What is the strategy "PLG" that mad...

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What is the strategy "PLG" that made Zoom and Slack grow rapidly? How to explode service value

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    Content provided by Pendo.io Japan Co., Ltd.

    What is the strategy "PLG" that made Zoom and Slack grow rapidly? How to Explode Service Value

    The growth strategy called "PLG (Product Red Growth)" has been introduced in a US SaaS company and has achieved great results, and is also attracting attention in Japan. So far, Zoom, Slack, Dropbox, Shopify, etc. have achieved great growth by adopting PLG. Companies that practice PLG maintain a high growth rate even after going public, and the results show that their corporate value is more than double that of other software companies. Let's take a look at what the PLG strategy is and what you should do to effectively implement it.

    What is "PLG" that sells products with products?

    The growth strategy of SaaS companies called PLG (Product Red Growth) has been attracting attention in recent years. PLG is an abbreviation for "Product-Led Growth", which means "sell products with products" strategy. It's a completely different approach to the traditional "sales-led-growth" (SLG) strategy. "Selling a product with a product" is a method of having users actually use the product and having them experience its merits, leading to purchases. It is a strategy that directly connects the goodness of the product to sales. The conventional SLG, "selling products through sales", required various processes such as "developing a sales strategy," "conducting business negotiations," and "exercising sales activities," which required man-hours and labor. However, with PLG, the product sells the product, so those man-hours and labor are unnecessary, labor costs and other costs are eliminated, and significant efficiency improvement can be expected. While SLG was a method suitable for top-down decision-making, in PLG the product is an important element, so bottom-up decision-making led by the site is optimal. In other words, PLG has the potential to change the way organizations operate. However, there are a few points to keep in mind in order to successfully implement PLG. In the following chapters, I will explain how to introduce PLG and its points. Continuation of this article >> ・ PDCA cycle based on data-driven to make PLG successful ・ Identification of "AHA moment" that influences continuous use of users and how to create a flow line ・ "Guide" "Feedback" "Analysis"

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    Zoom and Slack grew rapidly What is the strategy