The go-to-market (GTM) strategy you choose for your company impacts its success.
The hybrid sales model is a unique approach that combines elements of both self-serve and sales-led models, striking a balance between automation and human interaction. This often provides customers with the best of both worlds.
The question arises: Is the hybrid strategy the right fit for your company?
It's essential to weigh the pros and cons of three GTM strategies: self-serve, sales-driven, and hybrid sales model. By understanding the advantages and challenges of each approach, you can make an informed decision that aligns with your growth objectives and user needs.
In this article, I delve into the finer details of the SaaS self-serve model with a focus on the role of sales, offering tips for getting started, and providing insights on when it makes sense to consider a hybrid sales model.
Definition of the Hybrid Sales Model
The hybrid sales model is a unique approach combining self-service and traditional sales elements. It balances using automated processes and involving human interaction to give customers the best of both worlds.
Today's buyers want sales experiences that are convenient, efficient, and customized to their needs. They like the choice to help themselves when they have simple questions or are just starting their buying journey. But they also want to talk to a salesperson when they need more help or have complicated requirements.
The hybrid sales model adapts to these preferences. It offers flexibility to customers, allowing them to pick between self-service and talking to a sales rep, depending on what suits them best.
Simply put, it's about blending self-service and human-assisted sales to meet customer expectations in the modern marketplace.
The Evolution of Sales Models
The world is shifting from traditional sales-driven approaches to the more contemporary self-serve models. These changes reflect the ever-changing landscape of customer preferences and the dynamic nature of e-commerce.
Traditional Sales Model
The traditional sales model has a dedicated team of sales professionals to engage potential customers, educate them about products or services, and close deals.
A classic example is a high-end luxury car dealership where the car sales talk up interested buyers with special car features and offer to go on a test drive. The salesperson and customer relationship plays a vital role in purchasing.
Self-Serve Model
As technology has advanced, the self-serve model emerged amid the advent of the Internet and e-commerce, allowing customers the power to research, explore, and make buying decisions independently.
The desire for convenience, efficiency, and 24/7 accessibility drives the shift toward self-service.
A SaaS self-serve model is what it sounds like. Rather than rely on a dedicated Sales team to prospect, educate, and close sales, you design a system that allows customers to serve themselves. The quality of the product itself does all the selling.
Hybrid Sales Model
The hybrid sales model represents a natural evolution that combines the strengths of both traditional sales-driven and self-serve approaches.
For example, a software company offers a self-serve option where customers can sign up for their software, access basic features, and use it independently. However, a dedicated sales team is available for enterprise-level clients with complex requirements to provide personalized demonstrations, answer specific questions, and assist with custom implementations.
Benefits of the Self-Serve Model
The self-serve sales approach allows customers to take control of their purchasing journey and make decisions at their own pace.
Here are some benefits of adopting a self-serve sales model:
Convenience
With a self-serve sales model, customers can access your products or services at any time, from anywhere. They don't have to wait for a sales representative to be available or adhere to specific business hours. This convenience can lead to increased customer satisfaction and loyalty.
Speed
By allowing customers to make purchases on their own, you can expedite the sales process. Customers can quickly browse your offerings, compare options, and buy without delays. This can result in faster conversions and increased revenue for your business.
User Empowerment
A self-serve sales model empowers customers to make informed decisions. They have access to all the necessary information, such as product details, pricing, and reviews, enabling them to evaluate their options and choose what best meets their needs. This sense of empowerment can enhance the overall customer experience.
Scalability
As your business grows, a self-serve sales model allows you to scale your operations without increasing your Sales team proportionally. With automated processes and self-service tools, you can handle a larger volume of customers without compromising on the quality of service.
Cost Savings
By reducing the reliance on a large Sales team, a self-serve sales model can help you save on labor costs. There's no need to hire and pay sales professionals. Instead, you can allocate resources more efficiently and focus on other business areas, such as marketing or product development.
If you're looking to cater to the needs of modern buyers who prefer a self-directed purchasing journey, a self-serve sales model can be a valuable addition to your growth strategy.
Benefits of the Sales-Led Model
Sales-led growth is the way to go when your business deals with complex solutions, big clients, or industries where personal attention and flexibility are crucial to success.
