With over 25 years of experience selling technology solutions in Asia, UK and Europe, I've seen my fair share of sales methodologies, sales strategies and planning sessions, not to mention negotiating complex deals, building sales teams, coaching sales managers and the rest! My point is, sales roles are so varied in nature and there are many different "sales experiences".
When we think of "sales," we can envision things like the art of cold calling, a good old-fashioned lunch meeting, bustling boardrooms filled with teams analysing data, and the long-awaited but satisfying handshake that seals a deal. The world of sales has various forms, from B2B to B2C sales, constantly adapting to meet changing customer expectations and business demands.
Here, I'm talking about the intricacies of B2B Sales specifically. I will take some time to define B2B sales, offering insightful examples, effective strategies, valuable tips, and the latest sales trends and training to enhance your skills in B2B sales.
In this article, I'll be covering the following;
Getting a feel for your Total Addressable Market is probably one of the first things you'll want to do if you're in a new role. Total Addressable Market [TAM] represents the ultimate potential for a specific product or solution. Simply put, if every individual who could benefit from a product or solution bought or adopted it [achieving 100% market share], what size would that market be? Once you have established your TAM, and calculated your percentage of that market, you need to prioritise how you will grow your market share.
A valuable planning tool for this purpose is Ansoff's Matrix, which provides a framework for leaders to devise strategies for future business growth. Originally featured in the prestigious Harvard Business Review in 1957, this timeless asset continues to offer valuable insights for businesses today.
The Ansoff Matrix equips B2B sales and marketing teams with a straightforward approach to crafting successful growth strategies while also enabling them to evaluate potential risks effectively.
According to Ansoff, there are essentially four key routes to crafting a growth strategy [apart from acquisition], including either diversifying the product offerings [product growth] and/or expanding the target market [market growth].
The Ansoff Matrix presents four strategic growth choices, each varying in risk levels, which can be combined to optimise growth and profitability. See below.
A 2x2 framework designed to evaluate organic growth strategies involving new markets and or new products. Markets occupy the vertical axis, and products or offerings occupy the horizontal axis. Each square in the Ansoff Matrix equates to a specific organic growth strategy –
With decisions made on your growth strategy, you can look to develop your go-to-market strategy. For clarity, a go-to-market plan is not the same as a marketing plan, although a GTM plan should have a marketing plan as a key element. In every strong GTM strategy, there are three key facets to consider:
A typical GTM Strategy includes;
B2C sales involve businesses selling products or services directly to individual customers rather than to other businesses or organisations. Conversely, B2B sales involve businesses selling to businesses. While both share commonalities in sales strategies, such as fostering relationships and enhancing customer loyalty, they also exhibit distinct differences.
There are five main types of B2B sales targets:
Let’s look at the five types of B2B sales between these parties.
Selling raw materials or components to businesses that manufacture final products falls under this category. Batch process (FMCG and Pharmaceutical), continuous (Oil&Gas), and discrete (IT, Automotive) suppliers along the supply chain supply goods that ultimately form part of the final product, be it cocoa for a chocolate bar or seats for automobiles. These transactions often involve bulk quantities sold at a discounted rate to the buyer. It is common for businesses to establish ongoing relationships with reliable suppliers for regular restocking needs.
Example:
Intel makes computer hardware and software and supplies their micro-processors to Dell, Lenovo, and HP
Distributor sales, also known as wholesalers, operate similarly to supplier sales. However, rather than trading in raw materials, distributors acquire finished retail products directly from the manufacturer.
The distributor/wholesaler usually buys directly from the manufacturer, holds inventory of the product, provides after-sale services, and resells the product to resellers and sometimes directly to end users. Because distributors generally take on marketing responsibilities for the product or the obligation to obtain regulatory or government approvals for product resale, the manufacturer-distributor relationship is often exclusive.
A retailer is generally supported by a sophisticated logistics/supply network (2nd,3rd and 4th party) and typically concentrates on B2C selling through either online or 'bricks and mortar' stores.
Example Distributor: Texport supplies its flame-retardent fire suits to Hunter Apparel Solutions, which sells and maintains them for UK & Irish Fire services.
Example Retailer: HP sells its' laptops to Currys.
Intellectual Property Solutions and General Service Providers sell services to other businesses. Depending on the service requirements, the seller may also sell or rent intellectual property in the form of software or provide services businesses have elected to outsource [accounting, legal, IT].
Example: HubSpot offers Software as a Service [SaaS] solutions, allowing companies to subscribe to tailored plans that provide efficient software tools for optimising their growth strategies.
