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* initial draft of the PLG Support Functions post * Finialize PLG Support Functions for publication * Updating the link to previous article and move tools around * Fix hardcoded path in buildRss script
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!! title: Product Led Growth - Support Functions | ||
!! slug: plg-support-functions | ||
!! published: 2023-09-25 | ||
!! description: Examining and defining the roles of the organization groups outside of the core product groups in PLG company | ||
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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 | ||
have: Product, Design, and Engineering Development. This post, we're going to look at how the rest of the organization | ||
supports the Product Led Growth. | ||
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## Supporting Groups | ||
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While a company will not have a product without the core product groups, the company cannot exist without the supporting | ||
business functions: Customer Success, Finance, Marketing, Sales, and Operations. Every organization can have wildly | ||
different structure, but each of these functions will exist in some capacity. | ||
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### Customer Success | ||
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Customer Success is one of the most important functions in a PLG organization. The product gets the customer in the door | ||
with some value add, and Customer Success keeps them there. | ||
Research [[1](https://walkerinfo.com/cxleader/customers-2020-a-progress-report/)] has shown that customer experience is | ||
becoming the main brand differentiator, overtaking pricing and product. So while having a solid product that keeps | ||
delivering value to the user is important for building the brand, brand longevity relies on the customer experience and | ||
building an amazing Customer Success group. | ||
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This group's role is almost too easily defined in their name: Customer Success. They do everything in their power to | ||
assist in the customer succeeding. To the customer, they are the face of the company. Customer interactions with | ||
Customer Success directly affect how people perceive the brand. I purchased a product earlier this year and remember | ||
Customer Success reaching out to me before I had received the shipment alerting me that the wrong parts were packaged | ||
and the correct ones were shipped out and on their way. I am customer for life because I see my personal value of | ||
responsibility being embodied by that organization. While I like the product that I purchased, I love the company and | ||
brand behind it. | ||
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Customer Success is also one of the best avenues for user feedback data and ideas for functionality that the product | ||
does not yet have. When the user is bought into the organization and the brand, the customer wants to help improve the | ||
product and they will let the organization know what improvements they would like to see. The Design group can then | ||
start building out models and conducting user research on these ideas to see how much value the new capability has to | ||
offer. | ||
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### Marketing | ||
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The Marketing group is one of the most impacted group between a PLG organization and an non-PLG organization. The approach | ||
to marketing is drastically different. PLG marketing uses three key strategies: 1) market through the product, 2) value | ||
freemium users, and 3) rely on product data [[1](https://www.toplyne.io/blog/plg-marketing)]. | ||
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One of the core ideas of the PLG philosophy is to focus on building a product so well that the users will essentially | ||
market it with word-of-mouth. The first strategy of marketing in a PLG organization is to market through the app. | ||
Communication to users about new features and any other announcements come through the app, inviting the user to dive | ||
deeper into the application. In most cases, users are not fully aware of everything that an application has to offer and | ||
all of the ways that you can use it. In addition, a user will be using the product a lot more than actively searching | ||
for new features on the organization website or in a content blog. The best way to reach the user is through the product | ||
itself. Like all other product capabilities, in-app marketing systems goes through Design, user research and constant | ||
user feedback to validate that it is adding to the user experience. In-app marketing has to align with making the user | ||
the center of the experience and making sure that it is delivering value and is not taking it away. | ||
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This leads us to the second strategy: value freemium users. One of the main strategies in expanding user base of a | ||
product is to deliver value for free. This wins the heart of the user and helps promote the product into more lucrative | ||
markets that those users have an in with where the organization might not already be. More than likely, in a SaaS | ||
company, there will be a lot more free users than paid. This means that there is a very large base of users that are | ||
already using the product, and already know the product and the brand. The cost is less to look to convert them to | ||
paying customers and the easiest way to reach these users is through the product, core strategy number one. | ||
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The third strategy is to use product data for marketing. The user data that Product collects to analyze user behavior, | ||
looking for optimizations, can also be used by marketing to identify potential power users or advocates to partner with | ||
to expand brand awareness. | ||
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### Sales | ||
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The Sales group is another highly impacted group in PLG. Organizations are traditionally sales-led: build a product that | ||
someone is willing to pay for. This mindset does not work with the PLG philosophy. While this is the end goal of a | ||
company, focusing on building a product that someone is willing to pay for misses the large base of free users that are | ||
so important. Focusing instead on delivering value across all users to promote the word-of-mouth spread of the product | ||
is the key focus. | ||
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Assuming the company has a B2B business, the primary role of Sales in PLG is to provide hands-on assistance to the | ||
larger accounts that need to be walked through the sales process and is cannot self-serve. Secondarily, they can also be | ||
a source for product feedback on why sales went through or did not go through. However, the feedback from the | ||
unsuccessful sales should be weighted accordingly with all other user feedback. Emotionally, there is a temptation to | ||
rush to fix the thing that ultimately led to a sale not going through. But this has to be validated with product data | ||
and user research alongside every other product change. Giving into this temptation breaks the PLG model and starts | ||
moving towards a Sale-led model. | ||
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### Operations | ||
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Operations are the unsung heroes of value delivery (ok...I might be a little biased since my background is Operations). I | ||
actually was not sure I wanted to separate Operations from Engineering because of the risk of separate groups. While | ||
there is many a debate on what the organizational structure should look like, this business function still needs to | ||
exist. The primary role of the Operations function is to enable the core product groups to consistently deliver value | ||
and to assist decreasing the risk of failures that forcibly removes value from users (ahem...cloud outages and the | ||
like). This will look different in every organization since the requirements and processes are different. | ||
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### Finance | ||
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Finance has a very subtle role to play. They control how the organization's money is used and are the very last line of | ||
defense--if you will--for a PLG company. Most actions that an organization takes that lead toward or away from PLG cost | ||
money and Finance controls the approvals for the larger ones. They are the last group that can ask "How does this ad | ||
campaign fit into our overall PLG business model?" before signing off on a marketing campaign budget or on a new role | ||
that might seem to work against the overall PLG direction. | ||
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--- | ||
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Every group in an organization has a unique perspective to contribute to the mission. For an organization that is | ||
practicing Product Led Growth, the support functions are just as important as the core product group's roles. Marketing | ||
helps continue to build the product brand by inviting the users to dive even deeper into the product. Sales is there to | ||
help large companies purchase the product who cannot self-serve. Operations looks to continuously improve the | ||
efficiency and stability in value delivery. And finance is the absolute last line of defense in maintaining the PLG | ||
practices as the company grows. | ||
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--- | ||
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## Resources | ||
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1. [Walker - Customers 2020](https://walkerinfo.com/cxleader/customers-2020-a-progress-report/) | ||
2. [Toplyne - PLG Marketing](https://www.toplyne.io/blog/plg-marketing) |
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