{"id":3950,"date":"2022-08-01T06:49:44","date_gmt":"2022-08-01T06:49:44","guid":{"rendered":"https:\/\/dev.matsio.com\/matsio\/saasboomi\/?p=3950"},"modified":"2024-06-05T18:00:15","modified_gmt":"2024-06-05T18:00:15","slug":"making-your-product-work-the-plg-way","status":"publish","type":"post","link":"https:\/\/dev.matsio.com\/matsio\/saasboomi\/saas\/product\/making-your-product-work-the-plg-way\/","title":{"rendered":"Making your product work while you are asleep \u2013 The PLG Way"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As a product company owner, wouldn&#8217;t you want your product to be on its own and bring in customers and revenue eventually? Guess we would like to. You would be aware of one of the business methodologies for product companies, i.e., <a href=\"https:\/\/saasboomi.org\/saas\/product\/understanding-product-led-growth-by-girish-mathrubootham\/\" target=\"_blank\" rel=\"noopener noreferrer\">Product-led growth<\/a> (PLG). To put it simply, we can imagine it\u00a0 as a <a href=\"https:\/\/saasboomi.org\/saas\/marketing\/right-gtm-framework-for-expanding-into-us-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">GTM strategy<\/a> where the Product is the primary vehicle to Acquire, Activate, and Retain customers (Courtesy: <\/span><span style=\"font-weight: 400;\">www.productled.com<\/span><span style=\"font-weight: 400;\">)\u00a0<\/span><\/p>\n<h2><strong>Is PLG new?\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">We have all experienced buying things the PLG way, in some way, shape, or form. Whether it&#8217;s your car or your favorite perfume, you would have tried it out before buying it. That&#8217;s precisely what PLG is, very simply put.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PLG means the customer can try, buy, and renew with very little manual intervention. The Product must be conceptualized and designed so that the customer can quickly come on board and get going with it<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><strong>The PLG benefits\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The PLG approach brings with it a bunch of key benefits to product organizations. Some of the key ones are,\u00a0<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Widen the top of the sales funnel\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><a href=\"https:\/\/saasboomi.org\/saas\/growth\/playbook-for-founders-looking-to-launch-a-new-geo\/\" target=\"_blank\" rel=\"noopener noreferrer\"> Rapid global scale<\/a> possible\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Exponential vs linear growth \u2013 (E.g.,) Zoom grew from 10M to 200M active users in 3 months <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Capex efficient\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Reduce CAC\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Better user experience during the trial\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Auto choice of the plan (reduced friction in sales)\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Faster sales cycles\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Higher revenue per employee (e.g., AHREF \u2013 50MN ARR with 50 employees)<\/span><\/li>\n<\/ul>\n<h2><strong>But is PLG for all?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Having said all this, it doesn&#8217;t mean PLG is the panacea and would be the ultimate solution for all product companies. The following high-level guidelines will help you self-evaluate if PLG is suitable for your organization.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">PLG may <\/span><b>NOT <\/b><span style=\"font-weight: 400;\">suit you, if:\u00a0<\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Your sales cycle involves a considerable implementation cycle\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">If the buying decision is driven top-down\u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">PLG will <\/span><b>suit <\/b><span style=\"font-weight: 400;\">you well, if:\u00a0<\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">The Product offers a uniquely valuable solution to its users\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Users can realize significant, ongoing value quickly and easily\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The customer gets real value before they hit the paywall\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Marketing funnels lead to product engagement\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Customers&#8217; company has product champions who drive internal adoption of your Product\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Also, PLG is as much a mindset as an approach. So, you can always adopt the beneficial elements of\u00a0 PLG into your existing strategy. For example, Pendo cleverly combines PLG with a sales-led strategy. It lets users try it for free while also letting them request a demo.\u00a0<\/span><\/p>\n<h2><strong>How do you go about with PLG, then?\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Having understood what PLG is, the benefits it brings, and who is more suited, let&#8217;s go deeper into the\u00a0 PLG via the typical funnel and a few suggestions on how to approach each of these stages. But, before you get started with these, it will help you have your &#8220;As-is&#8221; conversion data for each of these stages.\u00a0<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> Visitor\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Registration (MQL)\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Activation (PQL)\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Subscription\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Expansion<\/span><\/li>\n<\/ol>\n<h3><strong>Visitor to Registration\u00a0\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Once visitors are on your site, it is essential to take them to the registration stage. One of the ways is to ensure you have a transparent pricing page that lets your user know clearly what to expect from each of the available plans. An excellent example is the pricing page of Clickup, which smartly uses PLG and a\u00a0 sales-led approach by having options to self-service or contact their sales team.