B2B sales (business-to-business sales) are growing in South Africa as more startup businesses are entering the market.
According to InterGest, the South African B2B market is the largest in Africa, totalling 500 billion euros in 2015.
With this growing market, sales departments and professionals need to understand what B2B sales are and how to optimise the process to be successful.
If you are new to B2B sales or want to improve your current B2B sales strategy, this guide will provide you with the necessary information and tips to succeed.
What Is B2B Sales?
B2B sales refer to the selling of products or services between two businesses rather than from a business directly to consumers. This type of sales involves a longer and more complex process compared to B2C (business-to-consumer) sales, as it often involves multiple stakeholders and decision-makers.
Some common examples of B2B sales include:
- Software companies sell their products to other businesses.
- Manufacturers sell their products to retailers.
- Service providers cater to other businesses, such as marketing agencies or accounting firms.
What is the difference between B2B sales and B2C sales?
While both B2B and B2C sales involve selling products or services, there are significant differences between the two. The main difference lies in the target audience and how they make purchasing decisions.
In B2C sales, the target audience is individual consumers who purchase based on their preferences and needs. In contrast, B2B sales target businesses with specific purchase criteria and requirements. This means that B2B sales require a more consultative approach and a deeper understanding of the business needs.
Examples of B2C sales include:
- eCommerce stores that sell summer dresses.
- A supermarket that sells food items to individual consumers.
- A hair salon provides services to its customers.
How Does A B2B Sales Process Look?
Below is a breakdown of how most B2B sales processes look like:
1. Lead Generation
B2B customers are more sophisticated and have specific requirements in mind. They want a product or service specifically to improve their business processes, so they need to be approached differently compared to individual customers.
The first step in a B2B sales process is lead generation.
Lead generation (for B2B customers) involves identifying potential customers through various tactics such as networking, referrals, marketing, and cold calling.
Networking: Attending industry events and conferences to make contacts with potential customers.
Referrals: Asking satisfied customers for recommendations to other businesses in their network.
Marketing: B2B companies often use targeted marketing tactics such as email campaigns, content creation, SEO, paid advertisement, and social media campaigns to reach potential customers.
Cold Calling: Directly reaching out to potential customers through phone calls or emails.
2. Qualifying Leads
After generating leads, the next step is to qualify them.
This involves evaluating each lead and determining if they meet the criteria for a potential customer. A few factors that are taken into account while qualifying leads include:
Budget: Does the lead have enough budget to afford the product or service?
Authority: Is the lead a decision-maker in their organisation, or do they need approval from someone else?
Need: Does the lead have a specific need that the product or service can fulfil?
Timeline: How soon does the lead need the product or service?
3. Needs Assessment
Once a lead is qualified, the next step is to conduct a needs assessment.
This involves gathering information about the lead’s business and understanding their pain points and challenges.
The salesperson can tailor their approach and pitch to address these needs.
4. Engagement
After conducting a needs assessment, the engagement phase involves building a relationship with the potential customer.
This is crucial for understanding the customer’s expectations and providing a personalised service or solution.
Effective communication strategies, such as regular follow-ups and prompt responses to inquiries, play a significant role in maintaining a positive rapport.
During this phase, product demonstrations, presentations, and meetings can be valuable tools to showcase how the product or service directly addresses the customer’s needs.
5. Demo’s Or Samples
In many cases, offering a demonstration or sample of the product or service can be an effective way to solidify the sale.
This allows the customer to experience the product or service firsthand and see its potential benefits for themselves.
Additionally, providing demos or samples can also help address any doubts or concerns the customer may have about the product or service.
6. Closing A Deal
The final stage in the sales process is closing, where the lead is converted into a paying customer.
During this phase, it is essential to overcome any objections that the lead may have and present a compelling reason for them to make a purchase.
An effective sales pitch and confidence in the product or service can greatly influence a customer’s decision to buy.
How To Optimise B2B Sales?
The aforementioned steps may have potential gaps and challenges that could arise.
Therefore, it is crucial to continually optimise the B2B sales process to efficiently convert leads into customers.
Here are some ways to achieve that:
Set Clear Goals and Targets
Having clear goals and targets in place can help sales teams stay focused and motivated.
These goals should be specific, measurable, achievable, relevant, and time-bound (SMART).
Without a clear goal, the sales department may struggle to drive their efforts in the right direction.
Analyse and Optimise the Sales Funnel
The sales funnel is a visual representation of the different stages of the sales process.
It allows businesses to analyse where leads are dropping off and identify areas for improvement.
For example, if a large number of leads drop off during the demo stage, it may indicate a need to improve the product demonstration or sales pitch.
Get a Customer Relationship Management System (CRM)
A CRM system is a platform that showcases everything from lead generation to customer retention.
It helps businesses track leads, manage customer data, and analyse sales performance. A CRM system can also automate mundane tasks such as lead assignments, automatic email/SMS responses, and follow-ups.
This can greatly increase efficiency and productivity for the sales team.
Train and Develop a Sales Team
Having a successful sales team is the ultimate key.
Without a team that is fully motivated, skilled, and experienced, it will be challenging to optimise the sales process.
Businesses should invest in ongoing training and development so that their sales team can keep up with industry trends and techniques. This can also boost employee satisfaction and retention.
Leadtrekker | A CRM System That Optimises the B2B Sales Process
If your business does not have a CRM system in place, now is the time.
Technology is constantly evolving, and having a robust CRM system like Leadtrekker can give businesses the edge they need to succeed in today’s competitive market.
Features that will benefit your business-to-business lead management include:
- Central location accessible by all team members
- Lead assignment
- Instant notifications
- Track sale activities
- Qualify leads
- Easy integration with third-party applications
- Monitoring and tracking reaction times
- Measurement of campaigns, budgets, and goals
Schedule a free demo with us today!
Let’s help your B2B sales team reach its full potential and achieve success.