To meet the demands of their communities, government agencies and local councils must acquire various materials, from pens and paper for government facilities to raw materials for construction and maintenance. This type of transaction is commonly known as business-to-government [B2G] sales.
Example: Wylies Copier Supplies sells goods and services to the City of London Department of Commerce to service and maintain their copier fleet.
Charities and nonprofit organisations heavily depend on donations and fundraising efforts, yet they also have essential purchasing needs. Like government agencies, these charitable entities require supplies and services to sustain their operations and fulfil their missions.
Example: Big Business Agency offers HubSpot CRM solutions tailored for NGOs, charities, social welfare organisations, and other nonprofit institutions. HubSpot can enhance donor relationships, streamline donation management and communications, and effectively track budgets, empowering these organisations to fulfil their missions efficiently and effectively.
Create Lead Lists: Utilise various channels, including industry events, online platforms, and strategic partnerships, to compile a valuable list of leads. Investing in tools like LinkedIn Sales Navigator can save precious time and money for B2B sales teams of all sizes.
Utilise the Strength of Inbound Marketing: Engage and entice potential leads with impactful content delivered via email, social media, calls, and paid advertising.
Tap into Social Selling: Use social media platforms to connect, engage, and build relationships with potential customers. Data shows that those who put the most effort into social selling reap the biggest rewards. For example, 76% of top-performing sales reps ’always’ research their prospects before reaching out. And just like most other sales activities, you'll need a framework to be successful!
Get the free VECE Social Selling framework which we use and recommend.
Deals that close have been systematically qualified. Deals are lost because:
1) some key need or parameter for the decision [personal or business] wasn't identified, or
2) the internal budget process and gatekeepers were not mapped, or
3) Internal politics and how they shape the prospects' landscape weren't known.
Conduct IMPACT analysis [or similar methodology]: Evaluate leads based on their Budget, Authority, Need, and Timeline at a minimum. Success comes from qualifying. [Check out 101 Sales Qualification Questions here]
Implement a Scoring System: Prioritise leads based on their engagement and fit with your offerings. Make sure your sales team understand the scoring criteria and apply it consistently. B2B Sales is renowned for troublesome lead scoring systems and this is often because the behaviours that get scored don't correlate with intent to purchase.
Making Initial Contact: Reach out to prospects to gather information and assess how your products and services solve their business needs. "Always be helping" - a "helpful" mindset rather than a "sales" mindset will make it easier for you to connect with your prospect.
Conduct Discovery Calls: Engage in in-depth conversations to understand the prospect's challenges, goals, and pain points.
Dive into Technical Assessment: Ensure that your solution aligns with the prospect's requirements by delving into the technical aspects.
Develop Customised Presentations: Showcase how your technology addresses the prospect's specific needs through personalised presentations.
Provide Demonstrations: Illustrate the functionality and benefits of your technology through live demos or virtual walkthroughs. Invest the time to demo exactly what solves the prospect's business needs. This is one of two critical buying criteria [how me it working].
Share Use Case Presentations: Share case studies with ROI and success stories relevant to the prospect's industry or challenges. This is the second critical buying criterion [tell me who else is using it].
Address Concerns & Objections: Be prepared to address any objections or concerns raised during the presentation. Map out difficult questions and rehearse the answers—especially important when a virtual team is presenting.
Create Customised Proposals: In detailed proposals, outline the proposed solution, pricing, and terms. Constantly relate price to investment and ROI to keep Value at the forefront of the prospect's decision-making process.
Developing Negotiation Strategies: Reach mutually beneficial agreements by developing effective negotiation strategies.
Collaborating on Contract Review: Work closely with legal as early in the process as possible to ensure that contracts meet both parties' expectations.
Confirm the Decision: Understand the prospect's decision-making process and timeline to facilitate a smooth closing.
Employ Closing Techniques: Utilise effective closing techniques based on the prospect's buying signals.
Facilitate Contract Signing: Ensure a seamless process for signing contracts and agreements.
Collaborate on Onboarding: Work with the customer success team to ensure a seamless onboarding process.
Conduct Regular Check-ins: Address post-implementation issues and gather feedback through follow-up meetings.
Identify Upsell and Cross-sell Opportunities: Explore opportunities to upsell additional features or services.
Collect Customer Satisfaction Surveys: Continuously improve the customer experience by collecting feedback with industry standard surveys at least once a quarter.
Implement Referral Programs: Encourage satisfied customers to refer new business through referral programs.
Develop Renewal Strategies: Proactively secure renewals and expand relationships through strategic planning.
Track Metrics: Monitor key performance indicators [KPIs] to evaluate the success of the sales process.
