Understanding Product-Led Marketing
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In this presentation“Understanding Product-Led Marketing”, you will learn: What’s product-led marketing and why it is important The best steps to achieve product-led growth Metrics that should be measured for product-led growth How VBOUT and few companies have used PLG + Bonus (tools and resources that help)
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Understanding Product-Led Marketing
- 2. THE VBOUT COMMUNITY 20K MEMBERS - 8 YEARS
- 3. General Intro Understanding Product-Led Marketing 5:00 – 5:15 5:15 – 5:50 5:50 – 6:00 Q&A Agenda
- 4. Marketing Automation Stack Simple Interface Great Price Premium Support Built-in AI and Predictive capabilities The VBOUT Stack
- 5. 10+Core Tools Working Together Integrates well 1. Landing pages 2. Forms 3. Popups and site messages 4. Lead tracking 5. Automation sequences 6. Email campaigns 7. Social media listening 8. Social publishing 9. Retargeting 10. Analytics 11.Pipeline management 12.Calendar booking The VBOUT Stack
- 6. Full Product Video Tour Visual Automation Builder
- 7. Full Product Video Tour Lead Data Platform
- 10. 1. What’s product-led marketing and why it is important 2. The best steps to achieve product-led growth 3. Metrics that should be measured for product-led growth 4. How VBOUT and few companies have used PLG + Bonus (tools and resources that help) Outline
- 12. What’s product-led marketing Source: ProductLed
- 13. Product-led growth flywheel Source: Appsuces
- 14. Why product-led marketing is becoming important
- 15. 1. Every member in the team is involved Source: ProductLed
- 16. 1.Customers now love DIY (Do It Yourself). 2.Most SaaS products provide freemium or free-trial plans options. 3.Customers want to try it before they buy it. 2. Customers prefer to learn on their own
- 17. 1.Competition drives cost. 2.CAC has risen by over 55% and customers willingness to pay has declined by 30% (ProfitWell). 3.A great product creates demand. 3. Startups are expensive to grow Source: ProfitWell
- 18. 1.Customers want to learn before speaking to a rep. 2.Your website’s content, free-trial and onboarding resources should help them do that. 4. Product experience influence buying decisions Source: TrustRadius
- 19. 1.Sales team will spend less time on qualifying leads. 5. Less pressure on your sales team of B2B buyers state that they w ish to buy directly from a brand’s w ebsite rather than a sales rep.
- 20. 1.A great product speaks for itself and with WOM referrals, cost for acquisition should go down over time. 2.Free trials, pre-recorded demos, referrals, incentives Can do the activation work for you. 6. Lower CAC
- 21. 1.Fine-tuning your product to delight existing customer, which leads to long term retention, is cheaper then acquiring new leads. 2.Using organic growth through your existing customers base and their extended networks drives both acquisition and retention as well as the ROI. 7. Efficient use of budget allocation
- 22. 1.Better customer’s experience means better your Net Promoter Score NPS. 2.Aim for an NPS of 50+ 8. Higher customer satisfaction Source: MonkeyLearn
- 23. The best steps to achieve product-led growth
- 24. 1. Instead of marketing, focus on the problems your customers are encountering with your product. 2. Create user stories by analyzing: • What the user is searching for • Customer behavior on your site • Customer onboarding process • In-app analytics • Support tickets • Top churn reasons • User surveys and interviews 1. Identify your customers pain points
- 25. 1. Provide customers clear guidance on how to use your product. 2. Develop help pages, video tutorials, courses, how-to- articles and tips for success. 2. Help your users solve their problems
- 26. 1. Find out what keywords your customers and prospects are searching for and optimize all your knowledge base articles and marketing blogs accordingly. 2. Aim for zero-search result ranking for each page you write about. 3. Optimize your content for search engines
- 27. 1. Show your prospects the reviews from your existing customers, whether good or bad to show credibility. 2. Your customers opinions boost your product’s trustworthiness and entice prospects to use your product. 4. Leverage reviews
- 28. 1. Offer online training sessions for your trial customers. 2. Show product tours and pre- recorded demos. 3. Use marketing automation to educate them and increase activation. 4. Provide instant dedicated support through live chat. 5. Provide a seamless onboarding experience
