Oh, hi! I'm still working on a mobile version of this website. Check it out from your computer.
But since you're already here, maybe sign-up for my newsletter? 🤓
stories, art,
and ideas on technology transforming our lives.
Lessons on Product-Led Growth from TechCrunch
This year's TechCrunch Disrupt had a killer Product-Led Growth panel featuring the former Head of Marketing for Atlassian, CPO of Amplitude, Head of Digital Marketing at Zoom, and CMO of Confluent.
Here are some of the insights for building PLG motion into a Growth strategy that I found particularly interesting:
This year's TechCrunch Disrupt had a killer Product-Led Growth panel featuring the former Head of Marketing for Atlassian, CPO of Amplitude, Head of Digital Marketing at Zoom, and CMO of Confluent.
Here are some of the insights for building PLG motion into a Growth strategy that I found particularly interesting:
PLG vs SLG vs Hybrid
PLG: Salespeople know everything about the product; they can paint a beautiful vision even when the product is not there yet. But when you make your product available for self-service consumption, you can't hide your weaknesses behind appeal to emotions. You just get people falling off the funnel. The key goal in PLG is building a product that works phenomenally well and that everyone talks about.
Hybrid: When the resources are very limited, picking one strategy, either focusing on PLG or Sales with AEs, might be more effective. Sales-assisted growth can yield great performance, but it's worth asking at what cost. Typically, human assist comes at a high cost $$$.
PLG vs SLG vs Hybrid
PLG: Salespeople know everything about the product; they can paint a beautiful vision even when the product is not there yet. But when you make your product available for self-service consumption, you can't hide your weaknesses behind appeal to emotions. You just get people falling off the funnel. The key goal in PLG is building a product that works phenomenally well and that everyone talks about.
Hybrid: When the resources are very limited, picking one strategy, either focusing on PLG or Sales with AEs, might be more effective. Sales-assisted growth can yield great performance, but it's worth asking at what cost. Typically, human assist comes at a high cost $$$.
PLG experimentation is a muscle that needs to be developed across the entire org
Get the entire org onboard with PLG: Traditionally, Marketing org focuses on their product growth funnels and relies on campaign data that sometimes takes months to get. Eng teams have their own product roadmaps and time frames. Neither is equipped with the quick and agile experimentation mindset needed to support PLG. Make sure there are not only individual incentives for experimentation across different teams but also a shared understanding of PLG objectives.
Agility is key: For successful PLG, you need to keep quickly learning, executing, and optimizing against the user experience.
It's okay to fail: When you're doing hundreds if not thousands of tests a year, failing is where learning will happen. So, it's important to integrate the right mindset toward failing. Obviously, tests should be cost-effective, and orgs shouldn't invest resources in any significant product changes until they get strong positive performance signals.
Data is at the core of PLG
Choose the right metrics: Revenue is the core Northstar. The key to choosing other metrics is focusing on strong indicators of value to consumers. For example, product consumption (how customers use the product, what they are doing, and whether they are getting the value), product engagement (DAU, time spent), and subscription churn.
Check data frequently: PLG companies are closer in nature to consumer businesses where customer signals daily what they are doing and want to do.
Collect data on things you haven't automated yet: If you have a hybrid model, it's important not just to test product changes but also to capture data on human assist, learn from it, and think of ways to integrate missing parts into the product.
Get the entire org onboard with PLG: Traditionally, Marketing org focuses on their product growth funnels and relies on campaign data that sometimes takes months to get. Eng teams have their own product roadmaps and time frames. Neither is equipped with the quick and agile experimentation mindset needed to support PLG. Make sure there are not only individual incentives for experimentation across different teams but also a shared understanding of PLG objectives.
Agility is key: For successful PLG, you need to keep quickly learning, executing, and optimizing against the user experience.
It's okay to fail: When you're doing hundreds if not thousands of tests a year, failing is where learning will happen. So, it's important to integrate the right mindset toward failing. Obviously, tests should be cost-effective, and orgs shouldn't invest resources in any significant product changes until they get strong positive performance signals.
Thanks to Carilu Dietrich, Justin Bauer, Wendy Bergh, and Stephanie Buscemi for leading the PLG movement forward and sharing your hard-earned lessons with everyone!
PLG experimentation is a muscle that needs to be developed across the entire org