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Product-Led Growth(PLG) is a go-to-market model where:
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Product-Led companies can grow, scale, serve their customers, adapt and deliver value better than Sales-Led companies. If you’re thinking about making the transition to Product-Led, then Rachel has some advice to help you navigate the challenges you will encounter along the way:
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Challenge: In a Product-Led organization, growth is everyone’s responsibility. Example: a PM focused on new Functionality also has to keep in mind customer adoption by looking at Self-Service, Scalability, and the ability for users to communicate their success outside the App.
Solution: communicate clearly to your team that growth is everyone’s responsibility.
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Challenge: To get a cross-functional team heading in the right direction you need to align around growth metrics that are different from sales metrics.
Solution: Understand the difference between growth and sales metrics. Determine the metrics that are important for growth, and optimize for them. Adopt a bottom-up strategy.
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Challenge: Product-Led Growth can only succeed if users can easily experience the value of your product, and easily pay you for more value.
Solution: Remove barriers from experiencing the value and making payment in your product, and align all of your organizational technology — both internal and customer-facing — around PLG goals.
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Challenge: Customers Switching away from Sales-Led to Product-Led can cause friction with sales teams, but it doesn’t have to. Fundamentally, understand that customers are in charge, and customers generally do NOT want to have a sales call if they don’t have to.
Solution: Communicate self-serve, Product-Led solutions as means of supporting your sales team.
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