Main Takeaways: - Gain visibility into the product journey - Tie acquisition and retention KPIs with core metrics - Design product experiences with an outcome mindset - Create an iterative process to address usability friction - Leverage user feedback to accelerate learning

1. How to Master Product-Led Growth
Strategy in B2B by Gainsight CTO
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6. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Turning your Product
into a Growth Engine

7. © Copyright 2020, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
© Copyright 2020, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
About
Gainsight
Product Experience, Customer
Success, and Community

8. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Why Product-Led Growth Is The
Biggest Trend In Software

9. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
THE DISRUPTION OF SAAS
AND RECURRING REVENUE
MODELS

10. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Acquisition
Onboarding
Adoption
Expansion
Customer
Marketing
Sales Process
Customers
Higher
friction
sales
cycle
Customer Acquisition Product Journey
Starts Here.
Product Journey
Starts Here.
Accelerated
sales
cycle
MQL
SQL
PQL
Marketing Funnel vs The PLG Flywheel

11. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.

12. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
80% of IT companies
will shift their
structure &
missions to fit
product-centered
operating models by
2023

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Historical EV / TTM Revenue – PLG Index vs. SaaS Index
Product-Led Growth Drives Valuation
The Market Values Durable Growth

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Product-Led Growth:
Using your product as the
primary vehicle to drive
customer acquisition,
retention and expansion.
Prod●uct●led●growth
/ˈprädəkt/ /lēd/ /ɡrōTH/
DEFINITION

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Debunking 6 Myths of PLG
PLG is about freemium /
free trial
Product-led Growth is not
suitable for enterprise
buyers
Product-led will eventually
replace your sales team
You will not require a
customer success team
Growth strategy is
becoming the product’s job
It’s relevant only for simple
products like Slack, Zoom

16. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
The Main Drivers for Product-Led
Customer acquisition cost
(CAC) is extremely high
Two out of every three companies
now compete primarily on
customer experience.4
You need to retain
customers to thrive (GRR)
Recurring revenue models rely
on strong retention and
engagement to succeed.
The SaaS landscape is ultra
competitive
That means your product
experience needs to constantly
improve and stand out.

17. TURNING YOUR PRODUCT INTO A
POWERFUL
GROWTH ENGINE

18. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Acquisition-led
Growth
Allowing users to
experience the product
without being bounded to
high touch sales resources.

19. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Customer Acquisition Cost:
The amount a company spends to get a
new customer. CAC is calculated by
dividing the costs of converting
prospects to customers by the number
of customers acquired.
Cus●tom●er ac●qui●si●tion cost
/ˈkəstəmər/ /ˌakwəˈziSH(ə)n/ /kôst/
DEFINITION

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Reduce Friction
Remove barriers to user
sign-up
● Have a clear pricing &
packaging
● Avoid sign-up lead forms
● Postpone email
activation step

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Focus On
The Persona &
Objectives

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Zero-touch
Discovery Tactic

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Zero-touch
Discovery Tactic

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Core Metrics
SEO/Organic and
inorganic
attribution
Cohort analysis
Trial daily user
retention
Key workflows
A-ha moments
during the trial
Product Qualified-Leads
Generating pipeline using PQL

25. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Contextual
messaging
Keep Users Engaged
First Email
Sent
Does customer
click email link?
Email sent: link
clicked
Email sent: no
link clicked
Second email in
sequence
Second email in
sequence
Trial drip campaign
1 ?
2a
2b
3a
3b

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Self-serve
Onboarding

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Retention-led
Growth
Designing product
experiences that lead to
successful outcomes and
increase CLTV

28. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
A 5% increase in customer
retention can lead to an increase in
profits of between 25%-95%
Bain & Company

29. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
In the Subscription
Business, the
Majority of Revenue
comes from
Existing Customers
Existing
Customers
New Business
REVENUE
70%
95%

30. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Net Dollar Retention:
How much your ARR has grown or
shrunk over time, factoring in
customer expansion as well as
negative churn and downgrades.
Net dol●lar re●ten●tion
/nət/ /ˈdälər/ /rəˈten(t)SH(ə)n/
DEFINITION

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Drive Organic
Expansion
Make it easy to invite
colleagues and collaborate

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Unlock
Ecosystem
To Increase
Value &
Stickiness

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Continuously Surface Outcomes to Users

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Address the
Value Gap
GRR
GRR > 90%

35. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
The Value Path
Optimize the user journey towards the desired outcome
● Setup
completion
● Enable feature
tracking
● Test in-app
editor
Level 1
Onboarding ● Learn about
feature usage
● Building
onboarding
engagement
● Invite
colleagues
Level 2
Initial Value ● Apply adoption
plays
● Create
closed-loop
surveys
● Build growth
dashboard
Level 3
True Value ● Outcome driven
road-mapping
● Expand to new
modules &
products
● Experimentation
Level 4
Expansion
25% 50% 75% 90%

36. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Core Metrics
Product health as leading indicators
Frequency
Habit/
stickiness
Value
drivers
Sentiment

37. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Guide Users to
True Value
Using Nurtures
“In-product contextual
guides produced a 305%
overall lift.”
- Adobe experience cloud

38. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Creating
Feedback-Loops
Allow customers to be part of
your roadmap

39. TURNING YOUR
PRODUCT INTO A
POWERFUL
GROWTH ENGINE
Tie acquisition & retention
KPIs with core metrics
Design product experiences
with outcome mindset
Create iterative process to
address usability friction
Leverage user feedback to
accelerate learning
Gain visibility into the
product journey

40. © Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
© Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Want more winning
PLG strategies?
Download the
eBook today!
https://info.gainsight.com/mastering-
px-saas-ebook

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Have more
questions about
putting PLG into
practice? Join our
virtual Q&A!

42. APPENDIX

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Simulate Optimal Outcomes with Templates
Educate users with optimized, productized
templates that capture use cases

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© Copyright 2022, Gainsight, Inc., All rights reserved. CONFIDENTIAL.
Mickey Alon
Founder & CTO, Gainsight PX

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