93% of Survey Respondents Believe Product Teams Should Have Some Responsibility for Revenue Growth
San Francisco, CA (December 5, 2022) Today, Harvard Business Review Analytics Services released a new report sponsored by Gainsight PX, the flagship product analytics and product engagement solution from Gainsight, the platform for Durable Growth™, which reveals that businesses increasingly rely on product-led success as a capital efficient, durable growth strategy to overcome economic uncertainty.
According to the report, a whopping 93% of survey respondents say product teams should have some responsibility for contributing to an organization’s revenue growth, 81% of respondents strongly agree that a strong digital product experience positively impacts business growth, and 76% of respondents’ organizations consider delivering an effective digital product experience an “extremely high” or “high” priority.
“Product-led growth is a key driver of revenue growth and cost reduction in most of the market-leading organizations we track,” explained respondent SC Moatti, founding managing partner of Mighty Capital. “It allows a company to generate revenue without having to hire an enterprise sales force—you can imagine the economies of scale this generates.”
Despite awareness of the effectiveness of positive product experiences, companies face challenges in implementation and are seeking best practices to help them capture this opportunity for sustained revenue growth. Even though respondents understood the value of product experience, only 39% say their organization has managed to achieve greater profitability with product experience initiatives. Worse yet, just 16% strongly agree that their organization is satisfied with the digital product experience it provides, and the greatest share of respondents, 40%, rate the overall digital product experience they’re delivering as simply “good.”
“Companies need to find the through-line between customer experience and revenue if they want to make money and stay in business,” concluded respondent Jim Morris, founder of the Product Discovery Group.
To overcome challenges to adopting product-led growth, organizations are exploring a number of approaches:
- 40% of survey respondents are providing product teams with better data insights to deliver a more effective digital product experience
- 43% of survey respondents plan to increase their focus on improving workers’ knowledge of digital product experience
- 58% of respondents said they were using data analytics tools that collect product usage data specifically to understand how customers are using their digital products
- 54% of respondents are implementing user surveys, 47% are using data analytics tools that collect customer data specifically, and 43% of respondents are deploying feedback tools.
“The current market conditions accelerated the adoption of capital-efficient growth strategies where leading SaaS vendors started to leverage product-led growth, digital-led success, and online community strategies to scale their business without being bounded to high-touch resources. Using customer analytics and personalization technologies, companies are able to benefit from the economy of scale without losing the personal touch,” said Mickey Alon, Founder and CTO of Gainsight PX.
To learn more about how organizations are delivering positive product experiences, read the full report here.
Harvard Business Review Analytic Services surveyed 275 members of the Harvard Business Review audience via an online survey fielded from July to August 2022. Respondents qualified to complete the survey if their organization built digital products and if they were familiar with those products.
About Harvard Business Review Analytic Services
Harvard Business Review Analytic Services is an independent commercial research unit within Harvard Business Review Group, conducting research and comparative analysis on important management challenges and emerging business opportunities. Seeking to provide business intelligence and peer-group insight, each report is published based on the findings of original quantitative and/or qualitative research and analysis. Quantitative surveys are conducted with the HBR Advisory Council, HBR’s global research panel, and qualitative research is conducted with senior business executives and subject matter experts from within and beyond the Harvard Business Review author community. Email us at firstname.lastname@example.org.
Gainsight’s innovative platform helps companies of all sizes and industries drive durable growth through customer-led, product-led, and community-led strategies. It offers a powerful set of customer success, product experience, and community engagement solutions that together enable businesses to scale efficiently, create alignment, and put the customer at the heart of innovation. With Gainsight, it’s never been easier to drive acquisition, increase product adoption, prevent churn, and grow with renewals and expansion. Learn how leading companies such as GE Digital, SAP Concur, and Box use Gainsight at www.gainsight.com.
Vice President, Corporate and Brand Marketing