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Product-Led Progress Techniques Throughout the Buyer Journey


Product led-growth (PLG) is a enterprise mannequin that considers the product the principle driver behind acquisition, activation, engagement, retention, and scalable enlargement. A enterprise centered on PLG is primarily centered on creating sticky in-product experiences and options as a substitute of relying solely on gross sales and advertising to attain success.

With a sales-led or marketing-led strategy to development, potential clients are instructed the product’s worth earlier than they even acquire entry to it. PLG flips that concept on its head and lets the product do the speaking. Prospects acquire early entry to the product by way of issues like free trials and freemium accounts within the hope that they see the worth in turning into paying clients.

PLG doesn’t imply that gross sales and advertising efforts are forgotten. So as to succeed, PLG requires the involvement and enter of all groups, from gross sales, advertising, product growth, and extra. Every group is tasked with discovering the very best methods for purchasers to see a product’s worth instantly by way of early entry.

PLG ensures that companies develop high-quality merchandise that their end-users will love. PLG firms even have decrease gross sales and advertising prices, which implies decrease buyer acquisition prices (CAC). As well as, PLG firms are inclined to get pleasure from accelerated development in contrast with their rivals.

Key takeaways

  • On the core of the product-led development mannequin, you might have acquisition, retention, and monetization.
  • You’ll be able to drive acquisition by way of PLG by specializing in community-based content material and product artifacts.
  • You’ll be able to drive monetization by way of PLG by exhibiting a product’s worth to a brand new buyer (normally by way of a free trial or freemium account) in a means that encourages them to enroll in a paid subscription.
  • To drive retention by way of PLG, you need to first determine what constitutes a retained consumer so as to personalize their expertise to encourage them to maintain coming again to your product.
  • Drive engagement by awarding energy customers with issues like recognizable expertise certification (e.g., AWS certification) whereas additionally encouraging different customers to extend their very own engagement.

The shopper journey phases of PLG

To succeed, PLG needs to be rooted in every stage of the shopper journey.

  • Acquisition happens when prospects flip into clients.
  • Monetization entails gleaning income from the worth customers discover in your product, equivalent to by turning free customers into paying ones.
  • Retention, the results of activation and engagement, happens when customers construct a behavior along with your product and return to it after their preliminary use.
    • Activation is when a consumer experiences their first “aha” second and finds worth within the product.
    • Engagement measures how “sticky” a product is or how a lot customers work together with it.

In product-led development: Your present customers drive acquisition by way of word-of-mouth and referrals. Monetization is self-serve as a result of the product is bought with out the involvement of gross sales groups. And utilization triggers inside your product drive retention and engagement.

PLG techniques for every stage of the shopper journey

There are a variety of techniques organizations can use so as to maximize their product-led development technique. Every stage of the shopper journey requires totally different techniques and approaches to make sure success.

Under, I’ve outlined some tried and examined PLG techniques your group can check out.

PLG techniques for driving acquisition

Within the early phases of your buyer journey, content material is vital to buying new clients. Geared toward serving to new customers take advantage of out of your product, this content material permits them to see the product’s worth instantly. This might embrace long- or short-form content material that gives potential clients with the knowledge they should get began.

Neighborhood can also be a giant driver at this stage. Leveraging group entails the creation of content material equivalent to product-related movies.

Lastly, product artifacts are a good way to tug potential purchasers towards your product. An artifact is a byproduct that’s created through the growth of a little bit of software program. This may very well be a diagram or setup script. Whereas a product artifact just isn’t your primary product, it may be used to attract folks’s consideration towards it.

Notion templates are a terrific instance of this. A Notion buyer who creates or makes use of a challenge administration template can move it on to a colleague who just isn’t a Notion consumer. That colleague may like what they see and select to discover the product even additional.

PLG techniques for driving monetization

There are a variety of various monetization approaches you possibly can take, and each is determined by the philosophy you need to undertake as an organization. Usually talking, it will come right down to answering one in every of three questions:

  • Will you present worth at no cost to your customers and take it away after a trial interval?
  • Will you present baseline worth at no cost and provide a premium model that clients pays for?
  • Do you propose to point out your clients the worth of a product, however they’d then must pay for it so as to entry it themselves?

Realizing which one in every of these approaches to make use of is determined by understanding your clients and your market section.

LinkedIn is an efficient instance of a enterprise that has figured this out. Its InMail Messages characteristic permits customers to ship direct messages to different LinkedIn members even when they’re in a roundabout way related to them. These could be very priceless, significantly for gross sales groups. However the variety of InMails you possibly can ship is determined by your LinkedIn plan. A free plan doesn’t assist you to ship any InMails. Different plans can vary from 5 to 50 InMails per 30 days.

LinkedIn’s strategy with InMail Messages displays a hybrid of philosophies, and it really works properly at concentrating on clients at totally different phases of their journey. These embrace free customers trying to attain prospects exterior of their connections however who can’t see the worth of the product with out accessing it. It’s additionally efficient at reaching customers with a lower-tier paid subscription who see the worth of InMail Messages by way of direct utilization and want to improve to a plan that may permit them to ship extra messages.

PLG techniques for driving retention

The trickiest a part of driving retention is understanding if a consumer has been retained or not. Utilizing LinkedIn for instance as soon as extra, you possibly can see this entrance and heart instantly on consumer profiles. If a consumer hasn’t been totally onboarded, they see a progress bar on the high of their profile each time they log in, reminding them that their profile is incomplete.

So step one in growing PLG techniques for retention is to outline what retention means in your product after which determine the components or actions {that a} buyer must take that may cause them to be retained.

Realizing the stage of retention your buyer is in will assist you to personalize their experiences in a means that may encourage them to finish their onboarding. You can too encourage them to interact with the product in a means that may carry them into contact with options designed to make them stick round.

PLG techniques for driving engagement

Just like the acquisition stage, your present customers and group are your primary drivers for activation and engagement. Via your PLG strategy, you might have constructed a high-quality product that’s reaping worth in your customers to the extent that many have change into energy customers.

At this stage, you should determine your energy customers and perceive their typical buyer journey and what behaviors they interact in. This helps you recreate these experiences extra simply and, in flip, create extra energy customers.

You must also champion and reward your energy customers in a means that’s useful to them whereas additionally being seen to different customers. This makes it extra enticing for different clients to change into energy customers themselves.

Some firms have turned energy utilization right into a certification that customers would need to placed on their resumes as a result of it makes them extra hireable. Some examples embrace Salesforce Admins and AWS certification.

In these circumstances, being a Salesforce or AWS energy consumer is extra than simply an web badge with no actual worth. It offers your most dear customers one thing again, and it makes it extra enticing for different customers to extend their very own engagement.

Establish your organization’s PLG technique with our free worksheet

That will help you get began and construct your individual product-led development technique, we’ve created this free worksheet. Use it to map out your buyer journey and PLG techniques.

Filling this worksheet out as a group train may also help you:

  • Establish any doable obstacles or factors of friction.
  • Develop methods to extend monetization.
  • Design the loops inside your product which might be more likely to drive engagement and retention.

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PLG Strategy Worksheet

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