Product-Led Growth (PLG) strategies often hinge on identifying and nurturing the most profitable customers. At TrustCloud, we discovered that profitability wasn't just about size—it was about urgency and strategic alignment. Here's how we navigated this challenge and the insights we gained along the way.

Identifying High-Potential Customers

Understanding Business Requirements

Our approach to finding profitable customers centered on identifying those who needed multiple compliance frameworks to serve diverse client industries. For instance, a SaaS technology startup might require:

• SOC 2 for American clients

• ISO 27001 for European clients

• HIPAA for healthcare clients

• GDPR for data protection compliance

The Power of Discovery Calls

Even in a PLG model, we found immense value in conducting "superhuman onboarding calls"—30-minute discovery sessions that provided crucial insights into customer needs and urgency.

The Urgency Factor

While our onboarding flow allowed customers to select multiple frameworks, we noticed a critical factor: urgency. Customers often hesitated, unsure about future needs. Our calls revealed that profitability wasn't just about which frameworks they needed, but how soon they needed them.

How soon do they want to close new enterprise clients using these additional framework requirements? To find profitable customers, we prioritize giving them education and checking in "hey, do you need more frameworks?"

Nurturing Existing Customers

To maximize profitability from our existing customer base, we employed several strategies:

1. Continuous Education: We regularly shared use cases and success stories to showcase the potential of additional frameworks.

2. Lifecycle Marketing: We implemented top-of-funnel awareness campaigns about closing new enterprise client types with specific frameworks.

3. Monitoring Usage Patterns: Our BI dashboards helped identify customers exploring advanced features or hand raising on paywalls, signaling potential upsell opportunities.

Key Profitability Indicators

Contrary to initial assumptions, we found that the largest companies weren't necessarily the most profitable. Instead, profitability correlated strongly with:

1. Urgent Needs: Small companies locking in enterprise clients often had more pressing compliance requirements.

2. Strategic Expansion Plans: Companies looking to diversify their client base or enter new markets showed higher profitability potential.

3. Growth Stage: Understanding where a company was in its scaling journey proved crucial in predicting profitability.

As oppose to "larger" companies but they just needed one framework to acquire their only persona type.

Lessons Learned

1. Beyond Features: Profitability in PLG isn't just about selling solutions; it's about aligning with the customer's growth journey.

2. Sensitive Information: While we attempted to gather data on client ACVs and pricing, customers were hesitant. This remains an area for future exploration.

3. Customized Approach: Bundle deals and personalized outreach based on usage patterns and business needs proved effective in maximizing customer value.

In conclusion, our experience demonstrates that in the PLG model, profitability is deeply tied to understanding and aligning with the customer's strategic goals and immediate needs. By focusing on urgency, education, and tailored solutions, we were able to identify and nurture our most valuable customers effectively.

This week I am writing about Post-Sales and Product Led Growth

1. Get those G2 Reviews! 🤩

2. Find more upsells with this post-sales playbook 🤑

3. Understand reasons why customers churn: 5 Churn analysis and methods 😵‍💫

I write daily*** about my learning on launching and leading PLG. Feel free to subscribe.

I am Gary Yau Chan. 3x Head of Growth. Product Growth specialist. 26x hackathon winner. I write about #PLG and #BuildInPublic. Please follow me on LinkedIn, or read about what you can hire me for on my Notion page.