There are many different ways you can approach selling software products. Two main ones are product-led sales and more traditional B2B SaaS sales.
So what makes product-led sales different from traditional B2B SaaS sales?
This mainly lies in the way sales reps approach customers, and how you’re able to draw prospects to your software solution. We’ll explain this in detail in the guide below.
What is Product-Led Sales?
Product-led sales is a sales strategy that puts the product at the forefront of your sales efforts. This approach emphasizes the product itself as the main driver of customer acquisition, conversion, and retention.
In product-led sales, the product is your most powerful sales tool. You’ll want potential customers to experience the product’s value firsthand before making a purchase decision.
This contrasts with more traditional sales models that heavily rely on sales teams and marketing efforts to communicate the product’s value proposition.
What is B2B SaaS Sales?
B2B SaaS Sales refers to the general process of selling software solutions to businesses. This is a big topic that can take many forms, but the general idea is that it offers a more guided selling experience.
A B2B SaaS sales model involves offering software applications and services to other businesses on a subscription basis, typically hosted in the cloud. In B2B SaaS Sales, the focus is on providing software solutions that address the specific needs and challenges of business customers.
It offers them a scalable and often more cost-effective alternative to traditional software models.
The sales approach here is typically focused on addressing a need within the business by providing a specific software solution. B2B SaaS salespeople often try to sell robust software packages with two main tactics. They aim to highlight the various use cases and areas of value that the business can get out of the software package.
It’s important to note that B2B SaaS sales cycles can include a wide range of different selling strategies.
Product-Led Sales vs. B2B SaaS Sales: Key Differences
Product-led sales and B2B SaaS sales are two distinct approaches to selling software products, each with its own set of characteristics.
Let,’s explore some of the key differences between the two.
Focus on Sales Strategy
Product-led sales emphasize using the product itself as the main reason for acquiring customers. The product is designed to be intuitive, user-friendly, and capable of showcasing its value to potential customers without extensive reliance on traditional sales and marketing efforts.
In many cases, product-led sales achieve this through free product trials, freemium versions of the product, or interactive sales demos. The aim here is to get prospects to use the product and experience its value first-hand, instead of just feeding them marketing messages.
B2B SaaS sales involve a more traditional sales approach, where sales teams play a central role in prospecting, engaging, and closing deals. Marketing efforts are often geared toward generating leads, and the sales process involves direct interactions with potential customers.
This can often include a greater range of marketing and sales channels, as well as targeting a wider range of customer profiles with varying value statements.
Customer Onboarding
Product-led sales prioritize self-service onboarding. This allows users to easily understand and adopt the product independently. Documentation, tutorials, and interactive features within the product facilitate a smooth onboarding process.
In many cases, customers don’t even deal with a sales rep in a product-led approach.
B2B SaaS sales typically involve a more hands-on onboarding process led by sales reps. This may include personalized demonstrations, training sessions, and direct assistance to help customers get started with the software.
This also means that B2B SaaS sales are often more flexible and customized around the needs of the customer, whereas product-led sales follow the same approach for each customer.
Monetization Models
Product-led sales often employ freemium models, offering a free version of the product with limited features to attract users. The goal is to convert free users into paying customers by showcasing the value of premium features.
B2B SaaS sales generally rely on tiered pricing models based on different levels of functionality, usage, or the number of users. Sales teams negotiate and customize pricing based on the specific needs and scale of the business.
This is why it’s so important for B2B sales reps to interact with prospects, discuss their unique needs, and find a solution that best matches this.
Sales Team Involvement
What makes product-led sales different than traditional B2B SaaS sales? One of the main things is the role of sales teams.
Product-led sales minimize the reliance on a large sales team for customer acquisition. The product is designed to facilitate a seamless buying experience, reducing the need for extensive sales interactions.
In most product-led scenarios, more focus is placed on inbound sales, where customers discover the product themselves and try it out.
B2B SaaS sales involve a more proactive sales approach. Sales teams actively engage with potential customers to understand their needs, provide tailored solutions, and guide them through the purchasing process.
Traditional SaaS sales tactics often put a lot of focus on outbound sales tactics, where reps actively reach out to and discover potential customers.
Customer Relationship Focus
Product-led sales prioritizes continuous customer feedback and product improvements to enhance the user experience. Customer success teams play a crucial role in ensuring ongoing value and satisfaction.
After all, the effectiveness of the sales approach is directly tied to how much customers enjoy using the product.
Traditional B2B SaaS sales place a strong emphasis on building and maintaining relationships through direct sales interactions, account management, and ongoing customer support.
Conclusion
So, what makes product-led sales different from traditional B2B SaaS sales? It’s really all about the difference in the role of the product and the sales team in acquiring and retaining customers.
Simply put, traditional SaaS sales places more emphasis on sales reps and customer interactions, while product-led sales leave all this work up to the quality of the product. Both are effective ways of selling software.
Whatever approach you take, offering high-quality, interactive product demos will make your sales efforts far more effective. Try Saleo to see how our demo platform can transform your sales process, helping you acquire more customers through whatever sales approach you take.
