Does this graph look familiar? Have you had meetings with you sales team exploring why they are consistently missing the forecasted revenue, month after month?
More than 50% of B2B sales teams consistently miss their forecasts and quotas[1]. The aim of this article is to dive deeply into the heart of these consistent “misses” and try to understand the underlying shift in the buyer’s journey and the changing state of B2B sales.
According to the Forbes article “Sales and Marketing Alignment Begins with the Customer”, 80% of the B2B purchasing decision is already made before the buyer considers contacting the vendor(s)[2]. HOWEVER, the research also reveals that modern buyers prioritize relationships and trust over product and price. This represents both a serious challenge and a BIG opportunity if the sales experience is structured in the right way and if companies start to value consultative sales efforts vs the antiquated PUSH or QUOTA based sales model.
The Challenge:
We have a massive misalignment problem with the way traditional sales teams are structured. The most common sales structure is the PUSH or QUOTA based model, which trains the sales team to:
· Only sell and advocate for the products/services they represent
· Focus on internal sales metrics over external customer outcomes
· Overcome objections and PUSH the solution onto the customer
· Prove the value over the competitive product/service
· Earn-what-you-kill commission structures that pay based on hitting short-term, monthly sales metrics
· Paid to be a SALES CLOSER of products / services, not to be a TRUSTED CUSTOMER ADVISOR / CONSULTANT
The Opportunity:
The research shows that B2B buyers consistently prioritize relationships and trust over products and price deals. With this said, the 20% left in the buying cycle can be influenced by relationship and trust, therefore leaving the door wide open for sales executives to build trust-based relationships with their clients whereby they are not selling in a high-pressure time-bound way, but are ultra-available to address their clients’ need, when the needs arise. Shifting the company’s focus from hitting internal sales quotas or metrics to achieving external customer outcomes is sales 2.0!
Do I need a hard reboot of my sales organization?
The simple answer is NO. With the proper planning, training and retooling of the sales process and compensation program, sales 2.0 can be implemented without turn-over. Change is hard, but, in this case, very necessary.
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