The top five Product Led Growth drivers for SaaS products.
Product-led growth (PLG) is a go-to-market strategy in which a SaaS product is designed to encourage users to adopt and expand the use of the product through product features, rather than relying on sales and marketing efforts alone. Here are the five main product-led growth drivers for a SaaS product:
User onboarding: User onboarding is the process of helping new users understand how to use your product. Effective onboarding can help increase user adoption, retention, and engagement. A well-designed onboarding experience can also reduce the time-to-value, which can increase user satisfaction and reduce churn.
In-product referrals: In-product referrals allow users to invite their friends or colleagues to try the product. These referrals can be incentivized with rewards, such as discounts or additional features, and can help increase user acquisition and retention.
Product-led upsell and cross-sell: Product-led upsell and cross-sell refer to the practice of using product features and usage data to identify opportunities to sell additional features or upgrades to users. These opportunities can be presented within the product interface itself, and can help increase revenue and user satisfaction.
Viral loops: Viral loops are self-reinforcing cycles of user acquisition, engagement, and retention that occur when users invite others to try the product. For example, a product that integrates with social media platforms can leverage users' social connections to drive viral growth.
Product analytics: Product analytics refers to the practice of using data to understand how users interact with the product, and to identify opportunities to improve user adoption, engagement, and retention. This can involve analyzing user behavior, feature usage, and other metrics to gain insights into user needs and preferences.
These five PLG drivers are interconnected, and can work together to create a virtuous cycle of growth and user satisfaction. By focusing on the product experience and leveraging data-driven insights, SaaS companies can accelerate user adoption, drive revenue growth, and build a loyal user base.
