So, let’s take a look at the benefits of going hybrid.
1) Combined benefits:
Both PLG and SLG have a string of benefits that come out to play in the hybrid motion. By combining both, the cons of each of their limitations are canceled out. Clever.
Here are some of the standout benefits that a hybrid model gets to make the most of:
Benefits of PLG:
- Lower costs (CAC, internal headcount)
- Widens top of funnel (esp. with self-serve)
- Helps you scale faster without the costs
- Tighter product feedback loops
- Positive customer experience*
Benefits of SLG:
- Target niche clients and their needs
- Increase your ACV
- Easy to *show* value via sales reps
- Identify upsell and cross-sell opps
- Stay close to your customers
*Around 67% of people would expect to see a self-serve approach 👀
3) Cost-effective for a full growth strategy
Going hybrid is the most cost-effective path for maximum growth. This is especially true if you’ve gone for the ‘bottom up’ growth strategy, with a sales-led approach overlaying your product-led growth.
How does that work, we hear you ask. Well, product-led growth is where your user acquisition, conversion, retention, and expansion rely on your product, right? This can be seen in the form of freemium, free trials, self-serve options, or just great customer service and support with relevant documentation so users can just learn themselves.
With that, you save a lot of $$$ on costs like headcount in sales and support, as well as customer acquisition costs, because customers are doing it for themselves.
But it doesn’t stop there. By overlaying SLG, you can easily define your target market or customers for your sales team to make sure they’re right for your business, and you're right for them.
3) Unlock a huge total addressable market (TAM)
Taking on both self-serve and sales-assisted approaches means that you’re covering all bases: upmarket (✔️ ) and downmarket (✔️ ).
That means those with a low budget – be they SMBs or individual users – can benefit from some of the value your product has to offer, supporting your brand and business through their sheer volume. Meanwhile, your sales team can nurture and interpret the demand of select high-value targets at a strategic or enterprise account level.
4) Build your product to its full potential
Both PLG and SLG encourage collaboration with your users, but in different ways.
Product-led growth revolves around the product driving its own revenue, meaning it has to be a great product with great documentation and support to match it. That means plenty of customer data to get your hands on, and use to evolve your product and service.
With sales-led growth, the sales team gets an idea of what specific businesses are looking for as a solution. Not only can they adapt their sales pitch to highlight the most relevant propositions, but they can use this to inform new additions to or priorities in the product roadmap.
And in doing so, you’ll maximize your growth opportunity. ✨