What is Product Led Growth?
Updated: Jul 6, 2022
Product-led growth is a strategy that focuses on the product itself. This strategy is also referred to as product-based growth or customer-centric growth. The company invests its resources in the products rather than investing in other things like marketing and sales, which are dependent on the customers' behavior.
Customer-centric growth produces new customers at a faster rate than product-led growth because it relies on nurturing traffic and drawing in new users through value propositions, features, and copywriting.
Product-led growth is a strategy that relies on the development and release of new products with the long-term goal of growing an organization's revenues.
The product-led growth strategy has been adopted by organizations across various industries including electronics, technology, fashion, publishing, and retail. The strategy is especially prevalent in these industries because they are ripe for disruption.
Companies must be able to adapt constantly when their market or business environment changes or they risk losing their competitive edge.
Product-led growth relies on having a full understanding of an organization's customer base and its competitive landscape in order to develop new products that have a high potential for revenue growth
Product Led Growth is building a product into a business through user-led growth. Companies that are able to execute this in the right way will enjoy the benefits of high ROI.
Product Led Growth is the process of scaling a product through user-led growth. For instance, if you have a restaurant and want to expand your business by selling food or beverages outside your store, you would need to build out an app for customers to order and pay for their orders as well as find restaurants nearby that carry your brand and items they want.
An Introduction to the Four Phases of Product Led Growth: Customer Discovery, Value Proposition Design, Messaging, and Positioning
Companies must plan their growth. With the rise of innovation, it is important to have a plan in place so that they can present the best product to their target audience.
The four phases of product design are customer discovery, value proposition design, messaging, and launch. The first three phases are based on marketing principles while the fourth phase is more on business-related principles.
Exit Strategy: This is where a company decides when it wants to exit its current market or product as well as what they want to enter into next.
Introduction: By following these four stages, companies can optimize their content and create enthusiastic customers who will come back for more products from them again.
Every company, product, or service starts with a discovery. There are four phases of discovery:
Customer discovery is when a company finds out what its target audience really wants and needs. It can also be called competitive analysis or market research.
Value Proposition Design is when a company creates an offering that they hope will have the potential to have enough value for customers to buy into it and grow with the business. It's also called market positioning and positioning strategy.
Messaging is when a company develops its plan of how it will engage with its target audience through promotional messages, advertising campaigns, media content, etc.
The journey of growth that any product or company goes through is a process of phases. A company’s growth can be measured by how well it follows the 4 phases. A good company will start with customer discovery, followed by value proposition design, messaging, and finally sales enablement.
A good product will always have an understanding of its target market and then understand what the customer needs in order to purchase from them. Once this is done, it will create a unique value proposition to fit that market and create something that customers want to buy.
It will then work on creating a message that resonates with customers even before they buy. This message should also be something that motivates potential buyers towards purchasing and getting more information about the product/service.
Finally, this message should lead to sales enable
How to Design & Execute a Successful Product Launch from Beginning to End
It is not easy to launch a new product every day. There are several steps that need to be taken and more often than not, marketing resources are stretched too thin for this.
But with the help of AI marketing automation tools, marketers can now take their time in creating and designing an effective product launch from beginning to end. These tools will help market your product the way you want it designed and executed.
A product launch can be a challenging part of your marketing strategy. It requires a whole lot of expertise from multiple people and a lot of time in order to be successful. With the help of AI, marketers can now put their focus on what they are best at - creativity and emotions.
When designing and implementing an effective product launch, there are four key parts that you need to consider: plan, execution, measurement, and analysis. There are also some factors you should consider including support team members, social media channels, and influencers.
The success of your product launch largely depends on the amount of planning you put into it. You also have to take into account time constraints - as this is one area where AI can help with automation.
A product launch is the most important part of any marketing strategy. With proper planning and execution, it can be a success for your company.
AI content marketing automation is becoming a popular tool for companies that want to make the most out of their marketing efforts. They provide more value than ever before with the integration of artificial intelligence, machine learning, and automation.
The Principles of Product-Led Growth
The principles for product-led growth are derived from the 4 key areas of growth: traction, traffic, conversions, and retention.
Here’s a brief overview of each principle:
1. Constant innovation: Continual upgrades allow you to stay ahead of competitors and gain market share.
2. Core values: Create a brand that appeals to your target customer base by understanding what makes them tick and why they buy your product or service.
3. Product-market fit: Begin with a product that solves a problem for your target audience before moving on to the next step in the growth process.
4. Smart investments: Maximize return on every dollar invested by focusing on key metrics such as conversion rates and cost per acquisition (CPA).
At the end of the day, a startup is a product, so it's critical to understand what growth principles work for products.
Worst case scenario
- you fail without knowing why
- you fail prematurely and after wasting lots of time and money
- you can't find your product-market fit because it was too narrow in scope or had an inherent flaw that couldn't be fixed
- you don't have enough users to gain traction
- users burn out or abandon your app
- your product doesn't resonate with the customers
Direct selling companies are changing their business models and focusing more on growing their businesses by providing products and services.
These product-led growth principles can help you to take your startup to the next level.