what is plg

10 months ago 19
Nature

PLG stands for Product-Led Growth, which is a business methodology that positions the product as the main driver of customer acquisition, activation, satisfaction, retention, and scalable expansion. In a PLG strategy, user acquisition, expansion, conversion, and retention are all driven primarily by the product itself. This approach creates company-wide alignment across teams, from engineering to sales and marketing, around the product as the largest source of sustainable, scalable business growth. PLG companies are always open 24/7, and growth isnt constrained by how quickly a company can hire sales reps. Instead, PLG de-labors growth through self-service and automation, which means lower sales, marketing, and onboarding costs. The same PLG product can serve all market segments, from individuals and SMBs, all the way to large enterprises. PLG is a direct reaction to the more traditional models of the past, where salespeople or marketing materials have long been used to convince customers of the value of a product. In contrast, PLG models focus on getting customers to discover that value themselves, often by letting them use the product before committing to a purchase.