7 STEPS to Creating a Product Led Growth Strategy for Your B2B Company. B2B SaaS customers can be a mystery to some, but this article is here to help you understand them and their journey better so that you can take advantage of the product-led growth model.
Usually, users will sign up for your service with a free plan first. They do this so they can get a feel for how your software works and how well it integrates into their current workflow.
The more they use your software, the more they’ll start to see its value; this usually leads to them inviting their teammates to use it as well. For example, a Canva user might create social media campaign designs and share them with their team in order to get feedback.
What is B2B Product Led Growth?
Product-led development and B2B product-led growth (PLG) are business frameworks in which products are marketed for sale without your sales team. Modern companies like experiencing products firsthand when purchasing.
It will be helpful for companies to explore the reliability of their SaaS solutions. PLG models can further strengthen your brand credibility since they share customer success stories.
This referral is an essential factor for all B2B SaaS businesses. Most B2B clients are professionals who will not only rely on sales representatives but will also receive support from them.
In a product-led growth strategy, the product itself is the primary driver of growth. This means that companies focus on developing a great product that customers will want to use, rather than relying on a sales team to promote and sell the product. PLG is particularly effective for B2B SaaS businesses, as it can help to build credibility and generate referrals from satisfied customers.
Product-led or sales-led SaaS growth — or both?
Many SaaS businesses have traditionally relied on sales-driven growth. However, product-driven growth is seen as the holy grail for many startups.
The good news is that you don’t have to choose one or the other – most successful businesses use both approaches simultaneously. This is an efficient solution that can help you increase revenue through your SaaS platform.
The decision of whether to focus on product-driven growth or hybrid growth will depend on your business model. If your product is more complicated, the sales cycle will be longer. If your product is more expensive, it will cost less to implement a product-driven approach.
What is sales-led growth?
Sales leads are the traditional way of selling software, but they can still exist and be valuable during long sales cycles or for complex products. When selling software, the customer should always be the primary focus.
Your prospects will only use the product after interacting with you in person. While product-driven ventures like ‘free test’ and ‘go start’ are prevalent call-to-actions, in sales-driven businesses, ‘require a demo’ and ‘talk to sales’ are more common.
1 Add sales if you’re product-led
If your business is product-focused, gradually add sales activities to your strategy to expand into higher-end markets. This could involve adding the initial sales activity into your marketing funnel or growth plan.
By slowly integrating sales into your strategy, you can avoid overwhelming yourself and your team while still making progress towards your goal.
2 Add product-led if you’re sales-led
Invent ways to help customers discover products without human interaction.
3 Know your value metric & implement a value-based pricing system
Customers are more likely to buy your product when they see how much value it offers them. Try to identify and link your pricing system to the customer’s needs and interests.
You must balance customer satisfaction (receiving value in your product) with your company’s interests (growing revenue). Keep in mind that customers are willing to pay for value, not just features. Try to find the correct value metric for your product. This will help you increase revenues by catering to the customer’s needs.
4 Focus on a smooth and value-focused activation
If you want new sign-ups for your desired behaviors, you need to start with product-driven self-service. This means understanding when new people are having a positive experience with your product – in other words, when they’re experiencing the value that your product offers.
Once you have a sense of this, you can start developing an onboarding experience that is designed to be as effective as possible. Keep the following in mind:
5 Reduce the information you ask potential customers to get started with
If you’re looking to convert potential customers, a complex sign-on process is not the way to go. Is it really necessary for someone to provide their email address upfront?
By limiting the amount of information required, you can prevent long registration forms. Try identifying potential customers at later points in your customer journey or during product usage.
6 Measure your conversions
Your funnel’s conversion rate is important to track because it will give you insight into how well your product is performing. In order to track product-led growth, you should follow the steps in the sales process, especially for active users or paid customers.
All employees should understand how funnels work in order to be able to contribute to funnel optimization.
7 Offer step-by-step product tours, checklists, and progress bars
Encourage user engagement and activate the discovery process by incorporating features such as product tour lists and progress bars. Customers always appreciate seeing their progress, and this will help motivate them to achieve their goals.
Frequently Asked Questions
Can a B2B SAAS enterprise product company adopt a product-led growth model?
Every company can adopt PLG principles to increase the user experience and efficiency of the product. Product-driven expansion is not over in an hour.
What is product led in business?
Product orientation consists of the focus on creating value from your product. Unlike marketing and sales models, product-led businesses focus primarily on acquiring and maintaining clients via product experience and unique value propositions.
By following these seven steps, you can create a product-led growth strategy for your B2B company to help you achieve sustainable success:
By following these seven steps, you can create a product-led growth strategy for your B2B company. Remember to focus on creating value for your customers and continue to innovate to stay ahead of the competition.
If you want your B2B company to be successful in the long-term, it’s important to have a product-led growth strategy.
By following these seven steps, you can create a strategy that will help you achieve sustainable success. Remember to focus on creating value for your customers and continue to innovate to stay ahead of the competition. What are some other ways that you have found success in growing your business?