Sanjay is a technologist and founder of Vervotech , a SaaS-based data hosting provider. He also founded TechSpian.
There is a lot of noise and debate in the market about which growth strategies work for SaaS companies. Some argue that only a product-based growth (PLG) strategy can put your company on a path to rapid growth, such as companies like Atlassian and Hootsuite who have built their fortunes on the PLG approach. But companies like Drift and HubSpot might disagree, as they've achieved phenomenal growth using marketing-led growth (MLG) strategies. So is marketing-led growth the best way to grow your SaaS business? Or does a food approach work better for growth?
What is the solution to the above puzzle? Which growth strategy should be trusted? I said no.” Before talking about the benefits of this intersection, I will briefly describe the two techniques (MLG and PLG), what they offer and what they lack.
Marketing Growth Strategy (MLG)
Marketing Driven Growth (MLG) allows you to grow rapidly and at scale by generating high volumes of leads through marketing assets such as blog posts, e-books, white papers and infographics. Also, this strategy includes search engine marketing (SEM), which is one of the most cost-effective methods to significantly increase awareness of your brand.
Also, when you're building a SaaS business, you have a target market. With surveys and surveys, you can further narrow down and engage this market by personalizing your brand messages across your brand communication channels.
Additionally, MLG allows you to be flexible in your growth strategy. You can always tweak your marketing message – if your current campaign isn't producing the desired results, you can try switching to a narrative that resonates with your target market.
The downside of the MLG strategy is that marketing campaigns require prospects to take actions, such as filling out forms or downloading marketing assets, that don't guarantee intent to make a purchase or sale.
Product-led growth strategy (PLG).
Under Product-Led Growth (PLG), your product drives all customer acquisition and supports your revenue stream through self-registration.
PLG allows its customers to experience their products directly. The customer does not have to endure continuous sales messages or participate in demo calls. If a customer likes your product, your sales cycle is significantly shortened.
Like other growth strategies, PLG also has its drawbacks. When you focus only on PLG, you're undermining other important aspects of the business, like branding, which could potentially hinder your long-term growth.
Another potential downside to PLG is that it promotes the product as its primary marketing channel, so there's always the risk that customers won't realize the value it offers. If the gap between perceived value and delivered value increases, you will likely see fewer signups and a drop in revenue.
SaaS growth at the intersection of MLG and PLG
Both approaches have advantages and disadvantages, but there is no single growth strategy for SaaS businesses. Not all products are as simple as, say, Hootsuite. Most SaaS products are inherently complex, and simply using a PLG can backfire because few people are willing to buy from a stranger. After all, if you don't provide a price before you receive it, there may be a gap between what the customer expects and what you offer. And these silos can hurt your business prospects, even if you have a great product.
However, you can't rely entirely on your marketing to generate leads. Because marketing involves a long buying cycle, it can sometimes slow your growth. That's why the answer lies somewhere between MLG and PLG. You shouldn't be stubborn about choosing other strategies. You can get the best of both worlds by growing at the intersection of MLG and PLG. Let me tell you how.
When I explained both growth scenarios, the main downside of MLG that came to light is core intent, which doesn't always translate into sales. But it definitely helps in gaining public attention for your brand, which can ultimately drive sales. And when we looked at the PLG situation, the main weakness identified was the potential gap between perceived value and actual value due to lack of communication from the SaaS company.
So when I talk about growth momentum at the intersection of MLG and PLG, what I mean is that your marketing role should be focused on creating the right interest among your target audience and building brand trust which, in short, it will serve both of you. durability and longevity. , long term. Long term. And you need to use all the lucrative methods like SEM and content marketing to bring more customers to your platform.
At the same time, your product must be easily accessible to your customers with minimal hassle. Potential customers should be able to organically perceive what your product looks like. You can strategically decide what kind of access you want to give your prospects and when to request recurring subscriptions. This way you can keep all your growth channels active and get the most out of MLG and PLG's growth strategies.
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