What is PLG?

You’ve seen the acronym thrown around a whole lot lately, but what exactly does PLG mean, and why should you care about it? Here, we’ll break down everything you need to know about PLG and why it’s worth paying attention to.

What is PLG?

Product-led growth (PLG) is when customer adoption, growth, and retention is driven mainly by the product itself, rather than by traditional marketing and sales.

There are plenty of well-known examples of product-led companies: Canva, Calendly, Slack, and Zoom, just to name a few. These are tools we all use, and they’ve become ubiquitous without having to rely on aggressive outbound sales strategies or expensive marketing campaigns.

At its core, PLG is about gaining a deep understanding of the customer/user journey and using that to create an extremely personalized experience at every stage.

Why is PLG important?

So why should you care about PLG? For starters, it’s a strategy that has been proven to work. By focusing on the product and its ability to drive growth, companies can create a self-sustaining model that doesn’t rely on costly marketing and advertising campaigns.

Additionally, PLG is a customer-centric approach that puts the needs and preferences of the user at the forefront. By creating a product that is easy to use, enjoyable, and effective, companies can build a loyal customer base that is more likely to stick around and refer others.

Finally, PLG is a strategy that is well-suited to the current digital landscape. With social media and other online channels providing easy access to potential customers, it’s never been easier to leverage the power of word-of-mouth marketing and create a viral product that people will be excited to share organically.

What makes product-led so different from sales-led?

Early on, product-led companies have little need for traditional sales teams. Instead of pursuing big deals, reps at product-led companies are more focused on user success–answering questions to make it easier for people to move through the funnel themselves.

With a predominantly inbound sales motion, these companies can focus in on of the product itself, investing in innovation instead of marketing.

The Bottom Line

PLG is a growth strategy that focuses on the product as the primary driver of growth. By creating an exceptional product that users love and incentivizing customer referrals, businesses can create a self-sustaining model that doesn’t rely on costly marketing campaigns. If you’re looking for a customer-centric approach that is well-suited to the digital landscape, PLG is definitely worth considering.