Top Sales Experts B2B Buyer Trends

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Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved B2B Buyers: How New Generations Are Changing the Way We Sell by Dr. David Brookmire www.GenerationalDNA.com

description

Webinar to help increase selling effectiveness with multigenerational buyers and customers. Research is provided on buyer trends and preferences and implications for organizations are outlined.

Transcript of Top Sales Experts B2B Buyer Trends

Page 1: Top Sales Experts B2B Buyer Trends

Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved

B2B Buyers: How New Generations Are Changing the Way We Sell

by Dr. David Brookmire

www.GenerationalDNA.com

Page 2: Top Sales Experts B2B Buyer Trends

Agenda

• Generation X and Y are Changing the B2B Selling Landscape

o Exec involvement in the buying cycle has changed

o The information sources they use to make decisions

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o The information sources they use to make decisions are NOT what you’re investing in

o The communication channels they prefer are not the ones where your sales force excels

Page 3: Top Sales Experts B2B Buyer Trends

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YOUR BUYER AND YOUR

SELLER ARE CHANGING

Page 4: Top Sales Experts B2B Buyer Trends

Gen Y

Foreign-born

Generation Z

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Traditionalists Boomers

Gen X

Source: The Concours Institute

Page 5: Top Sales Experts B2B Buyer Trends

GENerationalDNA Friction Map:

Boomers Gen X Gen Y

Boomers

Seller sending

sales docs vs.

working Boomer

Seller isn’t

communicating

via Boomer’s

Sales Reps

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peer network preferred

channels

Gen X

Gen Y

Seller doesn’t

understand the Y

buyer’s personal

drivers

Seller making

generational

assumptions and

alienating buyer

Bu

ye

rs

Page 6: Top Sales Experts B2B Buyer Trends

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SOME GENERATIONAL STATS

ABOUT YOUR B2B BUYER

Page 7: Top Sales Experts B2B Buyer Trends

Baby Boomers Gen X Millennial

Born Between 1946 - 1964 1965 - 1980 1981 - 2000

Labor force 76m 50m 88m

Purchasing With Credit Cards With Credit and Bank Cards Purchase On-line

Significant Milestones •Cold War•Vietnam War•Civil Rights

•High Divorce Rates•Challenger Disaster•High Parents’ Unemployment Rates

•Terrorism (Oklahoma City, Columbine, 9/11)•Flat world•Global Warming

View of Technology Master It Enjoy It Employ It

What they bring to work Leather briefcase Cell phone and lap top iPhoneHYPERole of Career Central Focus Work/Life Balance Always Changing

Major Influences Family & Education The Media Friends, Media Sports Stars, More Aware

Work Is5 Exciting Adventure Difficult Challenge Means To An End

Role of Relationships Limited, Useful Central, Caring Global

Communication , Media,

Technology

•TV•Photograph•Touch-tone Phones

•Video: Atari, Nintendo•Computer•Cell Phone

•Internet•Laser Disc Players•IPOD, MP3 Player

HYPE

Page 8: Top Sales Experts B2B Buyer Trends

Boomer Gen X Gen Y

If you sell to companies that are

Large ($751m - $2B+)Mid($51m - $750m)

Small (<$50m)

30% Large

19% Medium51% Small

24% Large32% Medium

44% Small

40% Large

34% Medium

26% Small

If your ASP isI >$50K All ASPs $2,500-$50K

If you sell to this levelI

39% VP26% Director26% Manager

10% Professional

20% VP18% Director33% Manager

29% Professional

5% VP11% Director32% Manager

52% Professional

If you sell to this Finance, IT, Ops, Marketing, Finance, IT, Ops, Marketing, Engineering, Ops, Marketing,

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If you sell to this functionI

Finance, IT, Ops, Marketing, Purchasing, Sales

Finance, IT, Ops, Marketing, Purchasing, Sales, R&D

Engineering, Ops, Marketing, IT, Purchasing, Customer Support

If you sell these productsI

Computer software, services, hardware, business services, furniture & fixtures, printing, telecommunications

Computer software, services, hardware, electronics, business services, paper, printing

Computer software, services, hardware, electronics, business services, paper, printing

If you sell to these industriesI.

