Product Led Growth vs Customer Led Growth: Is CLG the New PLG?

Read time: 3 minutes.

Welcome to the 39th edition of The Growth Elements Newsletter. Every Monday, I write an essay on growth metrics & experiments and business case studies.

Today’s piece is for 5,100+ founders, operators, and leaders from businesses like Shopify, Google, Sage, Hubspot, Servcorp, Zoho, Apollo and more.

Happy Monday!

Is CLG the New PLG?

Let’s explore the difference first:

𝐏𝐫𝐨𝐝𝐮𝐜𝐭-𝐋𝐞𝐝 𝐆𝐫𝐨𝐰𝐭𝐡 (𝐏𝐋𝐆)

► PLG is a GTM strategy that models the product as the primary growth driver.

► It emphasises optimising the user experience (UX) to attract, convert, and retain users.

𝐌𝐚𝐢𝐧 𝐏𝐢𝐥𝐥𝐚𝐫𝐬

[1] Quick Time-to-Value: Products should provide immediate value to users.

[2] Self-Service Acquisition: Users can sign up and pay online.

[3] Freemium Plans or Free Trials: Offering free access encourages trial and adoption.

[4] WOM Referrals: Users sharing positive experiences drive growth.

𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬

[1] Lower customer acquisition costs (CAC).

[2] Higher retention rates due to ongoing value delivery.

[3] Efficient revenue generation with a focus on self-service.

𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫-𝐋𝐞𝐝 𝐆𝐫𝐨𝐰𝐭𝐡 (𝐂𝐋𝐆)

► CLG relies on direct customer feedback to guide strategy and product development.

► It integrates customer insights with actual product usage data.

𝐌𝐚𝐢𝐧 𝐏𝐢𝐥𝐥𝐚𝐫𝐬

[1] Customer-Centric Approach: Prioritises understanding customer needs and pain points.

[2] Feedback-Driven Iteration: Regularly collects feedback through surveys, interviews, and interactions.

[3] Blend Quant + Qual: Combines quantitative usage data with qualitative insights.

[4] Iterative Improvements: Continuously adapts based on customer input.

𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬

[1] Deep customer understanding.

[2] Targeted product enhancements.

[3] Enhanced customer satisfaction and loyalty.

So, back to the question - Is CLG the New PLG?

► Not necessarily. CLG and PLG coexist and complement each other.

► CLG provides a more accurate understanding of customer behaviour by integrating feedback and usage data.

► PLG focuses on product-driven growth, while CLG ensures alignment with customer needs.

► Successful companies often blend both approaches to create a balanced growth strategy.

► In summary, while PLG emphasises product-centric growth, CLG ensures that growth aligns with customer expectations and experiences.

► The key lies in striking the right balance between the two.

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintan Maisuria