The Ultimate Product Led Growth Resources Guide
Editor’s Note: This article was first published on November 1, 2018.
Back in the the 1980s, software was sold on the golf course. Field sales was the norm and Oracle reigned supreme. In the early 2000s, Salesforce and a host of others disrupted that model with outbound sales over the phone, which promised a similarly high close rate at one-third the cost and one-third the amount of time. Fast forward a few years and the late 2000s saw the rise of marketing-led sales, driven by content marketing, social selling, and automation.
The next frontier of go-to-market is Product Led Growth (PLG). Companies with a PLG strategy – think Slack, Expensify, Atlassian, and Dropbox – rely on product features and usage as their primary drivers of customer acquisition, retention and expansion. It’s through this strategy that companies are able to grow faster and with less cash. They forgo spending large sums on traditional marketing and sales activities. Instead, they rely on the products themselves to supply a pipeline of satisfied users to convert to paying customers.
Product Led Growth is often synonymous with viral, freemium, and bottoms up sales. But it’s much more than that. Any company – even those selling to large Enterprises or operating in niche vertical markets – can adopt PLG principles to improve user experiences and increase go-to-market efficiency.
We’ve assembled this guide to provide a single center of truth for the most informative and innovative PLG resources. Included is a holistic breakdown of what PLG means and how every department in a SaaS company should be adapted to embrace Product Led Growth. There are inside stories of operating practices among companies that have been PLG from the start as well as companies that pivoted to embrace a PLG strategy later on. The content is taken from OpenView and also PLG thought leaders around the world, including HubSpot, Intercom, Aptrinsic, InVision, Appcues, and many more.
This is a living guide and will be updated as we find new thought leadership about Product Led Growth. Did we miss any of your favorite articles? Let us know in the comments!
Table of Contents
- PLG Overview & Best Practices
- Acquisition strategies and product virality
- Conversion and monetization strategies
- Building great product experiences
- Stories of successful PLG companies
- Stories of pivoting towards a more PLG approach
- Metrics and Benchmarks
PLG Overview & Best Practices
What is Product Led Growth? How to Build a Software Company in the End User Era
What exactly is product led growth? Think about how your company adopted Slack. It’s a very different process from the way software used to be bought and sold. End users want business software to feel like the software they use at home, and they have the budget to buy it for themselves. Product led growth is your go-to-market strategy for the end user era. Here, Blake Bartlett of OpenView discusses PLG in more detail.
The Product Led Growth Playbook
OpenView’s exclusive Product Led Growth Playbook is your one-stop-shop for everything PLG. It provides a detailed framework for businesses looking to optimize their product, marketing, pricing, and sales against PLG standards. The playbook also offers insights for traditional sales-led businesses and larger corporations that may have a harder time adapting to PLG in an agile manner. The playbook is a must-read for PLG novices and experts alike.
Your Product Is Your Go-To-Market Strategy
Product is now the centerpiece of go-to-market and Scott Maxwell, Founder of OpenView, walks us through the timeline that brought us to this stage. From “a-ha” moments, to freemium versus free trial, to driving virality, expect to learn about how you can best educate your product team on PLG priorities.
Product Led Growth Maturity Grader
Where are you on your product led growth journey? In just 10 questions, we’ll gather a snapshot of your current PLG strategy and rate your maturity. Based on your score, we’ll provide recommendations on how you can further orient your company around PLG in order to increase acquisition, conversion and expansion.
Product Led Growth Market Map
Have you ever wondered about who has successfully adopted Product Led Growth? Or are you looking for a PLG role model in your industry? Check out the PLG Market Map, representing the best PLG companies across four SaaS categories: Developer & Product Tools, Back Office & Operations, Customer Engagement, and Productivity & Collaboration. If your name should be on there, be sure to leave a note!
This talk is largely targeted at companies that are thinking about a product-led approach but don’t know how to start. Joe Chernov, VP of Marketing at Pendo, will talk you through what it takes to become product led.
Sales looks very different in a product-led company. It turns out that support looks very different, too. See here why PLG companies group sales, customer success, and customer support together.
Acquisition strategies and product virality
Peek Inside Slack’s Multi-Million Dollar SaaS Growth Strategy
Slack gets 100,000,000 website visitors every month. That’s more than Salesforce, HubSpot, Intercom, Zendesk, Mailchimp, Shopify and every other software company in the world. But that’s not what it’s all about. Slack is a role model for what it takes to build a software product loved by both small businesses and Fortune 100 companies alike. Chris Von Wilpert, CEO and Founder of Rocketship Agency, breaks down their secret to growth.
Typeform: How to Scale a Global SaaS Platform
Attaining virality is only the first step. The next step is to amplify it. That’s where Typeform’s strategy of Product Growth comes in. This strategy involves aligning marketers and developers in order to make product changes that increase top-of-funnel and optimize conversion. Read on to learn advanced techniques for scaling your SaaS platform to the global stage.
