In this captivating episode of McKinsey on Building Products, a podcast dedicated to the exploration of software product management and engineering, McKinsey partner Rikki Singh engages in a profound discussion with Robert Chatwani, the president of growth at Docusign. Chatwani's extensive career has centered around the harmonious integration of marketing and growth functions to craft more captivating products. This exploration delves deep into how to stimulate sustainable revenue growth and foster brand love through the power of product-led sales.

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Product-Led Sales as a Catalyst for Growth

Rikki Singh kicks off the conversation by asking Chatwani about his background and how it has shaped his philosophy and definition of product-led sales. Chatwani shares his journey, starting in consulting and then finding his footing in consumer marketing at eBay for over a decade. He later moved to the enterprise SaaS space at Atlassian, where he led the marketing and growth functions. Chatwani emphasizes his passion for applying the growth principles from successful consumer platforms to SaaS companies.When asked about the essence of product-leading growth, Chatwani explains that it entails driving an organization's revenue sustainably and building a brand that customers love. This leads to customer loyalty and an emotional connection with the company. Singh then inquires about the difference between product-led growth (PLG) and product-led sales (PLS). Chatwani clarifies that for traditionally sales-driven companies, PLG or PLS represents a significant shift in the go-to-market model. PLG focuses on enabling customers to convert from free to paid or expand through product experiences, while PLS utilizes data to facilitate product-centric motion and improve sales decisions.

Effective Go-to-Market Strategies for Product-Led Sales

Singh poses the question of when an organization should start considering PLG or PLS strategies. Chatwani believes that companies should pay equal attention to their go-to-market model as they do to their product strategy. Many companies focus on the product roadmap but neglect the design of the go-to-market model. This often leads to diminishing returns over time. Chatwani advocates for a forward-thinking approach, designing go-to-market mechanisms that support both current and future growth.When discussing go-to-market strategies, Chatwani highlights three approaches: direct-sales, channel or partner-centric, and digital experiences. He emphasizes the importance of thinking about the DNA of a good customer experience across all channels and bridging the experience gap between customer expectations and actual experiences. Chatwani uses examples like Apple and Airbnb to illustrate the importance of consistency and low friction in creating a great customer journey.

Key Enablers for a Product-Led Sales Approach

Singh explores the roles of marketing, sales, and product functions in the end-to-end product-led sales approach. Chatwani emphasizes that every team member should think about how to achieve their goals through collaboration. He gives an example from Atlassian, where they used product data to help sellers have better conversations with customers and optimize software usage. Chatwani also mentions other factors for success, such as a company's intrinsic culture, having multiple products for land and expand strategies, designing products for frictionless growth, and leveraging community and ecosystem.

Leveraging AI for Product-Led Sales

Singh inquires about the role of AI in product-led sales. Chatwani emphasizes that go-to-market teams have an obligation to integrate AI capabilities responsibly. AI can be used for research on prospective customers, understanding existing customer usage, and powering the digital experience. Pilot work shows significant productivity improvements when individuals are empowered with AI-driven go-to-market capabilities, freeing up human capital for more complex tasks.In conclusion, Rikki Singh summarizes the key lessons from the discussion. Growth is about driving sustainable revenue while building a beloved brand. Companies should create value for customers before capturing it, and mapping the end-to-end customer experience and closing the gap between expectations and reality is crucial. These principles apply at every level within an organization.