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Why Product-Led Growth is the most effective GTM strategy

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Product-led growth is a strategy that relies on features and usage as primary drivers for customer acquisition, retention and expansion. Mastering growth is an iterative process that involves measurements, user engagements and experimentation.

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Why Product-Led Growth is the most effective GTM strategy

  1. 1. Leading With Your Product is the Most Effective Go-To-Market Strategy Mickey Alon CEO & Founder Aptrinsic Helping you build products that drive growth!
  2. 2. 2 About me • Always been a product guy, passionate about innovation • Former founder and CEO of InsightEra (acquired by Marketo), GVP of Engineering @Marketo • Co-author of “Mastering Product Experience”
  3. 3. 3 “ 34% of product features go unused by customers 65% of B2B buyers prefer NOT to interact with a sales rep 52% of users said that a bad product experience made them less likely to engage with a company Did you know?
  4. 4. GTMEvolution Confidential. Copyright © 2016-2017. All rights reserved. Sales-led Customer acquisition led primarily by sales teams Product Assisted Driven by customer expectations to try the product earlier in buying process Product-led Product as main channel for customer acquisition, retention and expansion
  5. 5. 5 Traditional Acquisition Model What’s Wrong With This Picture?
  6. 6. 6 Product-Led Growth Strategy
  7. 7. How is product-led GTM different? Confidential. Copyright © 2016-2017. All rights reserved. Today’s Strategy • Companies force prospects to jump through hoops, such as filling out lead forms or requesting a free trial, a quote or a demo to learn about the product • Companies focused on marketing/sales funnels and the size of those fiunnels as their primary framework (MQLs/SQLs) • Product teams played limited role in customer acquisition process Product-led Strategy • Companies provide access to products earlier in the buying cycle via trials or freemium and personalize each user’s journey • Companies focus on customers while they use product, throughout the lifecycle, for increased sales efficiency (Awareness -> PQLs) • Product teams increasingly more responsible for customer acquisition metrics
  8. 8. Confidential. Copyright © 2016–2017. All rights reserved. slack Slack became fastest growing SaaS company of all time (grew from $0 to $4B in valuation in just 4 years). • Converts 30% of their free users to paid • Adds $1 million in new contracts every 11 days • Excellent onboarding and initial adoption process Case Study
  9. 9. Introducing Product Led Growth Confidential. Copyright © 2016–2017. All rights reserved.
  10. 10. 10 What is Product-Led Growth? A go-to-market strategy that relies on product features & usage as the primary drivers of customer acquisition, retention and expansion.
  11. 11. 11 Build, Measure, Grow = Iterative Process Trial Conversion Customer Adoption Drive Adoption Measure Success Gather Feedback Expansion Up-Sell, X-Sell Feature Onboarding Copyright © 2016-2018. All rights reserved. • Product Instrumentation is key to tie usage with revenue • Identify growth cohorts and cohorts at risk • Experiment using controlled availability, engagements & feedback
  12. 12. 12 The North Star Metric Confidential. Copyright © 2016–2017. All rights reserved. • Define the metric that measures the value your product provides. • Correlate with revenue attribution • Focus everyone on moving it
  13. 13. 13 The First Mile Of Product Confidential. Copyright © 2016–2017. All rights reserved. • Onboard & Activate – drive users to the a-ha moment • Measure impact of every release on new sign-ups, focus on marginal users • Define journeys based on stages and goals, make those easy for your users • Collect targeted feedback not just NPS
  14. 14. 14 Why Product Experience Matters? Confidential. Copyright © 2016–2017. All rights reserved. The Hook Canvas (Nir Eyal) Fogg Behavior Model
  15. 15. 15 Onboard users based on product interest (Track – Derive – Ask) Create DocInvite Team
  16. 16. 16 Onboarding Sequences Welcome Email In-App Personalized Onboarding Based on Product Interest Benefits How-To Onboarding Urgency Guides EducateFeature Activation
  17. 17. 17 Retention vs Acquisition Confidential. Copyright © 2016–2017. All rights reserved. • Look for clear indication of product market fit – avoid the leaky bucket problem • Majority of the revenue is created after the initial sale • Delivering meaningful features should increase usage over time – strive for the smiley face
  18. 18. 18 Feature Activation Confidential. Copyright © 2016–2017. All rights reserved. • Build release experience – raise awareness, message to your users, set adoption goals. • Promote features in-context – driven by user behavior • Increase discoverability through user engagement and additional entry points
  19. 19. 5 Pillars to Accelerate Growth using PQLs Confidential. Copyright © 2016–2017. All rights reserved.
  20. 20. 20 What is a Product Qualified Lead? In a nutshell PQLs are qualified leads that demonstrated buying intent based on product interest, usage, and behavioral data. LEAD PQL Opportunity Revenue LEAD Revenue Opportunity MQL SQL  User and Account demographics and firmographics  Usage and frequency metrics  Engagement metrics  Package limits  Support metrics
  21. 21. 21 Become a product-led company, make growth an important part of your product initiatives
  22. 22. 22 Drive prospects to signups, minimize gating Confidential. Copyright © 2016–2017. All rights reserved. SIGN UP NOW!
  23. 23. 23 Have a product oriented sales team Confidential. Copyright © 2016–2017. All rights reserved. PRODUCT LED GROWTH
  24. 24. 24 Continuously Measure & Onboard users Confidential. Copyright © 2016–2017. All rights reserved. Identify high converting usage behaviors Paying customer Guided onboarding Always optimize your first mile of product! 1 Mile
  25. 25. 25Confidential. Copyright © 2016–2017. All rights reserved. Democratize Your Product’s Data
  26. 26. 26 What are the benefits of a Product-Led Growth Strategy? Aligned with how customers want to buy Able to personalize experience earlier in buying cycle Product usage is better correlated with buying intent Focuses sales, product and success around solving customer problems Build innovative products that people love to use
  27. 27. Q&A Mickey Alon CEO & Co-founder Aptrinsic
  28. 28. Thank You Download free copy @ Aptrinsic.com

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