B2BVault's summary of:

From product-led growth to product-led sales: Beyond the PLG hype

Published by:
McKinsey
Author:

Introduction

PLG alone won’t save you. The real winners mix product-led and sales-led strategies to grow faster and smarter.

What's the Problem It Solves?

Many tech companies think using just a product-led growth (PLG) model will help them scale. But most struggle to see big results with it. The article explains how combining PLG with traditional sales methods leads to better growth.

Quick Summary

Product-led growth means letting users try and experience the product first-like with free trials-before buying. This model works well for small teams and can bring fast growth with less effort from sales teams. But the truth is, only a few companies succeed using PLG alone. Most who try it end up spending a lot and getting little in return.

The smart ones are switching to a mix of PLG and sales-led strategies, called product-led sales (PLS). This means using the product to pull users in, but also having salespeople step in when it’s time to close big deals. For example, letting small teams try the product on their own while the sales team works with leaders to lock in big contracts.

This combo works better because it meets customers where they are. Some buyers want to try the product themselves. Others want to talk to a salesperson. PLS allows companies to do both and boost growth. It’s not easy, though-it takes new teams, better tools, and a mindset shift. But if done right, it can unlock big results.

Key Takeaways from the Article

  • PLG means the product sells itself-through trials, freemium, or demos.
  • Most companies that try PLG don’t get great results unless they mix in sales help.
  • Product-led sales (PLS) is a hybrid approach that uses both product trials and sales reps.
  • PLS works better for both small and big customers.
  • Top PLG companies spend more and also grow faster, but only a few truly succeed.
  • PLS helps traditional companies attract smaller clients without growing their sales team too much.
  • PLG-only companies need sales teams to land larger enterprise contracts.
  • Customers now want both: to try the product and to talk to experts.
  • To do PLS well, you need cross-functional teams (sales, product, marketing all working together).
  • Growth pods-small agile teams-can lead the change and test fast.
  • Give enough budget to the new teams so they can move quickly and learn fast.
  • The best companies adjust their tactics based on what buyers want in different markets.
  • If you don’t adapt to this hybrid model, you may fall behind.

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