Introduction

According to a poll conducted by SunTrust 2019, only 49% of small businesses have a growth plan. Many small business owners recognize the need for expansion but believe they lack the resources or funding to implement an effective strategy.

With so many tools and approaches accessible to suit any budget, all you need to do is plan strategically to start growing. Even the greatest, most market-dominating enterprises had to begin somewhere, and there’s no reason your marketing shouldn’t take you to tremendous heights.

Here, we’ll look at various tactics employed by businesses of all kinds to achieve long-term and even viral success.

Product-led growth strategy

“Product-led growth” (PLG) is a crucial approach, particularly for B2C and SaaS businesses, with the product serving as the primary lead-generation mechanism. PLG saves expenses and promotes viral growth by transforming the product into a potent marketing tool.

However, this does not negate the need for traditional marketing activities. Landing pages, advertisements, and email campaigns are critical components of your PLG strategy. These tools assist clients through marketing funnels, which improves your overall strategy.

For example, sending a newsletter about product updates helps retain and retarget customers who are thinking of leaving, and building a free email training course can help with user onboarding.

Viral Loops: Encouraging Customers to Share Your Product

Viral-loop marketing is a critical component of product-led growth, encouraging existing customers to spread your product with their networks. Mailchimp demonstrates this method, having grown to over 11 million active members by offering a free introductory pricing. Various strategies are effective for different products and sectors, including:

User-generated content: Encourage users to share in-app awards via social media platforms such as Fitbit and Apple Watch.

Referral incentives: Provide discounts or special perks for referring friends.

Gamification: Enable users to add and follow pals, which is useful for self-development programs such as Duolingo.

Community: Expand your pleasure and utility by interacting with more people, as seen with Slack, Dropbox, and social media networks. Dropbox users earn extra free storage as they join.

As opposed to casting a wide net, target folks who already enjoy your goods. Ideally, each user brings in two more, resulting in viral growth. But what if your audience isn’t large or engaged yet?

Make Product Design a Priority.

Substance is more important than style; your product must answer the problem for which it was built. However, style and storytelling distinguish your product. According to InVision’s design maturity model research, the top 5% of organizations benefiting from product design make significant investments in it. By doing repeated product-market fit studies and developing cross-platform strategies, these businesses save money, satisfy customers, and generate more leads than their less design-focused competitors. Aesthetics sell.

A poor user onboarding experience is a major flaw in product marketing, particularly when using a freemium model. Apps may be installed and deleted fast, reducing your user’s time-to-value. Give your design team facts, involve them in important discussions, and solicit their input on features. Invest in good onboarding to attract and keep clients.

Building Loyalty through Customer Feedback Loops.

New clients are pointless if you cannot keep them. Include customer feedback loops in your product to ensure they feel heard. These loops not only help you develop your product, but they also encourage user feedback. According to Thematic, users who felt devalued were more likely to depart than those who had delivery or service quality concerns.

Customer relationships are important, and you cannot afford to disregard them. Building feedback loops in small firms does not necessitate the purchase of pricey tools. Simple activities, such as responding to social media messages or implementing a chatbot on your website, can initiate significant conversations with users.

There are four main steps to successfully implement feedback loops:

• Collect data: Determine what customers desire.
• Learn: Understand trends and recognize prospective adjustments.
• Apply: Make improvements.
• Communicate: Notify customers about the modifications and appreciate them for their comments.

Freemium creates FOMO

When you’ve committed time, energy, and talent into creating something amazing, offering it away for free may seem paradoxical, especially if you’re on a tight budget. However, freemium models have catapulted startups such as Slack and Mailchimp to unprecedented success. Offering your product for free allows people to try it, enjoy it, and spread it, making them into your best promoters.

Freemium models are not suitable for all businesses, particularly those that need to recoup research or production costs. Depending on your business strategy, you may choose to create free additional resources or training instead. For example, Product School gives blogs, books, and podcasts.

Providing something valuable without demanding payment card information draws users into your community, establishing the relationships necessary for long-term growth. As more people use your product, interest grows among others, causing a sensation of FOMO and enticing even more consumers.

The rules of thumb for product growth

Keep Your Interactions Authentic

As a small firm or startup, you compete against well-known brands with large marketing teams and resources. Use your genuineness and distinct tale to your advantage. Customers are more likely to convert and stay loyal if they understand your “why.”

Do not obsess on your referral scheme

Focusing primarily on persuading clients to refer new customers can backfire. It implies that you care more about business than about people. Avoid asking them repeatedly to import contacts or misleading them into inviting their whole network. Instead, shift the narrative to emphasize what customers receive by referring friends to your product. Show real concern for your current consumers, or risk a high turnover rate. Prioritize meaningful relationships to generate long-term loyalty and progress.

Align Your Teams on Product-Led Growth

If you decide to pursue a product-led growth (PLG) approach, make sure that all of your teams are on board. In an interview with UserVoice, Pinterest’s Engineering Manager explained how they went from 1 million to 100 million monthly users in just four years. Prioritizing user experience over analytics, having full-stack growth teams that can execute features independently, and encouraging team communication were all crucial to their success.

With PLG, every team, from sales and marketing to technology and design, works toward the same strategy. Keeping your staff focused on your PLG strategy guarantees that your product realizes its full growth potential.

Conclusion

While developing a growth strategy is important, focusing on value is the quickest way to achieve long-term success. According to Nir Eyal, a behavioral design specialist, “Users who continually find value in a product are more likely to tell their friends about it.” A company that does not add value to its users will struggle to expand.

Your most valuable asset is not your product or service, but your user base. Prioritize their pleasure by demonstrating that you are listening and seeking ways to delight them. Satisfied consumers will help you expand by sharing their great experiences, ensuring long-term success.