G2M THEORY

Great for a base
understanding if PLG is the
right strategy for you.

1. Are you B2B or B2C?
2. Do you have a blue or red ocean
   condition?
3. Is it a top-down audience or
   bottom-up audience?

There are three G2M strategies called:

• Differentiated
• Dominant
• Disruptive

Based on the answers to the first three
questions helps narrow down what
kind of strategy works best for your
start up.

Differentiated, think Gucci. There are
thousands of hand bags, but Gucci is a
little special, a little exclusive. This
strategy works best for B2B sales led
organisations.

Dominant, think Wallmart. The
cheapest and best for the price,
available for anyone, conveniently. The
goal is to make the cheapest and best
product on the market for dominance
of the market.

Lastly, disruptive, think Slack. How did
we communicate with another before
that? Email? Slack changed work place
behaviour and created a market by
doing that. They disrupted how we do
things by showing massive benefits.
ChatGPT is another example.

PLG THEORY

Great to create a focus for
improvement and begin to
see better product traction.

• A = acquisition
• A = activation
• R = retention
• R = revenue
• R = referral

AARRR describes the product pipeline.
The customer moves through these
stages in the product. If they are
satisfied with the product experience,
they will refer the product to friends
and family - creating organic product
growth.

• What is the product’s promise to the
  customer?
• What does the customer think the
  promise is?
• Are they satisfied with the delivery
  on that promise?

Many start-ups have a difficult time
having that customer contact that
gives valuable insights to the success of
the product. Often times small tweaks
to the product will effect the perception
of the customer and upgrade their
experience.

CEOs tend to be focused on
onboarding customers and that
experience. This falls under the
activation part of the experience. There
is of course a lot of churn in those initial
stages but having all 4 steps that lead
up to referral is where scalable,
achievable, exponential growth
happens.