Product-led growth (PLG) companies grow 30% faster than traditional SAAS businesses.* PLG drives customer acquisition, retention and expansion through the product itself. Companies like Slack, Dropbox and Uber have demonstrated the potential of PLG to deliver exceptional results. According to OpenView, publicly traded PLG companies are valued at 2x more than non-PLG companies.

But what does PLG really mean? And how can you apply it to your business? In this guide, we’ll explore the foundations of PLG, when and how to apply freemium or free trial models and advanced tactics to supercharge your product’s growth.

Unlike the traditional marketing funnel, which narrows down to a single conversion event, the flywheel builds momentum. Users progress through distinct stages, becoming more valuable to your business as they move through the cycle.

Free trial and freemium models lie at the core of many PLG strategies, allowing users to experience the product’s value firsthand. Instead of telling your users what your product can do for them, you actively show them. However, choosing the right approach is critical. When executed poorly, these models can backfire; devaluing your product and leading to low conversion rates and loss of revenue.

While free trials and freemium models are foundational to PLG, they’re just the beginning. Here are seven advanced tactics to build a self-sustaining growth engine:

1. In-Product Onboarding🔗

Make it as fast and easy as possible for new users to experience the benefits of your product. Pre-made templates, interactive walkthroughs and tooltips can reduce time-to-value. Slingshot your users directly from search engines into the functionality they need.

• Example: Notion provides step-by-step tutorials and customisable templates during onboarding, enabling users to experience value quickly by organising notes and projects effortlessly.

2. Gamification🔗

Encourage your customers to progress through the flywheel stages by showing their achievements and potential future goals. Incorporate elements like badges, leaderboards, or rewards that motivate continued engagement.

• Example: Strava’s challenges inspire users to push their limits and compete with others.

3. Micro-Surveys and Feedback Requests🔗

Use in-app prompts to gather feedback and signal improvements. This will help reduce time to value - the time it takes for users to experience the benefits of using your product, increasing retention and building future advocates for your product.

• Example: Netflix uses subtle micro-surveys, such as the thumbs-up or thumbs-down feature after watching a show, to gather user preferences and improve personalised recommendations.

4. Cross-Sell and Cross-Pollination🔗

Proactively recommend add-ons, integrations, or features that enhance user value. Use data to tailor recommendations to those most applicable to the user. Enable users to self-serve the upgrade directly from your product.

• Example: Apple cross-sells its services like iCloud, Apple Music, and Apple Fitness+ to existing users on its website and within its products. For instance, while using an iPhone, users often receive prompts to upgrade their iCloud storage.

5. Referral incentives🔗

Encourage or require sharing to access more features or receive benefits. Make it as easy as possible for users to share your product.

• Example: GiffGaff built their business by offering users £5 credit to refer a friend. They made it easy to order a Sim on their website and promise to deliver it within 24 hours.

6. Email Bumpers🔗

Trigger tailored emails based on user behavior to re-engage or expand usage. The aim is to get users who have disengaged, back into your product with the right next step at the right time. Basing this on data is key, otherwise your email is going straight into the junk folder!

• Example: Slack sends tailored emails to re-engage teams by highlighting underutilized features, such as reminders to set up integrations or suggestions to explore analytics dashboards.

7. Community-led growth🔗

Create spaces where users can connect, share tips, and solve problems together. Not only does this encourage retention, it also introduces new users to your product through your team of advocates.

• Example: Miro’s Miroverse allows users to share templates and best practices. Users often promote these on social media, encouraging new users to try Miro.

Adopting product-led growth can be transformative for startups and scale-ups, driving faster growth at a lower cost. By focusing on user experience, reducing friction, and leveraging the right tactics, you can build a flywheel that keeps your product growing itself. Whether you start with a free trial, freemium model, or other strategies, the key is experimentation - find what works best for your unique product and audience.

Remember, PLG isn’t a one-size-fits-all solution. It requires a commitment to putting your product and users at the centre of your growth strategy. But with the right approach, you’ll unlock sustainable growth and set your business apart.

*Based on research conducted by Openview.