Lenny’s Podcast · Podcast episode · Growth & retention · Metrics, data & experimentation

The ultimate guide to adding a PLG motion

Lenny Rachitskywith Hila QuApr 2, 2023106 min♥ 95
SourceLenny’s Podcast
KindPodcast episode
PublishedApr 2, 2023
Readers♥ 95
Originallennysnewsletter.com ↗
N:

Hila Qu, a growth leader and advisor (formerly at Acorns and GitLab, and author of a widely read two-part PLG series), walks through how to add a product-led growth motion to a B2B or B2C product. The conversation covers PLG fundamentals, common pitfalls, auditing the funnel, activation and retention, data infrastructure, and building a growth team.

01Key learnings

  • Treat PLG as data-led growth: free products should yield broader reach plus usage data showing which features correlate with conversion and retention.
  • Most companies end up running both PLG and sales motions; start PLG early because retrofitting it into a sales-led organization is harder.
  • Commit for a year or two and don't mistake simply opening a free trial for a PLG strategy; it requires redesigning activation, upgrade paths, and team processes.
  • Map the PLG funnel versus the sales funnel on a whiteboard, then detail each step, since the real opportunities hide in the specifics.
  • Audit the funnel yourself as a user, then compare that experience with the data, to find the highest-leverage starting point, often activation or conversion.
  • Define an aha moment by correlating high-value actions with conversion and retention, then validate the candidate through experiments, as GitLab did with two users using two features in 14 days.
  • Build a data foundation first: product usage data, a customer 360 view, and a data dictionary, because garbage in means garbage out.
  • Start a growth team with a growth PM and an analyst, extend to a PLG org with counterparts in product, marketing, and sales, and tie each leader to clear funnel metrics.
“Do is better than show is better than tell, meaning you want to remove all the frictions and give them a warm start.”Hila Qu · Lenny’s Podcast · 00:47:42

02Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.