In this presentation“Understanding Product-Led Marketing”, you will learn:
What’s product-led marketing and why it is important
The best steps to achieve product-led growth
Metrics that should be measured for product-led growth
How VBOUT and few companies have used PLG
+ Bonus (tools and resources that help)
4. Marketing Automation
Stack Simple Interface
Great Price
Premium Support
Built-in AI and Predictive
capabilities
The VBOUT
Stack
5. 10+Core Tools Working Together
Integrates well
1. Landing pages
2. Forms
3. Popups and site messages
4. Lead tracking
5. Automation sequences
6. Email campaigns
7. Social media listening
8. Social publishing
9. Retargeting
10. Analytics
11.Pipeline management
12.Calendar booking
The VBOUT Stack
10. 1. What’s product-led marketing and why it is important
2. The best steps to achieve product-led growth
3. Metrics that should be measured for product-led growth
4. How VBOUT and few companies have used PLG
+ Bonus (tools and resources that help)
Outline
16. 1.Customers now love DIY
(Do It Yourself).
2.Most SaaS products
provide freemium or
free-trial plans
options.
3.Customers want to try it
before they buy it.
2. Customers prefer to learn on their own
17. 1.Competition drives
cost.
2.CAC has risen by over
55% and customers
willingness to pay
has declined by 30%
(ProfitWell).
3.A great product
creates demand.
3. Startups are expensive to grow
Source: ProfitWell
18. 1.Customers want to learn
before speaking to a
rep.
2.Your website’s content,
free-trial and
onboarding resources
should help them do
that.
4. Product experience influence buying decisions
Source: TrustRadius
19. 1.Sales team will spend
less time on qualifying
leads.
5. Less pressure on your sales team
of B2B buyers state
that they w ish to buy
directly from a brand’s
w ebsite rather than a
sales rep.
20. 1.A great product speaks
for itself and with WOM
referrals, cost for
acquisition should go
down over time.
2.Free trials, pre-recorded
demos, referrals,
incentives Can do the
activation work for you.
6. Lower CAC
21. 1.Fine-tuning your product
to delight existing
customer, which leads to
long term retention, is
cheaper then acquiring new
leads.
2.Using organic growth
through your existing
customers base and their
extended networks drives
both acquisition and
retention as well as the
ROI.
7. Efficient use of budget allocation
22. 1.Better customer’s
experience means better
your Net Promoter Score
NPS.
2.Aim for an NPS of 50+
8. Higher customer satisfaction
Source: MonkeyLearn
24. 1. Instead of marketing, focus on the
problems your customers are
encountering with your product.
2. Create user stories by analyzing:
• What the user is searching for
• Customer behavior on your site
• Customer onboarding process
• In-app analytics
• Support tickets
• Top churn reasons
• User surveys and interviews
1. Identify your customers pain points
25. 1. Provide customers clear
guidance on how to use
your product.
2. Develop help pages, video
tutorials, courses, how-to-
articles and tips for
success.
2. Help your users solve their problems
26. 1. Find out what keywords your
customers and prospects are
searching for and optimize all
your knowledge base articles and
marketing blogs accordingly.
2. Aim for zero-search result
ranking for each page you write
about.
3. Optimize your content for search engines
27. 1. Show your prospects the
reviews from your existing
customers, whether good or bad
to show credibility.
2. Your customers opinions boost
your product’s trustworthiness
and entice prospects to use your
product.
4. Leverage reviews
28. 1. Offer online training sessions for
your trial customers.
2. Show product tours and pre-
recorded demos.
3. Use marketing automation to
educate them and increase
activation.
4. Provide instant dedicated support
through live chat.
5. Provide a seamless onboarding experience
29. 1. Provide 14-day trial period or more.
2. Offer a freemium plan.
3. Give them full feature access and
build paywalls.
6. Offer Free Trials
31. 1. The time it takes for your
customers to value your product.
2. The shorter it takes for activation
the better.
1. Time to value
32. 1. PQL are customers who have
been activated and reached their
aha moment.
2. To identify your PQLs, you need
to:
• Determine your product’s
activation event
• The actions that your
customers perform within your
product which shows that they
are ready to move on to their
next journeys’ stage.
2. Product Qualified Leads PQL
33. 1. This metric measures how many
new customers use a specific
feature and it’s determined as a
percentage.
3. Feature Adoption Rate (FAR)
34. 1. Measures the revenue
generated from existing clients
through upselling, add-ons,
cross-selling, etc…
2. According to ProfitWell, the
expansion revenue should
contribute at least 30% of your
total revenue for a healthy SaaS
business.
4. Expansion revenue
35. 1. ARPU measures the overall
health of your business.
2. It’s calculated by dividing your
MRR over the number of
customers.
5. Average Revenue Per User (ARPU)
36. 1. LTV measures the total sales
expected to earn from a single
customer during their account’s
lifetime.
2. LTV = Total revenue in period of
length of client’s stay / length of
client’s stay.
6. Customer Lifetime Value LTV
37. 1. Measures the amount of money
lost from new and expansion
revenue and determined as a
percentage.
2. Revenue lost in period _ New
and expansion revenue /
revenue at beginning of period x
100
7. Net Revenue Churn
38. 1. Measures the % of active clients
that have a delightful experience
with your product.
8. Customer Satisfaction Score CSAT
39. 1. Occurs when a product’s rate of
adoption increases exponentially
as more people share it (with
each additional user).
