Product-led growth: when your product becomes your best salesperson

Product-led growth: when your product becomes your best salesperson

Product-Led Growth (PLG) is based on a product so good and simple that it sells itself. In Switzerland, where 93% of people are online and online sales are rising (+13.71% expected between 2024 and 2029), this approach is perfect. With a good strategy and tools like freemium or free trials, PLG allows people to see the value of a product without pushing the sale.

Keys to success in Switzerland:

• Quick access to the product: Easy sign-up, no unnecessary steps.
• Immediate value: Show benefits from the start.
• Simple onboarding: Easy guides and tutorials.
• Clear prices in CHF: No surprises for the user.
• Local languages: Interface in French, German, Italian, and Romansh.

With a clear plan, PLG creates sustainable growth by cutting sales costs while retaining customers. In Switzerland, being precise and clear is crucial to appeal to demanding people.

The basics of PLG and success metrics

The 5 keys of PLG

Product-Led Growth (PLG) relies on five key points that guide the strategy and user experience:

Onboarding is the first key. This means helping new users achieve their first success with your product. In Switzerland, this means providing tailored journeys in French and German, with examples that resonate with the local context.

Activation is when the user truly sees the value of your product. This step should be quick, ideally right after signing up.

Building habits comes next. Your product should become a part of the user's daily routine. This can be through alerts or reminders that highlight the benefits of your service.

Monetization occurs when the user has seen the advantages of your product. Unlike other methods, PLG encourages users to pay for more value, not just to try the product. Freemium models or free trials help at this stage.

Product advocacy turns satisfied users into ambassadors. They recommend your product because they have found real benefits. This natural word-of-mouth often works better than any marketing plan.

These 5 keys form the foundation of a strong PLG strategy. But to see if it works, you need to measure the impact.

Key metrics for PLG success

Once the keys are in place, they need to be monitored with specific PLG metrics. These indicators sometimes differ from traditional methods, although some are still useful.

Activation rate shows the number of users who experience their first significant benefit. For example, if 100 sign up but only 20 see immediate value, the activation rate is 20%. This metric reflects the quality of your onboarding and the clarity of what you offer.

Time-to-Value (TTV) measures how long it takes for a user to experience the benefits of your product. The shorter, the better the chances of conversion. For a financial tool in Switzerland, TTV could be the time to generate a first expense report in CHF.

Retention looks at user loyalty. It is often measured at 1, 7, 30, and 90 days. A 30-day retention rate of over 40% is a good sign for successful PLG products.

Average Revenue Per User (ARPU) shows the average revenue generated by each user. In Switzerland, this metric should reflect purchasing power and local spending habits. An ARPU of 50 CHF per month may be good for some products but not enough for others.

Net Promoter Score (NPS) measures how much people like your product and whether they will recommend it. In Switzerland, where word-of-mouth is crucial, a good NPS can lead to rapid growth.

Freemium-to-paid conversion rate shows how well your revenue generation method is working. Top PLG products often convert between 2% and 5% of their free users into paying customers.

Setting up analysis and tracking

For an effective PLG strategy, accurate information is essential. Here are the steps to organize your analysis:

• Choose the right tools: Use a platform that tracks user actions effectively, not just page views. New tools can identify issues in real-time.
• Define key moments: Identify actions that indicate strong activation or engagement. For an e-commerce platform in Switzerland, this could be adding a payment method in CHF or making the first purchase.
• Create user groups: By analyzing the actions of users at different stages, you can see the effects of improvements on your product.
• Launch A/B tests: Test different ways to engage users, change texts, or adjust buttons. Even small changes can significantly impact your results.
• Automate reports: Set up dynamic dashboards and alerts to track your metrics in real-time. This is particularly useful for teams in Switzerland working across multiple time zones.
• Analyze user journeys: Identify where users drop off and understand why. For example, a lengthy registration form or poorly translated interface in French could be problematic.

With these tools and methods, analysis goes beyond looking at the past; it also anticipates what's to come. By quickly identifying signs of disengagement or adoption, you can adjust your strategy to maximize user satisfaction and value.

"Activating Growth: Practical Strategies for Product-Led Growth"

Doing PLG Stuff for People in Switzerland

When creating a PLG product in Switzerland, you must consider what people there want. Swiss people want a great experience, want everything in their language, and want clear pricing. So, you need to create a design that speaks two languages, help people get started, and clearly state the costs.

A UX/UI Look for Switzerland that Fits Two Languages

In PLG, as it is significant in Switzerland, dealing with multiple languages is a common challenge. It's not just about translation; it must be simple in each language.

Clickable elements must be well-designed for language differences. For example, in French, it's often longer than in German, so you may need more space for buttons or menus. A button like "Buy" should be easy to read, regardless of the language.

Switching languages should be easy and quick. Place the language choice where everyone can see it, like in the top right corner, and use simple abbreviations like CH-FR or CH-DE to avoid confusion. Ensure people stay on the same page when changing languages.

Adding local elements helps connect with people. Include Swiss names or cities, like Geneva or Zurich. To enhance local visibility, use hreflang tags effectively (e.g., hreflang="fr-CH" and hreflang="de-CH").

Starting Well to Activate People

Starting is a key part of PLG: it's where visitors become active users. In Switzerland, where quality and efficiency are valued, everything must be quick, clear, and immediately useful.

Show people quickly what they can achieve. For example, for an accounting tool, demonstrate how to create a CHF invoice quickly. For a management tool, help people create a project right away.

Don't ask for too much at the beginning. Only request essential information, like email and first name. Add more details gradually, keeping in mind Swiss people's privacy concerns.

