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Product-led growth is the future of go-to-market strategies. It implies growth directly connected to the value of the product.<\/span><\/p>\n Synonyms for product-led growth include terms such as:\u00a0<\/span><\/p>\n <\/p>\n Product-led growth wouldn\u2019t be massively used if there weren\u2019t success stories that have inspired others. Companies such as Slack, Dropbox, or Calendly are the ones to thank for the popularity of product-led growth strategy. All these products share a few common characteristics.\u00a0<\/span><\/p>\n They are:<\/span><\/p>\n <\/p>\n At its core, product-led growth is a consumer growth model which relies on a product itself.\u00a0<\/span><\/p>\n It relies on a product to do all the work. The product has to drive customer acquisition, conversion, and expansion.\u00a0<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n Overall, the product is always put first with product-led growth.\u00a0<\/span><\/p>\n However, building a product that will perfectly suit end-users is not that simple. It is important that everyone in a company focuses on a product and how to build the best one. The product has to be simple and focused, serving the user’s needs and not having any unnecessary features.<\/span><\/p>\n Although the design is important, it is not enough; the product also has to align with the customer\u2019s pain as well. This means that when creating a product it is important to think as a consumer, not a business person. Every action made by a marketing team has to focus on satisfying the customer and then the profit would follow.<\/span><\/p>\n The most efficient product-led growth strategy is a flywheel which has been adopted by many companies. It considers four user segments which are important for the stages that happen in the user journey. These stages are:<\/span><\/p>\n These stages correlate with key actions that users are taking in order to move to the next stage. The key actions are:\u00a0<\/span><\/p>\n <\/p>\n Once evaluators experience the product they are becoming activated and move to a beginner stage in which they form certain habits of using the product they adopt. Regulars are comfortable with using the product, they do it regularly and they look forward to doing it, they adore it. Finally, champions are those who take an active part in a product’s future by advocating for the product.<\/span><\/p>\n The company and all teams should focus on a product and on how to optimize the user experience so as to move from one stage to the next one. When the rate of users completing each stage increases, it will make the flywheel spin faster. This is when positive feedback happens and if more users become advocates, they will drive more acquisitions and that leads to exponential growth.\u00a0<\/span><\/p>\n To sum it up, all of these actions make product-led growth able to deliver value as fast as possible. It also makes it easier to convert, retain and make prospects become paying customers.\u00a0<\/span><\/p>\n <\/p>\n <\/p>\n The product-led strategy has recently been used more and more and is especially suitable for businesses and startups that need to scale fast.<\/span><\/p>\n A startup refers to a new business being in the earliest stage of its development. Startups are characterized by the potential to grow exponentially and by innovation. Startups bring something new in terms of technology, product, or service. At the same time, they are a sort of business experiment testing the market.<\/span><\/p>\n Building a SaaS startup has become very easy and there are thousands of SaaS startups on the market. But not all startups are success stories. Even though most startups possess two main characteristics, innovation and growth, and although at the core they have a huge potential for success, not all startups manage to succeed and survive on the market. As a matter of fact,<\/span> 90%<\/span><\/a> of startups fail.<\/span><\/p>\n In order to avoid this, they adopt methodologies such as product-led growth and they decide to focus on their customers. If a startup wants to become successful and manage to scale, it has to fulfill some of the following.<\/span><\/p>\n <\/p>\n If these conditions are not fulfilled, the startup will fail. As a matter of fact, starting any new business is a big risk and according to<\/span> Business Employment Dynamics<\/span><\/a> report from the Bureau of Labor the failure rate of new businesses is:<\/span><\/p>\n <\/p>\n <\/p>\n In his<\/span> definition of product-led growth<\/span><\/a>, Wes Bush says that \u201cproduct-led businesses are valued more than 30% higher than the public-market SaaS Index Fund.\u201d<\/span><\/p>\n <\/p>\n The world of SaaS companies is very unpredictable, the growth can sometimes happen overnight or never. The best example of this is Zoom.<\/span><\/p>\n 2020 was a fruitful year for Zoom. It became the home office\u2019s conference room, and team building\u2019s party place. People were using it for different reasons and it experienced huge growth.\u00a0<\/span><\/p>\n\n
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The main pillars of the project-led growth model are:<\/span><\/h4>\n
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Adopting product-led growth strategy<\/span><\/h2>\n
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Why do SaaS startups need product-led growth?\u00a0<\/span><\/h2>\n