Product Led Growth (PLG) is a go-to-market strategy that focuses on using a company’s product as the primary driver of customer acquisition, engagement, and retention. The point is to generate revenue and grow business by making the product so valuable that users cannot ignore it, and organically invite others to use it. With an effective PLG strategy a company can significantly reduce the costs of sales & marketing efforts.
PLG companies focus on product development, innovative features, and user experience to drive organic growth rather than spending heavily on paid advertising and outbound sales. Instead, customer acquisition happens primarily through word-of-mouth, viral content, and self-serve sign-ups. This approach has become popular among software-as-a-service (SaaS) companies, where a product is easily accessible and can be tried for free before users commit to a purchase.
The goal of PLG is to make the product the primary business growth engine, rather than relying on traditional methods such as cold calls, outbound sales, and expensive marketing programs.