Product-Led Growth

Product-Led Growth: The What, The Why, The How

Tactful Xperts |
3 min read
By May Girgis


The Product-Led Growth methodology can help businesses grow their customer base and boost their revenues, while reducing costs, by focusing on one core principle, ‘Delighting Users.’ Whether a brand is launching a new product or pivoting an existing business strategy, it’s always the data that drives tangible results and achievable return-on-investment (ROI).

What is Product-Led Growth (PLG)?

Product-Led growth (PLG) is a go-to-market (GTM) strategy that prioritizes the product in the customer journey and uses it as a key vehicle to acquire, convert, retain, and expand customers.

Furthermore, PLG Strategy helps in scaling organizational growth by capitalizing on the consumarization of business-to-business (B2B) or business-to-comsumer (B2C) products.

Who can use Product-Led Growth (PLG)?

Most product-led growth strategies are implemented in the digital and Software-as-a-Service (SaaS) space, based on this criteria:

  • Market: In case your product needs to serve a large market.
  • Product: If you work on a product with a broad value proposition and a short time-to-value, e.g. low product complexity.
  • Channel: If you focus on low-cost marketing channels.
  • Model: The pricing model must be accessible, not expensive, and transparent, in order to provide customers with an easy way to try your product for free.

Why Product-Led Growth (PLG)?

Products are created to provide customer outcomes. They are designed to solve problems by adding value to the customer’s experience.

When a product provides value, customers are more likely to adopt it, resulting to become ‘Happy Customers‘ and continue using the product, as well as accomplishing good outcomes and attainable return-on-investment (ROI) for the business.

Stages of PLG — How it works?

The product is the primary vehicle behind the customer journey in a product-led growth strategy.

This means that the product is involved in all stages of the customer journey, from acquisition to expansion, and that the journey begins the moment a customer engages with the product.

  1. Acquire: The first stage consists of getting users to your product, usually through free trials or freemium experiences.
  2. Adopt: During this stage, your product is converting trial users or prospects into paying, long-term customers. This means promoting effective adoption through sticky features and encouraging frequent usage. This means converting casual visitors into loyal customers.
  3. Retain: During this stage, your product encourages customers to renew their subscriptions or packages. Retaining customers means that they continue to see value in your product, re-engage if they have been inactive, and have an easy and seamless user experience rather than a difficult or complex one.
  4. Expand: In the last phase, your product is at the heart of your revenue growth strategy, either by encouraging users to upgrade subscription packages to a higher tier, engaging with paywall features, or generating additional revenue in other ways.

Market Funnel vs. Product-Led Growth (PLG) Flywheel

Traditional customer journeys have been mapped with more of a funnel mentality — where marketing → sales → the product engages with a customer.

Benefits of product-led growth

Product-Led businesses are known for creating high-quality products that provide value to customers quickly and consistently. Aside from producing better products and satisfying customers, there are other benefits.

In Summary

  • The Product-Led Growth (PLG) methodology improves user experiences and product adoption, which leads to higher ROI and business metrics.
  • The Product-Led Growth (PLG) methodology aligns products to the customer’s business needs, resulting in product adoption, renewal, and expansion.

Wish to learn more tips from our Tactful AI Xperts? Explore our open positions via and apply today.

About Tactful AI

Tactful is a leading and private technology company based in the UK, with a presence in EMEA. Tactful offers omnichannel and AI-powered customer experience software to help businesses thrive by enabling meaningful and effective engagement with their customers across touchpoints. Tactful UCX is a comprehensive customer experience platform that incorporates all technologies and tools businesses need to deliver the best customer experience, reduce costs, and boost customer loyalty and sales.

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