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Welcome to the Modern Marketing Blog, where we explore the newest trends and strategies that are shaping the world of marketing.

In this edition, We had the privilege of sitting down with Avi Bhatnagar, Vice President, Growth Marketing at Commvault. Through this exclusive interview, Avi discussed Product-Led Growth (PLG), its application in the B2B space, and the challenges and key metrics for successful implementation.

The following blog post is a summary of Avi’s perspectives and expertise.

What is PLG?

PLG is a way to sell a product where the product itself is the main focus. Avi explained that the main idea is to get people to know the product and then make them regular, paying customers. Many companies that use PLG offer a free version or a trial of their product. The tricky part is making sure that the free users enjoy the product so much that they decide to pay for it.

How Avi’s Company Uses PLG

At his job, Avi shared that they focus on three main things with PLG:

Getting Customers: The marketing team tries to show the product to the right people. While getting a lot of people to sign up is good, it’s also important that these people are really interested in the product.

Using the Product: This is when people start using the product for the first time. The goal is to make sure they enjoy using it and come back for more.

Making Money: This is the part where people who have been using the product decide to pay for it.

Evaluating PLG’s Effectiveness

A successful PLG strategy isn’t just about getting sign-ups. Avi uses a funnel approach:

Top of the Funnel: Observe initial sign-ups.

Middle of the Funnel: Gauge product engagement and user satisfaction levels.

Bottom of the Funnel: Monitor conversion rates, tracking how many free users transition to becoming paying customers.

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Inherent Challenges of PLG

While PLG is promising, it’s not without hurdles. Avi pinpointed a few:

Alignment: Everyone, from the executive team down, must be on the same PLG page. This ensures resources and efforts are channeled correctly.

Product Excellence: The product must stand out. If it’s mediocre, no amount of PLG can drive sustainable growth.

Conversion Strategy: One of the trickiest parts is persuading free users to open their wallets. Transparent and attractive pricing models, coupled with timely offers, can play a crucial role here.

Additional PLG Insights

Beyond Avi’s expertise, it’s worth noting that PLG isn’t just a tactic; it’s a mindset shift. It represents a move from vendor-centric to user-centric models. Successful PLG companies often exhibit:

Rapid Iteration: They quickly adapt based on user feedback, ensuring the product always meets or exceeds expectations.

Community Building: By fostering a community around their product, companies can facilitate organic growth through word-of-mouth and peer recommendations.

Data-Driven Decisions: Harnessing analytics can provide invaluable insights into user behavior, helping companies refine their products and strategies.

In essence, while the traditional growth approach focused on “selling” to customers, PLG focuses on “serving” them. And in today’s customer-centric world, serving users efficiently and effectively can pave the way for unprecedented growth.

Want to grow your business through cutting-edge marketing tactics? Influicity is an award-winning agency working with some of the most innovative brands today. Please reach out for a strategy call

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