B2B sales guide

B2B sales have evolved dramatically over the years, especially since the dawn of the digital age.

The days of cold calling and email correspondence are not forgotten, but the way we do business has changed a lot.

Companies across industries are increasingly investing in B2B sales teams – inside and outside.

The B2B sales environment is evolving and now has more decision makers and touch points involved than it did a few years ago. This increasing complexity creates longer sales cycles, which pose a number of new challenges for all B2B sales players.

In this article, we will explore in detail in the form of a B2B sales guide, some of the most effective sales strategies and tools so that you can learn how to sell B2B products and services.

Discover more about B2B sales strategies in our course – B2B Sales

The tactical differences between B2B and B2C sales?

When we look at the B2B sales process in more detail, we can identify some unique differences compared to B2C:

Multiple stakeholders need convincing – In B2B sales, you need to convince multiple stakeholders who have different roles, each with different needs and priorities. By comparison, in B2C you only need to convince one person.

Higher prices – In general, B2B sales have a much higher average order value, which is one of the biggest attractions of this field.

Multiple touch points – Potential customers often need to review product information and talk to multiple people before committing to a purchase.

Longer sales cycles – The more people involved, the higher the prices, and the additional touch points, the longer the B2B sales funnel gets. According to a CSO Insights report, nearly ⅓ of B2B sales cycles last longer than 10 months:

B2B selling: inside versus outside sales

In B2B sales, your business can be viewed as two interlinked teams – inside sales and outside sales.

Quite often, inside sales reps sell products and services remotely and are therefore usually based in an office. By comparison, outside sales reps are ‘in the field’, negotiating contracts face-to-face with potential customers at their offices, attending conferences and trade shows.

Studies from Spotio indicate that outside sales earn a 30% higher closing rate than inside sales. In addition, outside sales teams also close over 130% more deals.

Despite this, there has been a shift toward inside sales in recent years:

While outside sales reps can cultivate business relationships in a more personal way, many organizations are attracted to inside sales because it offers a more cost-effective and automated approach to B2B sales.

The numbers don’t tell the whole story…

This in-depth guide will highlight the key operational difference between inside and outside sales.

The B2B buying process has changed

The digital transformation has shaken up global business in many ways, and the B2B selling process is certainly not immune.

Here are three reasons why B2B selling has changed so much recently:

The number of stakeholders

You already know that B2B sales involve more people. And the number is still growing. A report from Harvard Business Review says that the number of people involved in the average B2B sales process – known as the decision making unit (DMU) – increased from 5.4 to 6.8 between 2015 and 2017.

Buyers are more educated

Research from Forrester found that nearly 74% of B2B buyers conduct about half of all online research before making an offline purchase. Today’s B2B customers have greater access to information online and offline – and they’re using it in the right way.

Aligning sales with user intent

Understanding the customer buying process is a critical aspect of B2B selling, especially in a highly competitive industry. Ultimately, companies that align their sales process with the customer’s buying process will be more successful in targeting the right people with the right offer at the right time.

The modern B2B sales process in 8 steps.

Now that you know the fundamentals, let’s look at how to sell B2B.

This process starts from scratch, and if you do each step comprehensively and correctly, you should be able to pull off a sale.

Step #1: Research

If you don’t have a clear understanding of where your business will fit in the existing market, you’ll struggle to get anywhere and you can waste a lot of resources chasing the wrong targets.

To get started, make a list of the 4 or 5 closest competitors selling similar products or services. Now consider the following:

Unique Selling Proposition – What do they offer that no one else can? By comparison, why should B2B customers choose your brand over your competitors?

Differentiators – Make notes about brand voice, content style, products and pricing. Identify the traits and characteristics that shape their brand identity.

SWOT – With your competitor analysis at hand, you can move on to conducting a SWOT assessment of your own business. Consider your current strengths, weaknesses, opportunities and threats.

Then turn your attention to potential customers. A HubSpot study found that about 50% of your potential customers are not segmented well.

