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1、Many B2B software companies are considering this approach without a clear understanding of the capabilities required.By Justin Murphy,Rohan Narayan,and Rishi DaveWhat It Really Takes to Develop Product-Led GrowthCopyright 2023 Bain&Company,Inc.All rights reserved.1What It Really Takes to Develop Pro

2、duct-Led GrowthAt a Glance Product-led growth,which relies on end users discovering,trying,buying,and scaling up use of a product in a self-serve manner,has caught fire in B2B software markets.Bain analysis shows that firms using this model see faster revenue growth,market share gains,and higher val

3、uations.However,the shift to product-led growth can be tricky for companies accustomed to leading with their salesforce.Getting the transition right requires capabilities across product design,packaging,digital discovery,self-guided education and support,andsurprisinglyenterprise sales to complement

4、 self-service.Five years ago,Dynatrace was in trouble.Its cloud monitoring business faced stiff competition from Datadog,a company using a product-led growth(PLG)strategy.Dynatrace revenue stayed flat from 2017 through 2018 while Datadogs nearly doubled.Dynatrace wasnt the first company to face a PL

5、G disrupter,and it wont be the last.A recent Bain&Company survey of 176 North American business-to-business software senior executives found that nearly 75%of them are concerned about competition from PLG companies.The appeal of self-servicePLG has caught fire in software markets,spurred by the succ

6、ess of companies such as Datadog,Atlassian,and Snowflake.Yet many companies still arent clear on exactly how it works or how to excel in the strategy,and many underestimate the difficulty of building the requisite capabilities.PLG focuses on enabling end users to discover,try,buy,and scale up their