Low Touch Sales: The Future of Product-led Growth?

Darshan
Content
8
min read
December 26, 2023

According to the 2022 Product Benchmark report, a larger number of respondents than ever before reported having tried a freemium or free trial product. This marks their first year, where most respondents have a product-led experience.

Instead of requesting a demo, companies are trying the product for free by themselves. Does it mean there is no need to rely on a salesperson to demonstrate the product? 

Yes!

Low-touch sales models are emerging to drive growth in B2B companies. 

In contrast, high-touch sales models involve a high level of interaction between the salesperson and the potential customer. This prioritizes relationship-building and personalized interactions. 

Let’s find out how low-touch sales are the future of Product-Led Growth (PLG).

What are Low Touch Sales Models?

The low-touch sales model is the one that requires minimal sales intervention to convert a prospect to a customer. It is best suited for low-priced solutions or basic product tiers, allowing customers to self-serve their way in.

Fortnite and similar companies have generated revenue surpassing one billion dollars through a freemium model. The product can sell itself by removing any obstacles for users to experience the product's value.

These models rely heavily on automation and self-service tools. Thus, buyers can research, evaluate, and purchase products or services without speaking to a sales representative.

Low-touch sales models typically involve a more streamlined, automated approach to sales that allows businesses to scale their operations and reach a larger audience while minimizing the need for direct, high-touch sales interactions. 

What is a Low Touch Sales Funnel in B2B SaaS?

Let's look at a low-touch sales funnel in B2B SaaS. 

The low-touch sales funnel typically involves several stages, including awareness, consideration, and decision-making:

  1. In the awareness stage, potential buyers become aware of the product or service through marketing channels such as email campaigns, social media ads, or blog posts. 
  2. In the consideration stage, buyers evaluate the product or service through free trials, demos, or self-service tools. 
  3. Finally, in the decision-making stage, the buyer decides whether to make a purchase or not.

Low Touch Sales - SaaS Examples

Jamdoughnut is an excellent example of a low-touch SaaS model that has been successful in the UK's cashback app market. 

Jamdoughnut is an excellent example of a low-touch SaaS model

The platform collects and analyzes user transactions through OpenBanking APIs, providing users with personalized recommendations on saving money by buying and spending rewards within the application.

One of the critical factors in the success of Jamdoughnut's low-touch SaaS model is its focus on quick wins for users. 

As a result, users can immediately see the app's benefits by minimizing the time to value, encouraging them to continue using it, and ultimately driving growth. This is achieved through a streamlined onboarding process and clear calls-to-action that guide users through the platform.

Another critical factor in Jamdoughnut's success is its built-in referral system, which encourages existing users to refer their friends and family to the app. This not only helps to lower customer acquisition costs but also increases customer loyalty and retention.

Jamdoughnut also uses notifications and email marketing to keep users engaged with the platform, providing personalized recommendations and alerts based on their spending habits. This helps to reduce churn and increase per-user spending on the platform.

Low-touch sales models are a fascinating and innovative way to sell products and services in B2B SaaS. Using automation and self-service tools, you can offer your buyers a more streamlined and efficient buying process while freeing up their sales teams to focus on higher-value tasks. 

What are High Touch Sales Models?

High Touch Sales Models are essentially sales strategies that involve a high level of interaction and engagement between a salesperson and a potential buyer. 

This approach requires much-personalized attention and communication with the customer instead of a more automated or self-service process.

High Touch Sales Models include features such as:

  • Personalized interactions
  • Customized solutions
  • Relationship-building
  • Consultative approach
  • High level of customer service
  • Longer sales cycle
  • Higher value products

A high-touch sales model places a greater value on understanding the needs and goals of each customer and providing tailored solutions to meet those needs. By leveraging technology and employing a team-based approach, businesses can implement a high-touch sales model and drive growth through customer satisfaction and loyalty.

High Touch Sales Models are essentially sales strategies that involve a high level of interaction and engagement between a salesperson and a potential buyer.

What is a High Touch Sales Funnel in B2B SaaS?

Now, when it comes to B2B SaaS (Business-to-Business Software as a Service) companies, a High Touch Sales Funnel refers to guiding potential customers through each sales cycle stage with a hands-on, personalized approach. 

This type of sales funnel typically involves multiple touchpoints, including initial outreach, product demos, follow-up meetings, and ongoing customer support.

High Touch Sales - SaaS Examples

Reachbird is a prime example of a high-touch SaaS model that leverages personalized interactions with potential customers to drive sales. 

The influencer marketing platform has designed its onboarding process to encourage visitors to schedule time with a live person to learn more about the platform and its benefits.

The website is designed to guide visitors toward scheduling a demo, with clear calls-to-action (CTAs) encouraging them to speak with a sales representative. Once a demo is scheduled, Reachbird's sales team takes a hands-on approach to engaging potential customers, using the opportunity to showcase the platform's features and functionality and demonstrate how it can help them achieve their marketing goals.

During the demo, Reachbird's team can answer any questions potential customers might have while highlighting the platform's unique selling points and the ROI it can deliver. 

Providing a personalized experience and demonstrating the platform's value in a one-on-one setting helped Reachbird build trust and establish a strong rapport with potential customers.

High Touch Sales Models can be incredibly effective in B2B SaaS, particularly for companies that offer complex products or services requiring a more hands-on approach. 

