Whether you’re a SaaS company or not, we’d be willing to bet you’ve already encountered the phrase product-led growth via a viral LinkedIn post. At one point, it could have been described as the GTM strategy du jour for SaaS companies but, thanks to droves of success stories and a changing landscape, PLG has proven its staying power.
This blog has something for everyone. If you’re completely new to the concept, we’ll explain what product-led growth actually is and the benefits. If you're familiar with the concept and starting to dip your toes in, head to the PLG flywheel section to learn about how your funnel will shift. If you’re already in the pool, our implementing PLG section will show you how to set your pricing and identify those all-important product-qualified leads.
Let’s get into it.
What is Product-Led Growth?
Unlike sales-led growth or marketing-led growth, product-led growth relies on the product itself as the main vehicle to growing and retaining your customer base.
This does not suggest that sales or marketing teams will disappear. In a product-led GTM strategy, marketing activities will drive people to sign up for your product’s freemium or free trial offering, while sales will step in to help strong product-qualified leads convert, negotiate terms with enterprise-level customers, or identify new business opportunities.
SaaS superstars like Slack, Dropbox, Calendly, Shopify, Figma, and Canva are all leveraging product-led growth with huge success. If you’ve used any of those products, or you’re an Ortto customer, you’ve experienced this GTM strategy from the customer seat.
Why now is the time for product-led growth
Product-led growth is hardly a new concept, but with each passing year it becomes more pertinent. SaaS businesses are facing a range of challenges, including increasing customer acquisition costs, a highly-competitive space (and growing), and consumers who have become used to trying before they buy and expect to experience the value of your product… and fast.
PLG solves a number of the challenges that businesses face today — and, even more importantly, it safeguards them for the challenges the industry has predicted for the future.
1. You need to find the goldilocks of growth
SaaS businesses and startups are under a lot of pressure to grow, and fast.
But not too fast. Or our sales and support teams will crash and burn.
We need the goldilocks of growth - rapid, impressive, but sustainable.
Here’s where product-led comes in. In an episode of Growth Masters, Wes Bush, the Founder and CEO of ProductLed gives the example of Zoom who scaled from 10 million to 200 million daily meeting participants in just three months early in the COVID-19 pandemic.
If the company had been operating on a sales-led model, Bush estimates that this staggering growth would have required 131,944 salespeople. Or, more likely, it would have resulted in a smaller, but extremely burnt-out sales team. and a huge volume of unhappy leads who never convert.
When the product itself handles onboarding through self-education resources, AI chatbots, and video demos, the company is able to experience rapid growth sustainably, just like Zoom did.
And, as Jason Lemkin from SaaStr pointed out in a recent LinkedIn post, getting that 20% “boost” from PLG is the secret to many SaaS companies’ success today.
2. You need to overcome rising CAC to increase profit
We hardly need to tell you that the cost of acquiring customers has increased dramatically over the last few years. If we are to use the CPM increases across platforms in 2021 (source: Hunch Ads) as an indicator, it’s clear to see why:
Google and YouTube’s CPM went up by 108% (2021)
Facebook ad cost increased 89%, with the average CPM sitting at $11
TikTok’s CPM had a 92% increase
Snapchat’s CPM experienced a 64% increase
Amazon experienced a 20% increase in CPM between Q1 and Q2
Even if you have no issues with the cost of acquisition, there’s incredible competition out there, and ensuring your brand is memorable is difficult.
With PLG, CAC is naturally reduced. The obvious reason is this — the product is doing all or some of the selling itself, reducing the marketing budget required or the need for a large, multi-regional sales team. But there are other, less obvious, reasons a PLG strategy will help you overcome rising acquisition costs:
Sales cycles are faster When the majority of prospects onboard themselves, sales cycle bottlenecks are removed.
Focus on expansion Sales and support teams are able to focus on large customers and work to expand them, putting less pressure on generating new, less reliable leads.
A better user experience Self-serve help documents, chatbots, and content ensure that customers are able to find answers when they need them. In the early stages, this could be the difference between new customers sticking around and straying elsewhere.
Product quality improves When your entire company is focused on the product, magic happens. And a better product results in more referrals from advocates — simple as that.
Generate more leads for less The reduced barrier to entry with freemium or a free trial means acquisition efforts generate a larger quantity of leads that can be targeted with cost-effective marketing like email content.
Cast a wider net When you can capture leads from anywhere, in any size company, your net is wider and more conversions happen naturally.
