Product-Led Growth Introduction

As product transitions from a supporting role to lead actor, companies are transforming the way they communicate with users, nurture relationships, and understand user behavior. 

To stay ahead of the curve, innovative companies in every vertical have been transitioning away from traditional business methodologies and embracing the opportunities and challenges of product-led growth.

Part of this transition involves rethinking the user journey and the strategies teams use to affect it at every stage. To this end, leading companies have been embracing the shift from funnel to flywheel in order to fully realize the potential of product-led growth. 

We interviewed the fastest-growing B2B and B2C companies to learn and codify the commonalities in their approach. Our efforts culminated in the development of the Product-Led Growth Flywheel.

The Product-Led Growth Flywheel is a framework for growing your business by investing in a product-led user experience. In this framework, the experience is designed to generate higher user satisfaction and increased advocacy, which in turn drives compounding growth of new user acquisition.

It depicts 4 sequential user segments that correlate with stages in the user journey from awareness to evangelism—evaluator, beginner, regular, and champion—and the key actions that users need to take to graduate to the next stage—activate, adopt, adore, and advocate. 

The goal is to focus company- and team-level strategies on optimizing the user experience to move users from one stage to the next. As the rate of users completing each action increases, your flywheel will spin faster, increasing the rate that users move from one segment to the next. This creates a positive feedback loop: as more users become advocates, they drive more acquisition and growth increases exponentially.

In this playbook, we’ll walk you through how you can use the Appcues Product-Led Growth Platform to create delightful in-product experiences at every stage of the user journey to help your flywheel spin faster and generate compounding growth.