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Why Do Product-Led Growth Businesses Grow at a Faster Scale?

In the days of yore, adopting new software used to take much longer than it does now – more than just a few weeks, quarters, and sometimes even years. Now, however, adopting software has never been easier! 

The past few decades have seen many evolutions and changes. Along with the software market’s changes, the methodologies behind making them sell have been revised as well. One such methodology is the Product Led Growth method.

In the following paragraphs, we will break down why exactly the popular Product-Led Growth strategy seems to allow businesses to grow more rapidly.

What is Product-Led Growth?

Simply put, product-led growth or PLG is a business methodology where product usage drives customer acquisition, retention, and expansion. This growth model relies on the value of a company’s product to enable them to attain rapid growth; all aspects of increasing revenue and scaling of the organization (i.e. user acquisition, expansion, conversion, and retention) are all driven primarily by the product itself.

To put it even more simply, PLG means the customer can try, buy, and renew with very little manual intervention. It means that the product is conceptualized and designed such that the customer can swiftly come on board, and continue using it. 

Why Is Product-Led Growth A Popular Strategy?

The past decade has seen a shift in the strategies adopted by organizations from a seles-led growth to PLG. Product-led growth systems create company-wide alignment across all teams all the way from engineering to sales and marketing. These teams revolve around the product as the largest source of sustainable, scalable business growth. 

One of the major benefits of the product-led growth approach is that it quickly allows teams to receive in-product user behavioral data that can then be used to change or adapt the whole GTM process. 

In other words, the behavior of prospective customers when they interact with the product early in the buying process could help your company make better decisions about what features to build next. 

Insights gained from these behaviors would allow you as a business to adjust your marketing messages and as we know delivering more engaging and personalized customer experiences is a helpful strategy to adopt when hoping for results in higher loyalty, conversions, and revenue growth. 

These insights can also guide product teams to determine the most valued and successful features, and can correspondingly help with ways to improve other features. In sum, organizations can become truly customer-experience-focused and provides a clear path for cross-functional teams to align around the buyer’s journey and full customer life cycle. 

Why do Product-Led Growth Businesses Grow at a Faster Scale?

PLG strategies at their very roots are founded on the sole vision of product innovation – they are based on creating new and improved products that customers want to and love to buy. When carried out properly, the unique character of the growth that PLG strategies rake is that it is healthy, sustainable, measurable, and manageable. 

The PLG growth allows a business to move forward without dependencies, as the sole fuel for the strategy is the product itself. Organizations find that their business increases organically, without a huge advertising budget or a sales team.

Looking for a tool to immerse you into the world of PLG?

Look no further! DevCRM is a platform that connects makers to their customers! Rooted in the belief in a truly product-led strategy, this platform is a system that empowers makers to build, operate, support, and grow their businesses by putting their customers at the very center.  

Simply put, your product should be at the center of your GTM strategy and must feature in the center of the action plan for how your company acquires, retains, and grows customers. Having been adopted by almost every company selling a software product, PLG offers plenty of notable benefits. Letting your product do the talking directly has numerous advantages operationally and repositions the organization’s priorities to what truly matters – the product.

Admittedly, PLG isn’t always easy to achieve, but when done right, it has a huge impact on companies that want to grow without sacrificing their relationships with existing customers or putting pressure on margins. By truly comprehending what product-led growth looks practically, your organization will be able to make smarter decisions that will have long-term positive effects on its ability to expand with the added bonus of not giving up customer retention.

Letting your product do the talking directly has numerous advantages operationally and repositions the organization’s priorities to what truly matters – the product. Gain the optimum product insights with DevCRM – Scale up today!