Benefits of product-led growth
When it comes to PLG, the benefits are far and wide, solving many common problems for SaaS up-and-comers. Let’s take a look:
It allows for sustainable rapid growth
We’ve covered this one above — in the current landscape, there is a need for long-term, sustainable growth. Gone are the days of burning through capital without ever turning a profit, investors and even talent have their eye on your burn multiple (Burn / Added Annual Revenue)
Take Bolt as a cautionary tale. The Information reported it burned $60M to generate $14M in annual revenue in q1. That’s a >4x burn multiple which has resulted in laying off 250 employees and having to severely lower their growth target.
While a PLG function is not a magic bullet, it can help eliminate the up-front costs associated with setting up a robust, international sales function, while widening your net, and helping you build a product that your advocates sell for you. Put simply, it’s a more sustainable model for high-growth SaaS.
It creates a meaningful feedback loop
When the product itself can conduct user research, customer feedback comes in droves, and product, sales, marketing, and customer services teams can stay on top of what their customers really need and deliver on it, without the need for specific research initiatives.
In this way, a product-led organization is self-fulfilling. The product itself is generating feedback from customers, and the product is answering their needs directly. Add a layer of personalization — for example, sharing updates with the exact customers who expressed the need for that update — and you have a product that sells itself.
It improves sales metrics
We’ve covered CAC, but what about the other sales metrics? When the product is selling itself, Revenue Per Employee (RPE) is increased, user numbers grow at a much faster rate and, when you’re collecting feedback and responding to it, Customer Lifetime Value (CLV) and Renewal Rate will naturally increase.
Increasing your CLV naturally lowers your CAC, allowing you to justify that ad spend in the long term. Using a customer journey analytics platform like Ortto will help you answer questions like:
What is my CLV to CAC ratio?
Which product actions lead to increased MRR?
Which events or activities indicate customers are qualified to upgrade?
What is the impact of customer support on CLV?
It speeds up sign-ups
By removing all barriers to entry, customers are able to sign up as soon as they hit that landing page — no waiting for sales to reach out and schedule a demo.
Let’s assume your product is A+ (of course it is!). That first-hand product experience will allow the customer to figure out what the value of the product is on their own. And by coming to this conclusion alone, the ‘aha moment’ is all the more convincing, meaning they’re less likely to stop using the product and more likely to switch to a premium tier.
It creates happier teams
It might feel like departments across your organization will feel threatened by this change in strategy but, in fact, product-led growth is more likely to create happier employees. After all, this step-change will empower them to do the things they really love to do.
Consider a research team — would they rather be going out and collecting data or analyzing that data and finding insights? What about customer support? Would they rather be working closely with customers and the product team to find great solutions, or answering the same customer question a hundred times a day? And your sales team — would they prefer to waste time qualifying leads and convincing them of the value of your product? Or focus on pre-qualified leads who have already experienced the value firsthand?
You know the answer, and so do they.
Determining whether PLG is the right growth strategy for your product
If you’re a SaaS company with a remarkable product, it’s likely that you’ll find some benefit from a product-led GTM strategy.
And so the question is less ‘Is PLG right for my product’ and more ‘How big of a transition am I looking at here?’ and ‘How ‘all-in’ should I go on PLG’.
To answer those questions, start by asking your customer-facing teams a few questions:
When customers reach a salesperson, are they asking for a free trial before they commit?
Do they seem disengaged with the demo and itching to get their hands on the product?
Is it difficult to convince customers of the value of the product before they experience it for themselves?
Are onboarding and setup simple? If not, could it be made simpler?
Does your product offer a unique or best-in-class solution to a problem?
How often does your customer success team need to step in to help customers through the onboarding process?
How many customer service queries could be answered through online content, an AI-driven chatbot, or a simple email?
After asking yourself these questions, you should start to have a good idea of how difficult a transition to product-led growth will be and how ‘all in’ you should go.
If you know PLG is the right solution for you, but you’re concerned your customers will miss the person-to-person interaction, consider this: Everyday consumers are signing up for products like Spotify and Netflix in the millions without a salesperson’s help. In the B2B world, even complicated products like Asana and Monday are adopted in major companies with little to no intervention from a sales team.
We’ve already reached the tipping point where consumers and businesses expect to be able to ‘try before they buy’ — PLG is how you turn that ‘try’ into an efficient, effective, churn-busting sales tool.
The PLG flywheel
There’s a reason the AARRR funnel has been so widely adopted — it simplified the complicated and helped many businesses grow. But in a product-led growth strategy, it may be more helpful to adopt a flywheel approach to your growth.