Mixmax’s CEO on How to Achieve Viral Growth
Learn about Mixmax’s journey to a near-zero CAC. Olof Mathé, CEO and Founder of Mixmax, attributes this accomplishment to taking advantage of five different types of virality. The email enrichment service founded in 2014 is a prime role model for PLG companies looking to make virality the centerpiece of their growth strategy and reduce CAC to all-time lows.
5 Research-Backed Methods of Achieving Product Virality (and 6 Stories of Companies That Did It)
HubSpot’s Sophia Bernazzani breaks down virality into an executable mathematic equation. Solve for the variables, adapt your business, and watch your product grow on its own. But it’s not as simple as it sounds. Bernazzani defines the different types of virality and how to go about creating them. This article also includes six great examples of companies leveraging virality to its fullest.
How to Build Your Product for Viral Growth: Lessons from Datadog & ZipRecruiter
Companies like Slack, Expensify, ZipRecruiter and Datadog are radically changing the approach of growth, by focusing first and foremost on delivering a great product. Users don’t want to have to sit through hours of product onboarding or training videos to get started. Kyle Poyar, Senior Director of Market Strategy at OpenView, explains how to guide users to complete key functions they need in the context of what they want to do.
Conversion and monetization strategies
Why Product Qualified Leads Are Rapidly Being Adopted in SaaS
Spoiled by their experiences using consumer applications, B2B buyers now prefer access to business software earlier in the buying cycle via free trials or freemium pricing models. PQLs are the key model for SaaS companies moving forward. Read the perspective of Mickey Alon, CEO and Founder of Aptrinsic, on how to leverage PQLs to optimize for customer acquisition.
Product qualified leads: why trial users are so valuable in B2B sales
Just because someone ignores a webinar offer or a specific part of your marketing program, it doesn’t necessarily mean they wouldn’t be interested in test-driving your product. The shortcomings of the marketing qualified lead framework have inspired a paradigm shift in the B2B sales cycle, as more companies have begun to focus on product qualified leads. This article explores a way of getting the ‘best of both worlds’ from both marketing and product qualified leads.
Why You Should Sell To Users, Not Buyers: A Product Led Approach to Marketing
As you adopt a product led GTM, your focus should be to incorporate real-time, in-product customer behavioral data to create meaningful engagement across multiple channels and devices. This article, by Ashley Minogue of OpenView, discusses how to unravel the data to glean insightful conclusions.
Product led Go-To-Market Strategy Overview
All four aspects of a GTM strategy — customer, market, product, and channels —should be optimized against PLG standards to create repeatable and scalable strategies. This article from Aptrinsic provides instructions for a product led GTM that will ensure you have the proper foundation for conversion and monetization.
The Three Rules of Freemium
It may be a tempting proposition, but freemium isn’t the right strategy for every PLG company. Here, Christoph Janz of Point Nine gives a framework for evaluating whether freemium would be right for your business.
Product Qualified Leads: The Ultimate Guide
Product qualification can be a great first step toward a holistic PLG strategy, particularly if your target customer and product do require a sales team. Product data will empower your sales team to focus on the best leads in your funnel. Moritz Dausinger of Refiner walks through how to get started with product qualified leads.
Building great product experiences
Product Led User Engagement (What B2Bs Are Learning from B2Cs)
B2B businesses are starting to shift towards building customer engagement into the product itself. Jonathan Kim, CEO and Founder of Appcues, takes learnings from companies like Facebook and Snapchat on how to create sales models, products, and user experiences that drive customers to use the product more. Dive in t0 learn how PLG user experiences are created.
SaaS product tour trends: How great companies onboard users in 2018
A great user interface can make or break your SaaS business. Visitors start evaluating a SaaS company right at its homepage, first impressions matter! This article, published by InVision, dissects the importance of product tours and the best methods of implementing them.
The Secret Sauce of Great SaaS UI/UX
The best products today are stripped down to their core essentials, enabling users to get to where they want to be as fast as possible. This HackerNoon post discusses how to achieve the ‘simple yet elegant’ ideal within PLG design strategies. User expectations have never been higher and the need to have flawless design has risen alongside them.
Design Principles for SaaS Products
Web design practices have inherently influenced SaaS products as they are delivered over the Web. Usability, aesthetics, and functionality are important for all user experiences, from mobile applications built for Android devices to downloaded software products that function exclusively on Windows. Read on to understand modern web design practices that must be incorporated in PLG products.
SaaS UX Bible: 7 Must-Have User Experience Principles From The Experts At InVision
InVision is featured again, this time providing the top seven user experience principles you should be valuing during your design process. From frictionless signups to simple onboarding and readily available support, here are the seven principles that will reform the way you create products.
Drive Product-Led With Data-Informed Design
Design is too often overlooked as a lever for driving growth in a PLG business. By the same token, designers don’t use data often enough. See here how Wavefront by VMware uses data-informed design as a pillar of its product led growth strategy.
Stories of successful PLG companies
Databricks: Free Software and Open Source Business
Databricks is one of the great open source success stories of the last few years. In this podcast episode (with a transcript), the Databricks founders talk through how they established a meaningful community of end users before monetizing an enterprise product.
