Otsikko

Otsikko

23 March 2015

Yesterday´s sales methods equal inferior results

If your B2B sales continuously moves brilliantly forward, do not waste your time reading this blog. But at least I, who started my B2B career by selling electronics to various industries and continued with mobile networks, sit constantly at school. Many of the traditional truths, such as importance of customer business and purchasing process understanding, are still valid. But many things have changed and are changing. Customers are looking for information on websites and social media, buyers are becoming better informed than sellers. Sales efficiency is going down, although costs go up.

As a result, a straightforward addition of sales efforts seldom leads to company growth and profitability. Instead of just replicating old way-of-working, you should reconsider your sales methods and reinvent customer acquisition approach - also in the business world, winners take it all. This blog will focus on, in particular, why reducing sales complexity is vital for B2B firms and how this is done in practise. After reading you will have fresh ideas to boost your sales efficiency and tackle new customer segments.

Sales methods


Sales efforts required to get B2B deals vary enormously depending on sold products or services. Tens or even hundreds of selling company persons are involved in the selling process of nuclear power plants, mobile networks or luxury cruisers, the process will take months or years of calendar time and the cost can be easily millions or tens of millions of euros. Some products, again, can be sold online with self-service, without direct involvement of seller.

Sales methods can be roughly divided into three categories, according to new customer acquisition costs (CAC):
  1. Self-service: Customers are attracted to company's web sites, by making use of, for example, search engine marketing and optimisation, content marketing and e-mails. Deals will be closed automatically, seller personnel do not have to participate, because the product is easy to understand and the value for customers is clear. Customer acquisition costs are mainly digital marketing costs, typically 30 to 200 € per new customer.
  2. Inside sales: This model is built on top of the self-service model. Customers are nurtured towards deals by responding to queries and questions by e-mail, telephone and video chats, as well as by showing demos over the network and by using other digital tools. Besides dedicated sales persons, also technical experts may be involved to clarify the details of the product or its use. Typical CAC is 600 to 6000 € per new customer.
  3. Field Sales: Applied in case of the most complicated purchasing processes, where the decision-making process involves several or even dozens of buyer representatives. Customers are met face to face, often numerous times. Sales will involve technical and other experts, and various customer pilots and other tools decreasing buyers´ uncertainty are common. New customer acquisition costs are typically more than ten thousand euros, and there is actually no upper limit for them.
Costs of selling through channel partners are between inside and field sales, but we are not going to discuss this further.

Sales method applicability


Organising and expansion of sales activities often fail, because it is forgotten that lifetime customer contribution need to exceed customer acquisition costs. And even this is not enough. The total contribution, i.e. total sales margin euros need to cover not only customer acquisition-related costs, but in addition R & D and administrative costs, depreciation, amortisation, interest expenses and income taxes - and, hopefully, there will be some profits left after that.

At sufficient level of accuracy, it is possible to define for each of the three sales methods required minimum customer contribution in euros, see the picture above. In each method, the green area shows acceptable contribution per customer, in the red area operations are not profitable. The line between green and red area is not carved in stone, as illustrated by the yellow zone between green and red areas.

At this stage, many people may raise their hands and say, that the above does not apply in their business, because the revenues are accumulated over a long period, and the first deal is only a spearhead. This is true, total customer contribution must include entire customer relationship lifecycle - in  a similar manner as customer acquisition costs need to cover costs over the entire lifecycle. But in case of business logic, where the profitability of a company is not so important, you may be able to ignore these laws. This often happens, for example, in startups; the idea is to make potential takeover candidates, with different kind of monetisation logic, more interested.

Sales development


In developing its sales activities a company thus has two basic recipes for success: to get more revenues from customers or reduce sales complexity, see the picture on the right. It is possible to get more revenues from customers by bringing more value to their business, by differentiating from competition and by avoiding tough competitive tendering. Although getting more revenues from customers is the ultimate must for sustainable long-term competitiveness, growth and profitability, it will not be discussed on more detail in this post.

