Overcoming The Unspoken Performance Crisis in B2B Sales Today.
The hidden performance crisis in b2b Sales today
About This Article.
It may not be openly acknowledged or widely talked about, but B2B Sales is in an undeniable crisis right now.
The stark realities of lengthening sales cycles and declining quota attainment underscore the critical state of B2B sales today.
This article not only highlights the urgency of the situation today, but also maps out a clear path forward for sales organisations to adjust and thrive in the modern marketplace.
Introduction.
The B2B sales landscape is not just evolving; it's undergoing a seismic shift that requires urgent intervention for sales professionals and organisations alike.
Missed sales targets, lengthening sales cycles, lost revenues and falling profits are a clarion call for an urgent overhaul of prevalent sales strategies.
The truth is that the traditional sales playbook is failing. The consequences are starkly evident in the numbers.
Critical Sales Challenges Today.
There is a growing body of evidence that B2B selling is in need of an overhaul. Multiple independent sources point to the same trends, with similar data points.
Sales Cycles Are Getting Longer:
The pace at which deals are closing has significantly slowed.
In 2023, the average sales cycle length saw a 24% jump, escalating from 65 to 81 days.
This increase not only strains sales teams but also impacts cash flow and revenue projections, creating a negative ripple effect throughout many sales organisations.
Source: LinkedIn
More Sales Targets Are Being Missed:
The situation is further compounded by a decline in sales quota attainment. Again, the numbers paint the picture:
Five years ago, before COVID-19, the average sales quota attainment was 63%.
Now, it has plummeted to just 53%.
Source: LinkedIn
Even Fewer Reps Are Expecting To Make Quota:
The forward-looking trend is not promising much relief any time soon, either.
There are now more reps expecting to achieve less than 50% of their sales quota, than there are reps who expect to make 100%.
This negative sentiment is weighing on reps and organisations alike.
More reps are expecting to achieve less than 50% of their sales quota.
Source: Salesforce
Unveiling The Cause Of The Sales Crisis.
As shown above, sales effectiveness has dramatically declined. What is causing this decline?
Have sales reps changed their ways? No, they haven't.
Have sales organisations changed how they sell? No, they haven't, either.
So, what has changed that is causing this downturn in sales?
It's the buyers who have changed.
They no longer tolerate established sales tactics. They no longer put up with feeling like they're just a revenue opportunity. They want more from sellers.
Traditional selling methods that were once standard staples of sales outreach now serve more to alienate potential buyers than to engage them.
Cold calling, email spamming and social media ambushes are now on the nose with modern buyers.
The reality is stark: No one enjoys being cold pitched.
And the data backs this up, revealing a profound disconnect between sales strategies and buyer preferences.
To illustrate this disconnect:
A whopping 65% of sellers believe they put the buyer first.
While only 23% of buyers feel the same way.
Buyers and Sellers are misaligned. Source: LinkedIn State Of Sales Report
While only 23% of buyers feel the same way.
Ed Calnan of sales technology firm Seismic confirms that buyers now want to feel like they're in charge of their buying process.
This discrepancy is a clear indicator of a growing misalignment between sellers and buyers, and that traditional sales methods are increasingly failing to meet modern buyer expectations.
This decline is not just a reflection of individual or sales team performance but a systemic issue rooted in outdated sales methodologies that now fail to resonate with modern buyers. The negative trend is further exacerbated by sales organisations' stubborn adherence to outdated sales tactics.
Put bluntly: Your traditional B2B sales methods need a modern upgrade, urgently.
The "tried and trusted" B2B sales methods no longer serve to engage modern buyers who are now looking for more than a product pitch.
Modern buyers now want value, understanding, and partnership.
Something's got to give.
Your Urgent Sales Upgrade.
The transformation in the buyer's journey necessitates a shift in sales approach. With buyers increasingly conducting their own research and seeking solutions that are tailored to their specific needs, the role of the sales professional must evolve.
Sales calls need to become deeper and more personalized, and they need to prioritize domain expertise.
Sales roles need to evolve from Sales Rep to Buyer's Adviser.