How Slack Became the Fastest Growing B2B SaaS Business (Maybe) Ever
So, what has Slack done to stack the odds so monumentally in the favor of growth? Let’s take a look at what they did early on to set the stage for success, including defining their market space and user pain, nailing the product experience by focusing on doing a few things exceptionally well, and using a freemium model that fueled bottom-up word of mouth growth. Dive in to learn how to bring these lessons into your own planning.
Dropbox grew 3900% with a simple referral program. Here’s how!
A referral program can be the defining point of your PLG strategy and Dropbox’s referral program is likely the most famous case of referral marketing done right. Almost a decade later, it’s still used in numerous case studies showcasing how referral programs can contribute to a company’s growth engine – or even be the engine itself. See for yourself what went wrong and what went right to bring Dropbox’s growth up to 3900% in 15 months.
Intercom’s Viral Growth, LTV Expansion and Network Effects
Intercom shared some of its numbers in a company blog post, revealing that it’s one of the fastest growing SaaS companies of the past few years (growing from $1 to $50M ARR within 3 years). The company says they currently have 100,000 monthly active users, ranging from startups to small businesses to mid-sized and larger tech companies. Explore this summary of how Intercom utilizes ‘viral loops’ within products in order to foster such high growth.
Smartsheet, a leading provider of collaboration and communication software, filed for a $100M IPO earlier this year. Many of the company’s paying users initially started as free users and most of the revenue comes from self-serve and inside sales. This article breaks down their S-1 filing and discusses how PLG strategies have skyrocketed their growth.
Evernote – The $0 Growth Engine
This article discusses Evernote’s rapid growth up to 6 million users, adding the last million in only 52 days. Evernote has over 19,000 sign ups every day and a key part of their growth is their freemium model. You may be surprised to hear the company was founded as early as 2000, yet has only become the behemoth it is in recent years. Read on to understand the workings of a $0 growth engine.
The PLG Pivot at MongoDB
MongoDB ranks among the most prominent PLG companies, but it wasn’t always that way. For the most part, MongoDB had adopted a traditional marketing strategy. Here, Laura Borghesi talks through the three key requirements for getting an established company behind a product-led strategy.
Stories of pivoting towards a more PLG approach
HubSpot – Product is the Future of Growth – Here’s Why
Once HubSpot added freemium as part of its go-to market strategy, product qualified leads became a key source for both touchless sales and leads for the sales team. The PQL dashboard showed them the performance of each PQL point within their freemium products, showing how many times people interacted with them, how many upgrades they generated and the average selling price for each one. Kieran Flanagan, VP of Growth at HubSpot, dives into how these changes impacted the company for the better.
CrowdRiff – How we are becoming a product led company
CrowdRiff, an AI-powered content marketing platform, holds its product as the distribution center, competitive advantage, and key driver of customer loyalty. In this article, CrowdRiff reveals five key approaches they took towards keeping the entire team aligned on PLG goals. PLG is a company-wide strategy and not only for product teams to focus on.
TradeGecko – Here’s how we’re moving to product led growth and why you should do the same
TradeGecko made the transition to PLG by beginning to see all customer engagement as a funnel. With the ultimate goal of doubling B2B adoption, TradeGecko went about experiments aimed at consolidating the funnel and focusing product managers on key growth KPIs. As the article describes, the lessons they learned helped, but also provided more and more areas for experimentation, providing light on the ‘continuous improvement’ aspect of Product Led Growth.
Metrics and Benchmarks
Product Led Growth: The Secret To Becoming A Top Quartile Public Company
PLG companies deliver a superior product experience and their products are extremely sticky – people log in regularly, users share their products with colleagues and friends, and these businesses tend to boast amazing NPS scores. With so much goodwill built up among their users, it’s easier for PLG businesses to accelerate growth via cross-sell/upsell over time. In this article, Sean Fanning of OpenView connects these components to driving revenue growth and ultimately preparing for a successful IPO.
The State of Product Led Growth
OpenView surveyed 500+ SaaS leaders to find out about how they leverage Product Led Growth. The survey findings reveal new insights around freemium pricing, in-product onboarding, product analytics and the role of sales in a product-led business.
Amplitude – The North Star Playbook: The Guide to Discovering Your Product’s North Star
Organizing companies around North Star metrics is nothing new, but it can be a real challenge to identify a good metric and then get your team behind it. Here, Amplitude offers a thorough North Star framework for product-led businesses that should help you to get started.
Mixpanel – 2019 Product Benchmarks Report
PLG companies typically have abundant customer data. Mixpanel’s Product Benchmarks Report can help you make sense of all of your data. You’ll see how your company stacks up against peers on most of the key metrics you should be tracking.
Product Led Growth Operational Metrics
PLG leaders often wonder how their metrics compare to peers, but aggregated figures mask the idiosyncracies of individual companies. On this Notion board, you can check out activation rates, conversion rates, and more across several prominent PLG companies.
We monitor these closely within our portfolio at OpenView.
We had an incredible roundup of executives from thought-leading companies join us to share their candid points of view on GTM and product strategy, organizational design, optimizing productivity and so much more.