📈 How to Achieve Product-Led Growth in 8 Steps...

8 strategic steps to master Product-Led Growth: Validate your product’s core problem-solving ability, enhance user decision-making processes, streamline onboarding, facilitate rapid value discovery, accelerate the 'aha' moment, ensure repeatable value, optimize monetization, and activate a referral flywheel for sustainable, cost-effective startup growth.

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You’ve got a product – awesome! Now, how do you grow sustainably? Because we don’t all have a never-ending supply of ready cash to feed a growing startup…

We took some inspiration from Jaryd Hermann, a former SA founder turned product specialist based in New York. He has an awesome newsletter you should totally check out called How They Grow. He recently covered Product-Led Growth and its gold. The PLG movement revolves around the idea that the product itself, rather than traditional sales and marketing efforts, drives customer acquisition and retention.

The teams behind a number of successful products swear by PLG, including:

• Slack – the freemium model, coupled with easy onboarding and good word-of-mouth among creative agencies soon made it a top player in workplace communication.
• Zoom – despite it not being a unique product, Zoom offering free access to businesses and schools at the right time during the pandemic made it a household name.
• Notion – known for its community-based building model, it should be no surprise they have massive word of mouth and referrals.

It’s much the same with Airtable, Figma and Trello.

PLG Steps to Growth

1. Core Problem Validation
Does this help me solve their problem?

At the core of product-led growth is the fundamental question of whether your product effectively solves the user's problem. To make this happen: Ensure that your product genuinely addresses the user's problem and provides a solution. Then, communicate that well in your comms with others.

2. Help Them Make a Decision
What information do users need to decide?

Once users get what your product does, they need the best info to know if it's for them. For this, you need a comprehensive product page with detailed features, transparent pricing, social proof (e.g., testimonials, case studies), and emphasis on what differentiates your product. Keep that info updated.

3. Remove Friction
How easy it is to try?

A smooth onboarding process is vital. Reduce the number of steps required to start, and give people a low-risk, high-value way to trial your product.

4. Value Discovery
How easy is it to learn to use?

Once users are in, they need to quickly discover the value your product provides. Develop intuitive onboarding tutorials and educational content to help users learn to use your product effectively.

5. Time to First Aha!
How quickly do users unlock value?

Accelerating the time it takes for users to experience that "aha" moment, where they realise your product's true value, is vital. Identify key actions that lead to the "aha" moment and optimise the user interface to guide users toward them quickly.

6. Repeatable Value
How often do users get value?

Ensuring that users consistently and repeatedly get value from your product is what drives long-term engagement. Continuously get feedback and improve your product based on it to build a loyal user base.

7. Monetisation
How well does the product monetise?

While PLG focuses on delivering value, monetisation strategies are crucial. Implement flexible pricing, analyse user behaviours, and adjust pricing strategies to maximise revenue.

8. Get the Flywheel Going
How can users bring in more users?

Mechanisms within the product itself that encourage referrals and sharing can lead to a self-sustaining growth cycle. Create referral and advocacy programs, offer rewards for successful referrals, and make it easy for users to invite others.

Got a low-cost growth strategy that’s worked well for you? Hit reply and let us know…