B2B EXPERIENTIAL

LEARNING
ASSIGNMENT
‘The Ultimate B2B Sales Funnel – How to Build the
Machine’

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Q1. Today’s Buyer is in Control – Comment

 Sellers have lesser opportunities to influence customer decisions. The ready availability
of quality information through digital channels has made it very easy for buyers to gather
information independently, meaning sellers have less access and fewer opportunities to
influence customer decisions. The ready availability of quality information through digital
channels has made it far easier for buyers to gather information independently.

 When B2B buyers are considering a purchase‚ they spend only 15% -30% of that time meeting
with potential suppliers. When buyers are comparing multiple suppliers‚ the amount of time
spent with anyone sales rep maybe only be 5% or 6%.

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 Gartner research finds that when B2B buyers are considering a purchase‚ they spend only 17%
of that time meeting with potential suppliers. When buyers are comparing multiple suppliers‚
the amount of time spent with anyone sales rep maybe only be 5% or 6%.
 Increasingly, B2B buyers are choosing to self-navigate their decision-making journey. As a
result, instead of speeding up the sales cycle, the research shows that 43% of respondents said
the length of their B2B purchase cycles has increased.
 Customers prefer to conduct their research on their terms. They can research solutions to
their problem, find others who have had a similar problem, compare solution options reported
by peers, and importantly, find vendors who have successfully solved the problem without
having to talk to them.
 Often reach solution conclusion before engaging sales. They reach out to friends for
recommendations and check what others say about a particular solution on social media,
forums, and other online sources, They Google this particular solution and read online reviews.
They rely more on trusted advisors than sales.

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Q2. How has the internet changed the Buyer Behavior in B2B?

 Decreased cost, the ubiquity of the internet, and reliable devices make it costs less for business
decision-makers to conduct research over the Internet and make effective decisions. A
manager may be less likely to spend an hour going through a brochure than they used to be, but
they may spend more time on the website, company Facebook page, and blog to find the same
information.
 An increasing number of B2B purchases are made through online aggregator websites, rather
than traditional ‘middlemen’. Examples such as Indiamart, Alibaba, etc.
 The company previously could rely on ads to bring those customers to them in a relatively short
timeframe. Because of the digital revolution, today the ad will not drive customers directly to
your company. It will now prompt potential customers to research the company, read online
reviews, and send messages to trusted people to know if anyone has experience with the seller.
Digital has changed the previous linear buying process. Now, when customers are ready to
make a purchasing decision, they are bombarded with content from other sources, bringing
them back to the beginning of the process.

 Buyers can choose from a wide range of products and services. B2B buyers can find many
vendors online, making it critical for brands to capture prospects’ attention early in the
buying cycle.

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  B2B buyers have higher expectations for Solution providers. The Internet puts the new B2B
buyer firmly in control of the buying process by allowing the prospect to regulate the flow of
information. More choices allow buyers to be choosier. They can dictate the terms of how they
do business and who they do it with.
 B2B buyers are looking for beneficial partnerships with solutions providers. B2B buyers can
navigate most of the purchasing process on their own, there’s no need to engage in traditionally
sales conversations. Rather, today’s buyers are selectively choosing consultative partners who
provide the most value during the buying journey.
 There has been an increased delegation of buying responsibilities to less senior managers,
away from the Board of Directors. Buying decision-makers are getting younger. In 2012, 27% of
purchase decision makers were aged under 34. In 2014 this had increased to 46% – a 70%
increase in two years. This means that B2B providers are targeting different people; more tech-
savvy people, and more used to Internet research. This also implies that these decision-makers
will also need the ultimate signoff from more senior managers.

Q3. Discuss old sales funnel v/s new sales funnel

Before:

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 The role of Marketing was to generate leads, and for sales, the role was to close the leads.
 The old sales funnel illustrates that the sales process requires many leads or
opportunities to come through the top because most of them will drop off and not
make it until the end of the process where they become paying customers.
 Traditionally, sales owned the information, controlled the funnel, and ran the flow of
the conversation with the client.

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  The buyer was entirely dependent on the sales for information. There was no information
or reviews available on your seller’s client service team, for example.

Today:

 70% of the buyer’s journey is complete before a salesperson is even contacted. For instance,
the role of a sales brochure is now much less than it was before.
 It takes an average of between 13 – 27 touches (dependent on product complexity) before a
prospect is converted. This includes email, voicemail, phone calls, website visits.
 Length of the sales cycle is increasing for about 43% of B2B sales. This is because selling is
more difficult, competitors are more agile, buyers more aware, and the selling process has
changed.
 The typical buying group today or the DMU involves six to 10 decision makers‚ each armed
with four or five pieces of information they’ve gathered independently and must integrate with
the group. At the same time, the set of options and solutions buying groups can consider is
expanding as new technologies, products, suppliers, and services emerge. This makes it
challenging for a salesperson to sell, as they have to now pitch in a multidimensional way.
 These dynamics make it increasingly difficult for customers to make purchases. More than
three-quarters of the customers Gartner surveyed described their purchase as very
complex or difficult.

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The Ultimate Sales Funnel is the new sales funnel.
 There is essentially an infinity loop for marketing efforts wherein a customer is always treated
as a prospect. This ensures that marketers, together with Sales, are providing value and
engaging at each stage of the relationship: before, during, and after the sale.
 Opening the doors to new customers is important, in addition, widening the door for existing
customers is also important. Marketing needs to prepare or trigger the next sale. Marketing
needs to think about the customer lifetime value holistically—from initial sales to loyalty, to
expansion via upsell, and ultimately to renewal and through this cycle again.

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 Sales reps are now a channel to customers, not ‘the’ channel. Customers are largely channel-
agnostic when seeking the information they need to get a job done. As a result, sales reps are
not the only channel to customers, but simply a channel, and alignment across in-person and
digital channels is crucial for supporting customers in the way they buy.
 Sales and marketing must operate in parallel, not serial, fashion: Previously sales and
marketing teams were organized serially. Marketing generates demand, before handing off the
most qualified of opportunities to sales for in-person pursuit. Customers, however, don’t buy
linearly. Rather, they use both digital and in-person channels with near-equal frequency to
complete each of the buying jobs more or less simultaneously. As a result, in today’s world of
B2B buying, there is no handoff from marketing to sales, or digital to in-person. It’s a parallel
process, not a serial one.

Classified by Alfa Laval as: Business

Classified by Alfa Laval as: Business