The Power of Product-Led Growth: 7 SaaS Companies that are Killing It
The Product-Led Growth (PLG) strategy is becoming huge and it is for very good reason. According to a HubSpot report, the adoption of PLG has increased by 20% over the past three years, indicating that more and more businesses are taking advantage of this approach. By implementing PLG strategies, businesses can achieve significant growth. If you’re still unsure of what PLG entails, don’t worry, we’ve got you covered. In this article, we have compiled a list of the top 7 SaaS companies that have successfully employed and seen tremendous growth with this strategy.
A quick recap on product-led growth
Product-led growth (PLG) is a business approach where the product is the primary driver of customer acquisition, activation, retention, and expansion. This approach places the product at the center of the organization’s focus for sustainability and scalability rather than relying on marketing or sales teams. Essentially, the product itself becomes the primary means of achieving growth, and its design and functionality are optimized to deliver a self-sustaining growth cycle.
PLG strategies work by providing a free or freemium version. Check out growth strategies that have actually worked for 7 SaaS giants. You’ll also find what EasyUser likes and recommends in each strategy – allowing you to implement it in your own business.
Calendly has implemented an effective product-led growth (PLG) strategy that has enabled the company to build a strong user base. The platform offers a free trial that users can later upgrade to a paid subscription. With less than 250 users, Calendly is worth $3 billion and has generated over $100 million in revenue.
What EasyUser likes about Calendly’s PLG strategy:
Calendly’s strategy is based on a consistent K-factor that is directly proportional to the number of invitations sent out. Each time a user invites others to use the platform, Calendly has a chance to offer its scheduling solutions, creating a network effect that drives growth.
The Freemium plan that Calendly offers has been a major success. Users can schedule meetings for free with one event type, attracting a large user base and increasing visibility.
Canva’s PLG strategy centers around providing a web-based graphic design platform with an easy-to-use interface that allows users to create various designs such as social media graphics, presentations, and flyers. In 2020, Canva reported an average revenue of $500 million, representing over 130% growth compared to the previous year.
What EasyUser likes about Canva’s PLG Strategy:
Canva’s positioning is based on democratizing design and user experience. Their mission statement is to empower individuals worldwide to design anything and publish it anywhere, tapping into customers’ emotions, which is a crucial aspect of PLG.
Canva provides value extremely quickly. With the platform for example, users can create a Christmas card in just 52 seconds, from discovery to design to the finished product being exported to their desktop.
Slack is a team communication platform that has become a leading product in the business world, employing a PLG strategy to make team collaboration and communication more accessible. Slack went public in 2019 with a market capitalization of $20 billion and has continued to grow since then.
What EasyUser likes about Slack’s PLG Strategy:
Slack’s product is user-friendly and offers a freemium model that allows teams to try the platform before committing to a paid subscription. They have made it easy to invite team members and integrate with other tools, creating a seamless experience for users. Now, that’s a simple product-led growth strategy that works!
DocuSign is a digital signature and document management platform that simplifies workflows for businesses. DocuSign’s PLG strategy revolves around providing an easy-to-use product that allows users to sign documents from anywhere. DocuSign went public in 2018 with a market capitalization of $6 billion and has continued to grow since then.
What EasyUser likes about DocuSign’s PLG Strategy:
DocuSign’s product is designed to be accessible from anywhere and easy to use, providing a convenient solution for businesses of all sizes. The freemium model allows users to try the product before committing to a paid subscription, and the user-friendly interface makes signing and managing documents straightforward.
Zoom is a video conferencing platform that has gained tremendous popularity in recent years by focusing on providing users with an easy way to join and participate in video meetings. Zoom went public in 2019 with a market capitalization of $16 billion and has continued to grow since then.
What EasyUser likes about Zoom’s PLG Strategy:
Zoom offers a simple and effective product with a freemium model that allows users to try the platform before committing to a paid subscription. Their seamless integration with other tools makes it a convenient solution for businesses of all sizes.
Trello is a project management tool that helps teams collaborate and stay organized. Their PLG strategy is based on the ease of use and the ability to visualize projects and workflows. Trello was acquired by Atlassian in 2017 for $425 million and has continued to grow since then, with over 50 million registered users as of 2021.
What EasyUser likes about Trello’s PLG Strategy:
Trello’s platform is designed to be highly visual, making it easy for users to track progress and collaborate on projects. Their freemium model allows users to try the platform before committing to a paid subscription, and the platform’s intuitive interface makes it easy to use and learn.
Trello also benefits from a strong community of users who share tips, tricks, and best practices for using the platform, which helps attract new users and drives growth.
Grammarly is a digital writing assistant that helps users improve their writing by providing suggestions for grammar, spelling, and style. The platform has a freemium model that allows users to try the basic features for free, while premium features require a paid subscription. Grammarly has over 20 million daily active users and has been valued at $1 billion.
What EasyUser likes about Trello’s PLG Strategy:
Grammarly’s product provides immediate value to users by improving their writing quality. The platform’s freemium model allows users to try the product before committing to a paid subscription, which has helped drive growth and increase adoption. Grammarly also offers a referral program that incentivizes users to invite others to use the platform, which has been a key driver of user acquisition and growth.
Product-led growth has become a popular strategy for many software companies, enabling them to grow their user base and revenue by focusing on creating a great user experience and providing value quickly. Companies like Calendly, Canva, Zoom, and Trello have all successfully implemented PLG strategies, making them leaders in their respective markets. By focusing on making their products easy to use, providing value quickly, and leveraging network effects, these companies have been able to build loyal user bases and drive massive growth over time.
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