Clever solutions are needed to excel in this digital economy. Traditional sales models today can be costly and inefficient, and companies depending on them will benefit from considering a new approach fit for this changing and unpredictable market.
Product-led growth is a methodology that aims at customer acquisition and growth by leveraging the final product experience. With consumers frequently changing their preferences and demanding a frictionless experience, more companies are offering products as ongoing services for a recurring fee. Organizations using this sales model focus on providing a consistent and high-level experience at a competitive price, extending the sales journey past the initial payment and creating a lifetime customer – as long as their needs are met.
Both B2C and B2B companies are increasingly adopting a product-led growth sales model. Its potential to build relationships, increase conversion, and create new revenue streams is significant. Subscription-based companies are now some of the major players in the global market; examples include LinkedIn, Spotify, Dropbox, and Zoom. They have demonstrated the model’s effectiveness and shown that retention can be easily achieved by maintaining the standard of experience consumers have grown to expect from the brand.
Small and large clients can benefit from a product-led growth strategy tailored to the unique needs of the enterprise. Freemium to premium incentives, tiered pricing, loyalty benefits, and trial periods specific to each product or service means that every company can employ various tools to curate a unique offering to attract new customers.
|Capgemini believes product-led growth models will continue to succeed across industries. We have collected a short series of blog posts into an ebook that investigates this trend and its impacts. Download our ebook to learn more.|