Product, Sales or Marketing led growth strategies. Which should you use?
Product-led growth (PLG), marketing-led growth (MLG), and sales-led growth (SLG) are three different approaches to driving growth for a business. Here's when you might consider using each approach:
Product-led growth: PLG is a strategy that focuses on creating a product that is so good that it drives growth on its own, primarily through user adoption, referrals, and virality. This approach is best suited for companies with a product that has a low barrier to entry, is easy to use, and solves a specific problem for users. PLG is particularly effective for SaaS and other subscription-based businesses, where users can try the product for free and then upgrade to a paid plan. PLG is also ideal for businesses with a high customer lifetime value (CLTV), where the cost of customer acquisition is low compared to the revenue generated over the lifetime of the customer.
Marketing-led growth: MLG is a strategy that focuses on using marketing tactics, such as advertising, content marketing, and email campaigns, to drive growth for a business. This approach is best suited for companies that have a well-defined target audience and a clear value proposition, and who need to create awareness and interest among that audience. MLG is particularly effective for businesses with a longer sales cycle, where prospects need to be educated and nurtured over time before they are ready to buy.
Sales-led growth: SLG is a strategy that focuses on using sales tactics, such as outbound prospecting, sales calls, and demos, to drive growth for a business. This approach is best suited for companies with a higher-priced product or service, where a more consultative sales process is required to close deals. SLG is particularly effective for businesses that have a large total addressable market (TAM), where a high-touch sales process is needed to win business from a large number of potential customers.
In practice, many businesses will use a combination of these approaches, depending on their product, target market, and growth goals. The key is to understand which approach is most appropriate for your business at each stage of the customer journey, and to continually test and iterate your growth strategies to achieve the best possible results.
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