|
| 1 | +!! title: Product Led Growth - Support Functions |
| 2 | +!! slug: plg-support-functions |
| 3 | +!! published: 2023-09-25 |
| 4 | +!! description: Examining and defining the roles of the organization groups outside of the core product groups in PLG company |
| 5 | + |
| 6 | +--- |
| 7 | + |
| 8 | +In the [last PLG post](https://joseph.flinnlab.com/posts/plg-product-triad), we examined the unique roles and perspectives that each of the core groups |
| 9 | +have: Product, Design, and Engineering Development. This post, we're going to look at how the rest of the organization |
| 10 | +supports the Product Led Growth. |
| 11 | + |
| 12 | +## Supporting Groups |
| 13 | + |
| 14 | +While a company will not have a product without the core product groups, the company cannot exist without the supporting |
| 15 | +business functions: Customer Success, Finance, Marketing, Sales, and Operations. Every organization can have wildly |
| 16 | +different structure, but each of these functions will exist in some capacity. |
| 17 | + |
| 18 | +### Customer Success |
| 19 | + |
| 20 | +Customer Success is one of the most important functions in a PLG organization. The product gets the customer in the door |
| 21 | +with some value add, and Customer Success keeps them there. |
| 22 | +Research [[1](https://walkerinfo.com/cxleader/customers-2020-a-progress-report/)] has shown that customer experience is |
| 23 | +becoming the main brand differentiator, overtaking pricing and product. So while having a solid product that keeps |
| 24 | +delivering value to the user is important for building the brand, brand longevity relies on the customer experience and |
| 25 | +building an amazing Customer Success group. |
| 26 | + |
| 27 | +This group's role is almost too easily defined in their name: Customer Success. They do everything in their power to |
| 28 | +assist in the customer succeeding. To the customer, they are the face of the company. Customer interactions with |
| 29 | +Customer Success directly affect how people perceive the brand. I purchased a product earlier this year and remember |
| 30 | +Customer Success reaching out to me before I had received the shipment alerting me that the wrong parts were packaged |
| 31 | +and the correct ones were shipped out and on their way. I am customer for life because I see my personal value of |
| 32 | +responsibility being embodied by that organization. While I like the product that I purchased, I love the company and |
| 33 | +brand behind it. |
| 34 | + |
| 35 | +Customer Success is also one of the best avenues for user feedback data and ideas for functionality that the product |
| 36 | +does not yet have. When the user is bought into the organization and the brand, the customer wants to help improve the |
| 37 | +product and they will let the organization know what improvements they would like to see. The Design group can then |
| 38 | +start building out models and conducting user research on these ideas to see how much value the new capability has to |
| 39 | +offer. |
| 40 | + |
| 41 | +### Marketing |
| 42 | + |
| 43 | +The Marketing group is one of the most impacted group between a PLG organization and an non-PLG organization. The approach |
| 44 | +to marketing is drastically different. PLG marketing uses three key strategies: 1) market through the product, 2) value |
| 45 | +freemium users, and 3) rely on product data [[1](https://www.toplyne.io/blog/plg-marketing)]. |
| 46 | + |
| 47 | +One of the core ideas of the PLG philosophy is to focus on building a product so well that the users will essentially |
| 48 | +market it with word-of-mouth. The first strategy of marketing in a PLG organization is to market through the app. |
| 49 | +Communication to users about new features and any other announcements come through the app, inviting the user to dive |
| 50 | +deeper into the application. In most cases, users are not fully aware of everything that an application has to offer and |
| 51 | +all of the ways that you can use it. In addition, a user will be using the product a lot more than actively searching |
| 52 | +for new features on the organization website or in a content blog. The best way to reach the user is through the product |
| 53 | +itself. Like all other product capabilities, in-app marketing systems goes through Design, user research and constant |
| 54 | +user feedback to validate that it is adding to the user experience. In-app marketing has to align with making the user |
| 55 | +the center of the experience and making sure that it is delivering value and is not taking it away. |
| 56 | + |
| 57 | +This leads us to the second strategy: value freemium users. One of the main strategies in expanding user base of a |
