Product Led Growth (PLG)A go-to-market strategy where product use leads to increased customer acquisition and expansion is becoming increasingly popular among SaaS companies of all industries. Nearly 60% of this year’s Forbes Cloud 100 companies use a product-based strategy, and 70% of the top 50 companies allow users to try their product for free before buying or upgrading.
But developing and launching a product through this model does not guarantee success. The traditional top-down enterprise sales model does not work with PLG’s free self-service user bases, which can see thousands of signups per day. Mass email or marketing campaigns are not targeted enough, and the 1:1 sales approach will not scale.
As PLG companies gain traction, they need to know how to analyze and determine which of their users can be paying and profitable potential customers. To drive revenue growth and profitability, the product-led growth model requires a different way to approach sales: product-led sales (PLS).
Image credits: Calexa
The PLS model involves giving sales teams product and customer data so they can prioritize which users are most likely to convert quickly and at scale. Unleashing the power of PLG via PLS requires a slightly different approach to data, leads, and the role of sales. Let’s take a look at how you need to reset your thinking.
Your free offer and the benefits customers get when upgrading to paid plans should create a natural funnel for your organization’s offering.
Rethink your data
To see the benefit of a PLG strategy, you must start by eliminating noise and creating insight in consolidated customer data. The data is the basis you will use to uncover the buyer’s journey and key patterns of user behavior and extract actionable insights. This data should be both accessible and intuitive to account executives, support reps, and customer success managers.
Unfortunately, many sales teams with this kind of self-service access lack the data they need to inform their sales approach. It often takes weeks for a company’s central data team to respond to such requests, and even when they can provide data, often in the form of a static report that may not reflect the customer information needed to seize opportunities. Rethinking your data means that you will have to bypass the fragmented data systems associated with manual reporting and not being informed by product usage analytics.
from San Jose News Bulletin https://sjnewsbulletin.com/3-ways-to-implement-product-driven-sales-to-unleash-plg-revenue-potential-techcrunch/
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