Guide To Product-led User Growth (PLuG) Companies leverages CRM

All companies require an effective customer relationship management (CRM) strategy to attract customers, improve relationships, and increase profitability. Even though it works well for traditional sales techniques, Product-Led user Growth requires a different approach.

A Product-led User Growth (PLuG) CRM works for companies that use their products for acquiring, expanding, converting, and retaining consumers. In this business methodology, the customers’ first contact is with the Product instead of the sales teams.

For example, instead of trying the service after contacting the salespersons, the client signs up for a free trial account and has access to it immediately. This approach helps a company collect product-based data, including their user behavior, software-usage method, and steps the company can take to retain the consumer.

Using a PLG CRM helps a business understand the purchasing stage the customer is in and then reach out to them.

Guide to Product-led User Growth (PLuG)

Here we will explain how Product-led user growth works, and what are its advantages? What features should you look out for before selecting one, and the best way to use it? Continue reading to find out.

1. What should you know about PLG CRM and its importance?


You must have gotten a rough idea of product-led CRM from the introduction above. Instead of traditional customer relationship management, which focuses on building customer relationships, it provides data on the customer’s usage of your service or software.

One of the significant advantages of this strategy is identifying the number of qualified leads (leads who have the highest chances of becoming regular customers).

In PLG models, many people or companies try your software without interacting with the salespersons because there’s no need to. Using product-led growth with CRM the chances of Product qualified leads (PQLs) converting into marketing-qualified leads (MQL).

Another advantage is automated reporting, which has fewer errors than traditional data gathering involving the sales teams.

It provides an accurate picture of the sales funnel, helping you predict a potential customer’s behavior. You can also reach out to those that show less interest or have a low response rate.

2. Who is it suitable for?

It is suitable for all SaaS companies that follow a bottom-up sales approach. With this approach, the user first becomes aware of your Product, researches it, goes through the trial phase, and eventually becomes a prospect for conversion.

Ideally, every employee in your company should have access to the PLG CRM tool. That is because customer success begins the moment they interact with your software by completing the sign-up process.

However, your business should have separate teams to help customers interact with the Product. For example, one group could handle debugging issues, while the other could assist the users with demos and easy-to-understand instructions.

3. What are its advantages?

Product-led growth has plenty of benefits, and here are the top ones.

  • It makes data-sharing easier between teams
    • Most businesses have departments that are disconnected from each other and work in silos. Silos make it difficult to exchange and have access to crucial customer-related information.
    • However, with PLG CRM, everyone has access to data because the data source related to the customer journey is connected and available in one place.
  • Increases the number of paid users
    • Using this approach, salespersons can identify the users who are most likely to become paid customers. They can do this by helping and providing information to the users when they need it the most.
  • Identification of good leads
    • It helps the sales team identify the possible leads, meaning those with the highest chances of conversion. That saves them plenty of time, which they can utilize towards retaining the existing customers.
  • It helps you decrease the churn rate
    • It is the rate at which the user stops using your Product. PLG CRM helps salespersons identify those who display churn behavior or have low engagement. They can interact with them and help increase the overall retention rate.

4. What features should it have?

If you’ve never used this software before, these are some features you must look out for.

  • Can you see the communications made to the customer by the various departments in your company like success, support, marketing, and sales?
  • Is there an option for checking every user interaction with the Product?
  • Does it allow you to see the customer’s marketing interactions after buying the software?
  • Can you track the most popular sign-ups among users and which trails receive the most actions?

5. What is the application method?

Sales teams in most companies apply the PLG CRM the same way as they do the traditional one. However, the difference lies in its automated feature, making it more efficient. The application method involves four parts.

  1. Connecting data to PLG CRM
    • You can connect the various data sources to your existing product-led CRM platform, thus integrating the multiple parts of the revenue engine.
  2. Tracking the customer’s progress
    • A sales pipeline helps a company track the customer’s progress in their purchasing journey. It also helps the sales team to convert leads into sales by enabling them to identify qualified leads.
    • In a product-led growth CRM pipeline, the users progress without the intervention of the sales team. It enables salespersons to identify those who move into qualified accounts and have a high chance of generating revenue.
  3. Determine the users’ position in the sales funnel
    • A user data pipeline helps salespersons determine their position in the sales funnel, helping them identify which accounts they should engage with and which they should ignore.
  4. Reaching out to the customer
    • Once the sales team has made a list of the accounts they should engage with, they can connect with the customers through networking platforms, in-app notifications, engagement campaigns, and improving the existing CRM program.

6. Why is DevRev the best CRM for Product-Led companies?

It is easy to use in terms of installation and configuration. The business messenger also solves customers’ problems at an incredible speed.

For example, the developer who knows the functionality of a product’s specific part can work on its defects while the customer success team has a conversation with the customer.

It also helps product managers to reward end users while bypassing spam marketing emails. It also captures the error diagnostics, which developers can work on later.

These are the reasons behind adopting Product-led User Growth (PLuG). It has several advantages, from increasing the good leads to decreasing the churn rate.

I hope this tutorial helped you to know about the Guide To Product-led User Growth(PLuG) Companies leverage CRM. If you want to say anything, let us know through the comment sections. If you like this article, please share it and follow WhatVwant on Facebook, Twitter, and YouTube for more Technical tips.

Guide To product-led User Growth(PLuG) Companies leverage CRM – FAQs

What is the Product growth strategy?

A growth strategy allows companies to expand their business. Growth can be achieved by practices like adding new locations, investing in customer acquisition, or expanding a product line.

What is a product-led approach?

In a product-led approach, the technology and digital context are where your product experience is the central focus of your organization.

What is product-led innovation?

Product-led growth (PLG) is a business methodology in which user acquisition, expansion, conversion, and retention are all driven primarily by the product itself.

What is a Product-led culture?

Product-led organizations make sure every team is focused and incentivized toward a common goal: to deliver as much value to users as possible with every iteration.

What are growth tactics?

A Growth strategy is an organization’s plan for overcoming current and future challenges to realize its goals for expansion.

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