| 58 | +product is to deliver value for free. This wins the heart of the user and helps promote the product into more lucrative |
| 59 | +markets that those users have an in with where the organization might not already be. More than likely, in a SaaS |
| 60 | +company, there will be a lot more free users than paid. This means that there is a very large base of users that are |
| 61 | +already using the product, and already know the product and the brand. The cost is less to look to convert them to |
| 62 | +paying customers and the easiest way to reach these users is through the product, core strategy number one. |
| 63 | + |
| 64 | +The third strategy is to use product data for marketing. The user data that Product collects to analyze user behavior, |
| 65 | +looking for optimizations, can also be used by marketing to identify potential power users or advocates to partner with |
| 66 | +to expand brand awareness. |
| 67 | + |
| 68 | + |
| 69 | +### Sales |
| 70 | + |
| 71 | +The Sales group is another highly impacted group in PLG. Organizations are traditionally sales-led: build a product that |
| 72 | +someone is willing to pay for. This mindset does not work with the PLG philosophy. While this is the end goal of a |
| 73 | +company, focusing on building a product that someone is willing to pay for misses the large base of free users that are |
| 74 | +so important. Focusing instead on delivering value across all users to promote the word-of-mouth spread of the product |
| 75 | +is the key focus. |
| 76 | + |
| 77 | +Assuming the company has a B2B business, the primary role of Sales in PLG is to provide hands-on assistance to the |
| 78 | +larger accounts that need to be walked through the sales process and is cannot self-serve. Secondarily, they can also be |
| 79 | +a source for product feedback on why sales went through or did not go through. However, the feedback from the |
| 80 | +unsuccessful sales should be weighted accordingly with all other user feedback. Emotionally, there is a temptation to |
| 81 | +rush to fix the thing that ultimately led to a sale not going through. But this has to be validated with product data |
| 82 | +and user research alongside every other product change. Giving into this temptation breaks the PLG model and starts |
| 83 | +moving towards a Sale-led model. |
| 84 | + |
| 85 | + |
| 86 | +### Operations |
| 87 | + |
| 88 | +Operations are the unsung heroes of value delivery (ok...I might be a little biased since my background is Operations). I |
| 89 | +actually was not sure I wanted to separate Operations from Engineering because of the risk of separate groups. While |
| 90 | +there is many a debate on what the organizational structure should look like, this business function still needs to |
| 91 | +exist. The primary role of the Operations function is to enable the core product groups to consistently deliver value |
| 92 | +and to assist decreasing the risk of failures that forcibly removes value from users (ahem...cloud outages and the |
| 93 | +like). This will look different in every organization since the requirements and processes are different. |
| 94 | + |
| 95 | + |
| 96 | +### Finance |
| 97 | + |
| 98 | +Finance has a very subtle role to play. They control how the organization's money is used and are the very last line of |
| 99 | +defense--if you will--for a PLG company. Most actions that an organization takes that lead toward or away from PLG cost |
| 100 | +money and Finance controls the approvals for the larger ones. They are the last group that can ask "How does this ad |
| 101 | +campaign fit into our overall PLG business model?" before signing off on a marketing campaign budget or on a new role |
| 102 | +that might seem to work against the overall PLG direction. |
| 103 | + |
| 104 | + |
| 105 | +--- |
| 106 | + |
| 107 | +Every group in an organization has a unique perspective to contribute to the mission. For an organization that is |
| 108 | +practicing Product Led Growth, the support functions are just as important as the core product group's roles. Marketing |
| 109 | +helps continue to build the product brand by inviting the users to dive even deeper into the product. Sales is there to |
| 110 | +help large companies purchase the product who cannot self-serve. Operations looks to continuously improve the |
| 111 | +efficiency and stability in value delivery. And finance is the absolute last line of defense in maintaining the PLG |
| 112 | +practices as the company grows. |
| 113 | + |
| 114 | + |
| 115 | +--- |
| 116 | + |
| 117 | +## Resources |
| 118 | + |
| 119 | +1. [Walker - Customers 2020](https://walkerinfo.com/cxleader/customers-2020-a-progress-report/) |
| 120 | +2. [Toplyne - PLG Marketing](https://www.toplyne.io/blog/plg-marketing) |
0 commit comments