2. C(O) x k = # of customers at end
of period
3. k= the number of invitations sent
by each customer x the %
conversion rate of each invite.
9. Virality
40. 1. Network effects happen when
other people for whom the
product was initially shared with
by the main customers, start
adopting it too.
10.Network effects
61. • Onboarding and training sessions–
link
• Free tools– link
• Marketing blogs– link
• Knowledge base– link
• Lead gen course - link
• Agency course – link
• Marketing automation product demo
- link
• Success stories – link
• Integrations library – link
Tools And Resources
It’s a go-to-market strategy that focuses on growing the business based on the customer’s experience with the product.
Marketers take advantage of this approach to acquire, activate and retain customers. (AAR)
To create a seamless product’s experience, marketers need to make sure they give their customers all the needed resources and materials.
This flywheel shows the 4 main steps and the key actions that customers need to take to move to the next stage (Activate – Adopt - Adore - Advocate).
The Product-Led Growth Flywheel is a framework for growing your business by investing in a product-led user experience. In this framework, the experience is designed to generate higher user satisfaction and increased advocacy, which in turn drives compounding growth of new user acquisition.
The marketing team asks: “How can we create a demand using our product?”
The sales team asks: “How can we use our product to qualify prospects?
The success team asks: “How can we build a product that makes our customers become successful without our assistance?
The product-led development team asks: “How can we invent a product with a quick time-to-value?”
CAC = Marketing + Sales expenses / total # of customers
NPS is calculated by determining how many promoters you have vs. how many detractors.
It’s not only about how the product solves your customers problems but also about the holistic experience that you provide to them from the moment your brand promise through the entire customer experience.
To do this, emphasize on the onboarding experience around the key features within your product related to activation.
This can be done through interviews and session recordings to determine the customer behavior that would lead to conversion and retention.
Product adoption rate determines the % of active clients whereas feature adoption rate helps you determine why customers continue to engage with your product. (product support, social, email, all-in-one, onboarding, courses, etc…)
By calculating FAR of a new feature, you will be able to find out the stimulant that boosts the overall product adoption rate.
It’s not only easier to get money from satisfied and paying customers than it’s to acquire new ones but also it’s 2X cheaper to upsell to an existing client than to acquire a new one and 3X cheaper to generate expansion revenue than the CAC of a new customer. Also called expansion monthly recurring revenue (MRR), this metric measures the revenue generated from existing customers through upsells, add-ons, and cross-sells.
It’s the amount of money on average that you can expect to make from an individual user. It’s a high-level indicator of business health to compare SaaS companies.
It’s the amount of money on average that you can expect to make from an individual user. It’s a high-level indicator of business health to compare SaaS companies. It’s used to identify valuable customer segments.
The (k) coefficient measures the number of new users that each existing customer or referrer can successfully convert.
In order for virality to exist, k must be greater than 1. For that to happen, users must be able to promote the product by using it.
Take Zoom, for example. By sending a Zoom video conference link to attendees who don’t already use the tool, existing users promote the product in the context of its use.
A product with a network effect, on the other hand, becomes more valuable to users as more people adopt the product.Think of an app like Instagram or a two-sided marketplace like Airbnb: The more people post photos on a regular basis or list their homes for rent, the better the product experience becomes for other users in the long run. These products have network effectsBoth virality and network effects are closely associated with the advocacy stage of the Product-Led Growth Flywheel. By inviting other users to evaluate and adopt your product, your customers help increase new acquisition.
Survey Monkey
You send the survey to your customer base. Some of them might have used SurveyMonkey before, some of them might not have. Some of them might not have even heard of SurveyMonkey.
Regardless, your customers are helpful and have feedback to share, so they all click on the link you sent them and take the survey. They see that the survey is “Powered by SurveyMonkey.” Now they’ve been exposed to the brand.
Calendly
Another inherently viral product, Calendly employs a product-led growth strategy similar to SurveyMonkey.
Calendly is already set up to be a product-led growth company. But what makes it viral?
Calendly can’t exist with just one user. A single user (let’s call her Martha) can’t do anything on her own with Calendly. But when Martha sends her Calendly link to someone else and they schedule a meeting with her, both parties receive value. The inherently collaborative nature of this product creates a “viral loop of value.”
Every time Martha sends someone her Calendly link, she is both using and promoting the product.
Slack
Unlike SurveyMonkey and Calendly, everyone’s favorite chat tool relies on a slightly different model of product-led growth. Calendly and SurveyMonkey are designed for users to collaborate outside of their teams and organizations. The value of Slack lies in allowing users to reach everyone in their organization in one place.
As more people in an organization begin using Slack, the more value everyone receives (It has never been easier to reach everyone you need, even across functions). This is called the network effect. The network effect enables products like Slack to expand rapidly once they enter an organization.
Dropbox
Dropbox fills its user needs (easy file storage and sharing) with a simple, easy-to-use product and backs it up with features that encourage even more collaboration and sharing.
Let’s go back to Martha again. This time, Martha has a file she needs to share with a teammate (or even with someone outside of her organization). She uploads it to Dropbox and sends the link to her (non)teammate. They open the link. Ta-da! They are now a Dropbox use
Zoom
By sending a Zoom video conference link to attendees who don’t already use the tool, existing users promote the product in the context of its use. That’s also another example of Virality