Igniting Startup Success with Key Lessons from T-Hub's Lab32 Cohort on PLG and SLG

What we learned from conducting GTM Cohort session with T-Hub Backed Startups

Welcome to our blog post about our recent session at T-Hub's Lab32 Cohort, where we had the opportunity to discuss Product-Led Growth (PLG) and Sales-Led Growth (SLG) strategies. ThriveStack was invited to share expertise with startups participating in Lab32, a program known for its focus on helping startups refine their market strategies and product-market fit. More about Lab32 can be found here: T-Hub’s Lab32 Program.

Our session was more than just a presentation; it was a two-way conversation with some of the brightest minds in the startup community. We talked about PLG and SLG, but what stood out were the insightful questions from the participants. This blog post is about what we learned from this interaction. It's a collection of real questions from startups and our thoughts on them, reflecting the practical concerns and strategies considered essential by emerging entrepreneurs.

We hope that by sharing these questions and our responses, we can spread the knowledge and insights beyond the session. This is a peek into the entrepreneurial mindset of the Lab32 cohort and their approach to growth.

Let's get into the questions and what we all learned from them.

1. Question about SaaS-Led Marketplaces:

   • Question Asked: "How to calculate customer retention and increase product-led growth in a SaaS-led marketplace like 99 acres, where property owners often find their properties vacant despite paying a subscription?"​​

   • Response Given: The response highlighted the challenge of managing customer expectations and retention in two-sided marketplaces like 99 acres, which cater to both buyers and sellers. The focus was on differentiating between Net Revenue Retention (NRR) for different customer segments.

   • Insight Gained: For SaaS marketplaces, it's crucial to understand and manage different customer segments' expectations and retention metrics separately, especially in two-sided marketplaces.

2. Question on Combining PLG and SLG for Enterprise Analytics:

   • Question Asked: "For an enterprise analytics startup, is it better to start with SLG and then transition to PLG?"​​

   • Response Given: The response included a discussion about investing in self-service products, whether user-led or partner-led, and mentioned that realizing value in revenue metrics typically takes three to four quarters.

   • Insight Gained: Startups, especially in enterprise analytics, might find it beneficial to begin with an SLG approach for initial trials and customer acquisition, then gradually build a path towards adopting a PLG model.

3. Experience Sharing on Partner-Driven Sales Approach:

   • Question Asked: "What is the experience of using a partner-driven sales approach in an augmented analytics platform?"​​

   • Response Given: The participant shared their experience of using a partner-driven sales approach, discussing the trade-off between spending time on building partner relationships versus direct customer engagement.

   • Insight Gained: For product companies, especially in niche domains, choosing between a partner-driven approach and direct customer engagement depends on the company's strategy and resource allocation. Time, being a crucial asset, plays a significant role in this decision-making process.

4. Question on PLG in the Cybersecurity Space:

   • Question Asked: "How does the PLG model fit in the cybersecurity space, especially for platforms that intentionally do not enable sign-up due to data privacy concerns?"​​

   • Response Given: The response addressed the role of the product team in shaping the customer experience and using product usage as an indicator for sales in the context of PLG.

   • Insight Gained: In cybersecurity and similar domains, where data privacy is crucial, the product team's role in crafting a secure yet accessible user experience becomes even more significant, balancing ease of use with privacy concerns.

5. Question on Product Team’s Role in PLG and SLG:

   • Question Asked: "What is the product team's focus in both PLG and SLG models, particularly in terms of user activation and engagement?"​​

   • Response Given: The discussion highlighted that in PLG, the product team is primarily responsible for user activation and engagement, necessitating R&D investments directly within the product.

   • Insight Gained: The product team plays a pivotal role in PLG, focusing on activating and engaging users, which is a shift from traditional sales-led approaches where marketing leads sign-up efforts.

6. Question on Relevance of PLG and SLG Over Time:

   • Question Asked: "What is the relevance of PLG and SLG for startups in a timeframe of six months to a year?"​​

   • Response Given: The response included an interactive discussion about the importance and implementation of PLG in the cybersecurity domain, particularly in selling to developers and security teams.

   • Insight Gained: The relevance of PLG and SLG strategies can evolve over time, with startups needing to assess their suitability based on market, product type, and target audience, particularly in specialized domains like cybersecurity.

7. Question on User Experience without Sign-Up:

   • Question Asked: "How to manage user experience in a portal where the sign-up option is intentionally not provided?"​​

   • Response Given: The response proposed multiple options for enabling user experience without a direct sign-up, such as in-place demos or gated trials, still emphasizing the importance of some form of user engagement.

   • Insight Gained: For platforms where direct sign-up is not feasible, alternative methods of user engagement and experience, like demos or gated trials, are essential to maintain user interest and provide a taste of the product.

Reflecting on Key Learnings from Our T-Hub Lab32 Session

As we wrap up our recap of the T-Hub Lab32 session, it's clear that the journey of understanding and implementing PLG and SLG is both complex and dynamic. The variety of questions asked by the participating startups not only demonstrates the depth of their curiosity but also reflects the diverse challenges they face in today's competitive market.

The session with the Lab32 cohort has been a mutually enriching experience. We at ThriveStack are thrilled to have engaged with such an insightful group of entrepreneurs. Their questions not only allowed us to share our knowledge but also helped us gain new perspectives on PLG and SLG strategies.

We hope this blog post helps other startups and entrepreneurs navigate their own growth journeys. Remember, the right strategy can make a significant difference in your startup’s journey towards success.

Looking Forward: At ThriveStack, we're committed to continuing these meaningful exchanges and supporting the startup ecosystem. We're excited for more such opportunities to interact, learn, and grow together.

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We're kick-starting our very first cohort in Jan 2024, designed to supercharge your startup's growth. Here's a sneak peek at what you'll gain:

• Self-Serve Setup: Equip your product with a self-serve feature in a dev environment, empowering users to explore and use your product independently.

• Enhanced Activation Metrics: Understand who’s signing up and logging in to sharpen your activation strategies.

• Basic PLG Analysis: Get a grip on essential Product-Led Growth metrics like user acquisition and retention.

• In-depth KYC: Post-ThriveStack enrichment, you'll have a richer understanding of your users and customers.

Excited about these prospects? Fill in the form here and we'll circle back to you soon!