Unlock the Secrets of AI-native Product Growth
Background of Copy.ai
Rikki Singh asks Paul Yacoubian about his background. Paul started as a CPA, then worked in the hedge fund industry investing in SaaS companies. After that, he joined a family tech start-up and later ventured into starting Copy.ai. The company offers a go-to-market AI platform, starting with marketing and sales use cases and now including workflow-based automation.It's crucial from a PLG standpoint to eliminate friction through the product. Paul emphasizes this throughout his journey, learning from different go-to-market motions and strategies.
Target Customers and PLG
Rikki Singh inquires about the target customers, and Paul replies that it's typically chief revenue or marketing officers in B2B companies. His past experiences have shaped his thinking on PLG, teaching him to recognize what works in different situations and structure teams for growth.For example, ServiceNow's land-and-expand motion and SKU-based development have been successful. In the generative AI world, data is key, but many companies face challenges in procuring and using it. Copy.ai uses a bundling approach to reduce customer friction.
PLG Approach and Goals
Rikki Singh asks how reducing friction and driving sustainable growth shape Copy.ai's PLG approach. Paul explains that they started by identifying who buys words (marketers) and replicating best practices with generative AI.They focused on onboarding to get new users to activation moments quickly and obtain feedback. Running net promoter score surveys and asking qualitative feedback have been crucial. They also saw word-of-mouth growth through free products and onboarding surveys.
Monetization and Packaging
Discussing monetization and packaging, Paul notes that traditional freemium models have a 1%-5% user base monetization rate. In the enterprise world, compound start-up products start with a few use cases.Copy.ai prefers a packaging approach where customers know what they're getting. As they transition to sales-led, they need a good understanding of customer needs and pain points.
Organizational Enablers for PLG
Start-ups need an experimentation mindset and a quantifiable system. At Copy.ai, they don't have a designated growth PM but have had growth PM hats at different times.For a Fortune 500 company, delivering $10 million in value requires a strategic conversation. Customer segmentation is important, focusing on product managers and marketing personas.
Scaling Businesses with AI
When scaling businesses around PLG, Paul advises keeping an open mind and knowing oneself. Building too vertically or horizontally can limit growth.Think about the motivation and vision for the product. Don't focus on current ARR or giving customers unwanted products. Find the right middle ground to grow and solve customer problems.