By Roger Bostdorff
This is a review of an analysis done by McKinsey & Co. Do you see your sales team in this report?
When it comes to building valuable relationships with customers, sales representatives are critical players on the front lines. But are they getting the basics right? Customers want to be contacted just enough, not bombarded. Sales reps should know their products or services intimately and how their offering compares with those of their competitors. Customers need information on exactly how a product or service will make a difference to their businesses. And while they may say price is one of their biggest concerns, a satisfying sales experience is ultimately more important.
These were the key findings of a survey McKinsey & Co. conducted of more than 1,200 purchasing decision makers in small, medium, and large companies throughout the U.S. and Western Europe who are responsible for buying high-tech products and services. The insights were consistent across simple to complex products and apply readily to most business-to-business (B2B) industries, which also have complex, multi–touch point sales processes involving both end users and purchasing professionals.
We found a big difference between what customers said was important and what actually drove their behavior. Customers insisted price and product aspects were the dominant factors that influenced their opinion of a supplier’s performance and, as a result, their purchasing decisions. Yet when they examined what actually determined how customers rated a vendor’s overall performance, the most important factors were product or service features and the overall sales experience. The upside of getting these two elements right is significant: a primary supplier seen as having a high-performing sales force can boost its share of a customer’s business by an average of 8 to 15 percentage points.
That makes the next finding all the more important. Of the many habits that undermine the sales experience, two that are relatively easy to fix accounted for 55 percent of the behavior customers described as “most destructive”: failing to have adequate product knowledge and contacting customers too frequently. Only 3 percent said they weren’t contacted enough, suggesting customers are open to fewer, more meaningful interactions.
Fortunately, both damaging habits can be fixed. Companies can address a lack of product knowledge by centralizing content development to guarantee a uniform message and creation of compelling value propositions for customers. And to ensure deep understanding, sales reps can receive experiential training and on-the-job coaching, preferably side by side with the content-development team. Finally, sales reps don’t need to know everything. When it comes to specifics, McKinsey & Co. found customers were more than happy to use self-serve or online tools and selectively tap specialist support for the most complex situations.
Striking the right balance between contacting customers too much and too little requires understanding their stated and actual needs. There should be a clear strategy for reaching out to customers based on needs and profit potential, with schedules dictating frequency. The best contact calendars center around events that create value for customers, such as semiannual business reviews, which provide an opportunity to assess customer needs and ensure satisfaction. The key is to recognize that customers are also looking to lower their interaction costs, so any contact with them must be meaningful.
The sales experience matters, and a good one starts by getting the basics right. Companies should examine exactly how they are performing by asking the following questions: What are the most influential drivers of the sales experience? What things are your sellers doing that could damage relationships? How does the perception your customers have of your sales force compare to how they view your competitors? It is only by knowing and understanding the answers to these questions that companies can begin to identify and pursue the right fixes.
Roger Bostdorff is the President of B2B Sales Boost. He spent over 30 years with IBM in sales and sales management. He then became President/COO of a small internet security company before founding B2B Sales Boost, LLC. B2B Sales Boost, LLC is a consulting company helping organizations improve their sales and overall business processes. You can find more about B2B Sales Boost on the web at b2bsalesboost.com or calling 419-351-4347. If you would like to receive the B2B Sales Boost Newsletter please send an email to firstname.lastname@example.org.