- A Product-Led Growth (PLG) is a product marketing strategy that puts the product itself and its functional end user value as the top priorities and uses them to as the main sales drivers.
- Behind efficient PLG stands the relevant market demand.
- Looking at the history or, if you may, the timeline of demand in the global IT market can give you great insights.
The global commercial market tendencies have always been dynamic and ever-shifting in the first place. But the current pandemic situation shoves its malicious 2 cents and complicates the life of businesses further. Now, you have to be even more flexible and intensely advertised to keep up with the competition. There are marketing techniques like email automation and other email marketing services that help keep afloat, as well as:
- ERP, CMS systems, task managers, and enterprise applications;
- Audio/video conference software (Zoom, Skype) and emailing systems;
- Versatile new-generation messengers (Telegram, WhatsApp);
- Cloud and hybrid web and mobile apps, etc.
But what’s truly important for any IT business and entrepreneur out there right now is understanding what drives sales in today’s conditions. Why and for what people purchase software, how most of them prefer acquiring it, and how they use it for particular purposes.
This knowledge helps properly build and employ a Product-Led Growth (PLG) strategy – perhaps, the most efficient marketing tactics that enable you to honestly boost your brand awareness and sales by satisfying the demand with proper solutions.
What is Product-Led Growth?
A Product-Led Growth (PLG) is a product marketing strategy that puts the product itself and its functional end user value as the top priorities and uses them to as the main sales drivers. I.e., your main selling point IS your product and you attract new users and customers with the useful functionality you have to offer.
As a real-life example, there are Slack and Dropbox that offer the basic functionality for absolutely free, thus easily acquiring a base of interested users that can make out the further potential of the software and convert into customers to access more features (the freemium model).
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With PLG, not only you can rapidly get that initial “safety bag” chunk of a user audience but you also can perfect and grow the product based on the ongoing user experience and feedback.
In simple words, you:
- offer your software concept that meets particular user needs
- users try it for free in the field and point out where it can be improved
- you implement user-driven improvements
- user satisfaction rates increase
- people decide to purchase a full paid version
As simple as that, but it works. You can employ the PLG strategy in different manners, with different software product distribution approaches. But let’s start from the beginning. Behind efficient PLG stands the relevant market demand. What should we know about the concept of demand?
Putting Your Product on the Pedestal by Inspecting Demand
The main driver of successful sales is, of course, the demand. And it is what predetermines a software product’s deliverability rates in the market. It is crucial to understand the specifics of how the demand accumulates, shifts, and progresses over time to achieve the highest product deliverability rates and hit the most profitable spot with your commercial offers.
Figuring out the basics
For starters, in different times and business periods, different niches, types of products, and business segments are in top demand. Looking at the history or, if you may, the timeline of demand in the global IT market can give you great insights. Thus, in 2020, the industry focus was put heavily on remote opportunities and integration of advanced technologies with business workflows, emphasizing the following:
- AI (Artificial Intelligence) – allows for smart data processing and automation of in-house or product functionality;
- Big Data – the efficient approach to collecting and processing constantly accumulating huge heaps of data;
- Cloud computing – cloud technologies allowed centralizing data inside unlimited storage that is highly available and doesn’t occupy physical space;
- Mobile optimization – the all-consuming remote format of interaction has swept the world and mobile apps became real life-savers for all responsible employees, as well as parents, kids, teachers, etc.
Regular market and competitor analysis, niche insights, forecasts by reputable statistical sources (like Statista, ), as well as a general overview of the industry should help you keep up with the demand spikes. With this knowledge in hand, you can move on to elaborating your PLG strategy.
The Product-Led Growth philosophy
Naturally, there is always a gap between a new software product and potential user expectations, which needs to be bridged somehow, some way. Right off the bat, we are thinking heavy promotion and advertising. And yes, these are the most standard, unfailing methods of spreading the word and informing people about the new product you have.
But the advertising efforts shouldn’t outbalance the main purpose of any software project – solving user/business issues and bringing particular benefits via valuable functionality of a product. Many companies today get lost in loud promises so much they forget to live up to their words.
Ads are still important, yes, but you may want to put the main focus and a bigger part of investments into analyzing and honing the solution you offer. This is how you can do it:
- Free trial – a one- or two-week free trial is always a great opportunity for users to try out what your product has in store and make a balanced decision to full-on purchase it (or a plan for its use).
- Freemium – you can also provide a basic product with exclusive functionality when certain pro features must be purchased while all the standard stuff is free to access.
- MVP – a minimum viable product well embodies the philosophy of PLG, allowing you to see how users receive your software concept and tweak it where need be.
A very valuable insight you get from all those approaches – users preferring to purchase your solution after trying the basic functionality indicates that you are going in the right direction and your product is worth the effort.
Achieving Product Deliverability
The PLG approach allows providing the best user experience, hitting the demand, and meeting user expectations. The only thing that’s left to figure out now is how to most efficiently deliver your product to the masses so that everybody sees its worth. For this, you need leads. One of the most powerful ways to generate them in the modern business environment is proper email marketing.
But the success of your email marketing campaigns depends directly on the deliverability of emails. How to boost it?
To most efficiently generate leads, your email must work without downtime, accumulating as many possible lead options as possible. For this, there are specialized automation solutions that can help you expand your product reach and acquire new business possibilities while focusing on other important tasks and watching increasing product deliverability rates.
Get Your Software Seen with Belkins
Do you need to further elaborate on the specifics of PLG? Or would you like to start implementing this approach and streamline it via powerful email marketing campaigns? At Belkins, we will clarify all the details and help you improve email deliverability with an all-in-one smart solution. Feel free to contact us.