Lenny Rachitsky | Lenny’s Podcast – Hila Qu (Reforge, GitLab)
Hila Qu is an Executive in Residence at Reforge as well as a renowned growth advisor, angel investor, and published author (her book about growth was named one of the top 10 business books of 2018 in China). Previously, she served as the Director of Growth at GitLab, where she implemented and scaled their PLG motion, and VP of Growth at Acorns, scaling them from 1 million to 5 million users.
Product Led Growth
- Giving away free products can boost user acquisition and retention, but it needs to be supported by data analysis. To optimize your product-led growth strategy, audit your funnels, improve activation and retention, and use tools like Amplitude and Miro.
- Product Led Growth combines product development and sales to create a sales-led enterprise product that targets both mass market and high-end customers. Adding PLG can attract more end-users who can become your clients, ultimately leading to more customers.
The best way to optimize your retention rate is to build habits and loyalty. You have to find out what are the key behaviors or outcomes that drive user satisfaction and engagement, and how can you reinforce them over time.
PLG (product-led growth) is not a silver bullet. It’s not a one-size-fits-all solution. It’s a strategy that you have to tailor to your specific product, market, and customer.
The best way to optimize your conversion rate is to use triggers and nudges. You have to find out what are the key moments or actions that indicate user intent or readiness, and how can you prompt them to take the next step.
- Product-led growth is gaining popularity in B2B software as users demand a B2C-like product exploration process. Companies can build disruptive PLG products with a free version and self-service checkout, but they must avoid common pitfalls.
- To achieve product-led growth, commit to a year-long roadmap, embrace internal process changes, design a user journey through usage data and expertise, and track which features drive conversion and retention. Beware of weak commitment signals.