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Product-led growth places the product at the heart of the company-wide strategy. It’s a new approach, marking a shift away from sales-led and marketing-led growth. The consumerisation of software means that end-users now demand better experiences from the tools they use. Product-led growth is a bottom-up approach that speaks directly to the needs of end-users. The software industry has been moving toward the end-user for some time, and smart companies are adapting to keep up.
When adopting a product-led growth strategy, users play a critical role. They want to extract value from the product before buying or integrating it into their daily lives. The quality of the product is, therefore, key, rather than sales or marketing efforts. These days people can see through marketing fads so the product is truly integral to success. The better the product the better the company, which sounds about right.
Many companies are turning towards a product-led growth strategy, particularly SaaS companies. Companies including Grammarly, Slack and Dropbox have all adopted this strategy and have been met with great success, proving that product-led growth is here to stay. MyReach is also succeeding thanks to the product-led growth strategy that it’s implementing. After launching in December 2021, it has grown its user base to several thousand users worldwide and this number is increasing by the day.
The beauty of product-led growth is that it requires little to no costs other than product development. MyReach has seen rapid growth whilst spending absolutely nothing on marketing or sales in the first few months of launching the app. The organic marketing strategy used focuses on the product and communicating its benefits to potential users – with no empty promises.
With product-led growth, the product should be ever-evolving to meet the needs of its users. Through collecting user feedback, implementing improvements and adding new features, myReach is constantly developing the app to give users a high-quality product that fulfils their needs. This has driven further growth and user uptake. Product-led growth relies heavily on word-of-mouth, which can be incredibly effective in growing a loyal and active user base.
Product-led growth ultimately all comes back to the product itself. You must have a fantastic product that adds value to users’ lives. It should also have optimal user experience:
- The product should be easy to navigate/use
- It should solve users’ problems
Product-led companies move fast, with an unrelenting focus on the needs of their users, and a culture of collecting and leveraging contextual feedback. In this increasingly saturated software market, moving slowly is not an option. Product-led companies also need to be aligned. Product-led growth is a far-reaching, company-wide strategy that requires coordination across all departments in order to meet acquisition, retention and expansion goals.
If executed well, companies that implement product-led growth will grow faster and become more trustworthy and reputable. Product-led growth is growing exponentially and has created more than $208B of market value. With more and more companies seeing success with this scalable and sustainable business strategy it is looking like the future is product-led growth.
