Faster growth – Companies that follow the PLG principles have proven that they can grow faster and are more resilient (see data).
Building the right product – Companies are able to validate their products sooner by running early experiments and validation campaigns with the end users. This is the most efficient way of finding out if there is product market fit.
Lower costs of sale – Companies do not need to oversell or convince users to buy the product. Users receive value before the company expects value in return (e.g. by allowing users to access some valuable features before they need to pay). Users reaches the ‘aha’ moment, that’s when the light bulb goes off and the users understands exactly how your product will improve their life.
Enables go-to-market strategy – Once you’ve built the right product – following many iterations of your MVP and onboarding the first test users – your product becomes your most lucrative marketing channel. PLG companies design and build the product with the intent to drive acquisition, conversion and expansion from within the product.