so PLG isn’t something you should ignore. It’s not enough to assume the revenue will just flow without strategic commitments on your end. You need a unified strategy/goals for Product + Marketing + Sales if you want to win with PLG.
You have two options:
You start a new company or product with PLG. Starting with PLG is easier than adding it in later. You have a product, sold by marketing and sales, and you want to add PLG because customers want self-serve or likely because a new market entrant is nipping at your heels and you need to compete.
In either model:
PLG is a one team strategy whether you start with PLG or with sales. Do not pit teams against each other. Make sure product, marketing, and sales all have the same goals if you want to win.Talk to customers. PLG isn’t a substitute for knowing your customers and figuring which customers have the potential to convert to paid vs customer segments that will only use free or low end plans.All customer segments are not the same. Prioritize high revenue potential customer segments if you want to grow revenue. That pipeline is worth more vs generic signups. Packaging & pricing features correctly is a PLG must. If you want paid customers, you need to orient your monetization strategy around your best-fit segments. Optimize for customers who love your unique value and are willing to pay for it instead of one-size-fits all packages.
_
Where to find Neeta:
https://www.linkedin.com/in/neetabidwai/
_
Where to find Good Revenue:
https://dfnstrategy.com/goodrevenue
Sound by RPS Audio
Hosted on Acast. See acast.com/privacy for more information.
16 min