How UX Research Fuels Product-Led Growth (PLG)
The views expressed here are that of the author and do not necessarily reflect those of Paychex.
In the fast-paced world of SaaS and digital products, Product-Led Growth (PLG) has emerged as a transformative strategy.
Unlike traditional sales-led approaches, PLG puts the product at the center of user acquisition, retention, and expansion.
The idea is simple: a business inserts a product in the user’s workflow as a method to meet the user’s most important unmet needs. The hope of the business is a strong product/market fit.
If the business hasn’t conducted user research, this hope is high-risk wishful thinking.
How can a business move beyond hope to ensure a product will meet their users most important unmet needs?
UX research and design is the secret weapon to reveal authentic opportunities for new and existing products using PLG.
What is Product-Led Growth (PLG)?
PLG is a business strategy where the product is the primary driver of customer acquisition, conversion, and expansion.
PLG bypasses traditional sales and marketing, focusing on creating a product that offers instant value, enables self-service onboarding, and drives organic growth through word-of-mouth advertising. As customers’ needs grow, PLG also encourages deeper adoption of the company’s products and services.
Companies like Slack, Canva, Adobe, and Atlassian have mastered PLG, and though each has a unique approach, the common thread is their relentless focus on user experience and immediate value delivery. They understand their users deeply, and that’s where UX research comes in.
The Role of UX Research in PLG
UX research is the process of understanding user behavior, motivations, needs, and pain points through observation, user feedback, and analysis. In a PLG model, UX research isn’t just a nice-to-have — it’s a strategic necessity.
- Uncovers User Pain Points
PLG thrives when solving real problems. UX research helps identify the most important problems to solve. User interviews, surveys, usability testing, and customer workshops are only a few UX Research methods to uncover user pain points and inform design solutions. - Optimizes Onboarding
Onboarding is the make-or-break moment for PLG. If users don’t see the value of a product quickly, they’re likely to churn. UX research identifies friction points in onboarding processes. UX Designers use outcomes from user research to craft experiences leading to an “aha!” moment, the ‘felt value’ of the product faster. - Drives Retention Through Continuous Improvement
Retention is the lifeblood of PLG. UX research isn’t a one-time activity — it’s an ongoing process. By continuous quantitative and qualitative user research, new opportunities are identified to improve the product and keep users engaged.
How UX Research Informs Key PLG Metrics
PLG is a data-driven strategy, and UX research plays a critical role in shaping the metrics that matter. Here are a few key PLG metrics and how UX research contributes to them:
- Time-to-Value (TTV)
TTV measures how long it takes for a user to realize the value of a product. The shorter the TTV, the better. UX research helps identify and eliminate barriers that slow users down, ensuring they reach their “aha!” moment as quickly as possible. - Activation Rate
Activation rate measures the percentage of users who complete key actions that indicate they’re getting value from the product. UX design creates experiences that guide users toward these actions seamlessly. - Advocacy Score
The Advocacy score evaluates how willing users are to recommend a product. Distinctly different than NPS, focusing on unpredictable future behaviors, the Advocacy Score asks about actual past behaviors: “Have you recommended [name of product]?
When a customer replies “No”, a follow up question asks “What would have to be true for you to recommend [name of product]?
A positive score typically reflects the effectiveness of PLG. UX research and design help pinpoint what drives or hinders user satisfaction and advocacy.
Real-World Example: How Slack Used UX Research to Master PLG
Slack is often cited as a poster child for PLG, and for good reason. Their success isn’t just a result of building a great product — it’s a result of building a product that users love.
- Understanding User Needs
Before Slack became the go-to communication tool for teams, research was conducted to understand the pain points of remote collaboration. They discovered that email was too slow, and existing tools were too complex. This insight led them to create a product that was simple, fast, and intuitive. - Optimizing Onboarding
Slack’s onboarding process is designed to get users up and running quickly. By guiding users through key actions, like creating channels and sending messages, Slack ensures they see the value of the product right away, a key driver of PLG. - Iterating Based on Feedback
Slack doesn’t just set and forget their product. They continuously gather feedback from users and iterate on the design. When users found the search functionality confusing, Slack redesigned it to make it more intuitive. This commitment to continuous improvement has helped them retain users and drive advocacy.
Actionable Strategies to Leverage UX Research for PLG
Ready to harness the power of UX research for a PLG strategy? Here are some actionable steps to get started:
- Conduct User Interviews
Talk to users. Understand their goals, challenges, and workflows. Use these insights to inform product strategy. Include strategy-minded designers in these conversations. - Map the Customer Journey
Visualize the end-to-end user experience, from onboarding to regular use. Identify friction points and opportunities for improvement. Involve collaborative developers in these activities. - Test Early and Often
Don’t wait until launch to test a product. Test with real people outside of the organization throughout the design process, from sketches and wireframes to pre-development interactions, to catch issues early and iterate quickly. - Analyze Behavioral Data
Use analytics tools to track user behavior. Look for patterns and anomalies to inform decisions. Researchers, product owners, designers, and developers should have access to and understand how to use these tools. - Foster a Culture of Continuous Learning
UX research isn’t a one-time activity. Understanding users is a core part of the strategic process. Encourage teams to gather feedback, test hypotheses and business ideas, and iterate based on insights.
The Bottom Line
Creating great products is compelling, meaningful work. Product-Led Growth succeeds when users see a product as essential to solving their problems.
UX Research helps leaders and teams deeply understand users and design with their needs in mind, creating products that drive adoption, retention, and growth.
In a world where competition is fierce and user expectations are higher than ever, UX research is a secret weapon. It’s the key to unlocking the full potential of PLG and turning a product into a growth engine.
