What is Product-led Growth?

There is a lot of buzz around product-led growth, but what does that really mean? Companies use different business strategies to increase their profitability, expand their consumer base or have a bigger piece of the pie in market share. These strategies which are crucial in a company’s growth, expansion, and scalability are called growth strategies. And a new type of these growth strategies is product-led growth.

In Product-led growth, as the name suggests, the product is at the center of the strategy. Companies offer access to the product or part of the product to acquire and retain customers. Product-led growth is an increasingly popular go-to-market strategy that helps companies to scale faster. As of today, 40 large public companies are using product-led growth strategies. We will discuss more on the product growth cycle in the upcoming blog.

Important concepts in Product-led growth

Design: User-centric design of the product is important to make users fall in love with it. Understanding how they use the product will lead to products with higher adoption.

Value: This strategy emphasizes creating value with your products. Creating an engagement strategy even before the customer makes a purchase is the key.

Which companies use this strategy?

Canva: Canva is a design tool used to design posts, flyers, stories, etc. This product is easy to use and intuitive, which allows users to engage with it.

Calendly: I am sure many of you have used Calendly to schedule meetings to the point where you have a paid subscription.

Can you think of other products that use Product-led growth?