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-3956 size-full\" src=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/B1.png\" alt=\"\" width=\"2866\" height=\"1568\" \/ loading=\"lazy\" srcset=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/B1.png 2866w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/B1-768x420.png 768w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/B1-1536x840.png 1536w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/B1-2048x1120.png 2048w\" sizes=\"auto, (max-width: 2866px) 100vw, 2866px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">While customers are on the registration page, making sure that there is only minimal data input requested from the user will ensure they provide the information. It will also persuade your customers to complete the step by adding social proof (like testimonials) and other customers on the registration page.\u00a0 A good example of this is Hiver. Apart from providing ample social proof, they have also enabled Single Sign-on and made it clear that users don&#8217;t have to provide their credit card information<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-3955 size-full\" src=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/B2.png\" alt=\"\" width=\"468\" height=\"249\" \/ loading=\"lazy\" ><\/p>\n<h3><strong>Registration to Activation\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The general tendency for your users is to taste the Product through free trials\/plans before they start using the paid versions of your Product. It would be best if you made a data-driven decision on what your PQL (Product qualified lead) is to be able to decide on when to start promoting your customer who is trying your free version.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Such Activation metrics could either be certain events being performed by your customer or when they reach a specific threshold limit. For example, the PQL for Slack is when an account reaches the 2000\u00a0 message limit. That&#8217;s when they consider the user to be seriously adopting their Product. In the case of another SaaS product, RecruiterBox, an applicant tracking system, their PQL was when a user posted a\u00a0 job opening on their platform. Similarly, you must define your PQL and be prepared with strategies on how you would nudge your customers to start paying.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some approaches to taking customers towards activation might include <\/span><b>drip emails <\/b><span style=\"font-weight: 400;\">indicating their next step along a happy path or demonstrating &#8220;Paid&#8221; features within the Product itself while they are at it.\u00a0<\/span><\/p>\n<h3><strong>Activation to Subscription\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This is probably the most critical phase of your customer journey where they make the leap of faith and decide to pay for your Product.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A good example of moving the customers to a paid plan is <\/span><span style=\"font-weight: 400;\">Typito<\/span><span style=\"font-weight: 400;\">, a video editing product. They offer a\u00a0 free plan where users can try out the Product&#8217;s features. While they are at it, Typito indicates to users if they are using any &#8220;PRO&#8221; features that are not part of the Free plan. Users can continue to avail the\u00a0 &#8220;PRO&#8221; features, but the blocking step comes in when they try to export their video. They are informed of their paid features and redirected to the subscription page. Having tried out the Product to this extent,\u00a0 users are more likely to pay for the subscription.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-3954 size-full\" src=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.15.27-PM.png\" alt=\"\" width=\"2874\" height=\"1570\" \/ loading=\"lazy\" srcset=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.15.27-PM.png 2874w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.15.27-PM-768x420.png 768w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.15.27-PM-1536x839.png 1536w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.15.27-PM-2048x1119.png 2048w\" sizes=\"auto, (max-width: 2874px) 100vw, 2874px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">A few more important things to consider while designing your product pricing page is to indicate the &#8220;$&#8221;\u00a0 savings the users would make by opting for the plan of your choice, monthly vs yearly subscription. An excellent example of smart pricing is the one by Freshdesk. Their &#8220;Free&#8221; plan offers all the necessary <\/span><span style=\"font-weight: 400;\">features a new user would want but provides some important features like &#8220;Collision detection&#8221; only in the paid plans.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customers who have tried the product would want to avail of the &#8220;Collision Detection&#8221; feature, thus increasing the chance of them moving to the paid plan. You can also make such decisions on pricing but must gather necessary user and product information.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-3953 size-full\" src=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.16.12-PM.png\" alt=\"\" width=\"2862\" height=\"1570\" \/ loading=\"lazy\" srcset=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.16.12-PM.png 2862w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.16.12-PM-768x421.png 768w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.16.12-PM-1536x843.png 1536w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.16.12-PM-2048x1123.png 2048w\" sizes=\"auto, (max-width: 2862px) 100vw, 2862px\" \/><\/p>\n<h3><strong>Subscription to Expansion\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This is the stage where cross-selling and up-selling happen for a product. Among various ways to drive users to move to a higher plan, a couple of approaches are worth considering.