B2B sales is under immense, unprecedented pressure. Forrester predicts that one million B2B sales jobs will be eliminated, and there has been widespread media coverage of how AI and other technologies will replace salespeople. It can feel like the entire sales profession is standing on quicksand.
So what’s going on in B2B sales?
Here are five key challenges B2B sales need to understand and address:
1. Savvier, more informed buyers
Shoppers have wholeheartedly embraced the digital world, completely changing the buying process. Just 10 years ago, buyers relied on sellers’ knowledge and expertise to find the right solution to their business challenges. Today, with the advent of online reviews, video product guides and tutorials, FAQs, and e-commerce platforms, most buyers complete a large part of their buying journey before contacting a seller.
In fact, according to Sirius Decisions, 67% of the buying process is now completed digitally, and according to CEB, 57% of the buying process is completed before a customer interacts with a seller. If a customer does contact you at all, it’s often just to fulfill the order.
2. Increasingly complex purchasing processes
Corporate purchasing processes are becoming more complex. This is mainly due to the growing importance of purchasing committees. Important purchases often mean a change of buyer company, so different people are involved in the decision-making. According to the CEB, on average 6.8 people are involved in a corporate purchasing decision, and up to 17 people are involved in complex decisions at corporate level. This means that salespeople rarely deal with a single buyer, as even senior employees, including the CEO, have limited decision-making and purchasing authority.
Building a business model and bringing together the right people to close the deal through a buying committee requires many skills that go far beyond traditional “relationship” and product selling skills.
3. Product Commercialization
It is true that the commercialization of products and services is increasing. As products and markets mature, especially technology products, it is becoming more difficult to maintain competitive advantage and differentiation. If your product or features have advantages, they are usually temporary and not enough on their own to close the deal. Customers see only a “sea of sameness” with multiple providers who can meet their needs.
It’s becoming more and more important to stand out with your sales expertise and make your sales conversations memorable. If you fail, price is the deciding factor.
4. Significantly Higher CX Expectations
According to a Walker study, by 2020, customer experience (CX) will overtake price and product as the most important brand differentiator, with 86% of shoppers will pay more for a better customer experience. Furthermore, as more companies focus on providing a great experience to both B2C and B2B customers, buyers will become satisfied with nothing less than a great experience. And they will judge their experience throughout the sales process as an indicator of the experience they are likely to have once they become a customer. According to a study conducted by Zendesk, 62% of B2B buyers made more purchases after a great customer service experience, while 66% abandoned a purchase due to a poor customer service experience.
With everyone focused on providing a great customer experience to their customers, it is becoming increasingly difficult to attract new customers and replace existing suppliers. And it’s not just sales skills and relationships that determine sales success. Good CX has become a prerequisite for having a seat at the table.
5. The impact of technology on the sales function
As customers become more comfortable buying online and companies redirect more resources to e-commerce platforms, many sales jobs selling low-value products are already being made obsolete. With AI, chatbots and other technologies, consumers can make everyday purchases as efficiently or more efficiently than salespeople.
From a business perspective, replacing sales functions with technology has a significant impact on the bottom line. This means that many vendor companies are exploring how to replace sales functions with technology, leaving many salespeople, teams and leaders in a precarious position. The sales teams that survive will be those that effectively augment their processes with technology and exponentially improve their productivity and value. Companies that don’t will not be competitive.
I believe that the digital revolution has given buyers an advantage over sellers, making buyers overall better at buying faster than sellers are better at selling. But there is a new generation of sales leaders who understand these challenges well and know how to address them. Those who proactively transform their teams will thrive in this new environment.
