What is a product-led growth strategy?
A business model known as a "product-led growth strategy" uses the product as the primary engine of client acquisition, conversion, activation, expansion, and other business processes.
Allowing consumers to try and buy is a bottom-up strategy for product-led growth.
Mostly, this marketing technique depends on the product's viability, functionality, and performance. Converting a user is considerably more straightforward if they have used a free trial or freemium model to feel the value of your product.
Gainsight's 2022 PLG Index polled 58% of businesses, and 47% said they planned to quadruple their investment in product-led growth strategies.
Today, more than 65% of the Forbes Cloud 100 for 2021 use a PLG motion, compared to less than 35% just five years ago. The overall market capitalization of publicly traded PLG companies increased dramatically from $20 billion to well over $600 billion within the same period, further enhancing the perception of PLG as a strong GTM strategy.
How?
To provide engaging product experiences at scale, PLG uses product usage data to accomplish these goals. Gainsight claims that subscription-based SaaS businesses are a natural fit for PLG strategies since they must match their goods to the needs of their consumers at every point of the customer journey.
Gainsight claims that a conventional approach centered on the marketing and sales funnel is no longer successful in generating long-term development for SaaS subscription businesses. Making the product a crucial component of the customer lifecycle and experience is the answer. According to the Gainsight analysis, the PLG approach prioritizes the development across the customer experience to promote conversion, adoption, retention, and growth.
Product Qualified Leads:
Users that have used your product and found value in it are known as product-qualified leads (PQLs). PQLs have the highest likelihood of eventually becoming paying clients. Typically, they are customers that signed up via a free trial or freemium model.
What may be done to influence the SaaS company's revenue? The solution is to track all the customer-related data using a CRM (Customer Relationship Management) application.
What is a PLG CRM?
PLG CRM is a solution that enables SaaS organizations to manage their accounts, contacts, and opportunities in a dynamic, real-time manner. It replaces some of the conventional CRM principles that relied on data input to accurately estimate deals with actual data gleaned from product usage and other sources.
Source: Here
It is a record-keeping system that compiles all relevant data.
Due to the lack of client interaction with humans, it includes subscription data.
Seamless integration of product data, comprehension of user journeys, and other data points
Intelligent automation workflows to assist workflows
As seen from the image above, PLG CRM enables SaaS organizations to reach out and assist end users at every step. This makes the customer journey seamless thereby helping them in faster decision making and faster closure.
Benefits:
Eliminating silos, PLG CRM is connected to every customer-related data point and intention.
Increased conversion rates from free to paid:
Representatives closed big deals.
Coordination between several roles
Increased revenue from expansion.
The Difference between Traditional CRM and PLG CRM:
Traditional CRM:
A CRM aids in creating and maintaining customer relationships. It gathers client data and enables you to establish a relationship with your customers by providing a seamless customer experience. Furthermore, these systems are not created by SaaS modules and therefore cannot collect data on end customers and how they use the product. This necessitates manual updating and feeding of data.
Any entity that needs to be set up needs an implementation professional. These systems provide data and limited insights.
Product Lead Growth CRM:
A product-led CRM is beneficial since it offers a deeper understanding of user behavior, including product consumption. It keeps tabs on a customer from the moment they interact with your business till they continue to use your brand. It may quickly add new components and modify old ones following the user's journey. These systems offer valuable insights following the established benchmarks, allowing the end user to take the necessary action.
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