The right path forward requires a fast reimagining of B2B sales strategies. Sales organizations must dismantle the buying barriers and reduce the obstacles that are preventing the adoption of buyer-first practices.
What is needed now is to favour understanding, advising and partnering with your buyers, over mere pitching and selling.
Your Great Opportunity Is To Act Now.
The urgency for change in B2B sales strategies is undeniable.
However, the current crisis presents not just a challenge but a great opportunity - a first-mover opportunity to emerge stronger, more aligned with buyers, and more competitive than ever before.
Business leaders and sales professionals must act decisively to implement these strategic shifts now. Step into a new era of B2B sales, where partnership, understanding, and mutual success define your sales engagements and selling approach.
Your time to act is now.
By fostering a culture of buyer-centricity, organisations can overcome the current challenges and pave the way for a future where sales success is not just a target, but a sustainable reality.
Based on the issues outlined above, I suggest a concrete action plan is needed for sales organisations to adjust and thrive in the modern marketplace. This plan should address the critical need for an overhaul of sales strategies, focusing on aligning with modern buyer preferences and leveraging a more consultative, value-driven sales approach.
Make A New Plan.
Here is an outline of a 9-point plan for your consideration:
1. Shift to a Buyer-First Mentality
Understand and empathise with the modern buyer's journey. Recognize their need for control and information, and adjust sales tactics to focus on their needs and challenges, rather than on pushing your products or services.
2. Redefine Your Sales Roles
Transition from traditional sales roles to a more consultative role, like a Buyer Adviser.
This means prioritizing domain expertise and offering personalized, relevant advice over pitching products.
3. Enhance Selling Skills
Develop training programs that equip sales teams with the skills required for consultative selling, deep industry knowledge, and understanding of the buyer's business. Focus on teaching how to build relationships and add value at every interaction.
Supplement the initial training with ongoing on-the-job situational sales coaching, in order to bed-in the new learnings and to ensure they are utilized in the field.
4. Leverage Data and Insights
Use data analytics and AI to gain insights into industry trends and challenges, as well as buyer behaviour, preferences and pain points. Then tailor sales approaches based on these insights to make prospect engagements more relevant and effective.
5. Implement Modern Sales Management Tools
Adopt and effectively utilize your sales management and CRM tools to…
Analyse and manage your customer interactions and data throughout the customer lifecycle
Improve customer service
Drive sales growth
Enhance customer experience
Lift buyer retention
6. Invest in Your Thought Leadership and Content Marketing
Your buyers can reasonably expect you to be experts in your field. Therefore, they will expect you to have insights and perspectives that are not readily available to them.
So, use your expertise to challenge their thinking and to engage them into fruitful business conversations, instead of mere sales pitches.
Invest in your content marketing that adds value to potential buyers, as it educates and informs their decision-making process.
Use your content to prove your thought leadership and to build confidence and trust with your key audience.
Practice good old segmentation, targeting and positioning.
7. Enhance Your Digital Presence and Engagement
Optimise your digital channels to engage with your ideal buyers where they spend their time.
This includes social media, email marketing and online communities. Find out what media they consume and make yourself present there.
Ensure their digital experience is seamless, informative, and that it adds value, rather than just promote your products and services.
8. Personalise the Sales Process
Tailor your sales approach to the specific needs and circumstances of each buyer.
Use insights from your AI, CRM and your personal interactions to personalise communications and offerings.
9. Foster a Culture of Continuous Improvement
Encourage feedback from sales teams and customers to continually refine and improve your sales strategies.
Embrace innovation and be willing to adjust tactics in response to market changes and buyer feedback.
Now It’s Your Turn. Make Your Move.
Business leaders and sales professionals must act decisively to implement these strategic shifts now.
Step into a new era of B2B sales, where partnership, understanding, and mutual success define your sales engagements and your new selling approach.
After all, by fostering a culture of buyer-centricity, you can overcome current sales challenges and pave the way for a future where your sales success is not just a quota target, but a sustained reality.
If you'd like to know more about how you can embrace this new approach for your business, your team and your customers, then let's talk.
Thank you.
Peter Strohkorb