Evaluate a product-led strategy for SaaS
1. Analyze your available customer base for size, connectivity, and self-reliance.
A large, socially connected customer base will help self-promote a good free-trial/freemium product. Buyers who would rather self-educate than learn about a product from a sales representative are best approached with a product-led strategy.
2. Analyze the strength of your user interface and user experience.
A product-led strategy relies on people onboarding themselves, and this requires an intuitive user experience.
3. Compare your potential customer acquisition cost to the cost of activating free trial or freemium users.
If you have a small CAC budget, a product-led strategy can delay the time and cost.
4. Evaluate the market conditions and amount of competition present in your industry.
5. Analyze the scalability and upgrade potential of your product.
A product-led strategy works well if you can restrict or limit product features.
6. Consider your team size and location.
A product with a self-service approach only needs a small team. A product-led strategy does not require a global sales team, and onboarding improvements can be made from anywhere to anyone.
7. Analyze your business and industry churn rates.
High churn in your business model is a potential danger for a product-led approach.