More prominent in: Business

& Consulting Services, Computer Softrware &

Services, Telecommunications Services, Electronics, Banking, Manufacturing, Tech Hardware & Equipment

More prominent in: Business

& Consulting Services, Computer Software &

Services, Education, Pharmaceuticals & Biotech, Government

More prominent in: Healthcare, Media &

Entertainment, Commercial Goods, Food & Beverage, Financial Services, Industrial

Manufacturing, Non Profit, Aerospace & Defense

Page 9: Top Sales Experts B2B Buyer Trends

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THE OMNIPRESENT MULTI-

GENERATIONAL EXECUTIVE

Page 10: Top Sales Experts B2B Buyer Trends

QUICK GEN SURVEY

Which generation is involved in the middle of the sales cycle as well as the

beginning and end?

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� Gen Y� Gen X� Boomer

Page 11: Top Sales Experts B2B Buyer Trends

QUICK GEN SURVEY

Which generation is involved in the middle of the sales cycle as well as the

beginning and end?

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Trick Question.They ALL are.

Page 12: Top Sales Experts B2B Buyer Trends

Executive Dogma

Copyright © 2009, Corporate Performance Strategies, Inc., All Rights ReservedSource: Read & Bistritz, 2009

Page 13: Top Sales Experts B2B Buyer Trends

Today: The Higher the Exec, the More Involvement

Execu

tive I

nvo

lve

men

t

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Execu

tive I

nvo

lve

men

t

B2B Buying Cycle

Page 14: Top Sales Experts B2B Buyer Trends

Are You Prepared for Execs Throughout the Buying Cycle?

Gen X B2B BuyersBuying Stage Involvement Executive Sales Tools & Messaging

Identify/diagnose problem 64% White Papers √

Build business case 61% Case Studies √

Decide to buy external solution

60% Case Studies √

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solution

Obtain budget 53% Exec-level ROI meetings?

Search for solutions 71% Exec conscious website? Exec-ready call center?

Meet with vendors 65% Exec level demo?

Set requirements 67% Mapped to Exec needs?

Evaluate selected solutions 71% Competitive intel/messages targeted for Execs?

Decide on solution 68% Exec pitch √

Negotiate contract 51% Executive peers engaged √

Review performance, installation, implementation

61% Exec presentation of results?

Page 15: Top Sales Experts B2B Buyer Trends

Key Implications for Sales Managers

• Boomers and Xers still prominent: BUT, Gen Y buyers continue to increase their involvement and growing –Typical decision makers for ASP below $50k and in certain industries

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• Execs Always Present: Execs at all stages of the buying process – from business case, to demo, to results review

• Need for Generationally Aware Sales Skills: Selling approaches need to be aligned with the level and generation of the buyers

Page 16: Top Sales Experts B2B Buyer Trends

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THE SOCIO-POLITICAL

MARKETING BUDGET

Page 17: Top Sales Experts B2B Buyer Trends

QUICK GEN SURVEY

What are the two most influential sources of information useful to all decision makers in

buying decisions?

�Professional Content Websites

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�Professional Content Websites�Videotaped Case Study

�Advertising�Internet Reviews

�Books

Page 18: Top Sales Experts B2B Buyer Trends

QUICK GEN SURVEY

What are the two most influential sources of information useful to all decision makers in

buying decisions?

�Professional Content Websites√

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�Professional Content Websites�Videotaped Case Study

�Advertising�Internet Reviews

�Books

Page 19: Top Sales Experts B2B Buyer Trends

Boomers useI

Sources of Information for Buying Decisions

BOOMERS

57%

59%

Best Practice/Professional content w ebsites

Trusted Advisor Internal

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4%

5%

49%

52%

59%

0% 10% 20% 30% 40% 50% 60% 70% 80%

New spaper

Direct Mail

Peer Group Rerralsa

Internet Review s

Trusted Advisor External

Page 20: Top Sales Experts B2B Buyer Trends

And so do XersI.

Sources of Information for Buying Decisions

GEN X

63%

75%

Best Practice/Professional contentw ebsites

Trusted Advisor Internal

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7%

8%

60%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Direct Mail

Advertising

Peer group Referrals

w ebsites

20% or more of your company’s marketing budget

is spent on these lowest rated sources of info

Page 21: Top Sales Experts B2B Buyer Trends

Sources of Information for Buying Decisions

GEN Y

57%

63%

Best Practice/Professional contentw ebsites

Trusted Advisor Internal

And Y is similar, tooI.

