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Why PLG is the Future of Growth
Traditional sales-led models are taking a backseat as Product-Led Growth (PLG) emerges as the dominant growth strategy. Instead of relying on aggressive sales tactics, businesses are shifting to self-serve product experiences that drive acquisition, engagement, and monetisation.
Think Slack, Zoom, and Calendly—these companies grew exponentially by letting users experience the product first.
What is PLG?
PLG is a go-to-market strategy where the product itself drives growth across:
✔ Acquisition (users sign up organically via referral loops, freemium models)
✔ Retention (users engage and activate without human intervention)
✔ Monetisation (users convert to paying customers through in-app upgrades)
Key PLG Strategies to Implement
1️⃣ Acquisition: Attracting Users Through the Product
- Freemium models: Let users experience core features for free, while offering paid upgrades.
- Referral loops: Users invite others, increasing organic growth (e.g., Calendly & Zoom).
- Viral product features: Collaboration tools like Notion & Slack grow via built-in sharing.
💡 Pro Tip: Use in-product incentives to encourage user referrals!
2️⃣ Retention: Keeping Users Hooked
- Seamless onboarding: Guide users to an “aha moment” quickly.
- Behavioural analytics: Use data to personalise the experience.
- Habit-forming engagement tactics: Features like progress bars, push notifications, and gamification drive ongoing usage.
💡 Example: LinkedIn’s profile completion bar boosts engagement by giving users a goal to achieve.
3️⃣ Monetisation: Converting Free Users to Paying Customers
- Reverse trials: Users experience premium features before reverting to free.
- Usage-based pricing: Charge based on product interaction rather than fixed plans.
- Feature gating: Offer free core features but require payment for advanced capabilities.
💡 Example: Zoom’s free 40-minute calls create a strong need to upgrade for longer meetings.
How to Implement PLG in Your Business
Step 1: Identify Your Activation Metric—What key action signals user engagement?
Step 2: Build a Self-Serve Onboarding Flow—Reduce friction for new users.
Step 3: Track the Right Metrics—Use analytics tools like Amplitude to measure success.
🚀 Want to kickstart your PLG journey? 👉 Download the PLG Guide: How to Get Started with PLG to start scaling today!
