Why product-led-growth is better than sales-led-growth?

What is product-led growth?

It's a business strategy that focuses on growing a company by first developing a great product, and then using that product to drive sales.

Product-led growth is a business strategy that focuses on growing a company by first developing a great product, and then using that product to drive sales. This approach is different from the traditional top-down model of marketing and selling products, where businesses would first create demand for their products through advertising and then hope that customers would buy them. 

With product-led growth, the focus is on creating a great product that customers will love so much that they'll be willing to pay for it. The thinking is that if you can build a product that people want to use, they'll be more likely to buy it and recommend it to others. 

This approach has been successful for many companies, especially in the software-as-a-service (SaaS) space. SaaS products are typically subscription-based, so it's important to keep customers happy and engaged with the product so they don't cancel their subscription. 

Product-led growth requires close collaboration between all departments within a company, from engineering to customer support. Everyone needs to be aligned around the goal of creating an amazing product experience for users

Sales-led growth is so yesterday

Today, it's all about product-led growth.  Well, for one thing, it's more sustainable. A company that's product-led can continue to grow even if its sales team hits a snag.

Sales-led growth is great for a company’s bottom line in the short term, but it’s not a sustainable model for long-term success. A product-led company, on the other hand, can continue to grow even if its sales team hits a snag.

There are several reasons why product-led growth is more sustainable than sales-led growth:

1. Product-led companies have a better understanding of their customers.

Because they focus on the product first and foremost, product-led companies have a deep understanding of their target market and what their needs are. This allows them to create products that meet those needs and solve customer problems, which in turn leads to satisfied customers who are more likely to keep using the product and recommend it to others.

2. Product-led companies are less reliant on external factors.

Plus, product-led growth is more efficient. A company that's sales-led will always be playing catch-up, trying to develop a product that can support its sales efforts. But a company that's product-led can use its product to drive sales from day one.

Product-led companies are less reliant on external factors such as marketing and sales because they focus on the product first and foremost. This means that they have a deep understanding of their target market and what their needs are. This allows them to create products that meet those needs and solve customer problems, which in turn leads to satisfied customers who are more likely to keep using the product and recommend it to others.

3. Product-led companies are more agile.

Because they are focused on the product first and foremost, product-led companies are able to be more agile in their approach. This means that they can quickly adapt to changes in the market or customer needs without having to make major changes to their business model or go through a lengthy approval process. This allows them to stay ahead of the competition and maintain a leadership position in their industry.

Conclusion

Product-led growth is the new hotness in the business world, and for good reason. It's a more sustainable and efficient way to grow a company. If you're not already on the product-led growth bandwagon, now's the time to jump on board. 

So if you're looking to grow your company the right way, forget about sales-led growth and focus on product-led growth instead.

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