So before you start B2B sales, it’s absolutely vital that you know your audience well.

The most effective way to do this is by creating customer profiles. Through research, you can gather information from real customers to build a very accurate picture of your ideal customer.

Remember that in B2B sales, your customers should be the decision-makers who have the authority and the budget to negotiate and close deals with your company.

An example of a B2B customer profile might include details about the following:

Demographics – Age, gender, income, living status, education, etc.

Company Role – Current position in the company and the authority they have.

For example: Victoria P. controls 50% of the sales department’s purchasing budget.

Goals – Professional and personal ambitions. Example. She wants to increase sales by 20% in the next year.

Challenges – Problems she needs help with. For example. Her sales reps have not clearly distributed which territory areas and prospects she should focus on.

Interests – Favorite web sites, magazines, news sources, software, apps, etc. This information is useful for correctly targeting the right audience.

If you devote enough time and effort to researching your market, competitors, and portraying your ideal customer then you will have a strong foundation to succeed in B2B sales.

Step #2: Prospecting

In the past, B2B salespeople could simply buy a prospect base, but times have changed. Now, you can build your own B2B prospect list through social media. Platforms like LinkedIn and Facebook are great for external sales, through them you can approach business owners directly on the platform.

Alternatively, you can utilize inbound marketing by creating content and promoting it on your company blog and social media channels. This will allow potential customers to discover your products and services in a more natural way, which usually makes them more open to selling.

Whichever route you take, collect a list of top prospects that you think fit your ideal customer profile before moving on to the next step.

Step #3: Initial contact

After prospecting, you can approach potential buyers to introduce yourself and begin building a relationship. Traditionally, this might have been done with a follow-up cold call after an email presentation was sent.

Rapid advances in automation technology have significantly transformed sales and marketing processes. This is good news for B2B companies and also for customers.

You can use data analytics to check email open rates, video views and website visits. Then, you can customize your approach to get in touch with the prospects who seem most interested.

This initial contact gives you the chance to learn a little bit more about each potential customer and also position your brand at the top of mind with potential B2B customers.

Step #4: Evaluate and qualify leads

Studies show that while most B2B marketers ship leads directly to the sales team, only 27% of those leads will be qualified.

Even though technology has substantially improved the chance of success, still to capitalize on prospects they must be vetted before determining if it is a qualitative lead.

An effective way to do this is using the Sandler Pain Funnel.

This strategic series of questions helps you uncover your prospect’s real needs. Best, is to uncover the pain point early on and find out if the customer has the budget to contract with your company.

The eight questions in the Sandler Pain Funnel include:

“Tell me more about…”

“Can you be more specific? Give me an example.”

“How long has this been a problem?”

“What have you tried to do about it?”

“How did it work?”

“How much do you think the solution cost you?”

“How do you feel about the situation created or what was done?”

“Have you given up trying to solve the problem?”

When you size up each potential customer with these qualifying questions, you’ll develop a better understanding of how your products or services can help them. This will be critical in the next step.

Step #5: Proposal

Today, you can make collaboration proposals through video content, such as a webinar, live video conference or even in a private video meeting.

The latter is most advisable for maximum personalization. Indeed, it’s best to customize the presentation for each potential client and, if possible, do it in person. If your product is quite technical, you can bring an engineer to the meeting to solve any technical questions.

In any case, the presentation will definitely be a time-consuming process. Because it’s such a crucial stage of the B2B sales process, it requires considerable effort and planning. This stage based on the presentation made can either favor or on the contrary break the collaboration.

Since the presentation is done more for verified and qualified prospects, this stage is worth the effort.

Step #6: Communication

It would be far too easy if the B2B sales process was one-way traffic. But it isn’t. That’s why it’s so important to listen to your prospects.

We recommend you act as a guide, leading the conversation and letting the customer fill in the gaps. Ideally, you should do about 30% of the talking. This makes people feel heard and understood.

Another technique is to help, consult, rather than sell. By offering advice to help someone improve their business without any expectation of selling, you will quickly gain people’s trust.

