Difference between Product-led growth and Sales-led growth

In product management, it’s important to know how a company can grow. Two main ways are product-led growth (PLG) and sales-led growth (SLG). PLG means the product itself gets and keeps customers. It makes it easy for people to try, use, and share the product. SLG depends on a sales team to find and secure customers through direct contact and personal efforts. Understanding these two methods helps businesses choose the best way to grow.

In this article, we are going to learn the difference between Product-led growth and Sales-led growth.

Product-led growth (PLG) is a strategy where the product itself helps get and keep customers. Instead of relying on lots of marketing or a big sales team, the focus is on making a great product. Companies often let people try the product for free or offer a basic free version. If users like the product, they will keep using it and tell others about it. This helps the company grow. PLG works best for products that are easy to use and quickly show their value. Companies need to ensure their product is simple to use and always getting better based on user feedback. In PLG, the product is the main way to attract and keep customers.

Key Features Of Product-Led Growth

• Freemium and Free Trials: PLG often uses free versions or free trials of the product. This lets people try it out without paying, so they can see its value before deciding to buy.
• User-Friendly Design: A key part of PLG is having an easy-to-use product. It should be simple and intuitive so that users can quickly understand and use it without needing much help.
• Self-Service Onboarding: PLG relies on users being able to start using the product on their own. This means having guides, tutorials, and help within the product to make it easy for users to get started.
• Built-In Sharing: PLG products often have features that make it easy for users to share the product with others. This can include sharing options, referral programs, or social media links, helping the product grow through word-of-mouth.

Sales-led growth (SLG) is a strategy where the sales team is the main way to get new customers and grow the business. Instead of the product attracting users on its own, salespeople reach out to potential customers. They set up meetings, make phone calls, and give product demos to show how the product can help. The sales team builds relationships with potential buyers, learns what they need, and adjusts their sales pitch to fit those needs. This approach is good for products that are complex or expensive and need a personal touch to explain. SLG is common in areas where long-term relationships and trust matter. For SLG to work well, companies need to hire and train a good sales team and give them the tools they need. In SLG, the business’s success depends a lot on the efforts and skills of the sales team.

Key Features Of Sales-Led Growth

• Personalized Contact: In SLG, the sales team directly reaches out to potential customers. They make calls, send emails, and arrange meetings to introduce the product, adapting their approach to fit each customer.
• Building Relationships: Sales teams focus on creating strong, long-lasting connections with customers. They take time to understand the customer’s needs and business, which helps build trust and loyalty.
• Detailed Demonstrations: Sales-led growth relies on showing the product in detail. The sales team demonstrates how it works and how it can solve the customer’s problems, often providing thorough explanations and answering questions.
• Flexible Deals: SLG often involves negotiating prices and making custom deals. The sales team works with customers to find the best pricing and terms that work for both sides, often closing deals through this personalized negotiation process.

Here are the following difference between Product-lead Growth and Sales-Lead Growth:

In conclusion, choosing between product-led growth (PLG) and sales-led growth (SLG) depends on things like the type of product, the target audience, and the company’s strengths. PLG focuses on using the product itself to get customers, while SLG depends on the efforts of the sales team. Understanding these differences helps businesses pick the best way to grow. Both methods have their own benefits and downsides. Companies might also find it useful to use a mix of both approaches or switch between them as needed.

Can a company use both PLG and SLG strategies?

many companies mix PLG and SLG to grow. They might use PLG to get lots of users and then SLG for specific customers.

What type of products are best suited for PLG?

PLG is good for products that people can use easily and get value from quickly, like apps or online tools.

How can a company switch from SLG to PLG?

They can focus more on making the product better and easier to use. They can also let users try it without needing help.

What are the main ways to measure PLG success?

They look at how many people use the product, how often, and if they keep using it. They also ask users if they would recommend it to others.

How is customer help different in PLG and SLG?

In PLG, help is more about using the product well, while in SLG, it’s more about building good relationships with customers.