Wondering how it differs from low-touch sales? Here’s something for you:

Low Touch SaaS vs. High Touch SaaS: What's the Difference?

Here's a table outlining the main differences between Low Touch SaaS and High Touch SaaS:

  Low Touch SaaS High Touch SaaS
Customer Support Limited or no direct human support, with a focus on FAQ Direct and personalized support, often through a dedicated rep
Onboarding Automated and streamlined Personalized and hands-on
Sales Approach Self-service model with limited human interaction Personalized approach with direct human interaction
Sales Cycle Length Shorter, with lower acquisition costs and higher volume Longer, with higher acquisition costs and lower volume
Target Market Price-sensitive, small- to mid-sized businesses Enterprise-level businesses and large accounts


Here's Jen Grant, the COO at Cube, talking about low touch and high touch customer onboarding:

What Makes Low-Touch Sales the Future of PLG?

"Three out of every four Business to Business (B2B) buyers would rather self-educate than learn about a product from a sales representative, according to Forrester."

Wes Bush, Product-Led Growth: How to Build a Product That Sells Itself

Here’s why a low-touch sales model can be the future of product-led growth:

Inclination Toward Self-Service Options

Low-touch sales models have the ability to streamline sales operations and provide buyers with a seamless, self-service buying experience. 

According to TrustRadius, buyers are strongly inclined toward self-service options, with all indicating a clear preference for them.

Automated Lead Qualification

Product-led companies that offer a freemium product are more than twice as likely to experience rapid growth (100%+ year-over-year revenue growth) compared to sales-led companies.

Automated tools help identify high-quality leads and prioritize them for follow-up by your sales reps. So, B2B customers now expect PLG strategies like the ease of use, freemium or free trial, and self-service from companies. 

Atlassian grew a low-touch sales model into an automated growth machine. Watch Jay Simons (ex-president) getting candid about it: 

Buyer Enablement Tool

The typical company would successfully persuade three users to switch to paid accounts in this freemium model. In comparison, about two users would do so without directly interacting with a sales representative.

On average, a company following this free trial strategy could convert seven users to paid accounts, with one user making the transition without any salesperson involvement.

"Many SaaS businesses strive for $0 customer acquisition cost (CAC) and yet most still end up spending a small fortune acquiring each new customer. If you want to get to $0 CAC, Product-Led Growth is the only way you're going to make it happen."

Olof Mathé, CEO, MixMax

A study by OpenView Partners in 2022 revealed that on average, a company following a free trial strategy converted 7 users to paid accounts, with 1 user making the transition without any salesperson involvement.
Source

Using buyer enablement tools such as chatbots and product demos helps educate buyers and make the purchasing process smoother, making low-touch sales models a more attractive option.

Digital-First Approach

With the retirement of baby boomers and the rise of millennials in decision-making positions, a digital-first approach to buying will become commonplace. 

According to Gartner's research, customers spend only 17% of their time meeting with potential suppliers during a purchase consideration, resulting in a decline in customer face time. Hence, virtual selling via digital channels will become more prevalent.

With the rise of digital-first buying and virtual selling becoming more prevalent, low-touch sales models that rely on self-service options will be the way of the future.

Instead of relying on traditional, high-touch sales approaches, companies are adopting a more customer-centric, product-led approach that focuses on delivering value to customers.

Lead Generation

Many organizations offer 'free trials,' which are opportunities for users to test a product. Still, they are used to gather personal information that can be utilized to pursue potential customers through sales efforts. 

Essentially, the 'free trial' serves as a disguised lead generation tactic.

The key to achieving real success with freemium product experiences and even certain trials is to provide value to users before requesting payment. 

This approach generates leads for your business and converts satisfied users into enthusiastic advocates who spread the word about your product through virality and word-of-mouth promotion. 

Ultimately, your satisfied users can become your most valuable marketing asset.

With the growing preference for self-service options and digital-first approaches, low-touch sales models are becoming the go-to strategy for businesses looking to scale their operations and reach a larger audience while minimizing the need for direct sales interactions.

Where Does Storylane Fit?

"A strong brand and social proof are no longer enough to build trust with the modern buyer. You need to let people try before they buy. The Product-Led Growth model is how you make this whole approach to doing business a reality."

Karim Zuhri, Head of Product Marketing, SafetyCulture

Ready to try a low-touch sales approach for your company? 

Storylane offers free demos to help you unleash the power of PLG. 

Companies are turning toward low-touch sales models to reach a wider audience and minimize high-touch sales interactions. 

Our no-code tool means your customers can explore and purchase your product independently without engaging with sales reps. 

And the best part? 

In just a matter of minutes, you can create dynamic and engaging product demos that will capture your target audience's attention. 

Let your potential customers experience the value your product offers. Schedule a free demo with us, if you haven't already :)

A takeaway sheet that tries to answer if low touch sales is the future of product led growth
"Previously, there was scope for error and we’ve gone from a process that could be time consuming and painful to a process that’s super quick."
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"Previously, there was scope for error and we’ve gone from a process that could be time consuming and painful to a process that’s super quick."
—CHRIS LANCASTER, SUPPLY CHAIN PROJECT

"Previously, there was scope for error and we’ve gone from a process that could be time consuming and painful to a process that’s super quick."

—CHRIS LANCASTER, SUPPLY CHAIN PROJECT

Stay ahead of the sandbox curve with a superior demo environment
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Stay ahead of the sandbox curve with a superior demo environment
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