Adapting the sales process to this style takes a little practice. However, when you get a good understanding of this method, you will build stronger relationships with potential customers.

Step #7. Follow-up

Research from Forrester found that 59% of B2B customers would prefer to manage relationships on their own, compounding the belief that people don’t like to be approached by salespeople.

As a result, with B2B sales professionals, a dilemma arises:

Should they still follow-up in this case?

The answer is yes. That said, time is what matters.

If you follow up too early or too often, you can annoy your customer and lose the sale. If you’re too nonchalant, you won’t close many sales.

The art of follow-up requires a delicate balance of personalization, persistence and perception. You need to understand how your customers like to be approached and what might worry them.

By putting yourself in the customer’s shoes, you can understand their mindset, needs and concerns.

Step #8: Closing the sale

The last step in your B2B sales funnel is the close. Quite often, this is considered the most difficult step in B2B selling. However, if you’ve completed the rest of the steps in your B2B sales process correctly, your close should be easy.

When you get this far, potential customers should be ready to buy. If you sense they’re still hesitant, it may be best to discuss their concerns again to address any unresolved issues.

Ultimately, if you and the customer are aligned, the sale is more likely. If not, you can close further and then open another meeting or product demonstration in the near future.

Some prospects need a little more time, so the sale isn’t dead if you don’t get it the first time.

11 strategies to improve B2B sales performance

Now that you’ve learned and gone through the basic steps for the B2B sales process, here are eleven B2B sales strategies that are sure to move the needle in the right direction.

1. Identify ALL decision makers

The earlier you identify the key players in your target companies, the better.

When you start researching potential websites, check pages like “Meet the Team” or “About Us” for information on the big players.

You can find details about key players and their roles by searching LinkedIn. This approach ensures you start off on the right foot and give your search the laser focus it needs to succeed.

2. Use HARD selling

Almost 70% of B2B customers claim that their business needs are not addressed during the first contact. If you don’t meet your prospect’s needs, they most likely won’t engage with you.

By adopting solution-based selling, you can target a pain point of your potential customer, then customize your sales pitch to help people overcome their problem.

Here are some sample questions that can help you drill down and uncover the challenges your potential customer is facing:

“What are your company’s short-term and long-term goals?”

“What do you think are your strengths and weaknesses?”

“What aspects do you like best about your current supplier? What do you dislike?”

“Write down one thing you would like to change in your business.”

“Are you facing any deadlines at the moment?”

“What resources would you like to use more?”

“Would you prefer to reduce costs, improve productivity or increase profits?”

“Is your business facing [pain point]?”

This tactic is hugely successful now because it’s all about the customer’s perspective and problem, which is a more welcoming proposition than a pushy sales pitch.

3. Fill in the blanks and maintain momentum

Keep in mind that the B2B sales cycle is longer than B2C.

It will benefit you in the long run if you develop closer relationships with your prospects, as they will be more likely to become a loyal customer who continually makes purchases.

If you are not convinced by this, consider the following:

Over a five-year period, most B2B companies lose about 50% of their customers.

Timing matters.

Even when you think you’ve succeeded, it’s critical to keep the momentum going so that you continue to fill your database with more B2B customers. That way, even when you lose a customer, the show goes on.

4. Strategically allocate your offline sales territories

Sales territory management is a popular system that B2B teams use to assign leads and geographies to specific sales agents based on industry, location or account size. This strategy ensures there is no overlap between your sales reps.

Segmenting your target audience in this way is an efficient use of your resources and gives each rep a chance to foster closer relationships with prospects in their territory. This is particularly beneficial for outside sales representatives who meet face-to-face with potential customers on a regular basis.

5. Create content to activate your sales team

Creating content online is a powerful way to deliver value to your audience, and by doing so you can establish a strong online presence and a brand identity that resonates with people.

Research shows a direct link between content marketing and successful collaborations. The least successful companies spent only 22% of their budget on content marketing, while the most successful companies allocated 39%.

