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Estd 4.22.2023
Below is an answer based on the insights and frameworks outlined in our pricing strategy book, Price to Scale:
Direct Answer
Even in a product-led growth (PLG) model, sales teams have an important role—especially when it comes to upselling larger or more complex accounts. While many PLG companies start with a self-serve upgrade process, as customer needs grow (particularly in bigger organizations), a role emerges for dedicated sales teams (often called account managers or “farmers”) to help drive meaningful revenue expansion.
Supporting Details from Price to Scale
- Our book highlights that in larger organizations, you’ll see account managers who complement the self-service upsell process. Their role is to nurture growing customers and tailor upsell efforts that might not be as effective in an entirely self-serve system.
- It’s noted that upsells often occur naturally as customers’ needs increase. However, for larger accounts, the process benefits from the nuanced support of a dedicated sales team that can negotiate packages, handle custom requests, and manage more sophisticated pricing considerations.
- The book cautions against forcing upgrades or overly rigid tier structures—whether they are handled by self-serve tools or by sales. Instead, the idea is to design tiered packages that facilitate a natural and gradual shift in customer commitment.
Practical Application
- Early-stage PLG companies might operate mainly on a self-serve model to drive rapid adoption, but as the customer base grows and enterprise accounts enter the picture, integrating sales teams can help capture additional revenue through upsells.
- This hybrid model allows companies to leverage self-service for broad adoption while using sales teams for targeted, complex upsell situations that require deeper engagement, customized negotiations, or enhanced service levels.
Summary
In summary, while a pure PLG approach initially emphasizes self-service, as your customer accounts grow in complexity and size, incorporating sales teams to facilitate upsells is a strategic move. This balanced approach leverages the natural progression of customer needs while ensuring that larger, more demanding accounts receive the tailored attention they deserve—as advised in Price to Scale.