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Product-Led Growth (PLG)

Product-Led Growth (PLG) training presentation.

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Product-Led Growth (PLG)

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  1. PRODUCT-LED GROWTH(PLG) Transforming Products into Powerful Growth Engines C:\Users\Allan BigMac\Documents\000 OEC\Logo\The Logo Company\FINAL\OperationalExD24aR02bP01ZL\TRANSPARENT.png © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Practical Application: Learn how to apply PLG principles in real-world settings. Define PLG and Recognize Its Importance: Understand why PLG is essential in today’s customer-centric market. Grasp Key PLG Frameworks: Explore models, processes, and tools within PLG that simplify growth. Identify PLG Pitfalls and Best Practices: Recognize potential challenges and learn effective strategies. 2 © Operational Excellence Consulting

  3. CONTENTS 1 Why PLG? Concepts and Core Principles 2 Strategic Foundations for PLG 3 Laying the PLG Groundwork 4 Activating the PLG Growth Engine 5 PLG Summary and Next Steps 3 © Operational Excellence Consulting

  4. THE RISING TIDE OF CHANGE: EMBRACE PRODUCT-LED GROWTH OR BE LEFT BEHIND The Shift Toward Product-Led Growth Traditional, Sales-led Models The shift toward product-led growth is reshaping entire industries— adapt or risk becoming obsolete. 4 © Operational Excellence Consulting

  5. THE CASE FOR PRODUCT-LED GROWTH (PLG) Rising Cost of Customer Acquisition Changing Buyer Behavior Demand for Faster Time-to-Value Competitive Pressure from Product-Led Disruptors Need for Sustainable, Scalable Growth Traditional sales-led models are becoming more costly, with diminishing returns from paid advertising and outbound sales. Users expect instant value from products; delayed benefits can lead to high churn rates. PLG offers a scalable growth model, leveraging the product’s natural adoption and viral effects to grow organically. Today’s buyers expect to try products before committing and prefer self-service options over engaging with sales teams. Companies that successfully implement PLG (like Slack, Zoom, and Dropbox) are capturing market share by letting the product itself drive growth. 5 © Operational Excellence Consulting

  6. STICKING TO SALES-LED MODELS? HERE’S WHAT YOU’RE MISSING OUT ON Blackberry Nokia Kodak Blockbuster ▪ Missed Opportunity: Touchscreen smartphones and apps. ▪ Takeaway: BlackBerry focused on enterprise sales and security over adapting to the consumer-led smartphone wave, losing ground to Apple and Android. ▪ Missed Opportunity: Smartphone OS innovation. ▪ Takeaway: Nokia stuck to a sales-heavy focus on hardware, which made it difficult to compete when iOS and Android prioritized user-centric app ecosystems. ▪ Missed Opportunity: Digital photography. ▪ Takeaway: Kodak’s reluctance to embrace digital technology allowed competitors to fill the gap, leading to Kodak’s eventual bankruptcy. ▪ Missed Opportunity: Streaming and digital convenience. ▪ Takeaway: Blockbuster’s failure to pivot to digital disrupted its entire business model as Netflix and other streaming services took over. 6 © Operational Excellence Consulting

  7. TRUST IS EARNED THROUGH EXPERIENCE: LET YOUR PRODUCT DO THE TALKING Today, a strong brand and social proof are no longer enough to build trust with the modern buyer. You need to let people try before they buy. Product-Led Growth is how you turn that approach into an executable business strategy. 7 © Operational Excellence Consulting

  8. WHY PRODUCT-LED GROWTH IS NOW ESSENTIAL Changing Buyer Expectations Product as the First Experience PLG Dominance in SaaS Buyers demand instant access to products, valuing convenience and control over traditional sales processes. Users prefer exploring products directly rather than relying on demos or sales pitches. In a crowded SaaS landscape, PLG has become critical for companies to win and retain customers. PLG meets modern buyers where they are—putting the product experience front and center. 8 © Operational Excellence Consulting

  9. “ The product is the message. JEFF BEZOS FOUNDER OF AMAZON 9 © Operational Excellence Consulting

  10. PRODUCT-LED vs. SALES-LED: A BUYER’S PERSPECTIVE Sales-Led Product-Led Outcome Requires demos, qualifications, and long cycles before users access value. Product-led Enables users to “just start using” the product, with help available as needed. experiences offer faster, more satisfying buyer journeys. PLG aligns with today’s user expectations for quick, self-guided experiences. 10 © Operational Excellence Consulting

  11. KEY PRINCIPLES OF PRODUCT-LED GROWTH Product as the Growth Engine Value-First Approach User-Centric Design Data-Driven Improvements Cross-Functional Collaboration The product itself drives acquisition, activation, and retention. Focus on delivering immediate value before asking for commitment. Build for user needs, allowing easy access and self-service. Leverage user feedback and data for continuous optimization. Align teams across product, marketing, and success for cohesive growth. 11 © Operational Excellence Consulting

  12. ACTIVITY 1: SHIFTING TO A PRODUCT-LED MINDSET ACTION! Objective: Quickly explore what it takes to shift from a sales-led to a product-led approach. Time allowed: 10 mins Instructions: Form Groups: Get into groups of 4-5. 1. Discuss: Take 5 minutes to talk about: ▪ Why sales-led approaches may fall short today. Key mindset shifts needed for product-led growth. ▪ One major challenge teams might face in making this shift. 2. ▪ 3. Prepare & Present: ▪ Prepare a 1-minute summary of your group’s thoughts. ▪ Highlight one key mindset shift and one major challenge to share with everyone. 12 © Operational Excellence Consulting