Gist also reports that after reading personalized content, 82% of B2B customers see a company in a more positive light, and 70% of customers say they feel closer to companies after interacting with their content.

Over time, with great content publishing, you can position your company as a thought leader – one that B2B customers trust and respect.

Not surprisingly, over 90% of B2B marketers use content marketing.

It can be used to cultivate relationships at every stage of the customer journey, teach prospects and build your authority in their minds.

There are lots of ways to leverage content, including:

• Blog posts
• Educational articles
• Case studies
• E-books
• Videos
• Webinars
• Whitepapers
• Courses

Done correctly, this strategy can shorten your B2B sales cycle and drive more people through your sales funnel, which will increase your leads, conversions and ultimately your profits.

6. Harness the power of social selling

Social selling means using social networks to identify key decision makers and engage in meaningful conversations with them at the right time. This becomes the first step in your sales process, and from there you can guide prospects through your B2B sales channel.

LinkedIn research shows that 78% of people who engage in social selling will outsell those who don’t.

Great examples of B2B sales through social media include companies IBM, which achieved a 400% increase in sales, and SAP, which increased its revenue by 32%.

So why is it so effective?

These days, B2B customers are doing far more research on their own, so brands need to be agile to reach potential customers through as many touch points as possible.

Social selling helps you use omichannel marketing in a way that fosters brand recognition faster, which helps people automatically think of your brand when they’re ready to buy. This means you can bypass the awkward cold-calling stage to generate leads.

7. Incorporate videos throughout the sales cycle

Research from Google found that 70% of B2B customers watch videos when searching for products before they buy.

Video content becomes more engaging and is highly shareable, making it great for increasing brand awareness. Even better, video content is a powerful way to convey emotion in your company’s messaging, which is useful when you’re trying to sell something.

Ultimately, B2B customers don’t want a sales pitch – they want valuable information and engaging solutions that can help them solve their problems.

8. Develop a Lead Qualification Framework

Nearly 80% of leads never convert into sales.

It takes time to build trust and get people through the B2B sales funnel to the point of purchase. But you can improve your B2B conversion rates with a structured approach to lead analysis.

Categorize prospects by how willing and ready they are to make a purchase by considering the following:

• Need;
• Interest;
• budget;
• timing;

Every B2B company that wants big growth needs an effective sales process. Without it, all your best laid plans and marketing funnels be ineffective.

By designing a solid lead qualification framework, you can fill your sales pipeline with quality leads. This will optimize your use of resources and ensure that your sales team has a great chance of closing valuable deals.

9. Implement a Lead nurturing system

According to InsightThought, up to 97% of B2B leads are not ready to make a purchase.

The B2B nature means that companies typically consider a costly commitment and multiple decision makers need to discuss and agree on it.

This complex sales cycle creates an opportunity for B2B sales companies. You can build a relationship where you provide relevant information throughout the decision-making process.

Research from Marketo indicates that companies with a solid lead nurturing strategy generate 50% more customers ready to buy. What’s more, these hot customers cost us about 33% less.

10. Prepare for common objections

B2B selling is about presenting an opportunity for positive change. Give companies the chance to improve their business fortunes.

The problem is not everyone likes change. If you haven’t prepared well in advance the meaning of your offer and you don’t have all the arguments why your product or service is needed, you will face some tough customers who apparently can’t be convinced.

The most common objections are related to:

Budget – “I can’t afford it”

Competitor – “I already use another product”

Lower priced competitor – “I see your competitor is cheaper”

Time – “Can you get back to us in Q4?”

In each of these scenarios, if you have well-prepared answers, you can turn objections in the direction of the value your product offers.

Ideally, try to support that value with social proof and case studies of similar B2B customers that have had great results. Your potential customers will see that what you’re offering is something truly unique and realize that it’s a long-term investment that delivers an excellent return on investment (ROI).

11. Follow the Recommendations

Considering that B2B sales are big business, anything that’s offered for free is very welcome. Whether you have a small or large budget, you’ll rarely ignore a referral, so so will other potential customers.

