The Compounding Returns of Product-led Growth
When Tomasz wrote about the compounding returns of content marketing in 2015, it immediately changed my way of thinking. We went out and hired 2 more content marketers at Bizible, basically doubling the size of the entire marketing team. I wish we had done it sooner.
I think the same idea can apply to PLG. Everyone loves to talk about how PLG makes it easier to acquire customers, how much easier it is to expand customers, have great Net Revenue Retention (NRR) mechanics, etc.
Not only does PLG offer great economics on that user/customer, often with fantastic NRR results, but every user/customer ALSO helps you win more accounts:
- More referrals
- More G2 reviews
- Better change to land a new account when someone job hops
- Better community to nudge prospects
We see this with our customers all the time. Also, not only is this helpful for landing new accounts, but also for defending the lower end of the market. It can cut the other way as well. Hubspot is deploying this strategy well against Salesforce.
6sense says Hubspot has a 3% market share to Salesforce's 36%. But you'd think Hubspot is way bigger when looking at G2, the buzz, social, etc. It matters and a lot of companies that I'd never thought would leave Salesforce (like big, 500+ person companies) are giving Hubspot CRM a shot.
To learn more about how businesses are running their PLG motion and how confident they are of maximizing business value, check out The State of PLG Report.