The Low-touch Sales Model

When a member of the business community hears “sales rep,” his/her mind jumps to the copier vendor looking to upsell or the regional Cisco reseller promising greater functionality. The knee-jerk response in these situations is to cringe and think about the swiftest way to end the interaction. Whether in person or over the phone, there is a subtle duel that takes place between purchaser and seller: staying on budget versus upselling with finesse. Each side knows the intention of the other. Depending on the size of the customer, the sales relationship can take on different characteristics. Larger organizations will often have more formal processes to engage vendors and thus know what to expect. Small to medium-sized companies are another story.

The salesman is a classic American figure. It epitomizes the pull-yourself-up-by-your-bootstraps mentality that is a mark of the opportunity for the industrious in the US. The sales function, however, is undergoing a significant transformation. 

As an associate at at Boston-based growth equity firm, I talk to a number of entrepreneurs each week. We invest in software and technology companies, and sales are an integral part of the growth of these businesses. Many of these organizations target the enterprise and rely on a costly sales strategy to gain support and traction. Many others, however, target small to medium businesses and have become quite adept at leveraging the virtual ecosystem.

As of late, I have spoken to a number of companies that have come close to perfecting the “low-touch” sales model. These are sales organizations run through interactive web guidance, light telephone operations and easy implementation processes. I have spoken to companies across verticals that have effectively deployed this model, from healthcare to workflow management.

These lower touch models result in higher profitability, leaner teams and more efficient distribution economics. The decreased operating expenses associated with smaller sales teams also allow more time and money to be spent on the product management process and competitive positioning. 

This change is just the beginning. As video interaction moves from high-end boardroom systems to office webcams and virtual demos become commonplace, the role of the “salesman” will continue to evolve. As the internet and virtualization become more widespread, the Oracle-esque feet-on-the-street sales model will suffer.