Segmentation in a Product-Led Growth approach

Segmentation in a Product-Led Growth approach

Marketers today suffer from great pressure to define the public (buyer persona) to whom we are going to communicate the value proposition of the product/service that we sell since this implies the allocation of human and economic resources that must return a profit for the effort made.

Depending on the digital strategy and the stage of the funnel, there are marketers who segment for TOFU, others for MOFU and BOFU (focus a lot on performance and they have to obtain results no matter what).

Generally, this way of segmenting in that order is due to a Top-Down Funnel strategy that, in my opinion, is already in the past and has become traditional marketing.

Old Funnel

Performance marketers are more daring and segment by behavior, of course, for this you have to use tools and collect data to discover the different behaviors and affinities of users/visitors of the digital ecosystem of our product/service. 

Bottom-Up Funnel and Product-Led Growth

Product Led Growth is a methodology where the acquisition of new users, growth, conversion, and retention of the same is in charge of the product itself, it is generally focused on digital products and one of its main strategies is segmentation from a Bottom-Up Funnel approach.

The advantage of a product-led segmentation is that it already has a segment of the public that has discovered the value of the product and uses it periodically, so segmenting these users to execute an upsell approach is almost a winning strategy and brings revenue.

Many digital products that we use on a daily basis have this approach,  Spotify, product management SAAS like ASANA, ClickUp, video streamers, ZOOM…etc. We discover these products for free most of the time, and while we use them on time we figure out that we need them so in most cases we pay for them.

Then, starting to study the possibility of experimenting with segmentations from TOFU can begin to benefit your digital product/service and definitely understand your consumer more and how they are hooked on what you offer.

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