Trend #3. Product-led growth
You may have heard the term product-led growth (PLG) but are unsure what it means.
It is a business strategy that places a software vendor’s product at the centre of initial contact to successful uptake and its use amongst consumers. The product’s features, performance, stickiness and virality do much of the selling.
Although product-led, the strategy involves consumers at its core – offering freemium to premium models, free trials, and opportunities to provide feedback and get involved in product development.
To help you better understand what product-led growth means, let’s look at our latest feature in XU Magazine, where we describe it as a shift in the market creating a new interplay between vendors and consumers, with the more innovative software vendors rightly responding.
Writing in XU Magazine, our Chief Commercial Officer, Paul Shipway, summarises these market shifts and software expectation changes. Today’s software offers:
› A consumer-grade experience you enjoy elsewhere – software that’s easy to implement, use and scale. Think plug and play.
› Added value realised early on – software that’s more intuitive, simpler, and quicker to adopt. But don’t mistake simpler for ‘basic’.
› A more meaningful relationship – opportunities to play your part in a product’s development. Vendors and consumers work together.
› Easy on the pocket pricing – means less of a vendor’s costs are included in the price you pay. Traditional sales layers stripped away.
Of course, what’s being described above is product-led growth.