Conduct Meetings with your Sales Team: Discuss wins, challenges, and areas for improvement with the sales team through regular reviews.
It's important to adapt the sales process based on industry trends, competitor analysis, and feedback from the team and customers.
Free sales plan template
Crafting a strategic sales plan is key to navigating your business goals and achieving success. Explore your sales roadmap with our complimentary sales plan template today.
Forecast Accuracy is driven by two essential techniques: Qualification and Standardisation. As we mentioned Qualification above [IMPACT framework], let's look at how implementing Standardisation can improve forecast accuracy.
B2B Sales teams need a clear understanding of the specific pieces of information required before they can confidently move a deal forward to the next stage in the sales pipeline. A shared understanding of what evidence is needed for a deal to progress through the pipeline simplifies sales management and increases forecast accuracy.
Without a standard view of what these essential pieces of information are, sales teams will interpret and, through best efforts, present an inconsistent pipeline. Imagine a scenario where one team member believes that customer budget is the most important factor to verify, while another team member focuses on the customer's decision-making process.
These [along with four others] are all critical data points to qualify a deal and its correct place in the pipeline. Only with a shared understanding of precisely what each of these six data elements is, can the timing of each deal be correctly judged. Similarly, revenue projections can only be accurate if there is a consensus on the essential information needed for each stage of the sales process.
The primary objectives of effective pipeline management encompass establishing a robust pipeline and securing more deals to make quota. Studies indicate that companies commonly evaluate pipeline vitality based on its size, structure, and composition. Achieving deal closures often hinges on targeted coaching tailored to individual opportunities. Thus, if you are assessing the overall health of your sales pipeline or guiding your sales representatives towards closing deals, you are likely on the right track.
The primary objective of forecasting is to make precise predictions about future performance. As you get deep into the realm of forecasting, you rely on three key assumptions: the deal size, the probability of winning the deal, and the anticipated closing date.
For instance, when you communicate, "there is a 25% chance that this £50,000 deal will close next quarter," you are engaging in forecasting. By leveraging these assumptions, you estimate when your revenue will materialise. While accurate forecasting won't directly impact your likelihood of winning a deal or the health of your pipeline, it will enhance the precision of your predictions, ultimately advancing the goal of forecasting.
Whether you’re selling IT Services to Government Clients or CRM Solutions to startups, or small businesses it’s important to have a sales strategy to guide you through the process.
Establishing a B2B sales strategy lays the groundwork for reaching your business objectives by mapping out a definitive course of action. Given that every business has its distinct sales goals, strategies can differ. To embark on your sales expedition, here are key B2B sales strategies to steer you in the right direction.
Download a free copy of our information-packed Social Selling Guide and get up to speed on the latest strategies for social selling. Learn how to put Social Selling at the heart of your sales process for accelerated sales results.
Product training is not the same as sales training. You need to invest in both to have a top-performing sales team.
Today’s B2B buyers are savvier, more informed, and have access to several options at their fingertips. What makes it more complicated is that 90% of buyers don’t follow a linear sales funnel path, leaving sales reps little to no room for mistakes.
This makes B2B sales training more important than ever. A well-designed training programme will empower sales reps with the knowledge they need to deliver value and close more deals. Let's take a look at what you need to consider when you're thinking about Sales Training
Begin every training program with a thorough needs assessment. Evaluate the sales team's existing skills, pinpoint areas for enhancement, and align the training with your business objectives. This critical step guarantees that the training is tailored, pertinent, and impactful.
Customise the sales training modules to meet the specific needs identified. Develop modules that encompass industry-specific knowledge, practical sales scenarios, comprehensive product understanding, and essential sales and soft skills.
Selecting the right training methods and resources is vital to captivate your team. This entails discovering the perfect blend of face-to-face, hybrid, or virtual sales training tailored to your team's locations and preferred learning styles. Integrate interactive activities and practical materials such as role-playing and case studies to enhance the learning journey.
Ensure your training programme integrates your sales methodology. Whether Inbound, SPIN, Sandler or something else, make it a focus area. Offer materials and exercises that reflect the methodology’s sales strategies and principles so sales reps can apply the techniques in real-world scenarios. For a comprehensive review of the Top 12 B2B Sales Methodologies, you can read our recent blog article.
Set clear metrics and KPIs to track the success of your sales training program and consistently collect feedback from participants for ongoing enhancements. This method will evaluate the training's influence on B2B sales performance and guarantee it provides concrete business advantages.
The elephant in the [training] room
Regrettably, a staggering 87% of the training provided to sales trainees through conventional learning management systems is forgotten within just a month. Given this challenge, how can you ensure that your B2B sales training program effectively equips your team for success? Let's delve into best practices that can enhance the impact of your sales training.
