Death_Of_A__B2B__Salesman.pdf

For: eBusiness &Channel Strategy Professionals Death Of A (B2B) Salesman by Andy Hoar, April 13, 2015 Key Takeaways B2B Buyer Preferences Have Fundamentally Shifted By a factor of three to one, B2B buyers want to self-educate versus talk to sales representatives to learn about products and services. In addition, a majority of B2B buyers now say that buying online is more convenient than buying from a salesperson. But Most B2B Selling Models Remain Single-Channel And OfflineCentric While B2B buyer behavior has changed significantly in the past few years, B2B seller activity has not. B2B companies still force most buyers to interact with sales representatives to learn about product prices or complete the purchase process, despite the fact that B2B buyers prefer self-service. eCommerce Will Eliminate 1 Million B2B Sales Jobs By 2020 According to the US Bureau of Labor Statistics, in 2012 the US economy employed 4.5 million B2B salespeople. Forrester estimates that 1 million of those sales professionals, mostly what we call Order Takers, will lose their jobs to self-service eCommerce by 2020. B2B Companies Must Respond By Implementing Digitally Enabled B2B Selling Models B2B companies and their ecosystem partners are now putting selling via eCommerce on equal footing with selling via commissioned salespeople. They are also replacing traditional sales representatives with a network of inside sales representatives, a self-serve eCommerce website, and call center agents. Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA Tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com For eBusiness & Channel Strategy Professionals April 13, 2015 Death Of A (B2B) Salesman One Million US B2B Salespeople Will Lose Their Jobs To Self-Service eCommerce By 2020 by Andy Hoar with Josh Bernoff, Carrie Johnson, Patti Freeman Evans, Susan Wu, Laura Naparstek, Jacob Milender, Lori Wizdo, Shar VanBoskirk, James L. McQuivey, and Peter O’Neill Why Read This Report Forrester forecasts that 1 million US B2B salespeople will lose their jobs to self-service eCommerce by the year 2020. While B2B buyers overwhelmingly prefer to research, and increasingly buy, products and services via a self-service website, B2B sellers still force buyers to interact with their salespeople as part of the purchase process. This report describes how and why B2B eBusiness and channel strategy professionals must radically transform their historical sales models to accommodate a real-time and global buying environment where websites, not salespeople, are at the heart of how B2B companies buy and sell. Table Of Contents Notes & Resources 2 B2B Commerce Will Never Be The Same Forrester interviewed executives at 18 different vendor and user companies for this report. 5 B2B Sellers Are Out Of Sync With B2B Buyers 7 eCommerce Will Replace 1 Million US B2B Salespeople By 2020 11 Welcome To The Era Of The Digitally Enabled B2B Selling Model Recommendations 16 Ditch Outdated Thinking For A New Digital Era Related Research Documents Develop A Digital Business Road Map That Drives Innovation Elevate Your Sales Training Impact With A Strategic Framework The New And Emerging World Of B2B Commerce What It Means 17 Only B2B Companies That Disrupt Their Own Sales Models Will Survive 19 Supplemental Material © 2015, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email [email protected]. For additional information, go to www.forrester.com. 1 million. Nearly 75% indicate that buying from a website is more convenient than buying from a sales representative when purchasing products or services for work. B2B buyers today not only prefer to research online. © 2015. In fact. By a factor of three to one. 93% of B2B buyers say that they prefer to buy online rather than from a salesperson when they’ve decided what to buy and just need to make the purchase. Furthermore. if they ever do. Forrester analyzed B2B employment trends and B2B buyer attitudes to determine the future of the B2B salesperson. from 2. 2015 . the future of the profession is not. In a survey of 236 professional and nonprofessional B2B buyers. taking clients out to play golf. Inc. In fact. B2B customers who are accustomed to buying on Amazon now expect that same kind of customer experience in the world of B2B buying.08 in 1995 to 0.3 The days of flipping through a B2B catalog or talking to a B2B company sales or call center representative to learn about a particular product or service are over. In addition. While the stereotype is secure. they explicitly indicate that they do not want to interact with a sales representative as their primary source of research by a margin of 59% to 19%. Reproduction Prohibited April 13. will be displaced by self-serve eCommerce by 2020. we found that today’s B2B customers:4 ■ Prefer to do their own pre-sales research.2 B2B Buyers Prefer Self-Service Experiences B2B buyer behavior has changed significantly in the past few years. B2B buyers want to self-educate versus talk to sales representatives to learn about