Global disease pandemics such as COVID-19 pose a significant threat not only to internal commercial activities but also to the lives and livelihoods of individuals in communities all over the world. The destructive impact of these pandemics is evident and continues to affect numerous communities. While the full extent of COVID-19's impact may never be fully understood, it is clear that the repercussions will be vast and far-reaching.
As pointed out by Steve Herz, Senior Director Analyst at Gartner, sales organizations face unique challenges during times of large-scale disruptions to business. However, if handled appropriately, these crises can be seen as opportunities for the organization to thrive in the long term. Chief sales officers (CSOs) must not only manage risks within their sales organization but also consider risks within the customer ecosystem and supply chain. The decisions made by CSOs regarding sales strategy, planning, and execution during this time will help the sales organization weather the crisis and position themselves for a successful recovery.
To navigate these challenging times, CSOs must prioritize the well-being of their people and customers. They must also adapt their sales approach to accommodate new customer habits and economic uncertainties. Interestingly, many of these changes in customer behavior are an acceleration of digital trends that were already in motion before the pandemic.
We are currently at a digital inflection point, where B2B sales operations will undergo fundamental changes compared to the pre-pandemic era. While there is still a great deal of uncertainty, there are clear signals indicating an acceleration of previous trends such as omni-channel selling, inside sales, tech-enabled selling, and e-commerce, rather than completely new behaviors.
According to the "McKinsey B2B Decision Maker Pulse Survey, April 8, 2020," B2B businesses across 11 countries and 7 sectors have observed the following trends:
- Spend: While companies are generally reducing their spending, a significant number are either increasing or maintaining their spending, depending on factors such as company size, sector, and location.
- Digital: B2B companies anticipate that digital interactions will be two to three times more important to their customers compared to traditional sales interactions.
- Remote: Almost 90 percent of sales have shifted to a video conference (VC)/phone/web sales model. While some skepticism remains, more than half of the respondents believe that this new sales model is equally or more effective than the models used before the COVID-19 pandemic.
The shift in spend
Despite the somber economic indicators, there has been a surprising resilience in spending habits. Many companies, particularly large B2B firms, are either maintaining or even increasing their spending for the time being. 53 percent of these companies expect to increase or maintain their spending, with the majority experiencing a rate of change in spending that does not exceed 25 percent of their total spending.
This optimistic outlook is reflected across various industries, with sectors such as pharma, medical products, technology, and media anticipating the highest increase in spending. On the other hand, travel and global energy & materials sectors expect the least amount of growth in spending.
These spending trends also vary by geography, with US companies reporting a higher rate of increasing or maintaining spending compared to their European counterparts. Chinese and Indian decision-makers show even higher rates of increasing or maintaining spending, with a significant majority of Indian companies indicating a change in spending—36 percent increasing it and 46 percent cutting back—while only 16 percent are maintaining it.
The shift to digital
In recent years, the significance of digital channels for B2B companies has experienced remarkable growth, similar to what we have witnessed in the B2C environment. However, since the onset of the COVID-19 crisis, the importance of digital channels for B2B companies has skyrocketed. Sales leaders now consider digital channels approximately twice as important as they were before, with B2B decision-makers in Spain and the UK rating them even higher, close to triple their previous importance. On the other hand, decision-makers in Japan and South Korea rated them around 1.5 times more important than before the pandemic.
This shift in the importance of digital interactions is evident in customer behaviors as well. When it comes to researching products, customers now greatly prefer digitally-enabled sales interactions, with suppliers' mobile apps and social media or online communities experiencing the sharpest increase since 2019. Interestingly, mobile apps are twice as important for Chinese buyers when researching products compared to buyers in the UK or Germany. The importance of a supplier's web page, however, has not changed significantly, possibly because customers were already actively using supplier websites during this stage of their journey.
In terms of making a purchase, buyers show a strong preference for self-service, resulting in the increased importance of suppliers' mobile apps. This preference for self-service channels is consistent across every stage of the customer decision journey. However, it is not enough for companies to simply offer multiple self-service options. It is crucial to consistently provide the right options that meet customers' expectations. B2B buyers no longer accept subpar experiences compared to their personal consumer experiences. Our 2019 survey revealed that suppliers who provide outstanding digital experiences are more than twice as likely to be chosen as primary suppliers compared to those who offer poor experiences. They are also about 70 percent more likely than those providing only fair experiences.