- 29. 1. Provide 14-day trial period or more. 2. Offer a freemium plan. 3. Give them full feature access and build paywalls. 6. Offer Free Trials
- 30. The product-led growth metrics SaaS should measure
- 31. 1. The time it takes for your customers to value your product. 2. The shorter it takes for activation the better. 1. Time to value
- 32. 1. PQL are customers who have been activated and reached their aha moment. 2. To identify your PQLs, you need to: • Determine your product’s activation event • The actions that your customers perform within your product which shows that they are ready to move on to their next journeys’ stage. 2. Product Qualified Leads PQL
- 33. 1. This metric measures how many new customers use a specific feature and it’s determined as a percentage. 3. Feature Adoption Rate (FAR)
- 34. 1. Measures the revenue generated from existing clients through upselling, add-ons, cross-selling, etc… 2. According to ProfitWell, the expansion revenue should contribute at least 30% of your total revenue for a healthy SaaS business. 4. Expansion revenue
- 35. 1. ARPU measures the overall health of your business. 2. It’s calculated by dividing your MRR over the number of customers. 5. Average Revenue Per User (ARPU)
- 36. 1. LTV measures the total sales expected to earn from a single customer during their account’s lifetime. 2. LTV = Total revenue in period of length of client’s stay / length of client’s stay. 6. Customer Lifetime Value LTV
- 37. 1. Measures the amount of money lost from new and expansion revenue and determined as a percentage. 2. Revenue lost in period _ New and expansion revenue / revenue at beginning of period x 100 7. Net Revenue Churn
- 38. 1. Measures the % of active clients that have a delightful experience with your product. 8. Customer Satisfaction Score CSAT
- 39. 1. Occurs when a product’s rate of adoption increases exponentially as more people share it (with each additional user). 2. C(O) x k = # of customers at end of period 3. k= the number of invitations sent by each customer x the % conversion rate of each invite. 9. Virality
- 40. 1. Network effects happen when other people for whom the product was initially shared with by the main customers, start adopting it too. 10.Network effects
- 41. How VBOUT is doing product-led marketing
- 42. 1. 14-day trial
- 43. 2. Onboarding and training sessions
- 44. 3. Onboarding automation sequence
- 45. 4. Full dedicated support
- 46. 5. Courses
- 50. 9. Monthly Partner Meetings
- 52. 11.Community
- 53. 12.Ease-of-use and seamless integrations
- 59. Zoom
- 60. BONUS
- 61. • Onboarding and training sessions– link • Free tools– link • Marketing blogs– link • Knowledge base– link • Lead gen course - link • Agency course – link • Marketing automation product demo - link • Success stories – link • Integrations library – link Tools And Resources
- 64. Link Marketing automation by industry
- 65. Link Marketing automation by industry
- 66. Link Marketing automation by industry
- 67. Link Marketing automation by industry
- 68. Link Marketing automation by industry
- 69. Link Marketing automation by industry
- 70. Link Marketing automation by industry
- 71. THANK YOU
Editor's Notes
- It’s a go-to-market strategy that focuses on growing the business based on the customer’s experience with the product. Marketers take advantage of this approach to acquire, activate and retain customers. (AAR) To create a seamless product’s experience, marketers need to make sure they give their customers all the needed resources and materials.
- This flywheel shows the 4 main steps and the key actions that customers need to take to move to the next stage (Activate – Adopt - Adore - Advocate). The Product-Led Growth Flywheel is a framework for growing your business by investing in a product-led user experience. In this framework, the experience is designed to generate higher user satisfaction and increased advocacy, which in turn drives compounding growth of new user acquisition.
- The marketing team asks: “How can we create a demand using our product?” The sales team asks: “How can we use our product to qualify prospects? The success team asks: “How can we build a product that makes our customers become successful without our assistance? The product-led development team asks: “How can we invent a product with a quick time-to-value?”
