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Webinar to help increase selling effectiveness with multigenerational buyers and customers. Research is provided on buyer trends and preferences and implications for organizations are outlined.
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Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
B2B Buyers: How New Generations Are Changing the Way We Sell
by Dr. David Brookmire
www.GenerationalDNA.com
Agenda
• Generation X and Y are Changing the B2B Selling Landscape
o Exec involvement in the buying cycle has changed
o The information sources they use to make decisions
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
o The information sources they use to make decisions are NOT what you’re investing in
o The communication channels they prefer are not the ones where your sales force excels
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
YOUR BUYER AND YOUR
SELLER ARE CHANGING
Gen Y
Foreign-born
Generation Z
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
Traditionalists Boomers
Gen X
Source: The Concours Institute
GENerationalDNA Friction Map:
Boomers Gen X Gen Y
Boomers
Seller sending
sales docs vs.
working Boomer
Seller isn’t
communicating
via Boomer’s
Sales Reps
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
peer network preferred
channels
Gen X
Gen Y
Seller doesn’t
understand the Y
buyer’s personal
drivers
Seller making
generational
assumptions and
alienating buyer
Bu
ye
rs
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
SOME GENERATIONAL STATS
ABOUT YOUR B2B BUYER
Baby Boomers Gen X Millennial
Born Between 1946 - 1964 1965 - 1980 1981 - 2000
Labor force 76m 50m 88m
Purchasing With Credit Cards With Credit and Bank Cards Purchase On-line
Significant Milestones •Cold War•Vietnam War•Civil Rights
•High Divorce Rates•Challenger Disaster•High Parents’ Unemployment Rates
•Terrorism (Oklahoma City, Columbine, 9/11)•Flat world•Global Warming
View of Technology Master It Enjoy It Employ It
What they bring to work Leather briefcase Cell phone and lap top iPhoneHYPERole of Career Central Focus Work/Life Balance Always Changing
Major Influences Family & Education The Media Friends, Media Sports Stars, More Aware
Work Is5 Exciting Adventure Difficult Challenge Means To An End
Role of Relationships Limited, Useful Central, Caring Global
Communication , Media,
Technology
•TV•Photograph•Touch-tone Phones
•Video: Atari, Nintendo•Computer•Cell Phone
•Internet•Laser Disc Players•IPOD, MP3 Player
HYPE
Boomer Gen X Gen Y
If you sell to companies that are
Large ($751m - $2B+)Mid($51m - $750m)
Small (<$50m)
30% Large
19% Medium51% Small
24% Large32% Medium
44% Small
40% Large
34% Medium
26% Small
If your ASP isI >$50K All ASPs $2,500-$50K
If you sell to this levelI
39% VP26% Director26% Manager
10% Professional
20% VP18% Director33% Manager
29% Professional
5% VP11% Director32% Manager
52% Professional
If you sell to this Finance, IT, Ops, Marketing, Finance, IT, Ops, Marketing, Engineering, Ops, Marketing,
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
If you sell to this functionI
Finance, IT, Ops, Marketing, Purchasing, Sales
Finance, IT, Ops, Marketing, Purchasing, Sales, R&D
Engineering, Ops, Marketing, IT, Purchasing, Customer Support
If you sell these productsI
Computer software, services, hardware, business services, furniture & fixtures, printing, telecommunications
Computer software, services, hardware, electronics, business services, paper, printing
Computer software, services, hardware, electronics, business services, paper, printing
If you sell to these industriesI.
More prominent in: Business
& Consulting Services, Computer Softrware &
Services, Telecommunications Services, Electronics, Banking, Manufacturing, Tech Hardware & Equipment
More prominent in: Business
& Consulting Services, Computer Software &
Services, Education, Pharmaceuticals & Biotech, Government
More prominent in: Healthcare, Media &
Entertainment, Commercial Goods, Food & Beverage, Financial Services, Industrial
Manufacturing, Non Profit, Aerospace & Defense
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
THE OMNIPRESENT MULTI-
GENERATIONAL EXECUTIVE
QUICK GEN SURVEY
Which generation is involved in the middle of the sales cycle as well as the
beginning and end?
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
� Gen Y� Gen X� Boomer
QUICK GEN SURVEY
Which generation is involved in the middle of the sales cycle as well as the
beginning and end?
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
Trick Question.They ALL are.
Executive Dogma
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights ReservedSource: Read & Bistritz, 2009
Today: The Higher the Exec, the More Involvement
Execu
tive I
nvo
lve
men
t
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
Execu
tive I
nvo
lve
men
t
B2B Buying Cycle
Are You Prepared for Execs Throughout the Buying Cycle?
Gen X B2B BuyersBuying Stage Involvement Executive Sales Tools & Messaging
Identify/diagnose problem 64% White Papers √
Build business case 61% Case Studies √
Decide to buy external solution
60% Case Studies √
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
solution
Obtain budget 53% Exec-level ROI meetings?
Search for solutions 71% Exec conscious website? Exec-ready call center?
Meet with vendors 65% Exec level demo?
Set requirements 67% Mapped to Exec needs?
Evaluate selected solutions 71% Competitive intel/messages targeted for Execs?