The PLG flywheel is a framework developed by the Product-Led Growth Collective and is designed to provide a modern, PLG-friendly replacement for the funnel. A flywheel depicts the stages in the user journey from awareness to advocate (the inside wheel below) and the key actions users need to take to graduate to the next stage (the outside wheel below).
By now you’ve probably gathered that in PLG, moving users through the different stages of product adoption is crucial to increasing paid user numbers and revenue — the flywheel is a model that provides user motivations and goals at every stage of the journey to guide product-led growth.
Here’s how it works: As the rate of users completing each action increases, the flywheel spins faster and increases the rate of acquisition. Essentially, with more users reaching the advocacy stage, more users are entering into the flywheel, creating exponential growth rather than linear growth (like you would see in a funnel model - more on that later).
Below, we’ll move through each phase of the flywheel and summarize the goals and objectives for each stage.
Evaluators are in their awareness phase. They’re researching their options, consuming content, checking G2 reviews, and asking their network about your product.
If you have a free trial or a freemium tier, it’s likely they are using your product, along with some of your competitor’s products, to see which solution is right for them. It’s unlikely that they are using your product in their workflow or onboarding additional team members, they’re just playing around to see what you can do.
The goal here is to get evaluators through the onboarding process to help them reach their ‘aha moment’ and get them to activate. To do this, you will need to set up an onboarding journey as we’ve outlined below. And remember, less is best. You want them to reach ‘aha’ without burying them with information about every little feature.
Beginners are, as the name suggests, just getting started with your product. It’s likely they have some expectations around what your product can do and deliver. They may be paying customers or they may be using your freemium version after experiencing their ‘aha moment’. They’re somewhat committed, so they will start incorporating your product into their workflows and bringing other users on board.
What you need to do in this phase is deliver on their expectations and even exceed them by showing some of the other features or use cases available. To deliver value, reduce friction by making guides readily available and easy to access at any time of day or night. We’re talking knowledge bases, chatbots, how-to guides, and forums that will help them help themselves.
The goal here is to get these beginners to fully adopt your product, making it part of their day-to-day lives through habitual use.
Regulars are users with high engagement scores. They’re logging in frequently and they rely on your product. At this stage, switching to another solution would take considerable time and effort — it’s unlikely they’ll do so unless they find a considerably better option or have a negative experience with your product or customer service.
Regulars want your product to work as expected. They’re most likely to be disturbed by changes like redesigns or interruptions like outages. While they’re likely to be set in their ways when it comes to product usage, they will be open to hearing about new use cases or efficiency, and they’ll engage with content around new features, advanced features, and product updates. They’re also pretty likely to engage with customer feedback forms or proactively offer requests or feedback.
It can be easy to think of your regulars as a ‘set and forget’ audience, after all, they’re engaged with your product and they’re probably not going anywhere, right? While that might be the case, keeping engagement levels high and getting these regulars excited about features or an amazing customer experience can go a long way to helping them adore your product. And adoration leads to advocacy — the last stop in our wheel.
Champions / Advocates
Your champions are your superfans. They love your product, they have an emotional connection to your brand, and they get excited when you announce launches or updates. They’re more likely to participate in beta testing or case studies.
Champions keep your flywheel spinning. They’re going to tell their network about your product and provide references that will convince prospective customers to take the leap. Find ways to let them know you love them as much as they love your product — send swag, invite them to exclusive events, give them advanced guidance on power-user features, and engage with them on social media platforms.
This above-and-beyond treatment is the magic dust that leads champions to advocate for your business, helping you grow.
Becoming product-led: The first steps
Deciding to become product-led is the easy part. It’s a strategy that just makes sense for a lot of SaaS companies. But taking those first few steps can feel overwhelming.
Let’s assume you answered the questions above and determined that your product is right for PLG. That is, your product has a short time to value (TTV), can be adopted without the help of a salesperson, and offers a best-in-class solution to a problem.
As the Product-Led Collective points out, the first thing you need to do is ensure you have an incredible product. One that truly delivers on its promise. Then, before you even start bringing people into your flywheel, you will want to identify three things: what your freemium or free trial offering looks like, how you intend to identify product-qualified leads, and your pricing structure. Like any good GTM strategy, these things should be regularly assessed and tinkered with to find what works so these decisions may not be final.