Let's explore the sales-drive model benefits:
Efficiency for Complex Solutions
Sales-led growth generally works well when a business provides intricate solutions. It excels when customers need a lot of guidance and education about the product.
Ideal for Enterprise Sales
A sales-driven approach is a perfect fit for selling to big companies when there are negotiations, customizations, and contract talks; the human touch and flexibility of Sales-Led growth shine.
Personalized Customer Interaction
Sales-led growth allows you to connect with customers one-on-one. This means you can focus on each customer's specific needs. It's hard to get this level of attention in a self-serve model.
Now that we've explored the benefits of self-serve and sales-led growth, let's transition to the world of product-led growth and how these different models can reshape your strategy.
The Product-Led Growth Fits Into These GTM Strategies
If you're moving toward a SaaS self-serve model, it's time to learn more about the product-led growth flywheel framework.
When you lead with a self-serve model powered by product-led growth, it inspires your entire team — in particular, the engineering department — to take ownership of revenue. The same can't be said for a sales-driven culture. In this case, the Product and Engineering teams generally take a backseat when thinking about revenue. They're only kept informed when the sales team has feedback on what can help revenue grow.
But consider this: with product-led growth, there is no Sales team to bring back this information. It's the responsibility of the Product team to take the lead.
This leads to a more in-depth look at questions such as:
- Where are people falling off the onboarding process?
- Why aren't they signing up once they're on the site?
- What's the reason behind higher-than-average churn?
Product teams that can effectively answer these questions are more disciplined and can use data to drive future changes.
Tips for Building a Successful Self-Serve SaaS Product
You may be in the early stages of launching a SaaS company. Or you've gained some traction through a traditional sales model. Either way, you may have the itch to build a self-serve product.
If you're ready to head down this path, here are three tips that can help:
1. Trust Your Colleagues and Teammates
Going "all-in" on a self-serve model will be challenging if you don't trust your colleagues and teammates. You must trust that everyone is on the same page, working toward building an experience that's easy to use, and helping prospects understand why your product is the product.
2. Put the Customer First
This should always hold true, but it's even more so with a self-serve model. You're putting your trust in your product to sell itself, so every decision you make should be driven by the wants and needs of your target audience.
3. Be Data-Driven
This goes along with putting the customer first. Refrain from guessing as to what your customers want and need. Use data to make informed decisions. Are customers abandoning their purchases at the last minute? Is there an above-average bounce rate on a key landing page?
It isn't easy to see how powerful a self-serve model can be until you see it in action. I had to join Clearbit to fully understand how self-serve works and why product-led growth is the wave of the future. You can do as much research as you want, but there's no replacement for first-hand experience if you want to build a successful self-serve SaaS product.
When It's Time to Transition to a Hybrid Sales Model
No matter how invested you are in a product-led growth model, it's likely that you'll add a Sales team at some point.
There are many reasons, including that a self-serve model can only take you so far. Look at the revenue of any of the most successful self-serve companies. There generally comes a point when revenue plateaus. And when that happens, building out a Sales team becomes more important.
Of course, before you move to a hybrid model, it's essential to pinpoint why revenue has stalled. For example, you can only generate so much money from credit card sales. You may need a salesperson to accept payment in another form to push revenue to new heights.
Another example is if your target audience changes. Maybe you sold to a specific job title or persona in the past, but you've decided to shift gears. This new audience may not like the self-serve model nearly as much (if at all). Some prospects would instead consult directly with a salesperson.
Need help choosing which free model is right for your business? Check out ProductLed Academy, where Wes Bush coaches you to master the nine components of a product-led business – including your free offer.
Moving From Self-Serve to Hybrid When Revenue Plateaus
It always makes sense to move to a hybrid model if revenue plateaus. It doesn't mean you're abandoning everything you've done to date. You're simply adding a Sales team to assist with certain types of customers.
There may also be external forces at play. If your company has raised venture capital, you'll find that investors are quick to want you to hire a sales team. You can only resist for so long, so moving toward a hybrid model sooner rather than later gives you more time to find a way to make it work.
