Product-led growth (PLG) is a business strategy that focuses on using the product itself as the primary driver of customer acquisition, retention, and expansion.
In a product-led growth approach, the product is designed to be intuitive and easy to use, with a focus on delivering value quickly and consistently. This approach relies on the idea that customers are more likely to adopt a product if they can see its value upfront, and that positive experiences with the product will lead to increased adoption, referrals, and ultimately revenue growth.
PLG companies typically prioritize the customer experience above all else, using data and customer feedback to continually improve the product and ensure that it meets the needs and expectations of its users. This approach can be particularly effective for software-as-a-service (SaaS) companies and other businesses that rely on recurring revenue, as it can lead to higher customer retention rates and lower acquisition costs over time.