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CPMN - Product Led Growth (from Product Heads)

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CPMN - Product Led Growth (from Product Heads)

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Product-Led Growth has moved from a tactic / buzzword to a mainstream mindset for more and more SaaS companies.

So what is Product-Led Growth and what does it look like in a B2B SaaS company?

This talk will give an overview of 'PLG' and some key factors to address when becoming product led.

Product-Led Growth has moved from a tactic / buzzword to a mainstream mindset for more and more SaaS companies.

So what is Product-Led Growth and what does it look like in a B2B SaaS company?

This talk will give an overview of 'PLG' and some key factors to address when becoming product led.

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CPMN - Product Led Growth (from Product Heads)

  1. 1. Cambridge Product Management Network Product Led Growth Tim Wilkinson Thanks to our sponsors
  2. 2. Product Heads Hire, train and scale your product team for success
  3. 3. Product Led Growth
  4. 4. 34% more SaaS businesses said they had a product led growth strategy in 2021 than in 202o FastCompany
  5. 5. What’s driving the change?
  6. 6. Help, I’ve got a leak! When can you get here? Thanks for calling! First I need to book you in for a sales call… …how about Thursday next week? 🤯 Photo by Unsplash
  7. 7. Habits are changing 75% of B2B buyers would rather self serve through an app or website rather than go through a salesperson* AND They are prepared to spend 6 figures via automated signups** * Forrester ** McKinsey Photo by Evoke Creative
  8. 8. Margins are getting squeezed ● Costs of acquisition and retention have gone up 60% in the last 5 years (BusinessWire) ● Customers want to pay less Photo by Rui Matayoshi on Unsplash How do you grow and scale efficiently whilst keeping costs low. How do you maximise revenue per employee?
  9. 9. What actually is Product Led Growth The Product Sales Marketing Customer Success Engineering Design Outstanding User Experience
  10. 10. Example PLG B2B Companies Product Offer PLG Super Power Dropbox Store and share your most important files ● Native experience (integration) ● Share right away (bringing others into the product) Airtable No-code / low-code platform ● Templates / Airtable Universe Zoom Real time collaboration ● Speed to start, invite others to, and join a call
  11. 11. Bottom up not Top down ⬆ ⬇
  12. 12. Focus on the user first, NOT the buyer 🏆 First Rule of PLG
  13. 13. Traditional Sales Pipeline Marketing Qualified Lead Sales Qualified Lead Product Usage Top of funnel Purchase
  14. 14. Product Led Sales Pipeline Marketing Qualified Lead Sales Qualified Lead Product Usage Top of funnel Purchase Product Qualified Lead Word of mouth
  15. 15. For this to work, you MUST get users to value ASAP 󰖤 Second Rule of PLG
  16. 16. The Bowling Alley Strategy
  17. 17. Explicitly articulate the friction
  18. 18. �� �� In Product ● Welcome messages ● Product Tours ● Progress bars ● In app messages ● Check lists ● Onboarding tooltips ● Empty states Out of Product ● Onboarding emails ● Customer Success chats, emails, calls ● Help articles ● Sales outreach
  19. 19. Product Metrics Marketing metrics (ToF) Focus Metric Key metric that tracks customer getting to value / success Reach Activation Engagement Conversion Retention Volume of leads landing in the product / website etc % Signups % Engaged with key value features in a given period of time (you can ‘go deep’ here) % who actually purchased 30 day retention 60 day retention 90 day retention Predictability of revenue
  20. 20. Activation and Habituation thresholds Activation is when a customer gets to value (it is not the same as the “aha moment”) To understand your activation rate (as a percentage), divide the users who reach activation by the number of user who sign up to the product (and multiply by 1oo). Leading PLG companies are at between 20% - 40% activation Retention is when customer continue to use the product because their is ongoing value
  21. 21. Identify Growth Loops ♲ Third Rule of PLG
  22. 22. Growth Loops
  23. 23. Growth Loops
  24. 24. Acquisition and Pricing strategies Free Trial Give users full access to all features for a limited time (typically 7, 14 or 30 days) Must be confident users can get value within the trial period Should ‘managed’ by CS (and sales) Easy to set up, so is good for ‘dipping your toe’ in the PLG water! Freemium Give users full access to a limited set of features for ever, with the intention of moving them onto a paid plan Need to thoroughly understand the value and usage of your products features and model revenue Must deliver some value in the free plan 💵 All pricing must be based around value and usage (not seats)! 💵
  25. 25. When Product Led Growth isn’t the best strategy ● Your product is particularly technical ● Your product requires complex set-up / integrations ● Your users have at least some direct buying power (or your freemium model accommodates for this) ● Your users can get value quickly and become champions, before hitting a paywall
  26. 26. A PLG Strategy Acquisition Conversion Retention Expansion The focus is on giving users value and a great experience, BEFORE charging for it Generally a ‘bottom up’ marketing and acquisition strategy Marketing and lead gen activities are concentrated on getting users (not necessarily buyers) into the product (rather than a sales call) Customers can use the product immediately, with no support / set up requirements You offer a freemium or free trial period The product may include features which drive acquisition and growth in themselves The product solves the problem the user hired it for Users need to purchase either to keep using the product or access broader features Users can self serve purchase of the product. The product tracks usage and drives engagement to conversion (e.g through automated emails and in product nudges) Users can get support through chat bots, help docs etc The product becomes part of the users core workflow, for the problem you are solving The product automatically drives engagement, prompting how to get further value, next steps, help articles etc. Users can add their own integrations and customisations building a personalized experience that they can tailor to their needs User can add colleagues, create teams, share etc Users can easily move between payment plans themselves Pricing is generally usage based driving revenue as accounts expand The product may include features which drive acquisition and growth in themselves
  27. 27. Key Steps to moving to a PLG Strategy #1 Understand your core value, communicate it, and deliver it
  28. 28. Key Steps to moving to a PLG Strategy #2 Define and optimise your core user journey (getting users to value)
  29. 29. Key Steps to moving to a PLG Strategy #3 Identify Growth Loops
  30. 30. #4 Create a dedicated team to focus on moving towards PLG Key Steps to moving to a PLG Strategy
  31. 31. Key Steps to moving to a PLG Strategy #5 Edge into it and experiment!
  32. 32. ● Product Led Growth book by Wes Bush ● Product Led Foundation (productled.com) ● reforge.com/blog/growth-loops ● Lennysnewsletter.com interview with Ben Williams from Snyk Resources
  33. 33. productheads.io tim@productheads.io 01223 944 101 07887 931 981 web: email: Phone: Mobile: Tim Wilkinson Founder
  34. 34. SUPPORT SCIENCE & PRODUCT MANAGEMENT! rs2187@jbs.cam.ac.uk Raul Saenz de Inestrillas

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