If you are a digital product creator, there are two common go-to-market strategies: the traditional sales-led strategy and the comparatively new product-led strategy. Sales-led means the sales team is at the forefront of a company’s operations. Meanwhile, product-led growth places the product at the heart of the customer journey, from initial discovery to acquisition, expansion, conversion, and user retention. Product-led growth seeks to achieve growth by seeking ways to deliver unparalleled value to users.
More and more companies today are seeing the benefits of product-led growth. With Gartner forecasting that 75% of SaaS providers will adopt PLG strategies by 2025, it’s evident that the era of product-led growth is upon us.
Why Is Now the Time for Product-Led Growth?
The landscape of digital products is always changing, and adapting strategies to foster growth has become increasingly complex. For example, the Digital Services Act (DSA), an initiative by the European Union, promises to reshape online growth strategies. This legislation introduces stringent regulations for digital services, significantly impacting online marketing and sales endeavors. The DSA poses challenges to conventional targeted advertising strategies reliant on demographic segmentation required for product growth. In light of these transformative changes, a fresh perspective on go-to-market and product growth strategies are imperative.
Four Ways Product-Led Growth Strategies Can Transform Your Digital Product
As leaders in the realm of digital products, the role of product managers in the deployment of PLG strategies cannot be overstated. This new advertising landscape calls for innovative ways to seek and re-engage users.
Businesses can harness the potential of contextual personalization. To achieve this, focus on user behaviors, preferences, and usage patterns within the product and leverage these insights to dynamically adapt the product journey, guiding users toward features that align with their unique needs.
Product teams can better design behavior-driven triggers to guide users through the product journey. By offering timely nudges and relevant suggestions, teams can bolster user engagement and satisfaction. This can also be amplified by the use of new tools like GenAI.
Through product analytics and success metric targets, teams can implement personalized and targeted reengagement campaigns to bring customers back to the platform or app. This iterative process ensures a dynamic and adaptive approach to reconnect with users and reinforce the product’s value proposition.
Product teams can showcase the tangible benefits of the product by elevating the value proposition of a product through educational initiatives and resources. This empowers users to maximize the utility of your product and inspire their advocacy.
Elevate PLG Strategies with Generative AI
By leveraging generative AI capabilities, businesses can create personalized onboarding experiences, optimize user engagement, provide data-driven insights, and offer seamless customer support. This combination of technology and business strategy fosters an increase in product metrics such as user engagement and conversion rates, paving the way for sustained growth.
Create opportunities for your company with product-led growth
In a landscape marked by regulatory shifts and dynamic user expectations, product-led growth is an approach that not only navigates challenges but transforms them into opportunities. It forces us to rethink and redefine growth strategies. Embracing PLG, along with generative AI, we can take a step toward harnessing the true potential of your digital product and charting a course for exponential growth and success.
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ABOUT THE AUTHOR
Jeanette Cajide is a senior strategy and operations executive with experience leading teams to create, launch, and scale new ventures. Before Dialexa, she worked at Goldman Sachs, Accenture, and Merrill Lynch and has launched several technology startups. She has an MBA from Northwestern, an MPA from Harvard, and a Bachelors from The University of Texas at Austin.