Not only is it a new business opportunity, but a recommendation is much more likely to result in a sale. Research shows that referrals close 70% faster and deliver almost 60% more lifetime value.

Viral referrals is the cheapest form of marketing and sometimes the method that delivers the biggest bang for your buck.

To incentivize referrals, develop review programs that offer something free to those who do.

5 costly mistakes to avoid in B2B selling.

Now that you’ve learned how to sell B2B the right way, let’s analyze some common pitfalls. Here are five mistakes that can quickly derail you from the best B2B sales strategies.

1. Ignoring opportunities in the field

Many companies are attracted to inside sales because it can be more cost-effective than outside sales. In fact, it can be up to 90% cheaper than managing a field sales team. However, cheaper is not always a good thing.

By ignoring outbound sales, companies miss out on a lot of potential customers and risk creating a brand identity that lacks a personalized touch.

Outside sales teams win hands-down in this regard, as they have more human interaction with prospects and are highly effective at building strong customer relationships that can increase overall sales volume and also customer lifetime value (CLV).

This is particularly important for companies selling complex products that need explanation and discussion to alleviate concerns or confusion about how to use the product.

Sometimes you have to speculate to accumulate. With smart hiring and territory management, you can strategically reduce the cost of an outside sales team, which ensures you’ll realize a higher overall ROI.

2. Selling to low-level buyers

Getting in front of high-end customers can be a challenge. But if you choose an easier route of talking to low-level customers, you’re unlikely to get high-value deals.

This is a common problem, with 39% of B2B sales professionals saying that the inability to reach the right people is their biggest obstacle.

B2B sales strategies that focus on low-level buyers can’t generate the big increases and huge ROI you surely want. It’s far better to seek out higher-level decision makers who have the authority to make bigger deals. It may take more work, but this is worth the effort.

3. Focus on features versus the value the product offers

Your product could be revolutionary.

However, when it comes to B2B sales, potential customers don’t care about fancy features or the latest buzzwords.

All they want to know is whether or not your products or services can solve their problem.

Instead of focusing on the product, focus on your potential customer. Identify their pain points, show them that you care and demonstrate that your product or service provides the solution they need.

4. Implement a single-channel content strategy

For years, content marketers have sung the praises of using the Pareto Principle.

Also known as the 80-20 Rule, marketers believe it’s best to spend only 20% of your time creating content and the other 80% of your time promoting it.

Evidence suggests that this is a solid barometer, especially when you’re just getting started and need to promote your online presence to drive quality traffic to your website.

Unfortunately, many marketers put all their eggs in one basket and simply throw everything behind one channel. While SEO is a great channel to support, even it alone can’t generate the B2B customers you want.

Now omnichannel marketing is seen as the future of e-commerce.

To be successful, you need to have a multi-channel presence, from your company blog, to Facebook videos, to paid ads and influencer marketing partnerships. There’s a lot to explore, and the most successful companies are the ones that work hard to create a seamless and unified experience from one touchpoint to the next.

5. Forgoing follow-up

It’s rare to be able to close a deal with just one or two engagements, especially in B2B sales. SPOTIO research shows that there are on average 7 decision factors involved in the buying process and that 80% of B2B sales require at least 5 follow-up calls.

Companies that are considering your product and have large budgets need to be incentivized by Customer Journey Map before they make the decision to sign the contract.

Therefore, it is vital that you follow up with prospects.

It’s okay if they need some time to think about it, but you shouldn’t let leads go cold. If someone contacts your company on social media or email to ask questions, make sure you respond.

Many B2B companies struggle with this, and miscommunications between prospects and different sales reps can cause misunderstandings in your B2B sales pipeline.

By keeping track of prospects and following up regularly, you can build a relationship that helps you close more deals.

Discover more about B2B sales strategies on our B2B Sales course

Now that you’ve learned more about B2B sales, it’s time to take some action.

Article source: online research