If you've gone all-in with product-led growth, it's natural to fight the urge to add a Sales team. But remember this: as self-serve revenue plateaus, you can continue growing by boosting enterprise revenue. A dedicated sales team — especially one motivated by a commission and bonus plan — can close bigger deals with a longer cycle.
The Best Time to Create a Sales Team
Let me start by saying there's no one-size-fits-all answer to this question.
It depends on many factors, such as:
- Company Size: Is now the right time to bring a salesperson or salespeople into your company?
- Revenue Growth: Is your revenue growing? Has it plateaued?
- Investor Involvement: Are your investors pushing you to add a sales department?
- Target Market: Do people in your existing or new market need personalized guidance, such as enterprise prospects?
As you answer these questions, you'll better understand how your current model performs and if/when you should consider adding a Sales team.
Advice for Sales-Driven Companies That Want to Try a Self-Serve Model
Just because you're part of a sales-driven company today doesn't mean you can't adjust your model in the future.
Go back in 10 or 15 years, and almost every software company was sales-led. Fast forward to today, and some of these same companies have yet to transition to product-led.
On the flip side, there are SaaS companies that are starting today. In my opinion, these companies should implement a self-serve model. This forces you to find ways for the product to sell itself. It forces you to create training material and documentation that many companies put on the back burner.
Think about it this way: if you don't train yourself to have a self-serve mindset early on, it's difficult — but not impossible — to learn how to exercise it later on.
But what if you've always relied on a Sales team but have fallen in love with product-led growth?
My best recommendation is that you don't rush into a wholesale change. Don't eliminate your sales department and go product-led overnight. Take a new product — perhaps one you've recently acquired — and dedicate it to self-serve. You can then use this as a case study on whether you should transition the entire company.
It takes much convincing for a company with a history of sales-led success to make this change. It's a risk that most executives won't want to take unless product-led growth has been successfully implemented and demonstrated on a smaller scale.
Overall, every company should start with product-led growth. And for those moving from sales-led to a self-serve model, start with a "pilot program," track the results, and scale from there.
Challenges and Solutions in Hybrid Model Implementation
Implementing a hybrid sales model can be challenging, but you can overcome these obstacles and reap the benefits with the right strategies.
Aligning Goals and Processes Challenge
One challenge you may face is aligning the goals and processes of your self-serve and sales-driven teams.
Solution: To overcome this, establish clear communication channels and regularly hold cross-team meetings to ensure everyone is on the same page.
Managing the Handoff Challenge
Another challenge is managing the handoff between self-serve and sales-driven teams.
Solution: To address this, create a seamless handoff process with clearly defined criteria for when a lead should be passed from one team to another.
Resistance from Sales Team Challenge
Additionally, you may encounter resistance from your sales team, who may feel threatened by the self-serve model.
Solution: To overcome this, emphasize the benefits of the hybrid model, such as increased efficiency and scalability, and provide training and support to help them adapt to the new way of working.
What's Your Next GTM Strategy Move?
As the world of SaaS evolves from traditional sales-driven approaches to self-serve models, it's crucial to adapt and explore hybrid models to stay competitive.
The hybrid sales model bridges the gap between automation and human interaction, ensuring customers have the convenience, speed, and empowerment they desire while offering a personalized touch for more complex solutions.
Whether you opt for a self-serve, sales-driven, or hybrid sales model, it's important to remain customer-focused, data-driven, and adaptable to the changing business landscape. While there is no one-size-fits-all answer, understanding your company's unique needs, growth trajectory, and target market is the key to making the right choice.
Remember that transitioning to a hybrid model can be challenging but is often necessary as your business grows. Clear communication, seamless handoff processes, and support for your sales team are essential for a successful implementation.
To continue building a successful product-led business, learn the components of the ProductLed GTM System™️.
Photo
Alternatively, if you'd like to work with a coach to implement these components into your business, check out ProductLed Academy.
It's our intensive coaching program where we'll help you build a strong foundation for product-led growth so that you can scale faster and with more control.
What's unique about this program is we'll work with you and your team to implement the proven ProductLed GTM System™️ so that you can scale faster with less stress.
We'll go through everything we went through today with your team to ensure everyone is working on building out solutions that will have an outsized impact.
