We aim for every company that builds software to be using PostHog.
- The open source platform is designed to be installed by a developer when they start a new project, before a Product Team is in place. There is no competition at this stage.
- The open source platform is also well suited to adoption in an existing startup, midmarket or enterprise customer as it has no information security and no vendor risk management requirements. We are much lower friction.
- Providing self-hosted capabilities means we have complete flexibility over how we charge customers. This means we can align with higher volume customers.
It is key that we don't see companies grow out of PostHog over time.
The more PostHog can become part of our customers' infrastructure, the better.
The ways to achieve this are (i) by becoming a data store (ii) by ensuring extensibility through integrating with other tools and (iii) by the breadth of users powered by the tool in the clients that adopt us.
PostHog already generates a large volume of data about customers and their behavior. However, in the market, there are many tools that already capture user data and event data so there seems little point in competing there.
However, PostHog is positioned to store analytics metadata as objects for use throughout the organization. For example:
- Engaged users (upsells)
- Users who have signed in (page layout)
- Users who have visited certain pages, not others (remarketing)
- Users who have used certain functionality, but not others (onboarding experience)
- New trends in events (is the app behaving as expected)
Product-led growth is an early trend that currently is taking place in marketing and some product teams. Within startups, this is often viewed as a key part of the strategy, and that will eventually feed through to most software companies. Many of the world's most succesful companies have taken such an approach:
This means that the way users interact with products will eventually become the key focus of not just Product teams, but also Engineering, Sales, and Marketing.
In the short run, bringing analytics data into the tools that engineers use, allows them to understand the impact of their work.
In the longer run, PostHog data can be pushed into other tools, such as email marketing software or Salesforce, to drive those teams.
PostHog can become a more valuable tool if more teams are using it in their day to day work.
In the product analytics market, all the existing tools are targeted at product teams.
PostHog started by building features that product teams will need, in a way that is easier for engineers to implement.
This is why we are now focussed on building features specifically for engineers to use.