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7%

13%

56%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Video Case Studies

Books/Authors

Internet Review s/feedback

w ebsites

Page 22: Top Sales Experts B2B Buyer Trends

Information Availability – Buyer Quotes

• “All buyers do their research online for information on product vs. relying on a salesperson. The sales role has become more of a customer support role.”

• “Information does not necessarily come from the vendor. It has become easy to find information from lots of sources.”

• “You can do your own research. Also, product reviews are important – people that are unhappy tend to be very vocal.”

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are unhappy tend to be very vocal.”

• “EDI increases speed and efficiency. For example, the seller is contacted over email, the buyer can look for his quote on the webpage or through electronic attachment vs. waiting in the mail or over fax.”

• “Vendors do not necessarily have to be local or limited to the U.S. In one instance distribution companies in China were sourced through the internet and were used to make a purchase.”

• “Level of accessibility to products and services much greater. For example, shopping for an email marketing tool and Tweeted about Silverpop experiences. Got several responses on the vendor and other suggested tools.”

Page 23: Top Sales Experts B2B Buyer Trends

Sales Implications: Politics and Marketing

• Understand where your buyers go for information– Get prominent on the site they use for best practice, professional and review

content.

• Know their internal and external advisors and influencers:– Dust off that political mapping tool in your sales methodology and put it to work– Sell AROUND your B2B buyer

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– Sell AROUND your B2B buyer

• They’re social, they network, but not on Facebook:– Execs leverage peer professional and social networks– Find THEIR social networks NOT the hype social networks

• Revisit the marketing budget:– 20% or more of typical marketing budgets are spent in areas Execs use

the least– Best bet? Move social, video, ad dollars to third-party internet content

and analysts

Page 24: Top Sales Experts B2B Buyer Trends

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THE RISE OF REMOTE SELLING

Page 25: Top Sales Experts B2B Buyer Trends

Interacting with Buyer Generations in the Field

Boomers Gen X Gen Y

Face-to-Face

Phone

Email

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Email

On-line Meetings

Texting

Social Networks

Green – Most Preferred

Light Blue – Use

Yellow Yellow – Use Sometimes

Orange – Preferred by Few

Red – Not selected

Page 26: Top Sales Experts B2B Buyer Trends

Key Implications for Sales Managers: Get off the Plane

• Get off the plane: Face-to-face may be your preference but not the buyer’s

• Hire for remote selling skills: Don’t just test their in-person pitch, test them on the

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their in-person pitch, test them on the phone and over the net

• Develop remote sales skills: does your sales training prepare for online/on the phone sales scenarios?

Page 27: Top Sales Experts B2B Buyer Trends

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DIAGNOSING

GENERATIONAL ISSUES

IN SALES

Page 28: Top Sales Experts B2B Buyer Trends

Diagnosing Generational Issues

• Customer dissatisfaction by generation

• Win/Loss analysis by sales/buyer generation

• Territory generational analysis—untapped

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• Territory generational analysis—untapped

revenues due to generational biases

• High customer attrition in certain generations

Page 29: Top Sales Experts B2B Buyer Trends

Adapting to the Generational Shifts

• Map your prospect and customer database along with your sales force today and project their composition 3-5 years out

• Begin to incorporate these generational

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• Begin to incorporate these generational preferences/differences into your marketing and sales processes, channels, and messages

• Survey your customers to find out how they really make decisions

• Align your selection, training, development, and retention with your customer base

Page 30: Top Sales Experts B2B Buyer Trends

GenDNA Solutions

• Buyer research reports available in November

• Sales rewards research report available now

• C-Level/Remote selling skills development

• Hiring the best sales professionals

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• Hiring the best sales professionals

• Customer preference research

• Selling effectiveness consulting projects

Page 31: Top Sales Experts B2B Buyer Trends

Please provide feedback, suggestions, and questions. If you are interested in a pilot partner opportunity. Contact:

Copyright © 2009, Corporate Performance Strategies, Inc., All Rights Reserved

Dave Brookmire

404-593-5001

[email protected]