Decide on solution 68% Exec pitch √
Negotiate contract 51% Executive peers engaged √
Review performance, installation, implementation
61% Exec presentation of results?
Key Implications for Sales Managers
• Boomers and Xers still prominent: BUT, Gen Y buyers continue to increase their involvement and growing –Typical decision makers for ASP below $50k and in certain industries
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
• Execs Always Present: Execs at all stages of the buying process – from business case, to demo, to results review
• Need for Generationally Aware Sales Skills: Selling approaches need to be aligned with the level and generation of the buyers
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
THE SOCIO-POLITICAL
MARKETING BUDGET
QUICK GEN SURVEY
What are the two most influential sources of information useful to all decision makers in
buying decisions?
�Professional Content Websites
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
�Professional Content Websites�Videotaped Case Study
�Advertising�Internet Reviews
�Books
QUICK GEN SURVEY
What are the two most influential sources of information useful to all decision makers in
buying decisions?
�Professional Content Websites√
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
�Professional Content Websites�Videotaped Case Study
�Advertising�Internet Reviews
�Books
√
√
Boomers useI
Sources of Information for Buying Decisions
BOOMERS
57%
59%
Best Practice/Professional content w ebsites
Trusted Advisor Internal
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
4%
5%
49%
52%
59%
0% 10% 20% 30% 40% 50% 60% 70% 80%
New spaper
Direct Mail
Peer Group Rerralsa
Internet Review s
Trusted Advisor External
And so do XersI.
Sources of Information for Buying Decisions
GEN X
63%
75%
Best Practice/Professional contentw ebsites
Trusted Advisor Internal
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
7%
8%
60%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Direct Mail
Advertising
Peer group Referrals
w ebsites
20% or more of your company’s marketing budget
is spent on these lowest rated sources of info
Sources of Information for Buying Decisions
GEN Y
57%
63%
Best Practice/Professional contentw ebsites
Trusted Advisor Internal
And Y is similar, tooI.
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
7%
13%
56%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Video Case Studies
Books/Authors
Internet Review s/feedback
w ebsites
Information Availability – Buyer Quotes
• “All buyers do their research online for information on product vs. relying on a salesperson. The sales role has become more of a customer support role.”
• “Information does not necessarily come from the vendor. It has become easy to find information from lots of sources.”
• “You can do your own research. Also, product reviews are important – people that are unhappy tend to be very vocal.”
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
are unhappy tend to be very vocal.”
• “EDI increases speed and efficiency. For example, the seller is contacted over email, the buyer can look for his quote on the webpage or through electronic attachment vs. waiting in the mail or over fax.”
• “Vendors do not necessarily have to be local or limited to the U.S. In one instance distribution companies in China were sourced through the internet and were used to make a purchase.”
• “Level of accessibility to products and services much greater. For example, shopping for an email marketing tool and Tweeted about Silverpop experiences. Got several responses on the vendor and other suggested tools.”
Sales Implications: Politics and Marketing
• Understand where your buyers go for information– Get prominent on the site they use for best practice, professional and review
content.
• Know their internal and external advisors and influencers:– Dust off that political mapping tool in your sales methodology and put it to work– Sell AROUND your B2B buyer
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
– Sell AROUND your B2B buyer
• They’re social, they network, but not on Facebook:– Execs leverage peer professional and social networks– Find THEIR social networks NOT the hype social networks
• Revisit the marketing budget:– 20% or more of typical marketing budgets are spent in areas Execs use
the least– Best bet? Move social, video, ad dollars to third-party internet content
and analysts
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
THE RISE OF REMOTE SELLING
Interacting with Buyer Generations in the Field
Boomers Gen X Gen Y
Face-to-Face
Phone
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On-line Meetings
Texting
Social Networks
Green – Most Preferred
Light Blue – Use
Yellow Yellow – Use Sometimes
Orange – Preferred by Few
Red – Not selected
Key Implications for Sales Managers: Get off the Plane
• Get off the plane: Face-to-face may be your preference but not the buyer’s
• Hire for remote selling skills: Don’t just test their in-person pitch, test them on the
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
their in-person pitch, test them on the phone and over the net
• Develop remote sales skills: does your sales training prepare for online/on the phone sales scenarios?
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
DIAGNOSING
GENERATIONAL ISSUES
IN SALES
Diagnosing Generational Issues
• Customer dissatisfaction by generation
• Win/Loss analysis by sales/buyer generation
• Territory generational analysis—untapped
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
• Territory generational analysis—untapped
revenues due to generational biases
• High customer attrition in certain generations
Adapting to the Generational Shifts
• Map your prospect and customer database along with your sales force today and project their composition 3-5 years out
• Begin to incorporate these generational
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
• Begin to incorporate these generational preferences/differences into your marketing and sales processes, channels, and messages
• Survey your customers to find out how they really make decisions
• Align your selection, training, development, and retention with your customer base
GenDNA Solutions
• Buyer research reports available in November
• Sales rewards research report available now
• C-Level/Remote selling skills development
• Hiring the best sales professionals
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
• Hiring the best sales professionals
• Customer preference research
• Selling effectiveness consulting projects
Please provide feedback, suggestions, and questions. If you are interested in a pilot partner opportunity. Contact:
Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved
Dave Brookmire
404-593-5001