- CAC = Marketing + Sales expenses / total # of customers
- NPS is calculated by determining how many promoters you have vs. how many detractors.
- It’s not only about how the product solves your customers problems but also about the holistic experience that you provide to them from the moment your brand promise through the entire customer experience.
- To do this, emphasize on the onboarding experience around the key features within your product related to activation.
- This can be done through interviews and session recordings to determine the customer behavior that would lead to conversion and retention.
- Product adoption rate determines the % of active clients whereas feature adoption rate helps you determine why customers continue to engage with your product. (product support, social, email, all-in-one, onboarding, courses, etc…) By calculating FAR of a new feature, you will be able to find out the stimulant that boosts the overall product adoption rate.
- It’s not only easier to get money from satisfied and paying customers than it’s to acquire new ones but also it’s 2X cheaper to upsell to an existing client than to acquire a new one and 3X cheaper to generate expansion revenue than the CAC of a new customer. Also called expansion monthly recurring revenue (MRR), this metric measures the revenue generated from existing customers through upsells, add-ons, and cross-sells.
- It’s the amount of money on average that you can expect to make from an individual user. It’s a high-level indicator of business health to compare SaaS companies.
- It’s the amount of money on average that you can expect to make from an individual user. It’s a high-level indicator of business health to compare SaaS companies. It’s used to identify valuable customer segments.
- The (k) coefficient measures the number of new users that each existing customer or referrer can successfully convert. In order for virality to exist, k must be greater than 1. For that to happen, users must be able to promote the product by using it. Take Zoom, for example. By sending a Zoom video conference link to attendees who don’t already use the tool, existing users promote the product in the context of its use.
- A product with a network effect, on the other hand, becomes more valuable to users as more people adopt the product. Think of an app like Instagram or a two-sided marketplace like Airbnb: The more people post photos on a regular basis or list their homes for rent, the better the product experience becomes for other users in the long run. These products have network effects Both virality and network effects are closely associated with the advocacy stage of the Product-Led Growth Flywheel. By inviting other users to evaluate and adopt your product, your customers help increase new acquisition.
- Survey Monkey You send the survey to your customer base. Some of them might have used SurveyMonkey before, some of them might not have. Some of them might not have even heard of SurveyMonkey. Regardless, your customers are helpful and have feedback to share, so they all click on the link you sent them and take the survey. They see that the survey is “Powered by SurveyMonkey.” Now they’ve been exposed to the brand.
- Calendly Another inherently viral product, Calendly employs a product-led growth strategy similar to SurveyMonkey. Calendly is already set up to be a product-led growth company. But what makes it viral? Calendly can’t exist with just one user. A single user (let’s call her Martha) can’t do anything on her own with Calendly. But when Martha sends her Calendly link to someone else and they schedule a meeting with her, both parties receive value. The inherently collaborative nature of this product creates a “viral loop of value.” Every time Martha sends someone her Calendly link, she is both using and promoting the product.
- Slack Unlike SurveyMonkey and Calendly, everyone’s favorite chat tool relies on a slightly different model of product-led growth. Calendly and SurveyMonkey are designed for users to collaborate outside of their teams and organizations. The value of Slack lies in allowing users to reach everyone in their organization in one place. As more people in an organization begin using Slack, the more value everyone receives (It has never been easier to reach everyone you need, even across functions). This is called the network effect. The network effect enables products like Slack to expand rapidly once they enter an organization.
- Dropbox Dropbox fills its user needs (easy file storage and sharing) with a simple, easy-to-use product and backs it up with features that encourage even more collaboration and sharing. Let’s go back to Martha again. This time, Martha has a file she needs to share with a teammate (or even with someone outside of her organization). She uploads it to Dropbox and sends the link to her (non)teammate. They open the link. Ta-da! They are now a Dropbox use
- Zoom By sending a Zoom video conference link to attendees who don’t already use the tool, existing users promote the product in the context of its use. That’s also another example of Virality