products and services. The data is very clear that B2B buyers now favor do- it-yourself options for researching products and services. Our model estimates that of the 4. working the phones. often wherever they find the highest-quality information and have the best browsing experience. Forrester Research. or just over 20% of all B2B salespeople.5 million US workers employed in B2B sales and sales-related professions in 2012.1 With this as a backdrop. in the past 18 years. ■ Indicate that buying online is more convenient than buying from a rep. an ever-increasing number of B2B buyers are deciding what to buy online long before they ever contact a company’s salesperson.98 in 2012. the number of salespeople per million dollars of real GDP in the US has declined by half. They say that gathering information online on their own is superior to interacting with a sales representative by a margin of 53% to 17% (see Figure 1). but they also prefer to buy online.For EBusiness & Channel Strategy Professionals 2 Death Of A (B2B) Salesman B2B Commerce Will Never Be The Same We’re all familiar with the stereotype of the B2B salesperson — fighting over leads. Now B2B buyers educate themselves online throughout most of the buying process. particularly when the product or service they buy for business: ■ Necessitates a price negotiation. Reproduction Prohibited April 13.6 © 2015.5 B2B buyers indicate that they want to interact with salespeople in discrete circumstances. and collaborative software as opposed to via a traditional phone call. Unauthorized reproduction or distribution prohibited. B2B buyers still prefer to speak with sales representatives when they feel they need detailed assurances about on-time delivery. chat. Inc. but more than 80% of respondents indicated that they still want to talk with B2B salespeople about complex purchases. B2B buyers have used price negotiation in the hopes of driving a bargain and securing a favorable outcome. even though self-service eCommerce websites can track deliveries and report on shipping times. eCommerce websites are getting much better at providing critical information to customers about products and services. B2B buyers still prefer to interact with salespeople in certain circumstances.For EBusiness & Channel Strategy Professionals 3 Death Of A (B2B) Salesman Figure 1 B2B Buyers Prefer Digital Self-Service 93% 74% 53% I prefer gathering information online on my own 59% I prefer not to interact with a sales rep Buying from a website is more convenient Prefer to buy online when I've decided what to buy Base: 224 US B2B buyers and sellers Source: Forrester/Internet Retailer Q1 2015 US B2B Buyer Channel Preferences Online Survey 122288 Source: Forrester Research. Inc. ■ Is inherently complex. 2015 . Forrester Research. However. For example. Why? Both buyers and sellers engage in the practice thinking they will come out ahead. B2B salespeople have historically used price negotiation as a means to close a deal and/or sell additional services. they’re increasingly conducting those negotiations with salespeople by way of digital means such as email. Buyers Still Need Salespeople For Discrete Purchase And Post-Purchase Activities Despite the growing use of self-serve eCommerce websites throughout the purchase life cycle. Ninety-one percent of B2B buyers say they want to interact with a salesperson when they are negotiating price (see Figure 2). some B2B buyers still prefer the comfort of knowing that they can call or meet with someone in person to de-risk a costly purchase. 2015 . Figure 2 B2B Buyers Use Sales Professionals In Specific Circumstances “For what types of purchases do you prefer to interact with a sales rep?” 91% 82% 67% When expensive 67% When complex When Requires negotiating installation price 64% Requires service Base: 224 US B2B buyers and sellers Source: Forrester/Internet Retailer Q1 2015 US B2B Buyer Channel Preferences Online Survey 122288 Source: Forrester Research. Inc. Despite generous return policies and fully functional sites that can describe product or service details to an unrivaled level of depth. Sixty-seven percent of B2B buyers like talking with a sales representative when a product requires installation. Inc. ■ Requires installation or servicing.For EBusiness & Channel Strategy Professionals 4 Death Of A (B2B) Salesman ■ Is an expensive purchase. Forrester Research. and 64% of B2B buyers prefer to interact with a sales representative when a product or service requires regular servicing post-purchase. Reproduction Prohibited April 13. Unauthorized reproduction or distribution prohibited. © 2015. Two-thirds of respondents said that they prefer to speak with a B2B salesperson when the product or service is expensive. B2B buyers still frequently want to talk to a salesperson when the product they are buying requires a service to activate or maintain it. and ultimately purchase products and services. or make suggestions for tens of millions of assortment and pricing combinations. The reality is that B2B companies