Freemium, free trial, or hybrid
Offering a free trial or freemium tier is a hallmark of a product-led growth organization. Allowing your users to try before they buy puts your product at the center of the selling experience, essentially it is selling itself.
Free trial vs. freemium
There are benefits to both a free trial and a freemium approach.
The free trial typically allows users to experience the best version of your product — including all features and functionality — for a limited time. Often this is set at 14 days, but the timing of your trial will largely depend on how long it takes to get a customer to take a product-qualifying action and experience their ‘aha moment’ (more on that later).
The freemium plan gives customers access to limited use of your product for an indefinite period of time with zero charges to the customer. Here are some examples of the restrictions SaaS companies apply to their freemium plans:
Ortto restricts access to some features and limits others. We give customers access to email marketing, one playbook, two capture widgets, plus customer data, dashboards, and reporting for up to 2,000 contacts. All emails and capture widgets created by freemium users will include ‘Powered by Ortto’ branding which cannot be removed (this is one of our growth loops - more to come on that later).
Storage services like Box and Dropbox restrict the amount of data available.
Canva restricts freemium users from using popular tools like background remover and brand book and limits the number of templates, images, and illustrations available.
Otter, a transcription and meeting collaboration tool, limits the number of minutes a freemium member can transcribe each month.
Zoom restricts meeting time to 45 minutes for users on the free tier.
Deciding what’s right for your business
There’s no one ‘best’ solution here, it’s all about finding the right solution for your product and your organization.
A freemium product opens your top-of-funnel up considerably, with OpenView Partners reporting that typical freemium tools generate 33% more free accounts for every website visitor. If you have a product that generates an output for every input (like the natural growth loop that occurs when a Zoom user invites someone to their site), it’s a worthwhile strategy. That said, you can expect your conversion rate to be lowered when users have unlimited access to a free product.
Free trials create a sense of urgency and tend to lead to more conversions. The median free-to-paid conversion rate for free trial products is 14%, compared to 7% for freemium plans.
Some companies, like Ortto, Slack, and Canva, offer both a free trial and a freemium product. This offers the best of both worlds — the freemium product has built-in growth loops and is remarkable enough to turn users into ambassadors. Freemium users are nudged to sign up for a free trial to unlock more features and become paying customers once they experience the value.
Take it from us, this hybrid strategy can take some time to perfect — you need to offer enough valuable freemium features to impress your customers, but not so much that they don’t see the value in upgrading.
If you’re still not sure, take a look at the statements below and put a checkmark next to those you agree with:
The product is easy to use and the onboarding process is standardized for all customers
Users will experience an ‘aha moment’ within 7-14 days of using the product
Our growth strategy does not require new users to generate an output (additional user)
My primary business goal is near-term revenue
My business does not currently have a significant sales team or success team in place
If the majority of statements have check marks, it’s likely you should opt for a free trial. If the majority of statements do not have check marks, consider a freemium model. If you’re looking at roughly half-half, consider a hybrid approach to start testing and learning.
Opt-in or opt-out?
Whether you’ve chosen to go for a free trial, freemium tier, or both, you will need to consider when to use opt-in vs. opt-out. There’s really no correct answer here, like many things PLG, it all depends on the type of product and business you have. It may even be worth doing some A/B testing to see which model generates the most high-quality sign-ups.
An opt-in trial does not require a credit card but will require the user to opt in at the end of the trial in order to continue using the product. Asking for credit card details can create friction, especially for users who want to try something out and see the value before selling it to the buyer in the organization, so this strategy will open up the volume of leads generated.
An opt-out trial, requiring a user to hand over their credit card details before their trial begins, is more likely to convert customers who might otherwise have let their trial expire without giving it much thought. This can result in a higher volume of early (week one) cancellations or customer service inquiries.
Here at Ortto, we do not require users to hand over credit card details to sign up for our freemium tier, but we do require a credit card for those users to activate a free trial of our paid platform. In our hybrid approach, this widens our TOFU net while capturing more conversions.
It’s worth noting; if you are asking customers to sign up for a full year, or there are significant costs associated with your product, you may be better placed with an opt-in trial.
With a free trial or freemium offering in place, the floodgates are open and the leads will start rolling in at a larger volume. Now is the time to start thinking about how you will qualify those leads.
This starts with identifying what your product-qualifying actions are. With this, you’ll be able to use a CDP like Ortto to identify product-qualified leads, score them, and route them through to a product-led or sales-led funnel.
What is a PQL (product-qualified lead)?
