Let’s get right to it!<\/p>\n
Overview of PLG for complex products<\/h2>\n\n- Product-led growth<\/a> is a strategy that uses the product as the main source of growth. In theory, users who experience product value through free trial or freemium<\/a> convert to paying customers with little help from the sales team.<\/li>\n
- While great in theory, PLG may not work for complex products. That\u2019s because users may not be able to realize the product value<\/a> on their own. Traditional sales techniques like product demos<\/a> are more effective in this context.<\/li>\n
- Nevertheless, PLG tactics can massively improve user experience<\/a> in such products.<\/li>\n
- Personalized onboarding <\/a>allows users to learn how to use the product and reduce time to value<\/a>.<\/li>\n
- Contextual in-app messages <\/a>are a great tool to drive feature discovery<\/a> and adoption.<\/li>\n
- Combining self-service support with full-service support allows users to overcome even the most complex issues.<\/li>\n
- Upsell messages<\/a> are an excellent way to drive product expansion and increase customer lifetime value.<\/li>\n
- Gamification <\/a>is a PLG strategy that keeps users engaged and increases user retention<\/a>.<\/li>\n
- To remove friction <\/a>from the user journey, carry out funnel analysis.<\/li>\n
- Implement feedback loops<\/a> and iterate on user feedback to improve product experience.<\/li>\n
- Building a customer community is a way to share the support burden with your users.<\/li>\n
- Have a complex product but still want to use PLG tactics? Book a Userpilot demo<\/a> today!<\/li>\n<\/ul>\n
What is the product-led growth strategy?<\/h2>\n
Product-led growth (PLG) is a go-to-market strategy that leverages the product as the main driver of customer acquisition<\/a>, retention<\/a>, and account expansion.<\/p>\nThe strategy is based on the assumption that good products that satisfy genuine user needs speak for themselves.<\/p>\n
In short, the approach allows users to explore the product for free, via a free trial or freemium model<\/a>, to discover its value. Once this happens, they adopt the product as a go-to solution to their problems and eventually convert into paying customers.<\/p>\nAs their satisfaction grows, they turn into product champions and promote the product via referral programs or word-of-mouth marketing.<\/a><\/p>\nWhat is the difference between product-led growth and sales-led growth?<\/h2>\n
The fact that users play an important role in product promotion is one thing that distinguishes PLG from sales-led growth. <\/a>That’s because the latter approach relies heavily on marketing to acquire customers.<\/p>\nWhat are the other differences?<\/p>\n
In PLG<\/a>, the role of sales teams is reduced as well because a lot of the conversions happen via self-service channels<\/a>. The majority of users sign up for the product online and upgrade to higher plans by credit card <\/a>without any contact with a sales rep whatsoever.<\/p>\nThat’s also how they access support. Instead of forcing users to contact customer support or customer success teams<\/a>, product-led businesses offer users on-demand support through knowledge bases<\/a>, resource centers, and in-app guidance.<\/a><\/p>\nSuch reduced reliance on sales and support staff results in lower customer acquisition costs<\/a>, which is one of the main advantages of PLG.<\/p>\nSounds perfect, right? Well, the product-led strategy doesn’t work for all products and so many companies have to use a hybrid approach made up of both PLG and sales tactics, sometimes called product-led sales.<\/a><\/p>\n![\"PLG](\"https:\/\/images.storychief.com\/account_6827\/userpilot-product-led-growth-vs-sales-led-growth-plg-for-complex-products_785cb084ebc08148f189dbff5984a9e9_800.jpg\")
<\/picture>PLG vs sales-led growth.<\/figcaption><\/figure>\nChallenges of the product-led model for complex products<\/h2>\n
Complex products are one case where a pure PLG doesn’t cut it.<\/p>\n
Let me explain:<\/p>\n
Very technical solutions normally come with a steep learning curve. This means that it’s very difficult to experience their value <\/a>through freemium<\/a> or free trials. Similarly, a full self-service support<\/a> strategy might not work.<\/p>\nIn other words, the product-qualified leads don\u2019t get that well-qualified.<\/p>\n
What’s the result?<\/p>\n
Aspiring PLG companies have to resort to sales tactics like product demos<\/a> and presentations to acquire customers.<\/p>\nProduct-led Growth is tricky with complex products because resorting to a human selling it is usually easier. – Leah Tharin<\/a><\/em><\/p><\/blockquote>\nTo view how PLG for complex products is challenging, check out the webinar<\/a> below from PLG specialist Leah Tharin.<\/p>\n\n
What is the product-led growth strategy?<\/h2>\n
Product-led growth (PLG) is a go-to-market strategy that leverages the product as the main driver of customer acquisition<\/a>, retention<\/a>, and account expansion.<\/p>\n The strategy is based on the assumption that good products that satisfy genuine user needs speak for themselves.<\/p>\n In short, the approach allows users to explore the product for free, via a free trial or freemium model<\/a>, to discover its value. Once this happens, they adopt the product as a go-to solution to their problems and eventually convert into paying customers.<\/p>\n As their satisfaction grows, they turn into product champions and promote the product via referral programs or word-of-mouth marketing.<\/a><\/p>\n The fact that users play an important role in product promotion is one thing that distinguishes PLG from sales-led growth. <\/a>That’s because the latter approach relies heavily on marketing to acquire customers.<\/p>\n What are the other differences?<\/p>\n In PLG<\/a>, the role of sales teams is reduced as well because a lot of the conversions happen via self-service channels<\/a>. The majority of users sign up for the product online and upgrade to higher plans by credit card <\/a>without any contact with a sales rep whatsoever.<\/p>\n That’s also how they access support. Instead of forcing users to contact customer support or customer success teams<\/a>, product-led businesses offer users on-demand support through knowledge bases<\/a>, resource centers, and in-app guidance.<\/a><\/p>\n Such reduced reliance on sales and support staff results in lower customer acquisition costs<\/a>, which is one of the main advantages of PLG.<\/p>\n Sounds perfect, right? Well, the product-led strategy doesn’t work for all products and so many companies have to use a hybrid approach made up of both PLG and sales tactics, sometimes called product-led sales.<\/a><\/p>\n Complex products are one case where a pure PLG doesn’t cut it.<\/p>\n Let me explain:<\/p>\n Very technical solutions normally come with a steep learning curve. This means that it’s very difficult to experience their value <\/a>through freemium<\/a> or free trials. Similarly, a full self-service support<\/a> strategy might not work.<\/p>\n In other words, the product-qualified leads don\u2019t get that well-qualified.<\/p>\n What’s the result?<\/p>\n Aspiring PLG companies have to resort to sales tactics like product demos<\/a> and presentations to acquire customers.<\/p>\n Product-led Growth is tricky with complex products because resorting to a human selling it is usually easier. – Leah Tharin<\/a><\/em><\/p><\/blockquote>\n To view how PLG for complex products is challenging, check out the webinar<\/a> below from PLG specialist Leah Tharin.<\/p>\nWhat is the difference between product-led growth and sales-led growth?<\/h2>\n
![\"PLG](\"https:\/\/images.storychief.com\/account_6827\/userpilot-product-led-growth-vs-sales-led-growth-plg-for-complex-products_785cb084ebc08148f189dbff5984a9e9_800.jpg)
<\/picture>Challenges of the product-led model for complex products<\/h2>\n