TOP TIP: Discover the wealth of knowledge available at HubSpot Academy, which offers self-paced sales and marketing training covering a diverse range of topics. Stay ahead of the curve with training and insights into the newest trends in digital marketing, sales strategies, customer support, and CRM innovations. Best of all, get access to these resources at no cost and earn certifications along the way.
For further information visit HubSpot Academy.
The landscape of B2B sales is constantly shifting, with businesses seeking that edge or a new trend that distinguishes them from competitors. Here are some anticipated B2B sales trends for the upcoming year.
AI and automation: Businesses are finding new benefits to implementing AI in sales. AI can analyse data in real-time and use data algorithms to automate data-heavy or cognitive tasks. Conversational AI tools [like ChatSpot] use machine learning to improve with each interaction, and predictive AI tools can accurately forecast sales. HubSpot AI assistant can draft sales emails, create draft blog articles, create email templates and more, freeing up valuable time for sales teams to connect with prospects and customers
Breaking down data barriers: Collaborative data sharing is a game-changer, and savvy businesses are fully aware of its advantages. By investing in tools that locate, unify, and structure scattered data in a centralised platform, companies can significantly optimise their sales operations.
Personalisation and nurturing relationships: Gathering customer data and organising it in a centralised hub like HubSpot, empowers sales professionals to glean insights from ongoing interactions, context, and past engagements. By proactively engaging with customers and providing seamless sales experiences, relationships can be nurtured and strengthened.
Level up sales team skills: Over 70% of sales leaders prioritise enhancing the capabilities of their sales representatives. In-house training initiatives and skill development programs not only empower sales reps to excel in their positions but also contribute to bolstering employee retention rates.
Invest in a powerful CRM: Eight per cent of people surveyed in the State of Sales Report said their business is increasing its CRM and sales tools budget. Tools like AI and automation in Sales hub can enhance efficiency, while collaboration tools can create more and better sales opportunities for B2B sales teams.
There is no doubt the need for Territory Plans, Account Plans, Opportunity Plans, Bid Reviews, Win/Loss Reviews, Pipeline Reviews, QBRs - all of those activities that are non-selling and take up so much time.... they are not going away anytime soon. Sorry, but I guess you knew that. However, with the rapid advancement of technology, tasks like research, creating custom reports and preparing supporting materials are now quicker and more efficient, thanks to AI.
Salespeople are benefiting from increased productivity when it comes to researching prospects and creating content for presentations and emails. And, it's not just salespeople that are benefitting, buyers are increasingly making the move digital sales and consistently doing more research online than they have previously. Sales need to align with the buyer's journey to maintain a competitive advantage and to give customers a better experience.
The evolution of sales will see a permanent shift in organisations' sales strategies, processes, and resource allocation, transitioning from a focus on sellers to a customer-centric approach. Embracing digital-first engagement is essential as digital sales channels growth will continue to accelerate. This means moving away from traditional sales methods to automated processes, blending various capabilities to enhance customer interactions and drive sales effectiveness.
B2B sales can be challenging, but with the right tools and processes, it can be a lot easier for your sales team and more enjoyable for your customers.
HubSpot makes leaning into AI and Automation easy. The HubSpot Customer Growth Platform has AI built in giving you productivity gains with AI content assistants helping with email, webpages and blogs, Chatbots for live help, Predictive Deal Health Scoring and AI assisted reports and much much more... pair this with workflows and the difference in your processes is significant.
With HubSpot Sales Hub, you get a unified platform with everything you need—a dedicated prospecting workspace, automated lead follow-up, sequences, email, email tracking, calling, meeting scheduler, sales snippets, quotes, payment links, and collaboration tools—all in one place.
The set-up is fast, and unlike other sales-focused CRMs, it's easy to learn and use, which makes user adoption a walk in the park!
Would you like to find out more or have a quick chat? Use this Meeting Link and choose a time to talk.
Johanne : Mar 12, 2024 11:35:22 AM
Full cycle sales: what you need to consider in your move to full cycle sales So you want a sales process that covers every stage of the buyer's...
Peter : Feb 20, 2024 12:07:10 PM
When it comes to sales, putting the prospect first is crucial. Their success should always be the main focus in any deal you make. Every sales...
Peter : Feb 23, 2024 6:15:00 PM
Sales professionals need to becontinually Prospecting, so getting good at it isn't optional, it's essential! Unsure of where to begin? Look no...
.png?width=280&height=280&name=Coloured%20arches%20for%20docos%20(1).png)