still force most buyers to interact with sales representatives — despite the fact that most B2B buyers would prefer self-service. In the age of the customer. As B2B commerce becomes more real-time and global. Further. Reproduction Prohibited April 13. Inc. and facilitating order taking (see Figure 3). ■ Leveraging the “wisdom of the crowds” online. B2B buyers browsing online can link directly into B2B community sites such as the SAP Developer Network.For EBusiness & Channel Strategy Professionals 5 Death Of A (B2B) Salesman B2B Sellers Are Out Of Sync With B2B Buyers B2B buyers are living in a digital-first world.8 Leading B2B companies also leverage personalization technologies to increase average order sizes by crossselling complementary products and use price optimization software packages to compete at the item level in near-real time. © 2015.7 But just 25% of B2B companies today actively sell online. 91% of all B2B sales still take place offline despite a clear desire on the part of B2B buyers to research and buy online. but B2B sellers are still living in a 1965 salesman-first world. in many ways they far outpace what a human can do on many levels. Vendors such as Bazaarvoice and PowerReviews make it possible for B2B manufacturer and distributor partners to share product ratings and reviews between sites so that B2B buyers can see breadth and depth of content across the entire ecosystem. According to the US Bureau of Labor Statistics (BLS). The truth is that eCommerce is both more convenient for buyers and more efficient for sellers. Salespeople cannot monitor buyer research and purchase behavior at scale. like self-serve eCommerce websites can. 2015 . and Spiceworks. A majority of B2B buyers tell Forrester that product recommendations shown in websites are as valuable as recommendations made by sales representatives (50% versus 16%). where only customer-obsessed enterprises will survive. Self-Serve eCommerce Delivers An Experience That Salespeople Cannot Match Today’s self-serve eCommerce websites do more than replicate the functions of a B2B sales representative. compare. self-serve eCommerce websites will start to outdistance what B2B salespeople can offer by: ■ Incorporating new technologies that enhance customer engagement. B2B companies remain too heavily invested in expensive and commission-driven offline sales resources. B2B companies use self-serve technologies today to successfully automate the process of personalizing product recommendations. Marketo Marketing Nation. Forrester Research. These sites give B2B buyers access to a network of thousands of likeminded peers who are knowledgeable about solutions in the space and can share best practices and advice in real time as B2B buyers shortlist. conducting price negotiations. as SMBs often don’t generate enough volume of revenue to justify devoting salespeople to their account.9 In addition. Forrester Research. Simply put. sales forces are expensive: B2B salespeople in the US make an average of $53. Reproduction Prohibited April 13. Inc. the firm was able to grow sales while reducing its sales force by 10%.11 When a major power tools manufacturer launched a self-serve eCommerce website a few years ago. 2015 . especially when selling to small and medium-size businesses (SMBs). and materials. Online Sites Offer Compelling Scale Efficiencies Self-serve eCommerce websites have a much lower average variable cost per sale than offline models employing commissioned sales representatives. Unauthorized reproduction or distribution prohibited.12 © 2015. Inc.For EBusiness & Channel Strategy Professionals 6 Death Of A (B2B) Salesman Figure 3 Automating The B2B Sales Process Automating the sales process 24x7x365 self-serve website Order taking Personalization algorithms Product recs Digital transaction management Contracts Price optimization software Price negotiation Robotic chat Customer service SEO/SEM Prospecting 122288 Source: Forrester Research. services. B2B companies spend a great deal to support salespeople with staff.000 per year. And in high-tech.10 B2B eBusiness professionals who have successfully scaled their online selling models have: ■ Scaled company revenue without having to amp up their sales force. B2B companies spend approximately 5% to 10% of total revenue on sales compensation. Atlassian Software runs a $200 million B2B software business with zero dedicated salespeople — all sales are done by customer-initiated web-based trial downloads and subsequent customer-initiated upgrades to full-service contracts. An example of a Show Me buyer is a director of technology at a company who has budget in place to buy an enterprise resource planning (ERP) system but doesn’t fully understand all of the © 2015.14 Furthermore. though. in many cases Serve Me B2B buyers would actually be best served by a self-serve eCommerce website as opposed to a salesperson.For EBusiness & Channel Strategy Professionals 7 Death Of A (B2B) Salesman ■ Dramatically reduced their cost to serve. In parallel. But it’s not easy