{"id":9524,"date":"2020-11-06T03:50:00","date_gmt":"2020-11-06T03:50:00","guid":{"rendered":"https:\/\/dev.matsio.com\/matsio\/saasboomi\/?post_type=newsletter&p=9524"},"modified":"2024-03-26T10:17:57","modified_gmt":"2024-03-26T10:17:57","slug":"let-your-product-lead-the-way-mrr","status":"publish","type":"newsletter","link":"https:\/\/dev.matsio.com\/matsio\/saasboomi\/newsletter\/let-your-product-lead-the-way-mrr\/","title":{"rendered":"Let Your Product Lead the Way"},"content":{"rendered":"\n
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“Product-Led Growth might be buzz-wordy right now but this is going to just be called ‘good business’ very soon.”<\/em><\/p>\n~ Val Geiser, Digital Strategist<\/cite><\/blockquote>\n<\/blockquote>\n\n\n\n

Two Jewish men, Mark Levine, 56, and Michael Dubin, 33, met at a party in 2010.<\/p>\n\n\n\n

They griped about the steep price of razor blades – thanks to the unnecessary features, expensive packaging, advertising expenses, and store overheads. That coupled with the inconvenient buying process, they realised that they had spotted a problem worth shaving off.<\/p>\n\n\n\n

Dubin and Levine started working on the Dollar Shave Club full-time by January 2011.<\/p>\n\n\n\n

Dollar Shave Club offered high-quality razor kits on a monthly subscription basis for dirt cheap. By designing, producing, and shipping the products in-house, they were able to sell it for almost half the price of the industry giants like Gillette.<\/p>\n\n\n\n

With a compelling value proposition and a viral launch video<\/a>, they sold out their first batch of 2,50,000 razors on the first day. Fast forward to 2016, Dollar Shave Club got acquired by Unilever for $1 billion, when their annual sales was approaching $200 million. A silky smooth success story.<\/p>\n\n\n\n

Dollar Shave Club is a classic case of product-led growth. While the video did give it the initial push, what still keeps the company on a steady growth trajectory is its product.<\/p>\n\n\n\n

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“Product-Led Growth is defined as a go-to-market strategy that relies on using your product as the main vehicle to acquire, activate, and retain customers.

Unlike sales-led companies where the whole goal is to take a buyer from Point A to Point B in a sales cycle, product-led companies flip the traditional sales model on its head. Product-led companies make this possible by giving the buyer the \u201ckeys\u201d to use the product and helping them experience a meaningful outcome while using the product. At this point, upgrading becomes a no-brainer.”<\/em><\/p>\n~ Wes Bush, Author, Product-Led Growth<\/em>
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Dollar Shave Club pulls off the three core elements<\/a> that Wes believes are necessary for a strong product-led foundation:<\/p>\n\n\n\n

The product is in tune with user needs.<\/strong>
Dollar Shave Club disrupted the industry with a low-cost, personalized, online subscription model that ships razors right to the customers’ doors. A simple, straightforward promise to solve a then-overlooked but nagging problem.<\/p>\n\n\n\n

The product is the acquisition engine.<\/strong>
With features like the risk-free personalized starter set, flexible shipment option, 30-day money-back guarantee, and the ability to cancel anytime, they gave users an easy way in, and the flexibility to try out the product on their own terms.<\/p>\n\n\n\n

The product is also the retention engine.<\/strong>
At the time of their launch, Gillette owned 70% of the razor sales in the US. By 2018, Dollar Shave Club and Harry’s, its rival startup launched a year later, won over 14% of the market. When the perceived value<\/em> aligns with the experienced value<\/em>, the customers return the favour. Case closed.<\/p>\n\n\n\n

Like Wes, we at SaaSBOOMi also believe that product-led growth holds the key to the future of SaaS. We want to enable Indian SaaS companies to join the product-led movement, and we’re kickstarting our journey (and yours too, we hope) with this MRR edition.<\/p>\n\n\n\n

Dive in!<\/p>\n\n\n\n

~ Sadhana<\/p>\n\n\n\n

On behalf of Team SaaSBOOMi<\/p>\n\n\n\n

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Engage <\/h2>\n\n\n\n

Product-Led Growth Series – by SaaSBoomi Product | 28th November 2020<\/a>

Presenting Chapter One of the PLG Series scheduled on November 28th from 9:30 AM to 1:30 PM IST. The goal is to help you learn how to:<\/p>\n\n\n\n