In this episode of the GrowthTLDR, we talk about how product-led growth is changing how companies go-to-market.
We cover four areas where product-led is changing how companies grow. We get into how b2b marketing teams need to shift from acquiring decision-makers to end-users. We get into how product teams are gaining more responsibility for companies' business metrics.
We also get into how product-led is starting to make the website obsolete and what that means for marketing teams. And we discuss how product-led is disrupting how companies do both pre and post-sales.
Time Stamped Notes
In this episode of the podcast, we got into the four ways we see product-led growth changing companies go-to-markets and how they grow the business.
We cover the following four topics, be sure to listen to the episode for all the details:
1. Moving from a B2B to B2B2C Mindshift
In the future of B2B marketing episode, we talked about how B2B marketers would need to shift to a mindset where they thought much more about scalability.
In product-led companies, the focus is on acquiring end-users and decision-makers, so in most cases, the size of the audience you're marketing to is much larger.
2. The popularity of Growth & Consumer Science
In ou recent episode with Gibson Biddle, who led product at the likes of Netflix and Chegg, he talked about the importance of consumer science in Netflix's success.
The objective of consumer science was to foster a culture of experimentation within the product team to decide what features they shipped to users.
With the rise in popularity of product-led growth, we've seen this culture grow in popularity within companies under the umbrella of 'growth' teams.
Both product and growth teams are taking on more and more responsibility for a companies core business metrics.
3. Product onboarding needs to be the why and how
As more companies offer a free version of their product to move towards product-led growth, we see a shift in the importance of a companies website.
When companies offer a free version of their product, users often bypass most of the website's marketing material and get straight into the free product.
The challenge is, most product onboarding focuses on the 'how' of the product e.g., how do you use it. Historically a lot of the why content has been located on the website e.g. why is this product important
As users increasingly bypass the website and go straight into the free product, the product onboarding should describe both the why and how of the product.
4. Disrupting Pre & Post Sales
Most product-led companies have a range of different product SKUs, with the lowest priced being a self-serve option. In these companies, pre-sales doesn't exist as all sales efforts are focused on upgrading self-serve companies to higher packages.
For these companies, their entire sales model acts much more like a customer success team.
In other cases, product-led companies may have a free version of their product and have a pre-sales team who sell into that userbase. For those companies, product-led means their sales team can make a much more consultative sale because the prospect has already been using the product, and the sales team will have data to show what features they've been using.
Product-led companies should also have less reliance on BDRs and SDRs to qualify demand; they rely on product usage to find the right fit prospects for their paid plans.