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Education

create a suite of products that function inside a completely
cloud-based environment while being scalable for any size
merchant—from small to enterprise-level businesses. We Offering a free product
are the industry's first and only fully cloud-based gateway.
Well, enough about me, time to get to the good stuff. I'll might not seem like a way to
begin with product-led growth. make money, but it really is.
A popular strategy for business growth Businesses that use

Business growth is the ultimate goal for every business. this model win over their
But the path to that growth isn't always clear. Business
owners use many different models and strategies to build audiences effectively and create
their brands and expand their reach. In recent years, buzz brand loyalty simply by trusting
about product-led growth has been growing. In this article,
I"ll discuss the strategy behind product-led growth—and that their customers will
why so many companies are choosing it. love what they offer.

Product-led growth is being used by brands in every
industry across the world to attract and maintain
customers. While traditional business strategies involve
getting a customer to understand the value of a product growth strategies allow customers to try the products to
and invest in it, product-led growth leads with the product confirm that they work well. Then, customers are more
first. likely to choose to pay them because they know their
worth. A few common paid offerings include premium
Product-led growth takes the guesswork out of winning app subscriptions, video game battle passes, and pay-per-
over customers. Most commonly seen in technology-based use systems.
industries, like app design and video games, product-led Why product-led growth is here to stay
growth kicks off a business cycle by trusting that the
customer will love the product. Product-led growth entails a leap of faith. Ultimately,
brands still need to figure out how to create a viable product
Typically, product-led growth models offer a completely that customers feel is worth the investment. The good news
free product or a version of a product with paid upgrades. is that brands with a product that sells itself derive quite
Offering free options gives customers a chance to confirm a few benefits from product-led growth. When asked, 60
that they love using the product or service and that it is percent of consumers said they purchased a product after
worth money. This strategy is so effective that 91 percent of trying a free version (see https://bit.ly/3JWJAFR).
companies surveyed recently plan to invest in product-led
growth initiatives within the year, according to Product-led It is widely believed that product-led growth is the future
Growth, a book by Wes Bush (see https://productled.com/blog/ of business, particularly for technology companies.
product-led-growth-benchmarks-2022). Following are just some of its benefits:
How product-led growth works • Market research and audience knowledge: With
Product-led growth strategies are a huge twist on product-led growth you really do get to know
traditional sales strategies. Offering a free product might your target audience. Allowing customers to use
not seem like a way to make money, but it really is. your products or services without purchasing
Businesses that use this model win over their audiences them for a period of time provides insights on
effectively and create brand loyalty simply by trusting what kind of experience your products offer and
that their customers will love what they offer. reveals a lot about what works for your business.

When a customer tries a free trial or limited version of a You can quickly gauge what does and doesn’t
product, they are able to get hands-on experience with catch their interest. This is great for refining prod-
it. They can explore the interface if it's an app or test out ucts and marketing efforts, which then allows you
the mechanics if it's a game. Companies that specialize in to capture the attention of even more potential
physical products can use this model by offering freebies customers.
or early discounts. • Enhanced conversion rates: For typical business
strategies, conversion is about catching attention
Customers often take their time when purchasing and making a sale. Product-led growth strategies
products or services, particularly if they can't confirm the stir customer interest naturally, and companies
quality of the experience before purchase. Product-led using them experience three times the conver-

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