for B2B decision-makers to determine where the economies of digital customer engagement can be gained without compromising the effectiveness of the selling process. Reproduction Prohibited April 13.48 per transaction via a salesperson-driven paper-based ordering system to $1. These buyers are ready and able to order and just want to complete a transaction as efficiently as possible. a distributor of equipment replacement parts to the food service industry. B2B buyers who have budget but need to know more about a complex product or service before they buy it are Show Me buyers. These are buyers who need help from sellers navigating their own company-internal barriers to buying. improved margins by 20% and reduced call center staff by 50% in just two years by launching a self-service eCommerce website. ■ Show Me buyers need an Explainer seller model. 2015 . Heritage Parts.50 per transaction via a customer self-serve eCommerce system. Forrester believes that a Navigator archetype is the best fit for a Guide Me B2B buyer because Navigators specialize in mapping buying organizations and helping to find budgets and secure institutional buy-in. In reality. A Guide Me buyer would be a farmers’ cooperative that is pooling resources to make a bulk purchase of standard fertilizer. ■ Serve Me buyers pair with an Order Taker seller model. Forrester has developed a matrix that can help by grouping B2B buyers into four quadrants. B2B buyers who are similarly “decided” about a product or service but operate in a more complex buyer environment (potentially with multiple internal stakeholders and budgets) are what Forrester calls Guide Me buyers. Forrester characterizes B2B buyers who purchase relatively self-explanatory products or services and operate in relatively simple buyer environments as Serve Me buyers.15 eCommerce Will Replace 1 Million US B2B Salespeople By 2020 B2B buying behavior has clearly changed. based on a combination of the complexity of the product or service they are seeking and the complexity of the buying environment within which they operate (see Figure 4). or archetypes. Inc.13 Another company said it reduced operating costs by 30% by eliminating sales reps and migrating all of its reorders to a self-serve eCommerce website. and B2B firms must adapt. One example is an individual farmer who is simply reordering several bags of standard fertilizer that he has purchased many times before. Forrester matches four new seller archetypes with each of these four new buyer archetypes. ■ Guide Me buyers align well with Navigator seller archetypes. A company we interviewed estimates that it reduced its cost per order from $24. Forrester Research. Forrester believes that Serve Me B2B buyers are most appropriately paired with an Order Taker B2B seller “archetype” that focuses on delivering quick and frictionless transactions. as retirement-age B2B buyers attrite out of the workforce. Inc. Forrester Research. The Death Knell Tolls For Order Takers. B2B buyers who are undecided about a product or service and operate in complex buying environments where budget and buy-in are uncertain are what Forrester calls Enlighten Me buyers. the number of B2B salespeople in the US declined by 2% in that time frame. Inc. Plus. The reality is that many B2B companies have already proven the benefits of self-serve models and are starting to steal share from offline-only models. While Consultants Will Thrive Despite BLS projections in 2002 that the number of B2B salespeople would increase by 10% by 2012. in actuality. Reproduction Prohibited April 13. 2015 . The seller archetype that fits best with this B2B buyer is a Consultant. millions of © 2015. ■ Enlighten Me buyers necessitate a Consultant seller archetype. for example. Enlighten Me buyers are.16 We predict that another 1 million B2B salespeople will lose their jobs from 2012 to2020. explaining company products and services. and helping clients bring internal stakeholders and budget together to make purchases. Consultants are the highest-performing salespeople in a B2B selling organization and are the most adept at understanding customer needs.For EBusiness & Channel Strategy Professionals 8 Death Of A (B2B) Salesman features and functions of the system or know the respective pros and cons of various vendor solutions. and Explainers are in a position to provide that. a team of company-internal stakeholders collectively exploring a firsttime purchase of a global license for an ERP system. Unauthorized reproduction or distribution prohibited. An Explainer B2B seller archetype matches up well with a Show Me B2B buyer: Show Me buyers require a disproportionate level of information about products and services prior to purchasing. Figure 4 B2B Buyer And Seller Archetypes Buyer says “show me” Buyer says “enlighten me” High Explainers Complexity of product/service Consultants Buyer says “serve me” Buyer says “guide me” Low Order Takers Navigators Low High Complexity of the buyer dynamic 122288 Source: Forrester Research. ■ Fifteen percent of