Leverage Product Insights for Revenue Stream and Product-led-Growth

Your product is the protagonist in your business story. So, treat your SaaS products like heroes!

Groom them as per the modern trends of the market just like the heroes that we all see in movies and series. Why do we recommend you do so?

Our experts say so because people go inside cinemas as customers—they purchase tickets to watch a movie. However, they come out as fans. They start talking about the movie. Their conversations create a buzz all across, and more people get attracted to the movie.

You need to do the same. Keep improvising your SaaS product with time so that people will know it, enjoy it, and talk about it so that more potential customers would come for it.

SubscriptionFlow is a conversion rate optimization tool that subscription businesses can opt for to fetch, analyze, and utilize customer data and insights extracted from this data. Data insights play a significant role in product-led growth that ultimately makes your SaaS product a hotcake for SaaS customers in the market.

Now is the time to delve into the details that how product insights and product-led growth (PLG) based on these insights can be streamlined and used for revenue streams and their predictability.

Also Read: How to Maximize Your Product-Led Growth (PLG)

Product & Sales Share the Ownership for Each Sale

Though there is no formula to understand PLG, product insights to improve PLG, and the relation of the revenue with them, they are easy to comprehend.

When a SaaS business opts for an approach based on PLG, the product value improves in the market. Resultantly, the burden on the marketing and sales teams lessens, but still sales increase. Even SaaS companies need to spend quite less on marketing and sales rather they can invest money in improving their product and offering add-ons.

When add-ons and new versions of products are offered, sales increase and the account expansion rate also improves. The flow of revenue stream not only increases but also becomes diverse. When a SaaS product is improved and made up to modern standards, its sales automatically increase because product value increases with PLG.

SaaS Product as Sales Representative

When you opt for PLG, your SaaS product also acts as your sales representative. In the real world or even in the digital world, when sales representatives are involved, they take your product to customers. They tell customers about the product, its features, and the price. In the end, they succeed to lock a deal.

However, when you opt for PLG, for instance, in SaaS products in-app chatbots are used to onboard the customer.  They help new customers to understand the system and its usage. That’s how PLG-focused SaaS businesses do not need to expand their customer care and support teams rather their product share this responsibility with the sales reps.

When a product becomes the sales rep, the revenue stream and revenue operations are more streamlined. You have a clear picture of average per-person revenue and its flow to the net recurring revenue (NRR).

Also Read: How PLG Companies Can Optimize Their Sales with SubscriptionFlow

Easing Down the Buying Process

PLG helps SaaS businesses in making the buying process easier. When buying process and conversion rate optimization system are efficient, it is easier to onboard more and more customers. How?

Today, it is not easy to win customer trust. The reason for the success of the PLG is the fact that here, rather than marketing or sales, the product does the magic. Also, the word of mouth rather than fierce marketing play role in selling the product. So, PLG is a different approach to winning customer trust.

Here, the SaaS business offers customers demos and free trials so that the customer has a clear idea that where is he investing his money and what to expect in return. As a result, the business is honest with the customer from the beginning which makes it easier to win the customer’s trust and brings customers towards conversion.

How SaaS Market Led to the PLG?

Now, it is important to know how the SaaS market reached out to the product-led approach.

As has been mentioned that it is not an easy job to convince and win the customer’s trust. Also, SaaS businesses operate in the digital arena where you cannot offer something tangible to the customer to try and then buy. So, the only option is to let customers try the entire product or at least important features so that they know where they are investing. That’s the base from where SaaS businesses reached the PLG. Also, the journey of PLG can be divided into the following stages:

  • Sales-led business growth
  • Marketing-led business growth
  • Product-led business growth

In the beginning, sales representatives used to be considered the soul of the buying and selling process. However, then marketing principles enticed the SaaS business world. Also, the advent of social media platforms provided SaaS businesses with sophisticated platforms to sell their product. But, then experts came up with the PLG—product-led growth approach that not only made the buying process more efficient but also streamlined the revenue streams. It helped in cutting the marketing & sales expenses and increasing the flow of revenue.

Also Read: Product-Led Growth for Your SaaS and B2B Business: A Strategy that Thwarts Traditional Growth Models

If you run a SaaS business and looking forward to opportunities to improve the flow of recurring revenue, then adopt SubsciptionFlow. We help businesses with their PLG strategies. With our best conversion rate optimization software, you can get in-depth data insights that will help you improve the product value and improve the sales process.