Essentially, a product-qualified lead is a lead who has experienced their ‘aha moment’. They’ve had a great onboarding experience, seen the value of your first-hand, and they’re most likely going to be ready to commit to your product.
How to identify PQLs for your business
In order to identify a PQL for your product, you’ll need to look at which actions are taken before users become active and engaged customers, and identify the behaviors that lead to upgrades and expansion.
These actions will be unique to your business. To give you an example, here are some product-qualifying actions to consider:
Hitting a usage limit on your product
Heavy use of a feature
Use of a specific product feature
Reaching success milestones (making a sale or driving engagements)
Identifying your product-qualifying actions can feel daunting and it will take some trial and error. The best place to start is at the end. Take a look at your existing paying customers and start to identify some of the commonalities in their behavior by speaking to your sales, marketing, and customer success teams.
Converting PQLs into paying customers
Once you’ve identified your product-qualified leads, your goal should be to develop different playbooks for different types of PQLs, using multiple channels for outreach.
Whether you opt for a freemium version of your product, a free trial or a hybrid approach will depend on your product and how you plan on nudging your customers toward an upgrade.
In a product-led sales model, your top-priority, high-value leads could be directed to your sales or solutions team who can work on expansion and ensure they are unlocking value in your product.
Meanwhile, other leads could be better placed in a trigger-based nurture journey that automates a series of emails and pop-ups to nudge the lead in the right direction, helping them self-serve and educate their way to paying-customer status.
In a product-led growth model, the product itself will do the majority of the talking, with your sales team stepping in to do everything the product can’t — creating custom plans, navigating financial questions, or helping users find solutions to very specific problems.
Ortto brings the CDP, customer journey marketing, and journey analytics together to help you onboard new customers, identify PQLs, route them to the right salesperson or marketing journey, and measure their success.
Pricing your product can feel like a balancing act. Too high, and you’ll struggle to move your users from a free trial or freemium tier to a paid plan. Too low and your brand image could be at risk, or you could be chasing your tail trying to generate enough leads to keep the lights on.
In a product-led growth model, pricing is even more important. After all, the majority of your customers may never speak to a salesperson, eliminating the chance for negotiations. It’s likely you’ll also be looking for opportunities to expand your customers as their business grows, meaning tiered pricing for various levels of usage will come into play.
Some of the most common pricing models in the PLG SaaS world include:
A usage-based package gives customers a set usage limit at a low price, and then either charges a set fee for every increment that goes above that usage limit or prompts them to upgrade.
For example, Box, a content cloud, charges $21 per month for up to 5GB of storage on a business plan. That’s enough space that the customer will spend some time with the product, upload a bunch of files, and make Box part of their day-to-day work life. But it’s not quite enough in the long-term, and most businesses will be upgrading to the $35 a month 15GB plan within the first six months of use.
Usage pricing benefits:
Large top of funnel - you can attract small startups as well as enterprise-level customers.
Opportunities for growth - Dropbox had a best-in-class growth loop that incentivized referrals in its usage pricing model. If the referral signed up, both the referring customer and the new customer would receive extra space on their account.
Who should use usage pricing:
If your product is a storage or data-based product, usage can be a simple pricing model to start with.
Best practice tips for usage pricing:
Be transparent about the data allocations and what will happen when a customer exceeds their limit.
Set up customer journeys to remind customers when they are approaching their usage limit, and try to upsell them.
Bring sales in for larger enterprise clients - you run the risk of your biggest customers churning when the cost gets too high. Bringing sales in to negotiate plans can go a long way to securing those bigger customers in the long term.
Similar to usage pricing, user count pricing involves charging customers based on the number of seats or users they have on their account. Of all the pricing models, this is perhaps the one that divides SaaS leaders the most. On the one hand, it is incredibly clear to a customer exactly how much they will be charged and growth happens naturally as a company grows. On the other hand, the average customer does not associate more seats with more value, and when the pricing starts to skyrocket after a growth spurt, you’re at risk of serious churn.
Slack uses a per-user pricing model, with a monthly fee charged per person. The lowest tier sits at $6.67 per person, which doesn’t seem like too much until you start to think about a startup hitting its 100-person milestone.
Per-user pricing benefits:
Very easy to calculate - customers are clear on what they’re getting, and how costs will increase as they grow.
Organic growth - as your customer’s business grows, so does yours. Simple as that.
Who should use per-user pricing:
If your product is B2B and adding more users gives the company more value (for example, Slack’s real value is seen in remote or hybrid organizations with 30+ employees), per-user pricing may be the right way to go.
