Building next-generation B2B sales capabilities (with abstract)
Introduction
| Building next-generation B2B sales capabilities (with abstract) | |
|---|---|
| Published By | Articles by McKinsey |
| Publish Date | March 15, 2022 |
| Authors | Michael Harney, Lia Ketola, Kedar Naik, Nicolas Probst, Steve Reis |
| Topics | B2B |
| Statistics | |
| Article Size | 3000 words |
| Features | No features |
| Diagrams | Yes |
| Downloadable Version | Yes |
| Reviewers | |
| Page Owner | Nikolay Sidelnikov |
| Summary Author | Nikolay Sidelnikov |
The article "Building next-generation B2B sales capabilities" is published by Articles by McKinsey in 2022. It is grounded in extensive research conducted by McKinsey, outlining significant shifts that B2B sales teams should undertake to outperform competitors.
Article summary
During an extensive study, McKinsey uncovered intriguing insights that prompt a reconsideration of the B2B market's evolution. Notably, over 60% of B2B decision-makers are currently open to investing $50,000 or above in online transactions, with one in five expressing a readiness to spend upwards of $500,000.
To thrive in the altered business landscape, organizations must transform into omnichannel orchestrators, embrace a value-creation mindset, and diligently implement continuous change management.
Embracing change is inherently challenging. Nevertheless, our research and client engagements underscore that businesses equipped with top-tier talent experience notably heightened revenue growth. Here are the essential elements for delivering such exceptional performance.
There is a chart in this chapter: "B2B sales teams need to make three seismic shifts".
Become an omnichannel orchestrator
The essence of sales excellence now lies in delivering tailored experiences through the appropriate channels. Given the involvement of diverse stakeholders at distinct purchasing stages, it is crucial to accurately define the information and interactions that prove most beneficial in reaching specific audiences.
B2Bs with the fastest rates of revenue growth typically excel in the collection and interpretation of detailed information across all organizational levels. Leveraging data-driven insights allows leaders to optimize the alignment and allocation of coverage and resources more effectively. High-performing organizations demonstrate agility by updating account priorities and realigning resources, sometimes as frequently as once a month, with the aid of resource modeling and planning tools.
There is a chart in this chapter: "Next-Generation sales capabilities can drive four to five times higher growth".
Adopt a value-creation mindset
B2Bs with the fastest rates of revenue growth are increasingly forging partnerships with customers to co-create personalized value propositions, moving away from the conventional transactional and product-centric B2B sales approach. About 85 percent of sales leaders express the belief that solution selling will become a fundamental sales capability. The value-oriented approach inherent in solution sales should also extend to pricing strategies, with a focus on maximizing lifetime value.
The article also contains a case of B2B packaging company that illustrates this section.
There is an exhibit in this chapter: "B2B sellers say they need to develop three top capabilities".
Enable continuous change management
Next-gen sales leaders tackle all fundamental aspects of change management by adhering to an agile workflow. Around 65 percent of sales leaders indicate their perception that the pace of change has escalated in recent years, with 85 percent acknowledging the critical importance of embracing agile working methods for future success.
High-performing teams, instead of undertaking extensive and intricate projects implemented over many months, rely on practices that facilitate rapid testing and learning. They break down projects into smaller sprints lasting one to two weeks, emphasizing the swift delivery of a minimum viable product to customers.
The transfer of knowledge and practices holds significant importance. Sales organizations must allocate time for peer coaching and weekly check-ins, making mentorship mandatory for all leaders. There is a need for a shift in training approaches, with a focus on individualized and experiential learning. This allows sellers to address specific capability gaps and apply acquired knowledge to active sales opportunities. In most cases, organizations are required to reskill approximately half of their sales force and address essential gaps in core commercial roles.
To ensure the permanence of changes, leaders must reassess their performance management and incentive structures. This involves adjusting metrics and rewards to sustain momentum and preserve the achieved gains over time.
There is an exhibit in this chapter: "B2B sales organizations need to reskill front-line reps and add leadership roles."