One of the biggest buzzwords of business today, especially in the SaaS industry, is PLG. But what really is product-led growth, and why all the hassle for your business?

Product-Led Growth is a growth strategy that centers customer acquisition around a product. This strategy believes that if you build something people will love, they will share it. Smooth UX and the delivery of value to the customer right from their first touchpoint are what PLG focuses on.

Why is product-led growth important?

1. Cost-effective customer acquisition

Product-led growth is probably the cheapest way to acquire new customers. It means that if you give your customers a great product experience, they will do your marketing through word-of-mouth.

2. Better customer retention

Thanks to the focus on delivering great user experiences, product-led growth is sure to see better customer retention. If customers know the value a given product presents to them, they will be long-term.

3. Revenue growth

Focusing on the value given to customers via a great user experience opens the way for potential upselling and cross-selling activities. Both are really effective ways to grow revenues.

How do you implement product-driven growth in your business?

1. Build a great product

That would be the foundation for PLG—a great product that's going to provide value to your customers. Be focused on building something that solves a real problem for your target market, goes hand-in-glove with providing a seamless user experience.

2. User onboarding

PLG will essentially not work without a smooth user onboarding process. Ensure that users realize the value of your product from the very first moment, and that they may get started with your product fast.

3. Advocate product adoption

Encourage your users to have a look at all the features and functionality provided in a product. Provide them with educative material and help on how to get more out of your product.

4. Use Data from Users

Understand how users are interacting with your product through data so that this information can help you identify areas for improvement and make data-driven decisions to improve the user experience.

Product-Led Growth is the essential growth strategy focused on rendering value to customers through great products as a prerequisite to a fine customer experience. Implementing PLG in business means ensuring cost-effective Customer Acquisition, retention, and revving up revenue growth all at once. Make a great product, focus on onboarding, drive adoption, and finally, use user data to power growth—some of the basic tenets for product-led growth.