Best practice tips for per-user pricing:
Find a way to overcome shared logins. Users are likely to share logins to avoid extra costs, but that will limit your ability to expand.
Bring Sales in for enterprise plans. Like Slack, you will need a solution for large, enterprise customers or else you’ll significantly narrow your funnel.
Consider benefits beyond users. Customers like to experience additional benefits when they pay more for the same service, and additional seat numbers won’t necessarily knock their socks off. In the example above, Slack offers advanced identity management and 24/7 support with a four-hour response time in their Business+ tier, plus a range of additional security and administrative features in their Enterprise Grid.
Tiered pricing can be a little more complicated to put together, but it is the most popular model for SaaS companies as it allows you to customize your offering based on the buyer persona and needs. Usually, each tier will give customers access to a set number of seats, contacts, and features. One of the benefits of this model is that when users upgrade, the additional spend feels really worthwhile.
Ortto uses a tiered pricing model, with each tier offering customers more contacts, engagement activities, audiences, dashboards, dynamic reports, widgets, emails, custom activities, and seats. There are some features — like SMS, regionally-based data storage, account management, and advanced address lookup — that are only available in our Enterprise tier, or for an additional cost. While those add-on costs have their downfalls, there are certain features that simply cost a business more money.
By passing these costs on in add-ons, rather than within part of the predetermined package, we’re able to ensure that only those customers who actually use the feature are charged for them.
Tiered pricing benefits:
Flexibility - target different types of businesses with different plans that serve their needs and limitations.
Familiarity - customers will be very familiar with tiered pricing and, so long as you are clearly laying out what is/isn’t in each of your tiers, the vast majority of product-led customers will be able to identify the right plan for them and sign up without sales, solutions or support team intervention.
Who should use tiered pricing:
If there are different costs to your business that are associated with different features, tiered pricing can help mitigate that, passing on the costs to only those customers who will actually use the feature.
If you are operating in a product-led sales model, tiered pricing will allow you to clearly communicate which customers will have an account manager or solutions designer, and which will not.
If you are targeting a wide range of business types and sizes, tiered pricing that is designed to service the needs of each of your buyer personas is a good way to go.
Best practice tips for tiered pricing:
Future-proof it. It’s worth considering in advance how your upcoming product feature releases will change your tiers and price them accordingly. If you have a splashy new feature coming and you know there will be significant marketing activity around it, consider how you can ensure it will be available to the majority of your customers.
Be transparent. Clearly explain exactly what each tier includes, and be very specific. List every little feature and inclusion so that there are no confusions down the track when the customer is onboard, playing around in the product, and suddenly realizes they do not have access to something.
In tiered pricing, the features available in each tier are pre-determined. In a per-feature plan, a customer will opt-in to all the features they want to use and be charged for those or will choose a predetermined package of features.
The most well-known example of per-feature pricing is Amazon AWS. They have set up a pricing calculator that helps users figure out their yearly investment by selecting the features they need. This calculator isn’t just a nice-to-have, it’s a need-to-have, as per-feature pricing can be incredibly confusing for new customers.
Per-feature pricing benefits:
Scalable - when a customer needs a new feature, they have to pay for it. When you release a new product or feature, they have to pay for it. Simple as that.
Far-reaching - your net will widen as customers who might otherwise think ‘I don’t really need all that’ can pick and mix what they DO need.
Who should use per-feature pricing:
If you offer a huge range of features that don’t rely on one another, per-feature pricing may be a good place to start.
If you have heard customers say that they do not use all the features in similar products, and express frustration with the bundled cost, this could be a good option.
Best practice tips for per-feature pricing:
An interactive tool like the AWS pricing calculator is essential to ensure you are giving customers an opportunity to understand their monthly or yearly costs.
Consider how complementary features are priced. If one feature is reliant on another, you will want to ensure the combined cost is affordable.
The final word
Product-led growth is not just a buzzword or sales tool, it’s a way of doing business that is fundamentally changing how the SaaS world operates.
It’s crucial to get your team on board, sharing why you’re making the change and how their day-to-day will change as a result. After all, product-led growth is a team sport — it requires every person in every department to be focused on the product and how it can support customer acquisition, retention and expansion. When this happens, the product can truly become the growth engine you want it to be.
Unifying your data and creating action-based customer journeys are essential to product-led growth. Fast track value realization, onboard customers, route leads to the right place, set up journeys that help stop churn in its tracks, and so much more by signing up for free today.
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