SaaS companies with a PLG strategy — think Slack, Filecamp, and Dropbox — are able to grow faster and more efficiently by leveraging their products to create a pipeline of active users who are then converted into paying customers.
Although it’s rightfully associated with viral, freemium, bottom-up distribution, product-led growth is more than a simple go-to-market formula. Any company — even those selling to large enterprises or operating in niche vertical markets — can adopt PLG principles to improve user experiences, increase go-to-market efficiency, and reduce churn.
And they should: Product-led growth isn’t going away any time soon.
The center of power has shifted from the buyer to the end-user. And the consumerization of software means that end-users now demand better experiences from the tools they use.
We’re at an inflection point. The software market is continually evolving, and we’re witnessing the rise of the end-user. Here’s the harsh truth: SaaS companies must adapt and embrace the end-user if they want to remain relevant.
This market shift may feel huge — and it certainly has huge implications for the way SaaS companies do business — but it’s not exactly revolutionary. The software industry has been moving toward the end-user for some time, and smart SaaS companies are already adapting to keep up.
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