How are Growth Teams Designed in Product Growth-Led Online Businesses?
So far, we have explored different organizational structures and their evolution, focusing on how online businesses can optimize their growth team designs around generalists and specialists. We've seen how org structures evolve in response to the unique demands of various business stages.
Next, over the upcoming three concepts, we will look at how these structures operate in businesses with distinct growth drivers, starting with product-led growth.
Let's see how growth teams are designed in technology-driven and business-to-business (B2B) companies where product innovation drives business success.
Focus of Growth Teams Based on Business Model:
Each growth team has a natural lean towards the most crucial aspect of their business model. In technology platforms, B2B companies, and media-tech companies, where the product itself is key to gaining and retaining customers, a product-led growth strategy is often more likely than other modes of user acquisition.
Example: A SaaS platform may focus primarily on creating free, useful tools that generate interest and capture leads, rather than rely primarily on performance marketing.
Lean Towards Product Functions in Product-Growth Led Models:
In environments where product innovation is the main growth lever, the composition of the growth team often starts with a strong lean towards product development roles. This includes roles such as product managers, UX/UI designers, and developers, who are crucial for continuously refining the product to adapt to user preferences and emerging market trends.
Example: In a B2B tech company, early crucial hires might include a product manager with expertise in user analytics and a UX designer skilled in crafting engaging interfaces.
Product-Led Growth Example in a Tech Company:
Consider a tech company that develops customer relationship management (CRM) software. To drive product-led growth, the company could introduce free tools for marketers, such as a free email campaign builder or a social media scheduling tool. These tools attract marketers to the platform, allowing them to experience the product's value firsthand.
Once marketers see the utility of these free tools, they are more likely to explore the full CRM solution. This can include features like automated user data segmentation based on engagement levels, which helps marketing teams execute targeted campaigns more effectively. These growth-oriented features directly impact conversion rates and customer retention, driving the business’s overall growth.
By aligning product development with user needs, the company ensures that its product-led growth strategy remains effective and customer-focused.
Takeaway:
Growth teams in product growth-led businesses are essential for using product innovation as the primary driver of customer acquisition and retention.
Such teams, focused on product innovation, include roles like product managers and UX designers who refine the product based on user feedback, driving customer acquisition and retention through improved user experience.