Navigators will vanish. The number of Explainers will decline by just over 400. B2B salespeople have played the role of “explainerin-chief ” by enumerating the value of products and services over the phone or in person to clients.6 million Order Takers in the US in 2012. They’re also the least likely to be upskilled into other positions. albeit just 10% off of a small base.5 million B2B salespeople in the US as of 2012.g. more Explainers will lose their jobs to selfserve eCommerce websites. Navigators can be upskilled into a Consultant sales position. B2B firms are actively rethinking and restructuring their conventional selling models to focus more on selling via self-serve eCommerce websites.For EBusiness & Channel Strategy Professionals 9 Death Of A (B2B) Salesman new digital-native B2B buyers are coming in and forming new buyer loyalties. by 2020:19 ■ Thirty-three percent of all Order Takers will disappear.000 to an estimated 1. via FAQs. representing over 40% of the total loss across all seller types.000 will disappear by 2020 (see Figure 5). using how-to videos.18 Forrester believes that of the 4. and leveraging syndicated user generated content). integrating themselves most effectively into the key functions of their clients’ business and engaging in “problemfinding. That will represent over 50% of the total loss across all seller types. Forrester Research. nearly 550.21 © 2015. because they understand how to leverage advances in technology to understand their customers’ problems better.17 In response. The highest percentage of displacement of Order Takers will take place in wholesale distribution. As the best of the best within B2B selling. ■ Twenty-five percent of Explainers will be displaced.1 million by 2020. To keep their jobs.. Inc. 2015 . Some B2B companies will use procurement systems and policies to simplify buying internally and reduce the need slightly for a B2B salesperson to navigate the broader organization to surface budget pools. Serve Me buyers who can purchase more efficiently by way of self-serve eCommerce websites. the latest year for which the BLS has employment projections. As companies productize more of that content (e. Next to Consultants.”20 Consultants will grow in number by 2020. Reproduction Prohibited April 13. and high-tech (see Figure 6). They also adeptly navigate the more complicated “agreement networks” that are commonplace among certain B2B buyer groups. as they excel at leveraging personal relationships and knowledge of client internal operations — value that technology cannot easily replace. travel and hospitality. They are most capable of relationship and solution selling. Navigators will represent just 10% of the total loss of B2B salespeople across all seller types. Explainers must develop an ability to navigate customer-internal bureaucracies. We believe that of the 1. Order Takers are most vulnerable to replacement by self-serve eCommerce websites because they match up with decided. Historically. Consultants are not under threat from advances in technology or changing B2B buyer behavior. financial services. ready-totransact. Navigators are the least vulnerable to displacement. as they typically possess intangible and hard-to-train qualities and high emotional intelligence ■ Consultants will actually grow in number by 10%. Hit the least by digital selling. 5M -25% 1.75M Consultants 0. 2015 . Unauthorized reproduction or distribution prohibited.6M -33% 3. Forrester Research.5M -22% Order Takers 1.9M -15% 0.1M Navigators 0. Unauthorized reproduction or distribution prohibited.For EBusiness & Channel Strategy Professionals 10 Death Of A (B2B) Salesman Figure 5 One Million B2B Sales Jobs Will Be Eliminated By 2020 Salesperson type population 4.0M Explainers 1.5M +10% 0. © 2015. Reproduction Prohibited April 13.5M 1. Inc. Figure 6 B2B Sales Jobs: Displacement Impact By Industry Vertical nc nd ra B ng ri tu G ac P uf d C an n m a d an le n sa t i o le b u ho r i W st di d an el t y av li Tr pita s ho l ia nc n a es F i vic r se ra d an g n i n io ld t u i uc B tr ns e co su re ch ca te h- lth ig ea In H H Consultants Low Low Low Low Low Low Low Low Navigators Low Medium Low Low Medium Medium High Medium Explainers Med Medium Medium Medium High High High Medium Order Takers High Medium Medium High High High High High 122288 Source: Forrester Research. Inc. Inc.55M 2012 2020 122288 Source: Forrester Research. becomes the default destination for all transactions (save for the most complex transactions and transactions tied to the very largest accounts that require special care and feeding). convenience.” (Senior executive from a large apparel and footwear company) © 2015. create consistent and compelling experiences on several types of mobile devices. agents. They do not ‘sell’ per se to their clients now and are no longer paid commissions. and manufacturer sales reps) to rethink traditional selling models and harness technologies. B2B buyers are forcing B2B sellers and their ecosystem partners (such as resellers. both to deliver a superior customer experience and to drive agility and operational efficiency. 