When you are in this situation, stop Marketing. Start PLGing.
~700 words. 4 min read.
2025 might just be the year when growth starts and ends with your product - that is, if you want to grow smarter, not harder. Product-led growth (PLG) as a strategy and mindset has long been embraced by the Slacks, Dropboxes, and Zooms of the world. It should be your go-to strategy a) anyways (if you’re a product manager) and b) especially if you find yourself in a particular competitive situation.
Why & When PLG matters
Whatever your specific goals may be, ultimately, you are trying to:
Attract and retain customers
Deliver value
Achieve scale
Or some version of these. The essence of PLG lies in its ability to create user experiences that drive adoption naturally. It thrives in environments where users have the power to compare similar product quickly and effectively. These markets are typically characterized by:
Low Switching Costs
Users can easily try, adopt, and abandon products. This is especially true for SaaS products, where sign-up is often free or low-commitment.High Product Parity
Competing offerings provide similar core functionalities, making it easy for users to weigh options side-by-side.Clear Success Metrics
Users understand their key goals and can readily identify which product helps them achieve those goals more effectively.Demand for Rapid Value
Customers expect to realize a product’s value within minutes or hours, not weeks or months.
How Product Managers should Think in this Scenario
1. Focus on Value Differentiation
Ride PLG to success.
In a crowded market, the key question is: What does our product do better or differently to help users succeed? Product managers need to identify and amplify these differentiators, ensuring that the unique value proposition is obvious from the moment a user interacts with the product.
2. Streamline the Path to Value
Your product’s “aha” moment—the point when users experience its value—should be quick and seamless. If your competitors enable users to reach their goals faster, you’ll lose. Optimize onboarding flows, minimize friction, and deliver instant gratification.
3. Enable Side-by-Side Comparisons
If users are going to compare products anyway, make it easy for them to see your strengths. This might involve creating interactive demos, offering guided tours, or publishing transparent feature matrices. Show users how your product aligns with their key metrics better than others.
4. Invest in User Experience
When products have high parity, UX can become the deciding factor. Every interaction, from navigation to support, should be intuitive and delightful. Even small annoyances can drive users to a competitor offering a smoother experience.
5. Listen Closely to Competitive Feedback
In a market where comparisons are common, customers will often articulate why they chose you—or why they didn’t. Use this feedback to iterate. If users consistently identify a competitor as “easier” or “more powerful,” dig deep to understand and address these perceptions.
6. Leverage Freemium or Trial Models
Users often prefer to test a product in real-world scenarios before committing. Offering a generous free tier or a no-strings trial lets them experience your product’s unique value firsthand, reducing the need for a heavy sales pitch.
PLG Challenges
Despite its promise, PLG is not without pitfalls:
Neglecting Enterprise Buyers: PLG can sometimes overlook the needs of larger, paying customers. Make sure to balance end-user delight with features like admin controls and security.
Overlooking Support Needs: While PLG emphasizes self-service, human support should still be available for higher-tier users or complex issues.
Skipping Product-Led Foundations: A product-driven growth strategy fails if the product isn’t intuitive, useful, or ready for prime time.
Final Thoughts
PLG is a Team Sport: As Marty Cagan puts it: “Great products come from great teams.” PLG is no exception. User and markets insights have to come together with Product and UI/UX in order to define a PLG approach that lives up to its promise.
Org Change: In order to run a good PLG strategy, you may need to change the organization and maybe the way you’re funding it. User research, competitive analysis, UI/UX talent and maturity, alignment with sales and marketing, and of course a product team that can lead a PLG strategy are all required ingredients for success. If you don’t have these in spades, you may be looking at a transformative effort.
PLG is driven by the User’s success metrics, not yours: Hopefully, they are aligned naturally, but remember: In markets where users can easily compare products, PLG puts the emphasis where it belongs—on delivering value through the product itself. Product managers must think strategically about how to differentiate, reduce friction, and align the product with user success metrics. By excelling in these areas, your product becomes the obvious choice in a sea of alternatives.
