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Product-led Growth and SaaS

Product-led growth is becoming a go-to-market strategy for SaaS companies. It is a strategy that focuses on the product and not on the company. With this strategy, companies are able to grow their customer base by focusing on their product and its features. This allows them to meet customer needs before they even know they have them.

In this article, we will further discuss about Product-led Growth and it’s nuances.

`What is Product-led Growth (PLG)?
Benefits of product-led growth for SaaS
Understanding the PLG customer journey
How to measure product-led growth success?
Tips for driving product-led growth
Strategies for converting free trial users to paying customers
Best practices for increasing User Engagement
What Is the Future of Marketing with PLG?

What is Product-led Growth (PLG)?

Product-led growth is a customer-centric approach that prioritizes developing a product that caters to the customers' needs and preferences. This strategy aims to leverage the product as a means to propel the company's growth. The primary objective of PLG is to create irresistible products that stimulate continuous customer acquisition and retention.

Product-led growth is a marketing term used by startups and companies in the SaaS industry, which stands for Software as a Service. It is not just about selling more products but also about making sure that what you are selling resonates with your customer base. This marketing strategy has been gaining popularity in recent years because it focuses on sales as opposed to other methods like advertising or public relations campaigns.

Benefits of product-led growth for SaaS

Product-led growth is a very common strategy for SaaS companies. It is a strategic approach that can help companies to grow in an exponential manner. Product-led growth is one of the most effective and fast-growing methods of growing a business. It can be applied to any industry, and it's not limited to just software products.

Product Led -Business- Grow faster at Scale-PLG graph

Understanding the PLG customer journey

The customer journey is the most important part of any business. When a customer is looking for a product, they go through the following stages: Awareness, Consideration, and Decision.

The awareness stage is where you are marketing to people who don't know that your product exists. The consideration stage is where you are marketing to people who have heard of your product but haven't decided whether they want to buy it or not. The decision stage is when people have decided that they want to purchase your product and are just looking for the best pricing option to go for.

The PLG strategy is based on the idea of creating an excellent product and then focusing on the customer experience. The strategy focuses on building a great product and then growing a business through customer acquisition. A product-led growth company focuses on what its customers want, rather than what the company wants to sell. They can quickly iterate and improve their products because they have feedback from real customers.

How to measure product-led growth success?

Product-led growth is a method of measuring success that focuses on the product. It is a way to measure success in a company or organization by looking at the number of users and how they are using the product. Product-led growth is different than traditional methods because it looks at how much people use the product, not what they think about it.

The goal of this method is to focus first on the product and its utility, rather than other metrics like customer satisfaction and revenue. The idea behind this system is that, if you have more customers who are using your product more often, then, you will be able to monetize them better and grow your company faster with increased revenue.

Product-led growth is the process of acquiring customers by providing them with a high-quality product or service. It is the opposite of the "Sell first, then make" approach.

Adoption of -Product Led Growth Strategies-Productanalysis-freetrial

In this section, we will explore how to measure product-led growth success.

Product-led growth starts with an idea, and before it can be successful it needs to be validated and executed. The main metrics that show the success of product-led growth are:

  1. The number of new users acquired per month 
  2. The number of paying customers  
  3. The MRR (monthly recurring revenue).

The most common way to measure the success of product-led growth is by looking at customer acquisition, retention, and revenue. These metrics are the key indicators of a company’s performance in the market and how well it is dealing with its customers. The success of a product-led growth strategy is measured by the following:

  • Reduced churn rates
  • Increased customer lifetime value
  • Increased customer acquisition costs

Tips for driving product-led growth

The first step to drive product-led growth is to identify if the product has the potential for it. If it does, then you need to create a well-defined marketing strategy that will lead to high conversion rates. The next step would be to develop an effective sales strategy that will help your company acquire more customers than before.

SaaS companies are always looking for new ways to grow their customer base. The most popular way is to focus on product-led growth. Here are some tips that will help you achieve this goal:

  1. Know your target audience and how they use your product: You need to know what they want, what they need, and how they use your product. This will help you come up with a better marketing strategy that will resonate with them.
  2. Build a great product: You can't expect people to buy a bad product, so you need to make sure that it's worth the price and has all the features that your target customers are looking for.
  3. Design the product in such a way that it minimizes the Time-to-Value period of your product.
  4. Make sure that the marketing is on point: If people don't know about your product or what it does, then chances are they won't buy it. So, work on making more people aware of it for them to purchase it.

Strategies for converting free trial users to paying customers

The key to conversion is to make the trial period as short and painless as possible. The longer the trial, the more likely it is that users will abandon their free product before they are ready to pay. Converting free trial users to paying customers is a difficult task. But when it comes to SaaS, product-led growth is the best strategy. 

Create an easy onboarding process and offer clear value propositions to new users immediately as they start using the product. A shorter Time-to-Value proposition enables the customer to reach the “aha” moment quickly from activation and is critical in convincing the customers to upgrade throughout their journey with the product.

Here are some of the other strategies that you can use to convert your free trial users into paying customers:

  1. Freemium - Offer a limited set of features for free and then charge for premium features.
  2. A/B testing - Test different offers and see which one converts better with your audience.
  3. Personalization - Tailor the experience according to each user's needs by offering personalization options such as language preference and location preferences etc.
  4. Content marketing - Create valuable content for your target audience on social media channels like Facebook, Twitter, LinkedIn, etc., where they spend most of their time online."

Best practices for increasing User Engagement

The best practices for increasing user engagement are to create a product that is full of features and functionalities. The more features and functionalities the product has, the more users will be engaged with it.

The SaaS model is a perfect example of product-led growth, which means that the product is core to success and user engagement.

It is important for SaaS companies to have an active user base that uses their product regularly. This way, they can get feedback on how to improve their product and make it more valuable for their customers.

A product-led growth strategy is about using the product itself to drive customer acquisition and engagement. A company should focus on the product, not on marketing campaigns or advertising, to get more customers.

It is important to note that user engagement is not the same as customer engagement. Customer engagement is about how the product or service interacts with customers, while user engagement is about how the product or service interacts with users.

A few best practices for increasing user engagement are:

  •  Providing a good experience through the UI and UX
  •  Making sure that content is engaging and relevant to the user's needs

What Is the Future of Marketing with PLG?

Product-led growth is a customer acquisition strategy in which startups focus on their products and services to grow their customer base.

This strategy relies on the idea that customers will come to your company if they are getting value from your product or service. This growth is different from traditional marketing, as it's not about finding potential customers, but instead about engaging with existing ones.

The future of Product-led Growth Strategy will transform how companies acquire new customers. The main difference between product-led growth and traditional marketing is that the former focuses on engaging with existing customers while the latter focuses on acquiring new ones. The competition in our markets has exploded and there are many options available to us now, often new customers get stuck in a dilemma where they just don’t quite surely know what to choose. A product that speaks for itself requires no additional marketing, well, that’s the idea!


Software as a Service (SaaS) has made it possible for businesses to automate their product-led growth process with ease. It has also enabled them to reduce costs by making use of the product adoption flywheel effect. Product-led growth is the process of attracting new customers and retaining existing ones by delivering a product that is valuable, usable, and feasible. The success of Undaku’s product-led growth strategy hinges on our customer experience. To achieve a successful product-led growth strategy, it’s important to provide the right tools for our users to have a seamless customer experience. To get started with your own SaaS product, call Undaku experts for a free consultation.

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