Product-led growth (PLG) is a business strategy that focuses on using the product itself as the primary driver of customer acquisition, retention, and expansion. In a product-led growth model, the emphasis is on creating an exceptional user experience, enabling users to quickly realise the value of the product, and encouraging organic growth through word-of-mouth and user referrals.

Product-led growth (PLG) and user-led growth are two different approaches to growing a business. In a product-led growth model, the product is the main driver for customer acquisition and retention, with a focus on delivering a high-quality user experience and value realisation. In user-led growth, the focus is on the user's needs and preferences, with companies prioritising user satisfaction and tailoring their products and services to meet their target audience's specific requirements.

A product-led approach is a business strategy that emphasises the role of the product in driving growth and customer success. Companies adopting a product-led approach focus on delivering a seamless and valuable user experience, enabling users to easily discover, try, and adopt their products. This approach often includes features such as self-service onboarding, freemium offerings, and in-product user education, aiming to reduce barriers to adoption and encourage organic growth.

To build product-led growth, follow these steps:

1. Develop a user-centric product: Focus on creating a product that addresses your target audience's pain points and delivers tangible value.
2. Implement a seamless onboarding process: Make it easy for users to get started with your product and experience its value quickly.
3. Offer a freemium or trial version: Allow users to try your product before committing to a purchase, reducing the barriers to adoption.
4. Invest in user education and support: Provide resources, tutorials, and support to help users get the most out of your product.
5. Encourage user referrals and word-of-mouth: Incentivise users to share your product with others and promote organic growth.
6. Monitor user behaviour and feedback: Collect and analyse data on user engagement and feedback to identify areas for improvement and optimisation.
7. Continuously iterate and improve: Regularly update and enhance your product based on user feedback and market demands.

The stages of product-led growth (PLG) typically include:

1. Awareness: Users become aware of your product through marketing efforts, referrals, or word-of-mouth.
2. Acquisition: Users sign up for your product, often through a free trial or freemium offering.
3. Activation: Users begin to experience the value of your product and engage with its features.
4. Retention: Users continue to use your product, finding it valuable and worth their investment.
5. Expansion: Satisfied users refer others to your product, leading to organic growth and potential upselling or cross-selling opportunities.
6. Advocacy: Loyal users become brand advocates, promoting your product through word-of-mouth, reviews, and social media.

The main benefit of product-led growth (PLG) is its potential for sustainable, cost-effective, and scalable growth. By focusing on delivering an exceptional user experience and allowing users to quickly realise the value of the product, companies can reduce customer acquisition costs, increase customer retention, and encourage organic growth through referrals and word-of-mouth. This approach enables businesses to grow more efficiently while maintaining a strong focus on user satisfaction and product quality.