Embracing product-led growth: Principles, strategies, and metrics

Product-led growth (PLG) is a strategy that utilizes the product itself to drive business success and user growth, focusing on quick value delivery, user engagement, and continuous improvement. Unlike sales-led growth (SLG), which emphasizes personal relationships and a sales-driven process, PLG relies on creating a self-sustaining growth engine by enhancing user experience and reducing time to value. Companies like Grammarly, Spotify, Notion, Dropbox, and Canva exemplify successful PLG strategies by offering freemium models that encourage user retention, community building, and organic referrals, while balancing free value with enough premium features to sustain the business. Implementing PLG requires a cultural shift within organizations, focusing on product attractiveness, measuring key metrics, and maintaining a healthy premium conversion rate. However, PLG may not suit every product, especially complex ones that benefit from personal interaction, highlighting the importance of choosing the right strategy based on the product's nature.