By reducing sales complexity it is possible to switch to lower-cost ways to acquire customers; in practise face-to-face selling is replaced with inside selling, and self-service is used instead of inside sales. Some factors, however, make the simplification more challenging, e.g.:
  • Evaluating of the product or service is difficult and it involves a lot of buyer's representatives
  • The product or service is of vital importance; for example, if the selected product does not work, it may result in major economic or health loss
  • The product or service is expensive, requires major changes in buying company practises or other systems
  • The specification or contract of the product or service to be delivered is complex
If a company does not constantly seek to simplify its sales, it is not able to take advantage of the entire sales potential and it faces a serious threat to be outpaced by competitors. There are, however, a number of ways how companies willing to grow and renew can aim for a better market position through simplification:
  • Building easiness to sell in product or service already in development phase: for example, by implementing product configuration so that it is supporting customers' processes
  • Creating a business model that makes selling easier: for example, free or very low-cost pilots, or more cost-effective execution of field sales through channel partners
  • Improvement of sales and marketing machinery: e.g. aggressively using digital marketing methods and tools for demand creation, utilisation of self-service and inside selling for deal-making, whenever possible
Utilisation of various selling methods and tools is not a simple yes / no decision. In practise, you should consider using the available options by product or service, by various stages of sales process, by market segment or as an internationalisation tool. For example, when one of my cooperation partners made a transition from using field sales to self-service enriched by light inside sales, it was able to target also SMEs, besides earlier served major corporation accounts. Similarly, mental barriers to internationalise have several times been decreased by making the first steps through inside sales, instead of building immediately own local presence.

Conclusions


Many companies and industries have already taken the path of continuous sales renewal, at the forefront are ICT and such successful companies as Oracle. Also, necessary tools for change and successful references can be found in plenty. For example, for B2B inside sales, both dedicated service platforms for building own operations and special companies offering inside sales as a service are available.

Because you've got this far, you might want to get better sales results. Do you find answers to your specific business situation by renewing your sales strategies or sales models, or do you have challenges with your sales process?

121 comments:

  1. Great post with lot of useful information. Thanks for sharing.

    web design institute in chennai

    ReplyDelete
  2. Gone are the days that people used to do direct marketing and now its time to increase the revenue through Digital Marketing Course in Chennai.Updating to the latest trends is the better and smarter way like Digital Marketing Chennai. Thank you so much for sharing contents like this. Keep up this good work.(Digital Marketing Course in Chennai)

    ReplyDelete
  3. You are not kidding, yesterday's sales tools are not what they once were! Now inbound marketing is more effective, because customers are already on Google searching and when they are searching, they are in an open state of mind.

    Joshua Farley
    Founder | Blue Phoenix Creative

    ReplyDelete
  4. Great post. I definitely loved what I read so far. So thanks.

    jewelry photo editing services

    ReplyDelete
  5. Great post thanks for sharing visit for more info about website and android development Android Application Software

    ReplyDelete
  6. Nice Post! It is really interesting to read from the beginning & I would like to share your blog to my circles, keep your blog as updated.
    Regards,
    Digital Marketing Course in Chennai|Digital Marketing Training in Chennai

    ReplyDelete
  7. I really enjoyed while reading your article, the information you have delivered in this post was damn good. Keep sharing your post with efficient news.
    Regards,
    SEO Training Chennai|Best seo training in chennai

    ReplyDelete
  8. Good and first-rate blog post, thanks for sharing your facts.. It's miles very useful to me Java Training - free internship in Chennai

    ReplyDelete
  9. I am agree with you but, today more customer are using internet to buy product and service. A website is very essential for increasing the sales. For website design company nyc

    ReplyDelete
  10. one year mba
    Awesome post a debt of gratitude is in order for sharing visit for more information about site and android advancement

    ReplyDelete
  11. This comment has been removed by the author.

    ReplyDelete
  12. Hi Thanks For Sharing this I really enjoyed reading this We are best Hosting Service Provider in india so if you are looking for Hosting Services please visit us

    ReplyDelete
  13. "Thanks for sharing this information I really enjoyed reading this article if you are looking for
    Daclatasvir 60mg please visit us."

    ReplyDelete
  14. Thanks for sharing this information I really enjoyed reading this article if you are looking for Velpaclear from the millionhealthpharmaceuticals please visit us.

    ReplyDelete
  15. A well designed lighting scheme can transform an outdoor space and make it use able from day to night. In addition to providing access, safety and security, lighting can create a unique night scene in the garden and bring the outside in on long winter nights

    ReplyDelete
  16. This is really great post. I was looking for the same. Thanks for this. Regards Willie Phillips from WpLife

    ReplyDelete
  17. Thanks for sharing this information.if you want or bye Twitter pva accounts
    Buy twitter accounts contect us thanks

    ReplyDelete
  18. This comment has been removed by the author.

    ReplyDelete
  19. I am perusing your post from the earliest starting point, it was so fascinating to peruse and I feel because of you for posting such a decent blog, keep refreshes normally.

