It’s probably no secret that Product-Led Growth is one of today’s most commonly discussed concepts in technology and finance. And for good reason. This industry is growing exponentially – especially in the FinTech sector.
According to Vantage Market Research, the global FinTech market is expected to reach $332.5 billion by the year 2028 with an expected Compound Annual Growth Rate (CAGR) of 19.8%. Now that’s some serious growth.
Building a product-led growth strategy in the payments and FinTech ecosystem can be an effective means of growing your business. Instead of relying on conventional sales, the product itself does the selling. Users will continue to purchase your product based on these product-led aspects, such as its features, accessibility, and ease of use.
So, how exactly can you make sure you’re optimizing your FinTech product for long-term customer loyalty?
We know it’s a lot to take in, but don’t worry! We’ll summarize the importance of product-led growth in the FinTech industry as well as some best practices for you to follow. Let’s go!
In this article, you can expect to find:
- Checklist for product success in the FinTech industry
- Best product-led FinTech industry leaders
- FinTech as a product-led industry
Checklist for product success in the FinTech industry
Profitability and product success is one of the biggest challenges for FinTech startups. There is no doubt that growing a company under new technology and solving financial problems is hard. Based on the World FinTech Focus Report 2020, only 6% of financial services are profitable. But there are some strategies that will help you build a successful platform. Now let’s dig deep!
Seamless customer experience
Let’s be honest, we are all becoming lazier, so we need to make the minimum effort to reap maximum benefits. This is why customers want easy and fast solutions. As a result, a proactive and versatile customer service approach improves time to value and builds brand ambassadors.
A good example is Paypal. They have a web application that manages all of the user’s payments and a customer service center where you can get live support and complete surveys about the product and its features. Pretty neat.
Any user can find onboarding FinTech products challenging! A good strategy is to boost your brand loyalty with product flows, A/B testing, and NPS by prioritizing your onboarding. Provide them with a simple life! With an onboarding tool kit, your customers can pinpoint where they find it difficult to interact with your product, and you can use those suggestions and improve your onboarding process.
Engagement, always engagement
Engagement is essential! Highly engaged users are likelier to try, buy, or share feedback about your products or services. You can even segment your users based on the way they behave and interact with your product, and provide personalized content to optimize engagement and retention. After all, everyone likes to feel special.
Having good engagement can:
- Convert your customers from free to paid
- Create a more personalized experience based on their needs and usage patterns
- Allow your customers to trust your product, ergo creating product evangelists
Solve a real problem!
That’s a basic one! Your product needs to solve a real and tangible problem. A good example of this is Square. You may have heard “Cash only” in the past years more than once. If you’re no longer doing it, thank Square. The company is a payments platform aimed at small and medium businesses that offer a POS system that allows them to accept credit card payments using an iPad as a point of sale.
Free trial for all
Honestly, we all love free trials and getting things for free. Product-led growth works best when individuals can try out a product over a period of time. Doing this shows how your product works, and any user can see if it’s suitable for their work. Also, you can receive their feedback and make improvements based on real customers’ opinions.
Best product-led FinTech industry leaders
Companies in the FinTech ecosystem are learning a lot from the product-led growth (PLG) methodology, and some of them are doing great, really great. Those finance companies have built a community around their products and users, creating a unique experience. Let’s now have a look at the PLG FinTech leaders!
Stripe is developer-oriented commerce that helps small and large companies accept web and mobile payments. The company combines economic infrastructure with applications for new business models like crowdfunding and marketplaces, fraud prevention, analytics, and more.
They also help companies beat fraud, send invoices, issue virtual and physical cards, get financing and manage business spending. It’s super easy to use and includes an excellent onboarding process as well as “Stripe sessions” – a personalized conference space where users can find talks about interesting FinTech subjects. It is one of the best examples of PLG finance products, as Stripe’s target user audience was developers who tested out the Stripe API-based product.
Marqueta is another excellent example. It is a card issuing platform that provides infrastructure and tools to help companies build and manage payment programs. It also allows customers to build more configurable and flexible payment experiences, accelerating product development and democratizing access to card issuing technology. In Marqueta, they emphasize and incentivize customer referrals, focus on building communities of followers, offer support for self-onboarding and offer free trial periods.
Modulr is a FinTech company that provides Payments as a Service API for digital businesses. It enables users to automate payment flows, embed payments into the platform, and build new payment products and services from a single API. Modulr has direct access to the Bank of England and claims to facilitate a fast experience that digital customers demand.
Another payments startup, Curve, merges all bank cards into one smart card. It offers consumers a variety of benefits including fee-free abroad spending, instant notifications, categorization of spending, and earning rewards from places like Amazon, Uber, and Netflix. With Curve, users are able to bring your money together and take control of their financial lives in the easiest way possible.
As you can see, these FinTech companies have successfully implemented a Product-Led Growth strategy. It’s possible, and it’s profitable.
In fact, a lot of these elements that the above industry leaders excel in are features that FROGED offers as an all-in-one solution. Like Stripe, you can optimize your onboarding process with intelligent Product Flows and A/B testing. What’s more, you can integrate your product with over 2k integrations like Slack, WhatsApp, Jira, Google Meet, to create an omnichannel of customer support. To explore our entire list of features, book a free demo.
FinTech as a product-led industry
Technology is one of the sectors that constantly evolve nowadays. This is why FinTech companies are continually innovating and changing to create better solutions, payment methods, and ways to manage payments and finance using the new technologies that are coming out.
In conclusion, FinTech companies are now developing PLG roadmaps and shifting their focus from the buyer to the end-user, emphasizing the customer experience, satisfaction, and retention.
What are you waiting for? Don’t miss out on becoming PLG by following in the footsteps of others!
Want to be fed more product-led? Check out our post on How FROGED promotes Product-Led Growth!