Difference between Product-led growth and Sales-led growth
Here are the following difference between Product-lead Growth and Sales-Lead Growth:
|
Basis |
Product-Led Growth (PLG) |
Sales-Led Growth (SLG) |
|---|---|---|
|
Meaning |
The product itself drives customer acquisition and growth. |
The sales team is the main driver of customer acquisition and growth. |
|
Customer Acquisition |
Customers are attracted by using and experiencing the product. |
Customers are acquired through the efforts of the sales team. |
|
Initial Cost |
The initial cost is lower because users can often try the product for free. |
The initial cost is higher due to the expenses of sales team salaries and resources. |
|
Scalability |
This approach is highly scalable as more users can access the product easily. |
This approach is less scalable as it depends on the size and capacity of the sales team. |
|
User Onboarding |
Users can start using the product on their own with minimal help. |
The sales team provides personalized onboarding and support to new customers. |
|
Customer Interaction |
There is limited direct interaction, with a focus on the product experience. |
There is high direct interaction, with a focus on building relationships with customers. |
|
Feedback Loop |
Feedback is gathered through product usage and data analytics. |
Feedback is collected through direct conversations between the sales team and customers. |
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.
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