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CPMN - Product Led Growth (from Product Heads)
The document discusses the concept of Product-Led Growth (PLG), highlighting its increasing adoption among SaaS businesses as customer preferences shift towards self-service models. It outlines key strategies for implementing PLG, including understanding core value propositions and fostering user engagement through automated features. Additionally, the text emphasizes the importance of creating growth loops and maintaining a focus on user experience to enhance acquisition, conversion, and retention.
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CPMN - Product Led Growth (from Product Heads)
- 1. Cambridge Product ManagementNetwork Product Led Growth Tim Wilkinson Thanks to our sponsors
- 2. Product Heads Hire, trainand scale your product team for success
- 3.
- 4. 34% more SaaS businessessaid they had a product led growth strategy in 2021 than in 202o FastCompany
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- 6. Help, I’ve gota 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. 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. Margins are gettingsqueezed ● 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. What actually isProduct Led Growth The Product Sales Marketing Customer Success Engineering Design Outstanding User Experience
- 10. Example PLG B2BCompanies 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. Bottom up notTop down ⬆ ⬇
- 12. Focus on theuser first, NOT the buyer 🏆 First Rule of PLG
- 13. Traditional Sales Pipeline MarketingQualified Lead Sales Qualified Lead Product Usage Top of funnel Purchase
- 14. Product Led SalesPipeline Marketing Qualified Lead Sales Qualified Lead Product Usage Top of funnel Purchase Product Qualified Lead Word of mouth
- 15. For this towork, you MUST get users to value ASAP Second Rule of PLG
- 16. The Bowling AlleyStrategy
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- 18. �� �� In Product ● Welcomemessages ● 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. Product Metrics Marketing metrics (ToF) Focus Metric Keymetric 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. Activation and Habituationthresholds 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. Identify Growth Loops ♲ ThirdRule of PLG
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- 24. Acquisition and Pricingstrategies 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. When Product LedGrowth 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. A PLG Strategy AcquisitionConversion 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. Key Steps tomoving to a PLG Strategy #1 Understand your core value, communicate it, and deliver it
- 28. Key Steps tomoving to a PLG Strategy #2 Define and optimise your core user journey (getting users to value)
- 29. Key Steps tomoving to a PLG Strategy #3 Identify Growth Loops
- 30. #4 Create a dedicatedteam to focus on moving towards PLG Key Steps to moving to a PLG Strategy
- 31. Key Steps tomoving to a PLG Strategy #5 Edge into it and experiment!
- 32. ● Product LedGrowth book by Wes Bush ● Product Led Foundation (productled.com) ● reforge.com/blog/growth-loops ● Lennysnewsletter.com interview with Ben Williams from Snyk Resources
- 33. productheads.io tim@productheads.io 01223 944 101 07887931 981 web: email: Phone: Mobile: Tim Wilkinson Founder
- 34. SUPPORT SCIENCE & PRODUCT MANAGEMENT! rs2187@jbs.cam.ac.uk RaulSaenz de Inestrillas