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Growth Engines: Channel Led Growth and difference between Customer Led Growth vs Outcome Led Growth

  1. What is Channel Led Growth ?
  2. Is it fair to say the customer led growth focuses on the WHATs (wants) of the customer and the outcome led growth focuses on the WHYs of the customer wants ? What are the other differences ?

Comments

  • Anyone ? Any Insights ?

  • CarlosAlves
    CarlosAlves Sr. Product Manager TSIA Administrator, Moderator, Founding Member | admin

    Hi! That is an excellent question. I don't have a formal definition for this, but people are talking about Customer Led Growth, Product Led Growth, and Partner Led Growth...

    To your questions:

    1. Growing with Partners enables them to serve the end customers better. Partners may lead the way.
    2. I think the focus is always on WHY: "why do customers need this?". Then this conversation must lead to understanding business goals and challenges, so Partner can help them reach business outcomes. Providers must feed their Partners with programs to enable these capabilities.

    Think about the change from resellers to strategic partners.

    TSIA's XaaS Channel Optimization Research Practice works on corporate data about investing in the Paecosystemssystem to serve the end customers better.

    These blog entries can help pave the way: https://www.tsia.com/blog/what-is-product-led-growth, https://www.tsia.com/blog/enabling-channel-partners-to-thrive-in-the-laer-engagement-model

    @Anne McClelland , @JaredRaftery , any thoughts?

  • JaredRaftery
    JaredRaftery Director, XaaS Channel Optimization Research Member | Enthusiast ✭

    Growth rates are a lagging indicator of company health. Channel-led growth, customer-led growth, and outcome-led growth attempt to clarify how the company is growing.

    Channel-led growth is a function of a company's go-to-market strategy (direct vs. indirect) and represents how much revenue growth is driven by channel partners. On the other hand, customer-led growth vs. outcome-led growth seem to be subsets of the Product-led growth (PLG). The blog referenced earlier written by @LauraFay outlines this relatively new industry term.

    It is worth noting that in a CapEx business model, growth rates often represent the increase in sales revenue from one fiscal year to the next; however, in an annual recurring revenue (ARR) business model, growth rates SHOULD include other metrics such as: churn, expand (upsell/cross-sell), and renewals. ARR growth rates (whether they be channel-led, customer-led, or outcome-led) that only measure sales revenue may misrepresent company health.