Step number one is to extract all the nuggets of gold from the transcript
When a software company chooses product-led growth as its go-to-market strategy it means that:
It relies on product usage and customer experience to acquire new users, retain its existing ones and expand its user base.
Companies like Calendly, Expensify, Slack and Dropbox are just some of the SaaS companies that used product-led growth as the main driver of acquisition, retention and expansion.
With PLG, modern software companies manage to reduce overhead costs by massively reducing the cost of marketing and sales activities.
Most marketing-led companies care about acquisition rather than activation and retention. What’s even worse, is that only 44% of SaaS companies define user activation for their product.
As you can imagine, that can cause a major problem, not to mention all the marketing budgets that gets wasted. The name of that problem is churn
The problem with most marketing-led companies is that they focus on the buyer and not on the end user. However, as Expensify CEO, David Barrett puts it: “Our users outnumber the buyers 100:1. They are the ones with the power.”
Differentiation point #3: Product-led companies’ growth depends on user experienceWhen it comes to product value, we have a) perceived value and b) experienced value. A typical phenomenon observed in marketing-led companies is focusing more on perceived value rather than the actual value.
PLG Vs SLG