2015 . Reproduction Prohibited April 13. and takes the lead on most of the postsales process. Inc. This includes functionality that sufficiently describes products and services online. The new role requires a much higher level of training and a much deeper understanding of the customer’s business lines and financials. “We’ve done away with the word ‘sales’ in their titles and now call them ‘account executives’ because that’s what they do — they work directly and closely with their accounts to optimize the client’s sell through and maximize the client’s sales and profits. ■ Develop advanced self-serve eCommerce websites. thus making for a more exclusive and expensive club. B2B eBusiness professionals must build sites that can provide a comparable buying experience to what salespeople have traditionally provided. personalizes the research and buying experience. distributors. and manage especially complex pricing and inventory combinations — all in real time.For EBusiness & Channel Strategy Professionals 11 Death Of A (B2B) Salesman Welcome To The Era Of The Digitally Enabled B2B Selling Model In the age of the customer. As such. But increasingly. ■ Leverage well-trained customer account professionals across all channels. but firms increasingly refer to them as “customer account professionals” and are focusing them primarily on joint planning with clients to maximize profitable sales. B2B eBusiness and channel strategy professionals and their ecosystem partners must: ■ Put selling via eCommerce on equal footing with commissioned salespeople. eBusiness professionals must work with their leadership to develop a strategy whereby the self-serve eCommerce website is a necessary and equal partner to B2B salespeople in the B2B selling process — serving both customers externally and B2B salespeople internally as a research and transaction booking service (see Figure 7). and enables customers to make a purchase. It’s a model whereby the self-serve eCommerce website figures far more prominently in the pre-sales process. These employees were traditionally referred to as “field sales representatives” and paid mostly by commission on sales. and speed.22 To build an effective digitally enabled B2B selling model. B2B companies today are relying less on commission to compensate these individuals and are instead paying them more in base salary and bonusing them based on the company’s overall performance. B2B buyers demand more transparency. Forrester Research. service providers. self-serve B2B eCommerce websites must also source and integrate numerous internal and external data feeds. © 2015. Reproduction Prohibited April 13. In five years. Similarly.For EBusiness & Channel Strategy Professionals 12 Death Of A (B2B) Salesman ■ Harness multipurpose inside sales reps to accelerate buyer journeys. properly trained and adequately resourced call center agents (using a customized version of the self-serve eCommerce website themselves) will shift from a historically reactionary role to take advantage of the opportunity to cross-sell and upsell customers products and services. 2015 . A B2B building materials manufacturer we spoke with reduced its traditional sales headcount from 75 to 50 without hurting sales by upgrading its ERP and CRM infrastructure to better access data and by hiring inside sales reps to do lead generation. in the enterprise space. call center agents must increasingly become junior salespeople. Many B2B companies are moving these inexpensive and agile inside sales reps into spaces where more expensive field sales reps used to operate. ■ Incorporate versatile call center agents into key parts of the selling process. inside sales will play a larger role in the enterprise pre-sales process. while all other transactions will increasingly be routed through self-serve eCommerce websites. In general. inside sales teams will step up their game. though. self-serve eCommerce websites will figure far more prominently in the sales process from beginning to end by 2020 (see Figure 8-2). Call center agents will figure especially prominently in the sales process with enterprises as B2B companies increasingly upskill them to act in place of expensive field sales reps in a person-to-person selling capacity. from pre-sales to post-sales by 2020 (see Figure 8-1). more focused pools of customer account managers. while self-serve eCommerce websites will play a much larger role. Forrester expects field sales to play a smaller role. and call center agents will fill a small void in the sales space left by departing field sales reps. ■ Vary the digitally enabled model based on whether they are selling to SMBs or enterprises. Instead of dispensing information that is now easily and more efficiently obtained online. complex sales transactions will continue to flow to sales reps and call centers across all sizes of clients. As B2B companies convert large field sales organizations into smaller. Inc. increasingly placing them in marketing to focus on lead and demand generation. For B2B companies selling to SMBs. In a world where customer attention is at a premium. Forrester Research. Reproduction Prohibited April 13.For EBusiness & Channel Strategy Professionals 13 Death Of A (B2B) Salesman Figure 7 The Rise Of The Digitally Enabled B2B Selling Model Customer Account team • Field sales • Inside sales • Call center 122288 Self-serve website • Mobile • PC/laptop • Tablet Source: Forrester Research. Forrester Research. Inc. © 2015. 