Learning tools should be interactive. Offer a sandbox environment with dummy data for people to try your product. For instance, an email tool could have a fake email to change and test.

Provide a step-by-step guide to help people. Steps like "Set up your profile," "Invite your team," or "Create your first project" can come with a progress bar and alerts to motivate and engage users.

CHF Pricing and Payment Clarity

Clarity is crucial in Switzerland, especially regarding pricing. Your prices must be transparent, without surprises, and displayed in Swiss Francs to be taken seriously here.

Show prices as "CHF 49.90" or "49.90 CHF." People prefer prices like 50 CHF, which are easy to read.

Keep your pricing simple. Offer just three or four choices with clear names like "Starter," "Professional," or "Enterprise." Also, provide a clear list of what each option includes.

Offer tests without payment, without requiring a credit card. If you need information for payment, clearly explain why and promise not to charge until the end of the trial.

Invoices must comply with local regulations. Include the VAT number if necessary, write the date in Swiss style (dd.mm.yyyy), and accept payment methods preferred by people, such as bank transfers or Twint for small amounts. If you charge based on usage, provide tools to track costs, with alerts and options to limit expenses and avoid surprises.

Launching and Growing PLG

Implementing a Product-Led Growth (PLG) strategy requires careful planning, precise action, and perfect teamwork. Here are the key steps to succeed, considering the Swiss context.

Are You Ready for PLG?

Before diving into PLG, it's essential to assess if your product and team are prepared. Your product must address a clear need. If people don't see its value yet, PLG won't work effectively.

Next, evaluate your data tracking capabilities. Can you understand how people use your product and when they stop? If not, start by implementing tools for this information.

Your tech team is also crucial. Can they make changes quickly? PLG requires frequent testing and rapid adjustments. If changes take too long, leveraging this approach effectively becomes challenging.

Consider if people can use your product without assistance. Is it user-friendly? If it's complicated, simplify it before starting.

For Swiss audiences, also think about languages. Does your product work well in French, German, and Italian? Translation or functional issues across languages can hinder user experience and limit interest.

Once you've checked all these aspects, you're ready to move on to practical steps.

Steps to Launch PLG

Here's how to implement a PLG strategy concretely, using its principles.

• Identify when people see the value of your product. For instance, in accounting software, it could be when they create their first invoice. For a management tool, it could be reading the first report.
• Help people start faster. Streamline their initial journey by removing unnecessary steps. For example, reducing the time from 30 minutes to 5 minutes for their first success can significantly retain more users.
• Provide clear and simple pricing. Prices should be visible on your site, in CHF, with all details. This enables people to purchase without going through a salesperson.
• Test continuously. Adjust interfaces, messages, and journeys considering local preferences. Test one aspect at a time to see what works.
• Automate recurring tasks. Set up automated welcome messages and respond to frequently asked questions directly within the product.

Teamwork and Monitoring

For long-term success with PLG, teams must collaborate effectively and continuously monitor results.

• Hold weekly meetings with product, design, development, and analysis teams. Discuss key points like new users, activation, and retention. If results decline, address them collectively.
• Set common goals. Ensure everyone is working towards the same objectives. For example, avoid conflicts between increasing active users and revenue goals. Focus on 2 or 3 key metrics.
• Document tests and outcomes. Monthly, showcase what was tested, lessons learned, and next steps. This prevents repeating mistakes and fosters continuous improvement.
• Adapt the role of sales teams. They should focus more on assisting promising leads and addressing their specific needs. They may need training for this shift.

In Switzerland, where clarity and stability are valued, communicate these changes effectively. Explain the goals, expected outcomes, and each team member's role. Open communication helps teams engage and embrace new approaches.

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Conclusion: Growing Your Business with PLG

PLG offers Swiss businesses a chance to grow steadily. By choosing this path, your product becomes the core of your strategy, reducing costs to acquire customers while ensuring user satisfaction.

Successful PLG businesses focus on how users experience the product, track key indicators, and adapt continuously. In Switzerland, this approach works exceptionally well because people appreciate quality, clarity, and reliability.

In essence, when users start using your product, it must immediately demonstrate its value. Clear pricing in CHF, easy-to-use interfaces in French, German, and Italian, and a seamless user experience are key to pleasing users and driving growth.

Collaboration within your teams is also crucial. Product, creation, design, and analysis teams must work together towards common goals. Regular meetings, extensive testing, and information sharing help teams move quickly and improve continuously.

Swiss businesses adopting PLG see reduced sales costs and rapid growth. However, true success is built over time, with achievements gradually accumulating.

If you want to create or enhance a digital product with a focus on PLG, the experts at [Company Name] are here to assist you. With their expertise in SaaS products and knowledge of the local market, they can help you effectively implement this strategy.

PLG is not just a trend; it's a way to build better businesses closer to their users. By placing your product at the center of your growth, it can become your best asset for selling.

FAQs

How can PLG reduce your costs and improve service?

Product-Led Growth (PLG)

PLG has a simple yet powerful foundation: it places your product at the core of customer acquisition and retention. Instead of investing heavily in large advertising campaigns or relying on extensive sales teams, this method reduces sales-related costs by letting the product speak for itself.

Simultaneously, PLG significantly enhances user experience. How? By providing an easy-to-use interface, a seamless onboarding process, and tools that precisely meet customer needs. The result? Quick adoption, satisfied customers, and increased loyalty. Moreover, delighted customers often become your best advocates, driving natural growth through their positive word-of-mouth.

What are the major challenges in pursuing a PLG approach in Switzerland, considering languages and cultural traits?

Following a PLG Path in Switzerland

To implement a PLG approach in Switzerland, certain market aspects must be carefully considered