2023: The State of Product-Led Sales
Product-led sales is a rapidly growing approach to modern B2B sales where the product takes a central role in driving customer acquisition. By focusing on an accessible self-serve model and an intuitive end user experience, a product's inherent value propels the sales process forward.
How are organizations implementing this approach and marrying it with the traditional sales led motions?
One minute insights:
Almost all respondents report their GTM strategy as product-led, with a sales team
The most common pricing structure for new customers is seat-based
To support a product-led strategy, a majority of respondents report their organization will hire sales, marketing and product talent in 2023
Average revenue per customer is the most selected metric that organizations track
Most organizations are knitting product-led motions with traditional sales teams, collaborating with vendors and expanding teams to support their growth strategy
The majority of respondents (87%) describe their GTM strategy as product-led, with a sales team.
Which of the following best describes your go-to-market strategy?
n = 79
Note: May not add up to 100% due to rounding
When asked if their organization has invested in a product-led sales solution, 89% of sales leaders report partnering with a vendor (73%) or building one internally (16%).
organization has invested in a product-led sales solution, 89% of Has your organization invested in a dedicated product-led sales solution or platform?
At least half of respondents report that their sales team manages interactions with inbound leads (86%), manages interactions with MQLs (78%) and manages interac- tions with PQLs (54%).
What functions does your sales team perform? Select all that apply.
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Question: What is the most effective tactic or strategy your organization employs as part of its product-led sales strategy?
It's all about driving demos. PQL, MQL, SQL are all about getting to that first demo. We don't offer up a free glimpse into the system until the demo has been presented. When that demo is presented, then the QL's get a POC they can evaluate.
Is your organization planning on hiring in any of the following departments in 2023 to support a product-led sales strategy? Select all that apply.
To support a product-led sales strategy, 75% of respondents report that their organization is planning to hire more sales talent in 2023. 63% report their organization is planning to hire in product.
CEO or Founder 7% | CRO or Head of Sales/Growth 4%
raises their hand, while freemium and seat-based plans For a majority, the sales process begins when a prospect are most commonly offered
Most commonly, customers have the first interaction with a human only after reaching out to ask for more information/speak with someone (61%).
At what point will your customer or user have their first interaction with a human in your organization?
Question: What is the most effective tactic or strategy your organization employs as part of its product-led sales strategy?
Our move to a product-led sales strategy starts with the product itself. We are currently creating a new version of the product which will be easier to install, set up, and use so that prospect[s] can engage with the product much earlier in the sales cycle.
The initial customer or user interaction with our product can best be described as:
33% of respondents say the initial user interaction with their product can best be described as a combination of freemium or a free trial (38%). 33% offer just freemium.
n = 79
Note: May not add up to 100% due to rounding
Question: What is the most effective tactic or strategy your organization employs as part of its product-led sales strategy?
We constantly track user analytics during trials to see how they interact with our product and identify pain points.
Once a customer begins paying, the most common pricing structure is seat-based (39%).
begins paying, the most common pricing structure is seat-based (39%). first interaction with a human in your organization? At what point will your customer or user have their
Note: May not add up to 100% due to rounding
Many traditional B2B sales metrics still crucial for evaluating product-led growth
The three most commonly selected metrics that respondents’ organizations track are average revenue per customer (67%), customer churn (66%) and expansion revenue/expansion MRR (58%).
Which of the following product metrics does your team or organization track? Select all that apply.
Net Promoter Score 30% | Feature adoption rate 27% | Free trial conversion rate 24% | User acquisition cost 24% | PQLs 11% | Other <1%
n = 79
Other: “Performance/Value per Watt”
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Respondent Breakdown
Note: May not add up to 100% due to rounding
Respondents: 79 sales directors, VPs, and C Level executives