What is Product-Led Growth (PLG)? A Beginner's Guide

Category : Growth Marketing Author : Team Amura Date : 07 Sep 2020

Gone are the times when consumers talked to salespersons and explained their needs to them, who, in turn, would convince the consumer into buying the product or service. Often, we have come across a salesman who is not properly informed about the product or not emphatic enough to understand the customer’s demand. They merely focus on closing the sales deal by hook or by crook.

Buying and selling a product or service is majorly dependent on consumer experience and not on the persuasive ability of the salespersons, and marketing and advertising campaigns. Consumers have started to enjoy the process of self-educating themselves about a product and service. This is where product-led growth comes into the picture. Consumers rely on the experience of using a product more than any marketing and sales strategy.

What is Product-Led Growth?

Product-Led Growth
Product-Led Growth

Product-led growth is a marketing strategy where the product of a company becomes the key to success. Under this strategy, a customer is first attracted to a company's product, after which his/her experience of using the product will determine whether he/she retains as a customer of the company. The key factor is that the company allows the consumer to experience the product in action.

This model reverses the traditional sales cycle, wherein the objective of the company was to take the consumer from Point A to Point B. Under this strategy, a consumer is driven to Point B solely by the product experience. A consumer, using a free-trial, is likely to convert into a paid member as soon as he/she understands the value your product can add to their lives.

How does the Product-Led Growth model work?

Product-Led Growth
Product-Led Growth

In this strategy, understanding the need and value a customer assigns to a product, informing them about how your product can provide that value and then, delivering that value is of utmost importance.

  • Understanding the Value:

    A company needs to understand the requirements of its customers before designing a product. Understanding the emotions that a consumer wants to derive from a product is of utmost importance.

  • Communicating the Value:

    Communication is the crux behind the success of every business. It is important to minimize friction among business and potential customers. Under the product led-growth model, the revenue model and the customer acquisition model go hand in hand. They should not be separated at any cost. It is effective to communicate your value through up-front pricing.

    Interesting: Growth Marketing Experiments: An Innovative Strategy for Better Growth

  • Delivering the Value:

    As the saying goes, "Customer is the King." No one can stress enough about this fact. Meeting the expectations of your customer is of keen importance. No business can compromise on this. Delivering what you promise will enhance your business's credibility and ensure that the customer becomes loyal and sticks to your business.

What are the advantages of a product-led growth model?

Product-Led Growth
Product-Led Growth
  • Competitive Edge in Growth

    A free trial of any product or service enables a wider reach of the said product or service compared to a sales-led model. Sales-led businesses hire salespersons for different regions and train them to close a sales deal. This is not required in the case of a product-led model because customers themselves get to try the product; they do not require a third person to explain the value that they can derive from it.

    Also read: What Is A Growth Agency And How Do You Choose The Best One?

    Not only this, but a freemium also has the potential to enhance the subscriber base of a firm rapidly. Customers generally sign up for free trials without much thought and prior research so, it is purely your product that will make or break the deal. If the product is worth it, you retain the customer who will also recommend the same to his/her acquaintances.

  • Lower Customer Acquisition Costs

    Sales based businesses require marketing and advertising campaigns to attract customers. This is not the case with product-based businesses because a “free trial” is sufficient in most cases to attract a huge pool of consumers. Companies following this model require much lesser staff members than other businesses, and this translates into higher profit margins for owners.

It is the independent working of these growth strategies that have become less effective in the current market. Businesses need to synchronize their sales and marketing efforts with consumer groups and their product to create a larger impact on the target audience.

Communicating the value that your product can offer is of utmost importance, there is no alternative for that. So, marketing and branding do play a role under the product-led growth model as well. But ultimately, it is your product that can change the game for you. If the product is not worth the hype generated by marketing strategies, certainly, you will not be able to retain your customers.

Experts suggest that the product-led growth model will be the future norm. So, it is high time that organizations start adapting to this model; otherwise, they might lose the race.

Amura with over 10 years of experience as a growth marketing agency has helped over 250 businesses grow to their potential. Get in touch with us for your product-led growth related queries at

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