“Over, dead, gone. B2B sales will never be the same,” says Yoav Vilner, CEO of Walnut.
The recent downturn has caused a sharp turn in the buying and selling of B2B software: sales cycles have gone way up, prices have gone way up trying to compensate for it, C-levels are now part of every sales conversation, and the bottom line isn’t surprising – most B2B companies have missed their ARR targets ever since Q1. In fact, Vendr reports Q2’s significant drop of 45% in the worth of yearly agreements compared to Q1 with an average software cost of $62,000, particularly in Accounting & Finance, Customer Relationship Management (CRM), and IT Service Management.
According to a report by TrustRadius, 87% of tech buyers have adapted their purchasing approach to focus solely on acquiring mission-critical products that promise significant ROI. Additionally, 27% of buyers reported an increase in the number of decision-makers involved in their buying process. Notably, 14% stated that more C-level executives, particularly in large enterprise organizations, are now part of the decision-making process. With the CFO holding the financial reins, buyers are compelled to demonstrate upfront value to secure the necessary approvals.
“If the downturn is ever officially ‘over’, there’s room to believe these bruises will never recover, ” says Vilner. “B2B buyers will always be cautious from now on, tight on budgets, and expecting a quick and painless demonstration of value. This is also why we launched our viral #WeAreProspects campaign last year.”
2020-2021 were great years for B2B buying because of the post-COVID tech bubble, alongside urgent digital transformation. Then. everything has changed.
According to Vilner, here’s what you need to know to win sales in 2023, while completely forgetting how it used to happen: you need to realize that prospects are kings and queens – much more than ever before.
Prospects Need Full-Time Empathy
Sellers must actively participate in engaging conversations with buyers, find ways to provide more and more value, and meet halfway during challenging times. This involves attentively listening to and comprehending customer needs, allowing sellers to adapt their offerings to match the customer’s newly prioritized areas of value.
They may consider offering shorter contract durations, streamlined versions of their solutions, or more flexible payment terms. Furthermore, sellers can play a vital role in assisting customers in preparing for the future by offering insights and foresight into potential developments.
Prospects Require Immediate Value
Sales-y pitches and sugar-coated messaging no longer contribute to the success of sales cycles; if any, it’s detrimental.
“Modern B2B buyers have little interest in traditional sales pitches and overly promotional messaging,” Vilner says. “Instead, they look for a sales experience that offers valuable insights to aid their data-driven purchasing choices. Furthermore, they anticipate this approach to be customized according to their specific preferences and requirements.”
The failure to offer a what’s-in-it-for-me insight will prompt potential customers to seek out a competitor that does. Buyers need to substantiate their purchasing decision, expecting the solution provider to demonstrate why their product is the best option for their requirements.
Products Need to be Revealed, Fast
In the same report by TrustRadius, 94% of buyers emphasized the significance of personalized demonstrations that catered to their particular needs and preferences while assessing various products. The implication here is that a one-size-fits-all approach to product demonstrations may not be as effective as tailoring the presentation to the specific use cases and preferences of individual buyers.
By understanding and addressing the specific needs of potential customers, companies can enhance their chances of making successful sales and building strong relationships with their clients. “At Walnut, our goal is for prospects to fall in love with the product at first sight,” Vilner notes.
Customer Reviews Will Prevail Over Paid Ads
Customers place more trust in peer reviews compared to a company’s brand’s marketing efforts. To ensure success in one’s market strategies, it is crucial to prioritize the customer’s voice and incorporate it prominently. One effective method is to showcase award badges alongside reviews in digital advertisements.
Statistics show that 92.4% of B2B customers are more likely to buy a product after encountering a trusted review. “Online review humanizes the entire B2B buying and selling process, and seeing another customer’s first-hand testimonial offers prospects insights into a product’s quality and credibility,” Vilner adds. “Consequently, solely depending on conventional brand marketing may not have the same level of impact as integrating genuine customer experiences and insights.”
C-Levels Should Get it, Too
In any sales process, it is crucial to adapt one’s approach to meet the needs and interests of the decision-makers involved.
Even if a company’s primary target audience or buyer persona is an individual contributor within the organization, from mid-level managers to team members, it is essential to recognize that decisions are often made collectively, and C-level executives play a vital role in the final verdict during such downturns.
“Keep in mind that the buying journey kickstarts when the company identifies its void that needs to be filled. Who makes this high-level decision? C-Levels,” Vilner says. “If the buying process begins at the C-Level, the ultimate decision and approval at the end of the process always rests with them, too.”
Sellers Need To Walk Fast From Slow-Moving Prospects
Slow-moving prospects refer to potential customers who show little interest, reluctance to buy, or exhibit a lack of commitment in moving forward with the sales process. It’s essential for sellers to recognize when it’s time to disengage from such prospects and redirect their focus towards more promising opportunities.
What’s more, sales is a fast-paced and competitive environment. Focusing on prospects who show genuine interest and engagement helps maintain momentum in the sales pipeline. Constantly working with slow-moving prospects can halt the overall sales process, affecting the seller’s ability to meet targets and achieve sales goals.
Leaky Buckets Are Now Tsunamis
In prosperous business periods, it is common for organizations to focus on growth and capitalize on the abundance of opportunities. During these thriving years, minor inefficiencies or issues in the sales funnel often get overlooked as they may not significantly impact the overall success. However, when the business faces downturns or challenging times, these small holes in the sales funnel can have a much more significant impact and potentially harm the company’s performance.
“By creating a unified revenue operations function, organizations can improve collaboration, data sharing, and decision-making across departments, leading to more streamlined and efficient revenue generation,” Vilner concludes. “This strategic approach aligns and integrates various revenue-generating functions, such as sales, marketing, and customer success.”
To expedite the sales cycle in an economic downturn, it is key to precisely define the product’s value, proactively engage with customers, prioritize their voice, strategically personalize content within the marketing funnel, improve lead qualification, and leverage cutting-edge sales enablement software. By adopting these approaches, businesses can enhance their sales process and achieve greater efficiency in closing deals.
