A new and pernicious myth as taken hold in many B2B Sales and Marketing organizations. The myth - that buyers are 60-70% of the way through their buying cycle before they talk with a salesperson - is an intentional fallacy based on a false generalization that “buyers” means “all buyers”. Search the web for phrases around this topic and you’ll find a substantial volume of vendors selling the myth as truth, much to their short term benefit. In my discussions with both vendors and practitioners (leaders in Sales and Marketing), it is disturbing when they throw out the "60-70% ..." statement as if it were "fact" when, in reality, it is not only false but damaging to the revenue engine of companies who sell in the B2B space.
Not All Buyers Know What They Need
Our point of view is that not only are there different types of B2B buyers (we've identified four categories we call archetypes), but that in today's economy there are multiple buyers involved in decisions and they operate in what we call agreement networks. Some of these buyers - especially most executive buyers - want help in understanding complex problems in their business (including “unrealized opportunities”) before they ever think about products. They may not yet be aware of a problem they are faced with, or they may know that they have a problem but don’t yet understand its patterns or implications or impact on their organization. They are (appropriately) weeks or months away from a search for a product or service. It is these buyers who set the direction, before asking others in the agreement network (e.g. their teams) to get deeper into the details, including acquiring solutions.
Last week I spoke with the VP of Sales for a tech company that used to have the hottest product in his market. In housing terms, they used to be an exclusive and much sought after neighborhood, but now the competition has moved in on all sides and sales are down. His sales force is facing a vastly growing number of competitors. Some are much larger and have broader portfolios that give them better presence in customer accounts. They’re getting squeezed and are finding it harder to compete in deals where they used to be the only solution.
Your only true differentiation comes from how your reps interact with your buyers
What’s interesting is that the vendor mentioned above is still experiencing consistent success when his company’s salespeople gain access to executive buyers early in their decision process and work in a consultative manner with those buyers to shape a vision of a solution. When that happens, salespeople are confident discussing the business issues faced by those buyers. They’ve found certain industries that they know well where they are able to do this consistently. They are not getting squeezed by competitors and they are winning. But often, they're chasing deals that competitors started and reps are drawn into an RFP frenzy that chews up time and resources. After all, they used to win these deals, but now they're pretty demoralized and reps are starting to leave.
In our research, executive buyers tell us that referrals are far more effective than other approaches for gaining access to them. Yet the referral strategy is ignored in most corporate sales organizations. If you want your salespeople to have greater success accessing executive buyers, then it’s time to consider this important yet forgotten strategy.
Do salespeople in different roles (e.g., strategic accounts, geographic, inside sales) and with different levels of experience have different perspectives on selling? Not significantly, according to our Q1 2012 North American Technology Seller Insight Online Survey.
Our recently published report “What Do Reps Believe Makes A Meeting Successful?” illuminates how similar the perspectives of sellers in different roles and with different levels of experience really are. If your company has one kind of sales role and one very consistent type of buyer, and they are well aligned, then this data may not much matter to you. But if you have different roles and types of buyer, then it’s worth examining the data in this report.
We found that three-fourths of salespeople agree that the most important aspect of a successful meeting with prospective buyers is their ability to understand the buyers’ business issues and share a way to solve them. The thing is, Forrester’s Q4 2012 Global Executive Buyer Insight Online Survey data, and interviews with executive buyers, clearly illuminate that the majority of buyers believe that salespeople are not successful in meetings with them.
“It's no longer sufficient to say that you are simply ‘customer-centric" or "customer-focused.’ The only successful strategy in the age of the customer is to become customer-obsessed — to focus your strategic decisions first and foremost on how your customers expect you to engage them.
Through our ongoing conversations with executive buyers, professionals in sales enablement, and through survey responses from hundreds of global executive buyers, Forrester’s Sales Enablement practice has discovered a massive gap between buyers’ expectations of salespeople and what they’re actually experiencing when they meet with reps. In fact, less than 40% of executive buyers say that meetings with salespeople meet their expectations (see figure 1). Further, only one in three IT executives said that sales meetings "usually" live up to expectations, and just over two of five business executives said that sales meetings hit that mark (see Norbert Kriebel’s report: Executive Buyer Expectations — The Bar Is Low).
Considering that perhaps 25% or less of the typical sales force is even capable of gaining access to executive buyers, consider the cost when these meetings miss buyer expectations and result in no further opportunity.