  13. WHY PLG WORKS FOR SaaS Why SaaS Embraces PLG: Examples: User Accessibility: Easy sign-up, no sales needed. Scalability: Product drives conversion with minimal friction. Data-Driven: Continuous product improvement based on usage data. Customer-Centric: Focus on user satisfaction and retention. Slack: Free version, upgrade as needed. Zoom: Freemium with paid features. ● ● ● ● ● PLG fits SaaS because of its subscription model, focus on user experience, and data-driven optimization. ● 13 © Operational Excellence Consulting

  14. CHOOSING YOUR MODEL –FREE TRIAL, FREEMIUM, OR DEMO? Freemium Model Free Trial Demo Model Suits broad markets, encouraging gradual product adoption with premium upgrades. Ideal for products with compelling features that users can explore within a limited timeframe. Fits complex products needing guidance for high-value, personalized onboarding. The choice of model impacts how users experience and value your product. 14 © Operational Excellence Consulting

  15. CHOOSING YOUR GROWTH PATH: DOMINANT, DIFFERENTIATED, OR DISRUPTIVE Get Job Done BETTER Differentiated Strategy Dominant Strategy Win underserved customers Win all types of customers Get Job Done WORSE Out Of Business Disruptive Strategy In due time Win overserved customers Charge MORE Charge LESS 15 Source: Adapted from Bush © Operational Excellence Consulting

  16. TOP-DOWN vs. BOTTOM-UP: A COMPARISON OF SELLING STRATEGIES Aspect Top-Down Selling Bottom-Up Selling ▪ Senior decision-makers ▪ Individual users or team leads Target Audience ▪ Longer, consultative ▪ Shorter, user-driven Sales Cycle ▪ High (requires sales resources) ▪ Lower (product-driven, self-service) Acquisition Costs ▪ Sales-led adoption ▪ Organic, user-led adoption Adoption Method ▪ High-value, complex products ▪ User-friendly, scalable SaaS tools Ideal for Top-Down and Bottom-Up strategies offer distinct paths to growth; selecting the right approach aligns with the target audience and accelerates product adoption. 16 © Operational Excellence Consulting

  17. THE MOAT FRAMEWORK –SELECTING YOUR PLG STRATEGY Market Strategy Ocean Conditions Defines growth approach (dominant, disruptive, or differentiated). Identifies market competition to align product positioning. The MOAT Framework Time-to-Value Audience Ensures users quickly experience meaningful value. Chooses the right audience strategy, either top-down or bottom-up. The MOAT framework helps shape an effective PLG strategy. 17 © Operational Excellence Consulting

  18. UCD FRAMEWORK –BUILDING A FOUNDATION FOR PRODUCT-LED GROWTH Understand Your Value: Gain deep insights into what value means for your users. Deliver on Your Value: Consistently meet or exceed user expectations, building trust. Understand Deliver UCD Framework The UCD Framework anchors Product-Led Growth in creating, communicating, and delivering genuine value to users. Communicate Communicate Your Value: Effectively convey the product’s core value proposition to users. 18 © Operational Excellence Consulting

  19. 3 PILLARS OF WHY PEOPLE BUY YOUR PRODUCT Functional Outcome Emotional Outcome Social Outcome The practical task customers need solved. The feelings customers want to experience after using your product. The way customers want to be seen by others when using your product. A holistic understanding of these outcomes is essential for creating a product that resonates with customers. 19 © Operational Excellence Consulting

  20. THE TRIPLE A SPRINT: A CONTINUOUS CYCLE OF GROWTH AND OPTIMIZATION Analyze: Identify key metrics. Act: Implement impactful changes. ANALYZE ACT Triple A Sprint The Triple A sprint aligns teams and ensures consistent growth through data- driven optimization. Ask: Determine your growth levers. ASK 20 © Operational Excellence Consulting

  21. CASE STUDY –HUBSPOT’S PATH TO FREEMIUM SUCCESS Experimentation Start Small Iterative Testing HubSpot ran quick experiments to build trust and optimize growth. Early quick wins built momentum for larger changes. Prioritized simple tests before tackling complex growth opportunities. Quick wins build momentum, allowing for gradual shifts to a full Product- Led Growth model. 21 © Operational Excellence Consulting

  22. THE BOWLING ALLEY FRAMEWORK – A PATH TO CUSTOMER CONVERSION Purpose: A structured onboarding strategy to help users reach their goals. ● Bumpers Bumpers: Like bowling bumpers, guide users back on track when they veer off. ● Outcome: Keep users engaged and progressing toward the product’s value. ● Use bumpers to guide users smoothly to meaningful outcomes, turning them into loyal customers. 22 © Operational Excellence Consulting

  23. UNDERSTANDING CHURN –THE SILENT KILLER OF GROWTH Definition Impact Mindset Shift Churn is the percentage of customers who leave or cancel within a time period. High churn requires costly customer acquisition efforts just to maintain growth. Prioritizing retention can increase profits by 25– 95% with just a 5% improvement in retention. Address churn early to build sustainable growth and avoid growth stalls. 23 © Operational Excellence Consulting

  24. WHY PRODUCT-LED COMPANIES THRIVE Faster Access to Value Reduced Friction in Onboarding Customer-Driven Growth Users can immediately experience product benefits, building trust. Simple, self-serve experiences encourage quick adoption. Satisfied users become advocates, leading to organic expansion. PLG reduces barriers, empowering users and transforming them into loyal advocates. 24 © Operational Excellence Consulting

  25. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a distinguished management consultancy based in Singapore. Our firm specializes in driving transformative growth and innovation by maximizing customer value and minimizing waste through the strategic adoption of Design Thinking and Lean management practices. For further details, please visit www.oeconsulting.com.sg Logo Fb / Logo Fb Png / How the hyperconnected are X Logo (Twitter | 01) - PNG Logo Women In Wilmington for Networking © Operational Excellence Consulting

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