In this context, "getting it right" means delivering on the three things that buyers value the most: speed, transparency, and expertise. These priorities apply to all channels and are more relevant now than ever. For example, 33 percent of buyers consider live chat as one of the top three requirements for a best-in-class supplier during the research stage of their buying journey. Live chat provides the speed, transparency, and expertise that customers value the most.
To provide outstanding digital experiences and foster customer loyalty, B2B companies must address their customers' most pressing pain points and frustrations. When we asked decision-makers to identify the most frustrating issues with suppliers' websites, 36 percent cited the length of the ordering process, 34 percent struggled with finding products, and 33 percent experienced technical glitches during the ordering process. Other common concerns included confusing websites, a lack of information regarding delivery and technical support, and difficulties in setting up payments.
The move to remote selling
The shift to remote selling has become a necessity across various sectors as a result of lockdowns, shelter-in-place orders, and the need for people to stay at home. B2B sellers have responded swiftly, with approximately 90 percent of them now utilizing videoconferencing or phone calls to conduct their business. This sudden transition to remote working, prompted by the COVID-19 pandemic and the ongoing trend of "consumerization" in B2B buying, has had a profound impact on how companies engage in sales and procurement.
Sales leaders have been quick to adapt to the challenges posed by the COVID-19 crisis. In addition to transitioning their sales teams to remote work, around 70 percent of companies have established multi-disciplinary commercial nerve centers to effectively manage sales operations during this time. However, simply shifting to digital channels is not enough. The significant increase in the use of digital and self-service channels necessitates careful consideration of how to enable effective digital interactions and deploy sales representatives in the most impactful way.
Reimagining the customer experience and streamlining sales processes across various channels should be a top priority for sales leaders looking to effectively navigate this crisis and plan for recovery. It is crucial to determine the best way to deploy sales professionals across channels to provide valuable support to customers when they need it most.
Sales leaders should focus their planning on three key objectives to address the risks associated with the coronavirus outbreak. They must carefully calibrate their responses and guide their organizations through the three phases of the COVID-19 response.
1) Anticipate potential risks that may impact the organization, customers, and suppliers.
Internally, it is vital to effectively communicate the significance of prioritizing the safety and well-being of the sales organization. Sellers need to know that their health is valued above short-term sales outcomes. This commitment to seller well-being should be supported by actively managing sales compensation plans and quotas in response to disruptions caused by the coronavirus. It is important to extend planning efforts beyond the sales organization to address potential disruptions in demand, longer sales cycles, and inevitable order cancellations. Additionally, it is crucial to consider the risks to the supply chain and available inventory, as sales are not considered complete until the product or service is successfully delivered to the customer.
2)Be ready for swift and accurate implementation
As the health crisis continues to escalate and businesses experience a slowdown, it becomes crucial to establish and adapt rules for responsible governance and effective decision-making that address the specific challenges faced by the sales organization.
In times of crisis, maintaining consistent messaging, fostering transparency, and practicing disciplined communication are essential to instilling confidence and reinforcing new governance processes. Additionally, it is important to establish metrics that allow for the tracking of sales activities, identification of emerging issues, and monitoring adherence to emergency policies and priorities.
Strategies to Enhance Remote Sales Interactions for B2B Sellers
1. Transition in-person sales representatives to digital platforms.
Leverage digital channels to enhance your internal sales and service capabilities. Transform chatbots into live chat representatives. Provide your representatives with the necessary digital tools, such as Skype, Zoom, WebEx, etc., and train them on conducting customer meetings through video conferencing. Additionally, establish a team of digital experts to assist sellers in utilizing new tools and addressing customer queries effectively..
2. Give Priority to Your Sales Pipeline and Equip Your Representatives with Information.
Identify potential leads by analyzing recent online customer searches, targeting those who have expressed a specific need and are likely to welcome further engagement. Allocate specific time slots for your sales representatives to focus on these leads and manage customer relationships through dedicated CRM sessions.
Allocate dedicated time for your representatives to connect with customers, ensuring that all interactions are personalized and tailored to the individual customer's needs. Craft digital marketing messages with thoughtful consideration, placing the customer at the forefront of your communication strategy. Additionally, involve senior executives to provide support for exceptional proposals or account reviews, helping your representatives build trust and reassure customers.
