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[post] PLG Supporting Groups (#57)
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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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joseph-flinn authored Sep 25, 2023
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"description": "Static database",
"type": "module",
"scripts": {
"build:posts": "node tools/buildPosts.js",
"build:rss": "node tools/buildRss.js"
"build:posts": "node tools/buildPosts/buildPosts.js",
"build:rss": "node tools/buildRss/buildRss.js"
},
"author": ""
}
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!! title: PLG - The Product Triad
!! title: Product Led Growth - The Product Triad
!! slug: plg-product-triad
!! published: 2023-09-18
!! description: Examining and defining the roles of the core product triad in a PLG company
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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

---

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.

## Supporting Groups

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.

### Customer Success

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.

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.

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.

### Marketing

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)].

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.

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.

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.


### Sales

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.

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.


### Operations

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.


### Finance

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.


---

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.


---

## Resources

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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import fs from 'fs';
import posts from '../posts.json' assert {type: "json"};
import posts from '../../posts.json' assert {type: "json"};


const SITE_URL = 'https://joseph.flinnlab.com';
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