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The "Dirty Dozen" of PLG B2B metrics, creating demand for PLG startups, & going from SLG to PLG

I told my psychologist I am scared of living in a tall building

She said it’s only an Apartment Complex.

Welcome to the PLG Recap 📈 

I spend all week deep diving into the best PLG LinkedIn posts so you don't have to.

👉️ If you missed it, check out my FREE Product-led Marketing database with over 50+ examples! (for subscribers only)

Here are my top favorites! 🔥 I added a few more than usual since I was off last week.

1️⃣ Dave Boyce

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Strategy or Tactic? Strategy

Growth lever = All levers

Recap

  • Dave is always vocal about the commitment to PLG and how long it takes companies to see a proper ROI, especially in Sales-led companies who want to adopt PLG later.

  • You will spend $4M in 4 years anyway, so do you want a low CAC or not? PLG is the key to a low CAC, period!

  • Companies like Hubspot, Mulesoft, and Mixpanel all brought in PLG later and because of their 4-year commitment, they have not been disrupted by smaller PLG-first companies. They were smart!

  • PLG is a whole mindset shift and will require 2 full years building it and then another 2 years optimizing it.

2️⃣ Anthony Pierri

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Strategy or Tactic? Tactic

Growth lever = Acquisition

Recap

  • Anthony emphasizes the importance of creating demand for PLG startups by focusing on specific user problems in content.

  • Using Figma as an example, he demonstrates how Figma exposes deficiencies in traditional design tools, and showcasing Figma's game-changing capabilities helped generate demand. I think this is really smart!

  • Figma provides relatable, real-life situations that capture users' attention and resonate with their pain points, stopping the scroll.

  • He lists actionable steps for startups to follow:

    • including breaking high-level problems into sub-problems

    • using sub-problems as content themes

    • finding specific user examples and sharing them through distribution channels.

3️⃣ Ben Williams

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Strategy or Tactic? Strategy

Growth lever = All levers

Recap

  • Ben tackled many alignment challenges in the hyper-growth PLG environment at Snyk. He shares his biggest learnings dealing with this challenge.

  • He recognized the need to establish a shared understanding of product-led growth and growth strategies.

  • It’s important to embrace evangelism and over-communication to maintain company alignment, especially sharing killer tactics during company-wide updates. My favorite in the list is: Involving the whole company in the growth process

  • Nothing is more critical to alignment than the power of repetition!

4️⃣ Elena Verna

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Strategy or Tactic? Strategy

Growth lever = All levers

Recap

  • Elena Verna unveils her "Dirty Dozen" must-have B2B PLG metrics that she applies in every company. This is a keeper!

  • She breaks down the metrics into four categories: Acquisition, Activation, Engagement, and Monetization.

  • She emphasizes the importance of measuring metrics on a team level rather than a user level.

  • User growth within a team is considered an engagement metric.

  • PQA (Product Qualified Accounts) is a pipeline prediction metric owned by the product.

  • Revenue is not a metric but rather an outcome.

5️⃣ Momo Ong

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Strategy or Tactic: Strategy

Growth lever = All levers

Recap

  • Great breakdown by Momo! He discusses the critical decision early-stage startups face between product-led growth (PLG) and sales-led growth.

  • Using Buildium as an example, he demonstrates the $580M impact this choice can have on a company.

  • Momo argues that smaller startups must choose between the two approaches due to constraints on resources and the need to focus on building mastery in one area.

  • He highlights that there are unavoidable tradeoffs when making this decision, such as pricing, resource allocation, and marketing strategies.

  • Ultimately, Buildium's PLG approach led to greater efficiency, profitability, and a $580M acquisition by RealPage.

6️⃣ Adam Fishman

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Strategy or Tactic: Tactics

Growth lever = Monetization

Recap

  • Adam Fishman dropped an amazing monetization resource in his newsletter last week where he discusses the challenges of effective monetization and the impact of pricing strategy on acquisition channels, value propositions, and market segments.

  • Fishman analyzes the high-friction monetization model and value proposition, and how they are linked to the choice of acquisition channels.

  • He proposes moving away from cost-plus pricing and considering value-based pricing, which takes into account the customers' willingness to pay and the perceived value of the product.

  • A higher price point may not negatively impact the monetization friction and could allow for the introduction of higher-cost acquisition channels, potentially improving conversion rates and profitability.

7️⃣ Leah Tharin

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Strategy or Tactic: Strategy

Growth Lever: All levers

Recap

  • Leah highlights the difficulties and risks of adding Product-led growth (PLG) to a Sales-led growth (SLG) company.

  • PLG is about self-serving value, targeting low-lifetime value, self-onboarding customers, while SLG targets high-lifetime value customers that cannot self-serve.

  • Transitioning from PLG to SLG is easier, as it involves gradual upmarket expansion using product-led sales and lead qualification.

  • SLG to PLG transition is more challenging, as it requires a deeper understanding of user engagement and hiring specialized growth teams or PLG experts. This is where product-led sales (PLS) bridges the gap between PLG and SLG, targeting medium-lifetime value customers.

  • The challenges of transitioning from an SLG to a PLG model are worth considering, and I'll definitely be keeping this in mind when discussing growth strategies with others.

👋 My Post of the Week → Free Product-led Marketing Database (for subscribers only)

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Recap

In the era of PLG, traditional marketing is dying and the future of marketing is product-led. The future...is product-led marketing. Don’t get left behind. Check out my FREE Product-led Marketing database!

The database is organized by Tactic:
🔑 Templates & Integrations
🔑 Communities
🔑 Ungating Products
🔑 Interactive/Personalized Product Demos
🔑 Product Content/Education
🔑 Meta Experiences → where you use the product indirectly without you realizing it as you go to the website or signup.

Enjoy!

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