Product-led growth – Explained as simple as possible

Everyone is talking about Product-led growth, but what the hell is it?

Product-led growth (or short PLG) is a go-to-market strategy that focuses on the product as the primary way to attract, convert and of course retain users. You will hear from PLG in the digital or SaaS space most of the time.

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So what is PLG about?

It is achieved by optimizing the UX, making it easy for users to sign up, get value from the product quickly and achieve their jobs-to-be-done.

The goal is, because they had such a great product experience, that they share their positive product impression with others, fueling word-of-mouth growth (which is the best marketing you can have — because it costs you 0 and is very trustful).

PLG was here before, it just wasn’t called that way. We just created a great and fancy Buzzword, again.

Being user-centred and having a well foundation in understanding your users behavior could also somehow summarize what it’s about.

A PLG strategy isn’t executed in a vacuum. Using this approach doesn’t mean you can’t employ other customer acquisition methods like direct sales or marketing campaigns.

The ”led” part of PLG simply means that more growth is driven by the product — and therefore how users interact with it — than by anything else.

Whether you’re already working for a product-led company or simply want to add more product-led growth to your approach, the simplest way to begin is to focus on your users.

Learning how they navigate your product, what annoys them, and what’s giving them joy is the first step to optimizing their product experience.

We are curious, have you ever heard of PLG or do you even work that way? Let us know, we are happy to hear from you! ✌🏼