https://potions.potions.dev/widgets/2TktVN9KwweUEqRNkvj1DHpIW323/l7miarurr14t38pm87fdecytu
Twitter thread: https://twitter.com/Vishant_Batta/status/1468875575246798848?s=20
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:
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
Free Trial vs Freemium vs Demo