The concept of product-led growth (PLG) in the realm of software-as-a-service (SaaS) can be traced back to the early 1980s, with the advent of ideas like free trials and open-source software. However, it gained significant traction in the early 2000s, as exemplified by startups like Box and Skype offering free plans and trials to drive bottom-up adoption within companies. The term “product-led growth” became prominent around 2016, coinciding with the rise of user-centric B2B software products such as Slack and Dropbox, which highlighted the importance of user experience in influencing buyer behavior.

To determine whether a PLG strategy is suitable for a startup, three critical questions should be addressed: Can customers quickly experience an “aha!” moment without help? Can customers have more than one solution for the addressed problem? Does the target market include fast-moving SMB and mid-market companies? A positive answer to all three questions suggests that a company can thrive with a PLG strategy. However, the decision should be based on thorough market and user research, considering factors like the time-to-value, decentralized or parallelized problem-solving, and the nature of the target market.

Implementing a PLG strategy involves three key phases: acquisition, conversion, and expansion. Companies can deploy a product-led approach in one or more of these phases, depending on their specific circumstances. Successful PLG execution requires a deep understanding of the customer journey, with considerations for factors like self-service experiences, freemium models, and strategies for retention and expansion. Ultimately, the article provides insights into evaluating, adopting, and implementing a product-led growth strategy tailored to a company’s unique context and market dynamics.