By leveraging free technology and marketing resources, address any pain points in your self-service channels. This includes streamlining the ordering process, enhancing product search capabilities, and improving technical support.
3. Deepen Customer Connections Across Conventional and Digital Channels.
Organize interactive virtual product demonstrations for multiple customers, followed by personalized phone follow-ups from your representatives. Schedule brief but impactful video conference check-ins with your entire client base to maintain strong connections. Host virtual lunches to facilitate information-sharing sessions with selected customers, fostering a sense of community and collaboration. Additionally, send tailored content via email that aligns with your customer's specific needs and current circumstances, ensuring that your communication remains relevant and valuable.
4. Use any free tech and marketing capacity to fix self-service pain points.
For companies with the flexibility to reallocate resources, we highly recommend implementing actions that will have a positive impact on customers. This includes enhancing online information to improve search capabilities, minimizing the amount of information customers need to provide before accessing information, personalizing digital journeys with targeted routing based on the customer's identity and purpose, and streamlining the ordering process by eliminating unnecessary steps for faster service. These actions will not only enhance the customer experience but also contribute to overall customer satisfaction.
3)Elevate the organization's competitive edge
Making strategic choices during times of crisis can have a lasting impact on the competitive position of a sales force. To ensure long-term success, sales leaders must prioritize investment in customer relationships and channel partnerships. By increasing and rewarding loyalty from key stakeholders, sales leaders can lay the foundation for a strong post-crisis recovery. Additionally, they should focus on equipping key customers, channel partners, and suppliers with the necessary resources to thrive during and after the crisis.
It is essential to act deliberately in strengthening the sales culture and protecting team morale amidst disruption. The way sales leaders lead during this challenging time will set the tone and pace for a transformative and career-defining experience for everyone in the sales function.
Strategies to enhance the digital experience for B2B sellers and their buyers
1) Enhance and optimize the self-service capabilities that are already at your disposal.
Ensure that your website provides buyers with easy access to information, the ability to compare options, and a seamless purchasing experience, all without the need for live support from sales representatives for simpler needs.
2) Rapidly fix what’s broken on websites and mobile apps.
Monitor for any technical issues in real-time and promptly address them as they arise. Taking proactive measures like these can result in additional revenue and enhance the digital experience, ultimately fostering increased loyalty among customers..
3) Keep the human touch for complex interactions.
Ensure that your sales representatives are readily available to assist buyers through phone calls, videoconferences, or webchats whenever they require support. Maintaining a constant live presence, either 24/7 or 24/5, can be particularly significant in a scenario where remote interactions are the sole option available.
4) Think like a consumer.
Make sure that every e-commerce channel delivers a customer-centric experience for every product or service, whether it's a first-time purchase or a repeat order. Align your e-commerce sales goals with your overall sales targets and incentive systems. Consider giving customers credit for both digital and sales representative interactions to maximize their satisfaction and engagement.
5. Measure your progress.
Are you positioned as a primary or secondary supplier? How well are you retaining customers, measuring loyalty, and achieving customer satisfaction? Do you notice any variations in your performance between digital and in-person interactions?
In a rapidly changing landscape where habits and practices are evolving at an unprecedented pace, sales leaders must have a clear understanding of their customer's desires and how their company can meet those needs. Traditional face-to-face interactions have been replaced by a variety of digital channels such as video conferences, webinars, phone calls, and even human chatbots. However, even in this remote and digital world, the human touch still plays a vital role.
In conclusion, the COVID-19 pandemic has accelerated the digital transformation of B2B sales operations. The shift towards digital channels, remote selling, and self-service options has become essential for sales organizations to adapt and thrive in this new environment. As we look ahead to 2024, with the advent of GenAI, Chatbots, and other AI tools, the virtual sales experience is poised to be further enhanced. Companies should prioritize optimizing their digital capabilities, fixing any pain points in self-service channels, and maintaining a human touch for complex interactions. By embracing these strategies, sales leaders can navigate the challenges of the future and position their organizations for success in the era of GenAI and Chatbots. Stay tuned for more updates and insights on how to leverage AI tools to elevate your virtual sales experience.
