Many small to medium sized enterprises (SME’s) would like to increase their “Business to Business” (B2B) sales. Some struggle with finding an approach that works. Owners, Managers, and Sales Associates from all sizes of organizations just need a plan and to keep a few basic things in mind.
Do not expect success the first time, second time, or even the fifth time, don’t give up, even on those organizations who turn you down the first time. Experts recommend having plan and practicing it with role playing prior to refine and modify it prior to making your first attempt. In addition, after each attempt, use an incremental improvement model, and ask yourself or your sales team:
- What did you do right?
- What did you do wrong?
- What would you different the next time?
B2B selling is worth the effort, especially if you have already established your normal sales channels and they are functioning very well. The process of B2B has many similar steps but there are some different nuances to be prepared for.
DETERMINE YOUR MARKET
Which business to approach first? Ask your sales team and established customers for ideas. Consider new businesses, they may not have as many established networks. As an example, someone in the furniture industry might consider working with builders of new homes. A tire company might consider a new Taxi company. Partnering with government agencies and local charities can open unexpected doors for your business as well.
In addition to the overall organization, consider offering special discounts to the client’s associates as well.
Building community connections is helpful; owners can join a Business Networking Group; managers and sales associates should consider joining local organizations such as the Lion’s Club or Rotary. Many times, such organizations actively try to build referrals between members.
DEVELOP YOUR COMPETITIVE ADVANTAGES
In a competitive marketplace, why would a business or organization want to deal with you or your organization? What can you offer that they can’t get from anyone else?
PRESENTATION – Any selling plan should use the standard 6 steps of selling (see link). Remember that organizations can have the same buying motivations as regular clients do. Sometimes businesses allow their sales associates to approach a perspective client directly, consider using a layered approach:
- Start with a PEER-to-PEER conversation: Owner to Owner, Executive Director to Executive Director. Then involve your sales manager and sales associate who will be the client’s sales associate.
- Prior to the meeting, research their organization. Learn what they do, what they are proud off, what headaches they face.
- Have professional looking brochures prepared outlining your selection, services, offers, and pricing discounts. When you plan the sales presentation, use the brochures strategically as an active part of how you will address your clients needs.
- The extra preparations are worth the effort as successfully executing B2B sales can represent a significant portion of your business each year.
- It is possible for a sales associate to do this themselves; however, involving the owner and manager can make the relationship stronger and particularly help to reduce issues that could jeopardize the relationship when problems occur.
PRICE – All business clients want to get the best price and best value for their money. Please note that best price does not always imply best value.
Your organization may have to offer a discount; however, if your prices are competitive and you offer better or more services, deep discounting may not be necessary.
Be clear about “what price” you and your competitors are offering. Be aware of the impact that your client might perceive of huge discounts off inflated “regular” prices that your competition might be offer. Take the time to explain and work “net” to “net”. Always ensure that you are covering your costs, plus a fair margin; too many times I have seen managers negotiate deals where the selling company actually loses money just to win the deal. If PRICE is your only competitive advantage, your organization needs to widen its competitive advantages.
GREAT SERVICE AND NO HASSLES – A client does not want any more headaches than they already have. They want partners who will make their lives easier not harder. You can tip the balance in your favour by having:
- Negotiated a price and service framework for anticipated services prior to the client needing the service.
- A dedicated person for the client, whose job it is to facilitate clear, concise, and streamlined processes for getting the client what they need quickly and efficiently.
- Products in stock for the client, and the ability to move the client to the top of the queue when necessary.
- Perfect delivery or fast pickup EVERYTIME.
- A service process that resolves problems instantly.
ADAPT YOUR PROCEDURES TO FIT THEIR SYSTEMS – Using an example from the furniture industry to demonstrate: a retailer needs to understand that a builder may require different terms than a regular customer or other businesses because of the nature of their selling process; government departments typically have a fixed time of day that they are able to receive merchandise; and senior’s homes typically do not accept deliveries requiring elevator service during meals.
SELECTION – Many selling organizations make the mistake of only offering the least expensive products or services to clients. They assume that is how B2B sales work. Businesses want value at any level of the quality spectrum, a high-end builder will want high end products at the best price possible.
KNOW YOUR CLIENT – Knowing the commercial and personal dynamics of your client can present incredible opportunities for you to demonstrate value and differentiate yourself from competitors.
Business to business sales are the ultimate in relationship selling, and as with all relational selling you must be sincere and genuine. When you are making your initial calls to the company this is where role-playing is so important – whether in person or on the phone, navigating the initial introductions is the key to getting started.
B2B RELATIONSHIPS ARE MORE THAN JUST SELLING
Make sure your client is aware when “regular” items that they have purchased before are being discontinued or are delayed. Special promotions that add value are vital to communicate ahead of when they appear to the public.
A client should never have to contact your organization to find out where their order is. B2B selling is all about being PROACTIVE.
CLARITY is extremely important in B2B sales. Ensure that the client understands exactly the level of service to expect throughout the entire process. This is vital on delivery, make sure that you monitor the delivery and can step in immediately if there is a problem. Do not assume that just because you didn’t hear from the client, that everything went well. Contact the client immediately after every delivery so that you can ensure that everything went perfectly and that you can take “ownership” of any problems.
For sales associates; you may need to visit your client’s business(s) and be available for questions or problems even on your days, off. A key function is to understand and to anticipate the pressure that the client is under and to ensure they have zero surprises. In the home furnishings scenario; builders, won’t take delivery of appliances until just before a house sale closes to prevent damage to appliances. If something doesn’t arrive then the builders entire house deal can fall apart and it will be the fault of your organization.
Even when your client does not have an active order, stay in contact. Give them reasons to believe that you value their business more than anyone competitor or sales person could.
“TEAM” APPROACHES MAKE B2B SALES WORK
B2B sales follow a standard path per client. Their process will likely be the same for each time they require your services. Organizations that successfully manage B2B opportunities understand that that sales associates may require additional resources: in the early stages to create the opportunity; and later in the sale to “expedite” solutions to problems. Your sales associates need to know that “you have their back.”
For sales associates; make notes, stay in regular contact, ensure your client has your cell number for when there is a problem. Anticipate the client’s needs and demands, take extra time to follow up and recognize how important they are as a client.
For owners and managers; be available and involved with the processes, let your sales associate be the “quarterback”, but when necessary run interference and block for them when they need to get “willing cooperation” from other elements of your organization.
When a sales associate moves on, owners and managers must play a very active role in helping manage the “transfer of business” to another associate. Do not under-estimate the connection the departing associate may have had, as you may find the client will move on as well.
Equally important is managing the internal dynamics if more than one sales associate works on the client’s account. Properly managed, having more than one sales associate on an account can provide exceptional and continuous service during peak times or vacations. Not properly managed, it can pit one associate against the other and result in confusion, mistrust, and lost opportunities.
SUMMARY
B2B sales are worth the effort, there is a reason why most organizations don’t maximize these opportunities: It’s hard work and only the very best organizations have the dedication and patience to make them work.
Good luck.