Exploring pricing challenges in Product-Led Growth, Kyle Poyar discusses transitioning strategies, shared incentives, and market trends. Highlighting common pitfalls and mistakes, the conversation touches on the evolution of PLG and user journey automation. For more insights, visit the Growth Machines website.
Transitioning to PLG requires simpler pricing strategies to attract users with lower deal sizes.
Incremental testing of PLG strategies can help build a successful and sustainable growth model.
Deep dives
Challenges of Shifting to a Product-Led Growth Model
Transitioning from traditional sales to product-led growth can pose challenges, particularly in pricing and packaging. Companies shifting to a PLG model need to focus on end users, offering free trials and affordable entry points to attract and convert users with lower starting deal sizes. However, traditional enterprise-focused pricing models and value-based pricing can hinder PLG efforts, requiring simpler and more transparent pricing strategies.
Strategies for Testing Product-Led Growth Initiatives
Testing product-led growth strategies incrementally can help develop a sustainable PLG model. Companies can experiment with person-assisted free trials, interactive demos, or self-service proof-of-concept offerings to attract qualified leads and increase customer engagement. By aligning marketing and sales goals and focusing on critical business objectives, companies can gradually build a successful PLG approach.
Considerations for Product-Led Growth in Different Industries
The suitability of product-led growth varies across industries and target customer sizes. PLG adoption is common in software targeting small businesses and developer communities but less prevalent in finance, legal tech, or enterprise markets. Different industries require tailored PLG approaches based on factors like tech savviness, buying preferences, and integration complexities. Understanding industry nuances is crucial for effective PLG implementation.
Enhancing Sales Practices within Product-Led Growth
The integration of sales tactics with product-led growth can enhance customer experiences and drive better outcomes. As PLG evolves, companies should focus on automating the customer journey through personalized touchpoints, automated email campaigns, and outbound initiatives targeting potential users within organizations. Utilizing data-driven insights to personalize the customer experience and automate sales processes can optimize PLG effectiveness.
In the second episode of the Growth Machines podcast, I talk with Kyle Poyar, Operating Partner at Openview and writer of the Growth Unhinged newsletter. We talk about what to do when you have a pricing model in place for a sales motion and are considering to introduce PLG.
Pricing and packaging can be an enabler or blocker when thinking about product-led approaches. Kyle talks about the different challenges this can present. He includes suggestions how to gradually introduce the product-led elements and points out common pitfalls to watch out for. At the end, we cover some trends and other observations of what’s happening in the market.
[02:32] Barriers to adopting Product-Led Growth [06:31] Strategies for transitioning to Product-Led Growth [11:07] Using PLG to create shared incentives across Go-to-Market teams [13:07] Which companies aren’t the best fit for Product-Led Growth? [17:10] Current market developments around Product-Led Growth [22:32] A common mistake when going from PLG to enterprise [25:02] Moving beyond user journey automation in PLG
This interview is part of a series from my book about Product-Led Sales. More info on that on www.PLGandSales.com.
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