\u00a0<\/span><\/p>\n<ul>\n<li>Virality-based expansion<\/li>\n<li>Feature-based expansion<\/li>\n<\/ul>\n<p><strong>Virality based expansion<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">This indicates ways to reach out to other functions\/teams of your customer organization and get them to try your Product. You can achieve this by understanding your customer business processes and mapping the other functional stakeholders in those processes. This way, you can build features that would help you reach out to them.\u00a0<\/span><\/p>\n<p><strong>Feature-based expansion<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">This is again another approach to upselling your Product by understanding your customer&#8217;s needs and prompting them to try out relevant features of your Product, leading them to a higher-paid plan. An example of this is how Stripe recommends features like &#8220;Revenue Recognition&#8221;, which a free user might be interested in. To avail of this, users must then pay.<\/span><\/p>\n<h2><strong>Summary\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The single most important factor in a PLG-based approach is the \u201cTime to value\u201d for the customer. It\u2019s the intersection of the perceived value and the experienced value.\u00a0\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-3952 size-full\" src=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.17.48-PM.png\" alt=\"\" width=\"1868\" height=\"1146\" \/ loading=\"lazy\" srcset=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.17.48-PM.png 1868w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.17.48-PM-768x471.png 768w, https:\/\/dev.matsio.com\/matsio\/saasboomi\/wp-content\/uploads\/2022\/08\/Screenshot-2022-07-28-at-4.17.48-PM-1536x942.png 1536w\" sizes=\"auto, (max-width: 1868px) 100vw, 1868px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">There must be a mindset shift towards the customer and how the product can deliver on its promised value.\u00a0 The intention must be to service your customer before you sell the product. It is also important that all the functions in your organization buy into this idea and contribute to it. Everyone must contribute from the marketing team to the customer support team.\u00a0<\/span><\/p>\n<ul>\n<li><b>Marketing<br \/>\n<\/b><span style=\"font-weight: 400;\">\u2013 How to use the product as a lead magnet\u00a0<\/span><br \/>\n&#8211; Campaigns to be not just for buyers but \u201cusers\u201d also<\/li>\n<\/ul>\n<ul>\n<li><b>Sales<br \/>\n<\/b><span style=\"font-weight: 400;\">\u2013 How to use product data to qualify leads<br \/>\n<\/span>&#8211; Define \u201cvalue\u201d metrics (on how to charge customers)<br \/>\n&#8211; Reduce discussion on pricing<br \/>\n&#8211; Focus more on users who have experienced the product<br \/>\n&#8211; Enhance better onboarding &amp; product experience<\/li>\n<\/ul>\n<ul>\n<li><b>Product Team<br \/>\n<\/b>&#8211; Build features for free to meet the MKTG goals<br \/>\n&#8211; Revenue target to be set for prod team &amp; tracked<br \/>\n&#8211; Product needs to drive \u201cusage\u201d is given more importance<\/li>\n<\/ul>\n<ul>\n<li><b>Customer support<br \/>\n<\/b><span style=\"font-weight: 400;\">\u2013 how to create prod for customers to succeed without our help<br \/>\n<\/span>&#8211; To be more efficient<br \/>\n&#8211; Be prepared for more support tickets (in a freemium model)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>As a product company owner, wouldn&#8217;t you want your product to be on its own and bring in customers and revenue eventually? Guess we would like to. You would be aware of one of the business methodologies for product companies, i.e., Product-led growth (PLG). To put it simply, we can imagine it\u00a0 as a GTM [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":3951,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[38,39,46],"tags":[7,68,88,100],"chapters":[],"class_list":["post-3950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-product","category-growth","category-sales","tag-growth","tag-go-to-market","tag-marketing","tag-product-led-growth"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Making your product work while you are asleep \u2013 The PLG Way<\/title>\n<meta name=\"description\" content=\"Product-led growth (PLG), a strategy where the Product is the primary vehicle to Acquire, Activate, and Retain customers.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Making your product work while you are asleep \u2013 The PLG Way\" \/>\n<meta property=\"og:description\" content=\"As a product company owner, wouldn&#039;t you want your product to be on its own and bring in customers and revenue eventually? Guess we would like to. You would be aware of one of the business methodologies for product companies, i.e., Product led growth (PLG). To put it simply, we can imagine it as a GTM strategy where the Product is the primary vehicle to Acquire, Activate, and Retain customers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dev.matsio.com\/matsio\/saasboomi\/saas\/product\/making-your-product-work-the-plg-way\/\" \/>\n<meta property=\"og:site_name\" content=\"BoomiAI\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-01T06:49:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-05T18:00:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/stg-saasboomiorg-staging.kinsta.cloud\/wp-content\/uploads\/2022\/08\/For-Blog-Cover-Image-8-e1695175443169.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1080\" \/>\n\t<meta property=\"og:image:height\" content=\"606\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Millusha\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Making your product work while you are asleep \u2013 The PLG Way\" \/>\n<meta name=\"twitter:description\" content=\"As a product company owner, wouldn&#039;t you want your product to be on its own and bring in customers and revenue eventually? Guess we would like to. You would be aware of one of the business methodologies for product companies, i.e., Product led growth (PLG). 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