The evolution of b2 b sales in the digital era handout

THE EVOLUTION OF B2B SALES IN THE DIGITAL ERAAnd a Vision of Sales 2020

Dr. Roger HageRegenmker® ConsultingUniversity of Applied Sciences FH Krems

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• Introduction

• Challenges in B2B Sales

• The Evolution of B2B Sales

• Sales Innovation & Transformation

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HighTech

B2B

Growth Consultant&

Innovation Catalyst

Sales

Marketing

Business Development

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We help medium-sized tech companies substantially grow their B2B sales revenues by:

1) Crafting a BD strategy to accelerate growth

2) Innovating their sales processes to grow revenues

3) Training & coaching their sales people & executives to maximize productivity and process adherence

4) Building international sales channels in emerging markets of Middle East & Africa to boost their export revenues

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B2C B2BLow Investment High

Simple Product Complex(Customization/Services/Ecosystem)

Transactional Selling Strategic(Project/Tender)

Individual Decision Making Consensus

Spontaneous Purchase Planned

Short Sales cycle Long

Weak (short) Relationship Strong (long)

Low Loyalty High

Static Stakeholder(s) Dynamic

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B2B vs B2C

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Opportunityisnowhere

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B2B Selling Competence?

Business

Industry

Technology

Products

Sales Strategy

Sales Methodology

Selling Techniques

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Commoditization and Lack of differentiation

• Product (Distinctive, superior, innovation, R&D, agile/flexible org > diff.)

• Process (Operational Excellence, centralization, standardization > cost)

• Customer (customer intimacy, CEX, service, personalization, customization, CRM, decentralization, delegation, empowerment)

Challenge#1: Lack of differentiation

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Michael Treacy & Fred Weirsma in the “Discipline of Market Leaders” 1995

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B2B Sales is getting more complex

• Technology is evolving quickly & getting more complex

• Solutions are becoming a mix of several products & services

• Solutions are getting intangible & harder to explain & show value, ROI

• Pricing schemes, licensing models are adding complexity in SW sales

• Customer decision makers are increasing in number (consensus buying) & do not necessarily communicate with each other

• Most customers prefer to do nothing or wait & see (how others are adopting the new technology)

Challenge #2: Complexity

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• E-commerce• On-line, anytime 24x7, anywhere (mobile) and in real-time, Self service

• E-junk• Overloaded with information• Averse against unsolicited pushy mass marketing emails and cold calls

• E-customers: Smarter & more powerful customers• Always connected (mobile)• Gather information about solutions to problems, available products (yours and all

those of the competition), prices, customer feedback• Voice their opinions about companies & products using social media (free PR) • Generation Y (millennials) slowly moving into the decision making positions

Challenge# 3: Powerful customers

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Challenge# 3: Powerful customers

• Customers are better informed than ever before

• Nearly 60% of a typical purchasing decision—researching solutions, ranking options, setting requirements, benchmarking prices, and so on—reached before even having a conversation with a supplier!

• By the time they approach suppliers, they generally have a clear idea of the problem they need to solve, the solutions that are available, and the price they’re willing to pay


“90% of B2B buyers say that when they are ready to buy, they will find you & contact you.” Earnest


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• Spray & pray

• Cold Calling

• Talking brochure

• Show-up & throw-up

• Bells & whistles

• Feature dumping

• Rapid fire ppt

• Hit & run

• Manipulate & Screw (bully to take action)

• ABC – Always Be Closing!

Selling techniques, that don’t work in B2B

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The biggest competitor in

B2B/Tech Sales

is

Your CUSTOMER!

Status Quo or DIY

A 360° / 12h holistic view of the customer‘s journey

ZMOT


1.M

OT

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B2B Selling Evolution

Influencing

(Dale Carnegie)

SPIN Selling

(Neil Rackham)

Strategic Selling

(Miller Heimann)

Target Account Selling (TAS)

Challenger Sales

(CEB)

Tiebreaker Selling

Social Selling

Selling on Price > Feature Selling > Consultative Selling > Insight Selling

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Source: CEB, The Challenger Sales

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TOP Performer Core Performer

Constituents of Sales Reps

Relationship Builder Problem Solver Hard Worker Lone Wolf Challenger


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What is an insight?

Data > information > insight• Organized• Structured• Meaning

• Context• Relevance • Analysis (draw conclusions)• Novelty• Usefulness• Impact

• Hypothesis testing• A/B testing• Surveys• Observation• Data analysis (correlation/forecast)• Root cause analysis• Benchmarking• Best practices

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Shift happens!

SALES MARKETING

Brick-and-mortar Digital (Cloud, Mobile, Social, BIG Data)

F2F Virtual

1:1 1:many

Local Global

Push Pull, Self Service

Manual (human) Automated (machine)

Value Experience

Rational Emotional

Masculine Feminine

B2B B2C


2 cents/cup 20 cents/cup 2$ /cup



“We’re a lifestyle company, not a vehicle manufacturer!”What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Richard Teerlink, former CEO Harley Davidson


The Q-Test


The Survey


Adapt or Die


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The Sales Transformation

Innovation

Smarketing

Insights

Digital

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Innovation

Smarketing

Insights

DigitalEmbrace Digital

Use of digital media to interact with your target group at the different touch points along their buying journey.

Sales people take advantage of social media for pre-call research, networking & information sharing (create authority, thought leadership)

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Innovation

Smarketing

Insights

Digital Your new asset = Insights!Focus more on the Technology knowledge, Business knowledge and Industry knowledge from the competence pyramid to detect triggers and find insights

Insights are the fuel to getting attention, appreciate the value of a conversation and for mentioning to other people ,i.e. diffusion (WoM)!

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Innovation

Smarketing

Insights

Digital Smarketing = Sales + MarketingBreak the silos between Sales & Marketing Align or better converge togetherCollaborate as a team

Marketing to focus on the digitalization and supply sales with insights and assistance in social media engagement

Sales to focus more on the back end of the funnel (closing & account management)

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Innovation

Smarketing

Insights

Digital

Innovation = Creative Collaboration >co-creating value!

Smarter sales reps: Encourage sales people engagement, creativity & team work > intrinsic motivation. They need to add value (more than automation, self service, public domain information). Roles include: Educator, negotiator, consultant, solution designer, service provider, relationship manager & feedback channel to PDM/R&D.

Smarter interaction: Allow value co-creation with your customers (partner in customer’s problem solving process > collaborative approach)

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The new sales currencies in the digital era

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Sales 2020 and beyond (4th platform or post nexus)

CEX - Digital business - Things


Key Take-aways

• Customer centricity > Q

• Be ready at the customer digital touch points (MOTs) along their journey

• Use the new currencies: Content, INSIGHTS, Referrals



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Thank you

@roger_hage

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