Product-led growth (PLG) is a product-led go-to market that focuses on creating a product that “sells itself”. It's different in a sales-led approach, where you rely on sales to drive growth. With PLG, the goal is to create software that is so valuable, shareable, and easy-to-use that users sign up without being sold to.
The marketing funnel is an important part of PLG. When you have a good funnel and a good product, the end result is sustained, organic growth for your user base. In this article, we'll explain how you can create both a PLG-optimized product and a funnel built around it.
Competitive pricing strategies can come in many forms, a business can choose to always be the cheapest of their competitors or always offer the average price of the highest and lowest priced competitors
A competitive pricing strategy is a price-setting that is based on your competitors’ prices. This pricing method focuses solely on the prices of your competitors that are public, but it does not take into account how much customers value the product or production costs.
A strong competitive pricing model is based on thorough market research. When you know how the prices of your top competitors in your market and how those prices might meet customer expectations, you have a basis for determining the rates of the prices of your own products or services. Competitive pricing strategies can come in many forms, a business can choose to always be the cheapest of their competitors or always offer the average price of the highest and lowest priced competitors - they all count as competitive pricing strategies.
With PLG, it's a different story. Traditional metrics like pipeline size and MQL count don't matter. The most important things are user adoption and referrals.
This means you need to focus on building a great product that attracts and retains users organically. Achieving this requires a different set of skills, roles, and workflows compared to traditional sales, and may involve hiring new team members with different skillsets.
If you have the bandwidth and flexibility to add a product-led motion to your current setup - wonderful. If you’re not sure, don’t jump into PLG without looking. The approach works best when companies are truly invested in the strategy.
Aside from the pricing model type, you must consider many other factors. Ask yourself the following questions when deciding what model works best for your business:
Don’t worry about choosing the wrong pricing model. The idea isn’t to do a perfect job; it’s to do the best job possible.
Once you have launched your product and corresponding pricing model, never stop testing, gathering feedback, and analyzing data. This way, you’ll always be in a good position to switch to a better pricing model.
If you're looking to start building your PLG strategy, Salesbricks can help. Our platform is designed to provide the data and insights you need, allowing you to optimize the user experience and maximize the ROI of your PLG efforts. Book a free demo to learn more.