    Adopt Pets
    Adopt dogs near me
    Adopt cat near me

    ReplyDelete
  20. weightlifting accessories give weight lifting enthusiasts the tools they need to perform their best. Buy All weightlifting accessories at WYOXSPORTS are intended for use in home and business available at reasonable prices.

    ReplyDelete
  21. Hi DEAR.. obligation of appreciation is all together to pick a chance to discuss this, I feel staggering about it and Thanks for sharing this post. We Are Dolphin Automation and Technology get in touch with us for Mobile Signal Booster
    mobile network solution
    mobile signal booster thane

    ReplyDelete
  22. Nice blogs and eagerly waiting for such blogs and if you looking forword for Affordable Web Development Services then you are right place.

    ReplyDelete
  23. This comment has been removed by the author.

    ReplyDelete
  24. Jika anda masih dalam proses belajar cara bermain poker, ada baiknya untuk bermain kecil-kecilan terlebih dahulu. Tapi jika anda sudah menjadi master nantinya
    asikqq
    http://dewaqqq.club/
    http://sumoqq.today/
    interqq
    pionpoker
    bandar ceme terbaik
    betgratis
    paito warna terlengkap
    forum prediksi

    ReplyDelete
  25. Some salespeople with present day sales aptitudes and every one of the sales training they need simply lounge around trusting that the privilege mental minute will make a sales call.cold call script

    ReplyDelete
  26. This comment has been removed by the author.

    ReplyDelete
  27. On the off chance that the training is excessively best in class, maybe less experienced sales individuals will block out.how to get past the gatekeeper

    ReplyDelete
  28. According to Solterbeck, specialists in sales incentive programs, most companies fall down when it comes to designing, executing or building solid foundations for their sales incentive plans.pop up notifications

    ReplyDelete
  29. Hi there,

    Nice Article I really enjoyed this post Thanks For Sharing, check out this
    Ascent ASSOCIATES is one of Sri Lanka’s leading ‘total solutions’ providers, offering a simple, cost-effective route to ISO Certification in Colombo, Kandy, Galle, Dambulla, Sri Jayawardenepura Kotte & all over Sri Lanka.

    Ascent Associates

    ReplyDelete
  30. I think you did an awesome job explaining it. Sure beats having to research it on my own. Thanks
    BCOM 1st, 2nd & 3rd Year Time Table 2020

    ReplyDelete
  31. Thanks for sharing this informative information in you want to BUY AVIPATTIKAR CHURNA ONLINE than please contect us

    ReplyDelete
  32. All sales personnel must develop and submit their sales contact plan each week. Every very good and great sales rep has a plan for the day, the week and the weeks that follow. B2B Data List

    ReplyDelete
  33. As stated previously, cbd deals the objective of this process is to increase opportunities for the sales teams.

    ReplyDelete
  34. Business needs to be handled properly, otherwise there will be scarcity of capital. You can try the Téléphonie IP Montréal to do the rapport job properly. It will help you to save the phone costs as it uses the internet.

    ReplyDelete
  35. Business needs to be handled properly, otherwise there will be scarcity of capital. You can try the Téléphonie IP Montréal to do the rapport job properly. It will help you to save the phone costs as it uses the internet.

    ReplyDelete
  36. It can be very helpful article for the business owners. Specially the beginners, who are ready to adopt tricky and stunning business ideas. best entrepreneur podcasts are helping to serve with their different strategical courses.

    ReplyDelete
  37. By giving clients a reasonable course to what they need, it was expected that their experience would be better, quicker, leave them more slanted to return or change over them into a paying client. Webdesignlab.be

    ReplyDelete
  38. Book Private Jet Charter Private Jet Charter : Foresee Aviation India’s leading Private Aircraft and Helicopter Charter company offers helicopter charter, Cargo charter, private jet and executive airliner charters in India.

    ReplyDelete
  39. In 2002 Google dispatched something many refer to as 'AdWords' and it was anticipated to be the passing of SEO, as individuals could pay for unmistakable quality, on the now the number 1 website for beginning web look. Webdesign

    ReplyDelete
  40. This article is very interesting to read,it shares useful information for the learners. choi technique

    ReplyDelete
  41. Recall that it requires some investment to get results, normally one to two months, now and again more. Webdesign

    ReplyDelete
  42. You should ask yourself "What was the salespersons possibility of enduring given all the variables that impact sales execution". Seoleadgeneration.be

    ReplyDelete
  43. A custom CMS content administration framework is a decent decision to hold down future expenses since you or a staff part may oversee new site content without specialized abilities or paying each an ideal opportunity for changes. Webdesign bureau

    ReplyDelete
  44. Thanks for your sharing, I think this article is great and I like it very much!I would also recommend it to my friends.
    We appreciate the gift of nature, adhere to the use of environmentally friendly and healthy plant essential oil, in the soothing power of the scented candle, relax the body and mind, increase the sense of fullness, to welcome the brand new themselves.
    https://hlcandles.com/collections/tealight-candle

    ReplyDelete
  45. Your work is very good and I appreciate this issue. Its a great pleasure reading your post. I'd really like to help apprehend it with the efforts you get with writing this post.

