If you’re a product manager, you’re probably familiar with the traditional sales-led growth model. This model relies on outbound sales and marketing efforts to acquire customers. But what if there was a more efficient and cost-effective way to grow your business?
That’s where product-led growth (PLG) comes in. PLG is a go-to-market strategy that focuses on using the product itself to acquire, activate, and retain customers. This means that the product is the primary driver of growth, not a different channel and separate sales team.
PLG is becoming increasingly popular in the tech industry, and for good reason. It offers a number of advantages over traditional sales-led growth, including:
- Efficiency: PLG can be a more efficient way to acquire customers, as the product itself does the selling. This can save businesses a lot of money on sales and marketing costs.
- Scalability: PLG is a more scalable growth strategy than traditional sales-led growth. This is because PLG doesn’t rely on a large sales team to acquire customers. Instead, the product itself can acquire customers at scale, which can help businesses grow their customer base quickly.
- Sustainability: PLG is a more sustainable growth strategy than traditional sales-led growth. This is because PLG is based on creating a product that users love and want to use. This can lead to higher customer retention rates and more repeat business, which can help businesses grow their revenue over the long term.
If you’re interested in learning more about PLG, there are a number of resources available online. The Product-Led Growth Book by Wes Bush is a great place to start.
So, what does this mean for the future of product management?
As PLG becomes more popular, product managers will need to shift their focus from outbound sales and marketing to creating products that users love. This will require a deep understanding of user needs and behaviour, as well as the ability to collect and analyze data to make informed decisions about the product.
Product managers who are able to master PLG will be well-positioned for success in the years to come.
If you’re a product manager who is looking for a more efficient, scalable, and sustainable way to grow your business, then PLG is definitely worth studying.