Product growth and product-led growth (PLG)

What is growth, and why it’s so important? Growth is the process of using data and experimentation to optimize products and features. Product-led growth is a strategy where the product becomes the primary driver of customer acquisition, conversion, and retention. As a result of it, organizations gain sustainable growth.

Product growth uses data and experimentation to continuously improve a product’s features, design, and user experience to increase customer engagement, retention, and revenue. It involves a deep understanding of user behavior and preferences and the ability to use data-driven insights to identify opportunities for improvement.

Product-led growth is a customer-centric strategy prioritizing product experience over sales and marketing. We design the product to provide users with a seamless, intuitive experience that encourages them to explore and engage with the product, ultimately leading to higher retention rates, increased customer lifetime value (LTV), and more significant revenue.

By creating a superior product experience, we can make a virtuous growth cycle where satisfied customers become advocates for the product, driving even more growth through word-of-mouth referrals. Product-led growth is a powerful strategy that can be applied to many businesses, from SaaS companies to e-commerce platforms. It is becoming the preferred approach for many successful startups.