    ReplyDelete
  46. FOXZ88.NET online casino website Global standard 2020-2021. คาสิโนออนไลน์


    Betting online gambling reminiscent of UFASCR.COM Baccarat. ufabet


    UFABET football betting website, the big brother of all UEFA networks, UFADNA, with an update The first modern system in 2021. ufa


    Web football i99PRO online lottery casino apply today for free 5000 bonus. เว็บบอล


    Kardinal Stick Siam - Relx a great promotion. Express delivery in 3 hours. relx


    Online Marketing Company By the way we can make your website. Reach more customers directly to your business group. Grow your sales. SEO

    ReplyDelete
  47. Online football betting i99club, one of the world's leading online gambling sites, provides the best prices in football betting เว็บแทงบอล


    Ufabet1688 online betting website UEFA Bet is a 100% legal website with all licenses. ufabet


    UEFA football betting, casino, slots, lottery, direct website 1688, stable financial, 100% UFABET168. ufa


    Fan wreath shop with free delivery, with pictures before-after sending with receipt. พวงหรีด


    Sticking to the COVID-19 situation: Arekorenavi.info. โควิด


    Online Baccarat FOXZ24 Easy to apply, fast, deposit-withdraw 10 seconds with the system. บาคาร่า

    ReplyDelete
  48. Great Information sharing .. I am very happy to read this article .. thanks for giving us go through info. Golden Triangle Tour Package India

    ReplyDelete
  49. At last, sales straighten and turn over. Sales typically turn over prior and more unexpectedly than employing plans. Sales may plunge at whenever during the year,iso merchant acquirer

    ReplyDelete
  50. Thanks for your sharing great article, I am very happy to read this article and I like it very much!I would also recommend it to my friends.

    sun news live
    sun news
    sun tv live
    news 7 live
    sun news live today
    sun tv news
    sun tv news live
    sun tv live news
    சன் நியூஸ்
    thanthinews

    ReplyDelete
  51. Webgross is a reliable company that works for your contentment and achieves your satisfaction for the long term. We love your job and value your inputs. https://thewebgross.com/graphic-designing-services-delhi-india/

    ReplyDelete
  52. In any case, exactly the number of these sales individuals wind up composing their objective, and the number of these sales individuals fall flat and move onto the following meeting to tell the planned manager how great they are at discovering new customers.North American Bancard Agent Program

    ReplyDelete
  53. There are five fundamental parts to the sales interaction distinguished by Mark Hood being, Planning, Opening, Quoting, Closing and Post Sale. To run a fruitful sales association you should comprehend these parts and see who does what part, and why. Top 10 Reasons Why You Should Get Salesforce Certified

    ReplyDelete
  54. Hotels in Tirthan Valley, Homestay in Tirthan Valley, Guesthouse in Tirthan Valley, Camping in Tirthan Valley, Trekking in Tirthan Valley
    Guesthouse in Tirthan Valley

    ReplyDelete
  55. Thanks for the detailed article on this topic. I would like to see more such awesome articles from you.

    ReplyDelete
  56. Thanks for sharing this valuable piece of information. Keep sharing more such awesome articles in the future. Goodbye!

    ReplyDelete
  57. Excellent blog, I loved it so much that I came back here to give feedback. Thanks though.

    ReplyDelete
  58. This was an excellent article. Thank you for sharing it.


