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Twitter thread:

Have been observing an increasing trend towards a product-led growth strategy for SaaS businesses. Just finished reading an awesome book by @wes_bush on PLG strategies and approaches

What's inside:


PLG: GTM that primarily uses product approach to acquire activate and retain customers

GTM: how the company will target customers and achieve competitive advantage

For a subscription business, there are 3 tidal waves:

  1. Over years -> CAC ⏫, willingness to pay ⏬
  2. Buyers prefer to self educate & try vs sales demo. ( by @gdaviddodd)
  3. Product experience has become a part of the buying process

Types of GTM -> Sales led vs Product led

Sales Led GTM (SLG): The only way to sell is to talk to users ⚠️ With 3 tidal waves^ SLG fails

😃 Pros of SLG:

✅ High LTV ✅ Perfect for niche & small TAM, to build relationships ✅ Perfect for new market- have to educate

🥲 Cons of SLG:

❌ High CAC -> pushes LTV -> increases price ❌ Leaky acquisition -> Only 2% of marketing qualified leads (MQLs) ❌ Organisation structure product innovation

❌ In SLG your primary ACV customers will drive the product and company ❌ In SLG, Sales marketing and success teams go in parallel with the product team.

🤔 In PLG, the Product team drives sales, marketing, and success.

🚀 In PLG:

😇 Marketing: Product as lead magnet 👜 Sales: Product to help people understand our value 💯 Success: Product to help customers be independent 🔧 Engg: Product to minimize time to value

🙂 PLG tackles all three tidal waves

😃 Pros of PLG:

✅ Easily Scalable

3 product-led strategies 👉🏻

Free Trial vs Freemium vs Demo

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