Between switching With the tides of the economy and digital buying preferences, SaaS companies are under tremendous pressure. Many of these companies understand that: 80% of their interactions with buyers happen on digital channels. At the same time, they need to boost profitability to meet investor expectations.
The question is, how do they appease customers who want self-service while accelerating profitable growth?
While product-driven growth (PLG) is a successful strategy, many companies will complement these efforts with sales-led growth (SLG), or an entrepreneurial sales movement, to move into the higher end or a specific customer segment. With the right go-to-market architecture (GTM) and effective use of data, companies can leverage both strategies to accelerate revenue growth.
When does it make sense to supplement PLG with SLG?
Typically, companies follow three patterns when it comes to their SSM approach:
It is important to ensure that your pricing and packaging is differentiated between your individual, team and business plans.
- Product driven: Focusing on the user and their experience with the product as the primary path to revenue.
- Sales-led: Using traditional marketing and selling methods to reach the buyer or economic decision maker. This approach can be supported by selected PLG techniques to promote user advocacy.
- Hybrid: Combining the best of both worlds, with PLG techniques generating awareness and access to prospect accounts, and sales activities generating the bulk of the revenue.
With PLG, the product must impress the user – and do so quickly. After all, the product is the primary vehicle for user acquisition, retention and expansion. While PLG works best for products with some level of virality, in many cases you don’t have to choose between SLG and PLG.
For example, Calendly’s sales team often talks to customers about how we can help scale the platform to create an even deeper impact within their organizations. We follow a hybrid GTM approach, where PLG provides a critical access point to prospect accounts, and sales drive business expansion and revenue. While PLG is feeding the funnel, sales are targeting end users with influential titles within the main use case we serve (e.g. VP of sales), where we can achieve the most value and business results.