What Is Product-Led Growth?
PLG is a growth motion where the product becomes the primary driver of customer acquisition and revenue. Instead of relying heavily on sales teams, PLG businesses optimise their products for seamless user onboarding, engagement, and expansion. Companies like Slack and Miro exemplify this approach, allowing users to discover and experience value independently before converting into paying customers.
Key Elements of PLG
- Acquisition: The product attracts users through self-service onboarding, free trials, or freemium models.
- Retention: By ensuring an intuitive and engaging user experience, customers develop long-term habits.
- Monetization: As users recognise value, they opt into premium features or expanded usage, driving revenue.
However, PLG is not a one-size-fits-all solution. Companies must create the right cultural and technological environment, supported by data-driven decision-making and continuous experimentation. A strong analytics foundation is crucial for understanding user behaviour and optimising touchpoints.
When Should Businesses Avoid PLG?
Not every company is ready for PLG. If a product requires significant human intervention for onboarding, lacks a clear self-service value proposition, or operates in highly regulated enterprise markets, PLG might not be the best approach.