For example, Dropbox revolutionized file sharing by allowing users to store files for free and easily share them. After experiencing its seamless functionality first-hand, users were more likely to upgrade to paid plans when they needed additional storage. The product itself became a top selling tool.
When users find value in a product, they become advocates. The smoother the onboarding and user journey, the more custom users will be willing to adopt and recommend the product.
With intuitive drag-and-drop design features, Canva lets users create stunning graphics without any prior design experience. This ease of use enhances the overall experience, leading satisfied users to share the platform with colleagues and friends.
Data is the foundation of product guatemala mobile phone number-based selling. Companies can track user interactions with a product to gain insight into customer behavior.
For example,
Zoom uses user data to identify features
that increase engagement and retention. By analyzing which features are most popular, they can prioritize improvements and adjust marketing efforts to emphasize those aspects.
With these principles – product-driven engagement, custom experiences, and data insights – PLS redefines the sales process to be scalable and adaptive to modern shopper preferences.
How Product-Based Selling Works
Rules
sales funnel
in product performance-based selling differs from traditional models. Instead of a linear funnel that starts with marketing-qualified leads that eventually end up in a sales funnel, it serves as a dynamic, product-based journey.
Users progress through initial product experiences such as free trials or Free Plans, engaging with the product at their own pace.
This natural progression generates engagement data that helps qualify users based on product interactions, rather than relying solely on marketing or demographic criteria.
Key metrics to track in this approach include:
Product qualified leads (PQLs) : Identifying users who are highly engaged and likely to convert based on their use of your product
Feature Adoption Rate : Measure how effectively users leverage key features to assess product value realization
Time-to-Value (TTV) : Tracking how quickly users achieve their first significant result using a product
Customer Lifetime Value (CLTV) : Assess the long-term revenue potential of your users to prioritize high-value opportunities
All of this helps sales teams determine when and how to engage.
Case Study: ClickUp Product-Based Sales Approach
ClickUp’s growth illustrates the power of product-based selling in a competitive landscape. Founded in 2017 as a productivity and project management platform, ClickUp quickly identified and leveraged a natural product-market fit in the project management space, growing to an impressive $20 million in annualized revenue (ARR) in two years .
Key to this growth was ClickUp’s strategy of allowing users to experience the product first-hand through a freemium model before upgrading to paid plans. This strategy effectively increased conversion rates as users became “hooked” on the platform’s capabilities. This approach helped ClickUp attract over 4 million users and 85,000 custom customers, solidifying its presence despite stiff competition. ClickUp also encourages users to share their insights and suggestions, allowing the team to gather feedback seamlessly.
By addressing user-reported issues and refining features based on real-world input, ClickUp continually improves the user experience, streamlines the onboarding process, and adapts its offerings to better meet customer needs.
Product Performance S
