Product-led Growth Cycle

As explained in the previous article, Product-led growth is a strategy that uses the product and its features to acquire, retain and expand its customer base. In this article, we will dive deeper to understand the product-led growth cycle.

Four stages of Product-led growth cycle -

User Onboarding: Have you ever come across a product and realized, “oh man, this is just what I needed! Let me signup for this”. User onboarding is the process to create the first impression which compels the user to signup and get onboard to use the product. This sudden realization is called the “Aha moment”.

Adoption: Considered as one of the costliest processes, user onboarding, and adoption take most of the marketing efforts and budget. At the adoption stage, the user is familiar with the product and is using it almost regularly as they have realized the value of your product in their life. For example, remember the first time you paid that one-month fee to get Netflix account?

Retention: In Simpler terms, retention is the stage where your customer is repurchasing your product. This also means that you have acquired brand loyalty for your product. It is important that customers keep seeing the value in your product in order to repurchase.

Growth: After the user is hooked to your product, they start talking about your product and referring it to the ones you know. They engage actively with new product features and hence drive further growth and expansion of your product sales

Recommended Reading: Product-Led Growth: How to Build a Product That Sells Itself by Wes Bush.