What is Product-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.

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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What is Product-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....

What is Sales-led growth?

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....

Difference between Product-led growth and Sales-led growth

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Conclusion

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....

Product-led growth and Sales-led growth – FAQs

Can a company use both PLG and SLG strategies?...

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