FEBRUARY 27, 2019

Just Schürmann

Senior Partner & Managing Director

Next Generation Sales

How Digital is Revolutionizing Marketing and Sales

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Digital is revolutionizing B2B Marketing & Sales

Digitally

enabled sales

more

cost effective

New players

disrupting

traditional

channels

Highly

targeted

digital

marketing

Customer

journeys

dramatically

changing

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Online research participation

by channel (%)

Satisfaction of buyers who conduct

research though supplier's website (%)

Preferred sales representative

involvement (%)

83

77

42

34

11

9

6

7Others

Supplier’s website

Google

I do not participate

Users reviews

Social media

3rd party website

Blogs

37

50

13

Helpful

channel

Most helpful

channel

Not

helpful

11

77

12

Only

online

Limited

interaction

w/sales rep

Only in-person

market study

Consistent story across

mediums expected

Online interactions

increasing

Purchasing process generally

starts with an online search …

… with an expectation to find

richer and deeper content

Interactions with sales representative

decreasing

Customer behavior is changing

Source: Google "B2B Digital Evolution"; "State of B2B Procurement Study"; BCG analysis

B2B buyer starts purchase

process, not the sales rep

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From "funnel to hourglass"

Outbound

marketing

Direct

sales

Retain and up-sell

Purchase

Demo

Evaluate

Research

Interest

Aware

Retain and up-sell

Purchase

Demo

Evaluate

Research

Interest

Aware

Customer

Support

Core elements of traditional sales funnel … … are shifting in NextGen B2B sales

Inbound

marketing

Data driven

sales

Customer

success

Management

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Digital leaders tailor GTM models across segments

Lifetime

customer value

Discover LearnTry/

DemoBuy Post sales

Global

Demand Center

Face-to-face

Inside SalesDigital Self-Serve

(eCommerce)

Hybrid sales

Low

Custo-mer success mgt

High

Digital

marketing

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Reshaping capabilities from old to new world

Products

Cold calls

Relationship

Silos between sales and SC

Supplier mindset

Solutions

Warm Leads

Expertise

Integrated E2E transparent SC

Partner mindset

From old world … … to new world

Enablers

(operating model,

KPI and incentives)

Lead Generation

Offering

Sales Approach

SC integration

Customer value

Territory deployment Omni channel strategy

Incentive per rep Joint team incentive

Sales per rep Sales per customer

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"Next Generation Sales"drives breakthrough results ...

10%+Top-line growth

~3pptEBITDA-margin

BCG benchmark

study with over

700 companies

confirms success

of Next Gen Sales

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... by applying 5 + 1 key levers

Optimal sales

approach

Customer

interestOffering Delivery

Value

maximization

• Digital solution

offering

• Digital solution

selling

• Digital Marketing

automation

• Lead generation &

nurturing

• Next best offer

• Data-driven inside

sales

• eCommerce 2.0

• eEnabled Sales force

& SFE

• Demand forecasting

and production

optimization

• Predictive inventory

optimization

• Vendor managed

inventory

• Offer personalization

• Customer success

management

• Data-driven cross-

and upselling/Service

4.0

Enablers • Data governance and quality • Agile systems & platforms • Digital sales operating model

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Typical scale up of NGS transformation journey

Time

Impact

and trans-

formation

Launch (multiple) pilot(s)

PrepareCentral platforms

Define vision and roadmap

Build, operate, transfer

Next Gen Salesorganization

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The journey is well worth it: Next Gen Sales helps drive breakthrough results

Optimal sales

approach

Lead

generationOffering

Supply Chain

integration

Customer

value

Lifetime value of customer

1.5–2×

Reduction in costper lead

1.5–2×

Top lineincrease

2–10%

Top lineincrease

2%+

More upsellrevenue

5–20%

Reduction insales cost

< 50%Churn reduction

10–50%

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10

Just SchürmannSenior Partner and Managing

Director, Munich

Global Topic Leader, Digital Go-to-Market Transformation

The Boston Consulting Group+49 89 2317-4581schuermann.just@bcg.com

Boston Consulting Group

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This ensures that our clients achieve sustainable competitive

advantage, build more capable organizations, and secure

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80+ offices in 48 countries.

11

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