    NordVPN

    ReplyDelete
  59. Thank you for the sales methods and all the tips, keep doing the good work! I am going to apply all these technique to my business,

    ReplyDelete
  60. So whose issue is it that these sales individuals continue to come up short, is it the shortcoming of the sales individual for holding themselves out to have abilities that they don't have, or is it the issue of the organization for having unreasonable assumptions for its sales individuals. posicionamiento web

    ReplyDelete
  61. The organization should uphold workplaces in every single significant market. posicionamiento seo

    ReplyDelete
  62. Google has nothing to do with how many times your site shows the keyword like "Digital Marketing Strategy." Lead Generation

    ReplyDelete
  63. Indeed they will let you know the amount they love settling on chilly decisions and being in the field thumping on entryways, does this sound natural. Bookkeeping Vaughan

    ReplyDelete
  64. Major Thanks for the article. Much thanks again. Keep writing.
    download instagram dp

    ReplyDelete
  65. There are five primary parts to the sales interaction recognized by Mark Hood being, Planning, Opening, Quoting, Closing and Post Sale. Europa-Road túlméretes szállítás

    ReplyDelete


  66. hi sir,That's an outstanding piece of work!I look forward to seeing more!thank you.
    icloudremover v 1.0.2 + keygen

    ReplyDelete
  67. Great blog! Do you have any hints for aspiring writers? I’m hoping to start my
    own website soon but I’m a little lost on everything. x-particles torrent

    ReplyDelete
  68. dj music mixer crack He started and opened his eyes. ...
    In the spring of 1893 a club was started in Tuscumbia, of which Mrs.

    ReplyDelete
  69. duplicate cleaner pro " I started working today. I have just started work.

    ReplyDelete
  70. betternet vpn premium crack king, male monarch, Rexnoun. a male sovereign; ruler of a kingdom. Antonyms: queen regnant, queen, female monarch.

    ReplyDelete
  71. If you have an experienced business website however, you don't have learned to optimize it for SEO, you might consider hiring the help of an SEO agency. seo singapore services

    ReplyDelete
  72. Thanks for Sharing such an amazing article. Keep working... Your Site is very nice, and it's very helping us.. this post is unique and interesting, thank you for sharing this awesome information Mirillis Action Crack

    ReplyDelete
  73. You are welcome to share your thoughts. Thank you for your time and I look forward to reading your next contribution.
    Thanks again for the update.
    FullKeygens

    ReplyDelete
  74. This is a good post. This post gives truly quality information. I’m definitely going to look into it. Really very useful tips are provided here. Thank you so much. Keep up the good works. Thanks again for the great post. In my opinion you will be great blogger in the future.
    freekeyspro

    ReplyDelete

  75. It is really what I wanted to see hope in future you will continue for sharing such an excellent. Your writing skills are gorgeous. keep it up!good work thank you.
    windows loader 2.6.2

    ReplyDelete
  76. Wonderful work! This is the kind of info that are meant to be shared across the internet. Disgrace on the search engines for not positioning this post higher! Come on over and consult with my website. avast premier license key

    ReplyDelete
  77. Hello Dear thanks For Sharing Such A Greate content with Us, Its really an amazing Information so please keep sharing. I also Have something special for you so please check out

    adobe photoshop cs6 crack dll files 32bit 64bit download
    avast anti track premium full
    proshow producer crack

    ReplyDelete
  78. Such a great information for blogger i am a professional blogger thanks softwareeagle.com

    ReplyDelete
  79. Thanks for this informative blog and for giving us an opportunity to share our views.
    IDM Crack
    OneSafe PC Cleaner Key
    HD Tune Pro Crack

    ReplyDelete
  80. how to boof alcohol
    Many men and women struggle with drug and alcohol use along with mental illness. In 2018, an estimated 9.2 million people in the U.S. struggled with co-occurring disorders like this, according to the Substance Abuse and mental Health Services Administration.

    ReplyDelete
  81. you've got achieved a omnipresent process upon this article. Its wholly proper and intensely qualitative. you've got even managed to make it readable and clean to access. you have a few valid writing function. thank you consequently much. Product Key For Windows 7 64 Bit Ultimate

    ReplyDelete
  82. Your blog is simply too fantastic. What I was seeking for was easily found. In addition, the content quality is fantastic. Thank you for the prod! exclusive domain custom erp development

    ReplyDelete
  83. This is good information and really helpful for the people who need information about this. Ziyyara Edutech’s comprehensive online tuition for GCSE students is designed to help you achieve your academic goals.
    For more info visit Online tuition for GCSE

    ReplyDelete
  84. Anda adalah ahli dalam bidang ini. Artikel Anda sangat akurat dan terpercaya. contoh gambar rumah minimalis

    ReplyDelete
  85. Saya berterima kasih atas pencerahan tentang manfaat jasa RAB yang diberikan dalam artikel ini. jasa desain rumah online

    ReplyDelete
  86. Very nice post, impressive. its quite different from other posts. Thanks for sharing us. Instagram Marketing Company In India

    ReplyDelete