2015 . Inc. Unauthorized reproduction or distribution prohibited. Reproduction Prohibited April 13. © 2015. 2015 . Unauthorized reproduction or distribution prohibited. Inc. Forrester Research. Inc.For EBusiness & Channel Strategy Professionals 14 Death Of A (B2B) Salesman Figure 8 The Digitally Enabled B2B Selling Model 8-1 Digitally enabled B2B selling model — selling to SMBs = Size of role Field sales Pre-sales Sales Post-sales 2015 2020 Inside sales 2015 2020 Call center 2015 2020 Website 2015 2020 122288 Source: Forrester Research. Inc. Unauthorized reproduction or distribution prohibited. Forrester Research.For EBusiness & Channel Strategy Professionals 15 Death Of A (B2B) Salesman Figure 8 The Digitally Enabled B2B Selling Model (Cont. © 2015. Inc. 2015 . Reproduction Prohibited April 13.) 8-2 Digitally enabled B2B selling model — selling to enterprise customers = Size of role Field sales Pre-sales Sales Post-sales 2015 2020 Inside sales 2015 2020 Call center 2015 2020 Website 2015 2020 122288 Source: Forrester Research. and technologies perspective. But B2B buying behavior has shifted too dramatically in recent years and is now solidly a digital-first value proposition. B2B companies should also consider aligning their sales teams by verticals to leverage valueadded and differentiated industry-specific domain expertise. ■ Create a digital-first omnichannel selling strategy. set key goals and objectives based on the vision (including defining what they are not going to do in that time frame).For EBusiness & Channel Strategy Professionals 16 Death Of A (B2B) Salesman r e c o m m e n d at i o n s Ditch Outdated Thinking For A New Digital Era It’s tempting to assume that just because competitors are employing the same salesperson-centric sales model companies employed 100 years ago. processes. 2015 . B2B companies that figure out how to use digital to get buyers more of what they want. a self-service website sits right in the middle of their channel ecosystem. The purpose of the exercise is to establish a foundation from which to set a new planning cycle in motion and prioritize critical digital investment strategies. B2B companies must first determine how many of their sales reps currently fall into each of the seller archetypes based on how they would segment their own customer base by buyer archetype. more quickly and easily. ■ Shift resources toward developing and maintaining a robust eCommerce website. For B2B distributors. measure test results in real time. Inc. To prosper in a new digital-first business reality. as well as upskilling promising Explainers and Navigators by removing barriers to their success from a people. the model is still ideal. all B2B eBusiness professionals must develop their websites to be able to run small-scale pilots. B2B companies today must update their core internal understanding of their customers’ omnichannel behavior by surveying both their existing customer base and a reasonable prospect universe to establish a new baseline of available market B2B buyer behavior. eBusiness and channel strategy professionals at B2B firms must: ■ Learn what today’s omnichannel B2B buyers need and want. Reproduction Prohibited April 13. ■ Triage the existing sales force and hire salespeople with specialized skills. and © 2015. However. and then develop a detailed plan to achieve those key objectives. will steal share from those who do not. They must then create an environment conducive to attracting Consultants who are experts at solution selling. a self-serve eCommerce website must be the center of their interaction with end user customers. eBusiness leaders must co-create and cross-pollinate priorities with their business technology colleagues to ensure that the company can operationalize and advance their omnichannel vision with core systems of engagement and robust and scalable technology infrastructure. Detailed research about single-channel. For brand manufacturers. Forrester Research. Leading B2B companies must start with a vision of where they want to be in five years as an omnichannel B2B seller. offline-only B2B customers is useless in a world where B2B buyers move seamlessly across both offline and online channels when they research and buy. © 2015. they’ll be able to invest in giving salespeople who sell complex products and services in complex buying environments hardware. demand generation. At a maximum. As B2B buyers become more decided earlier on in the sales process. Because the eCommerce website will replace a substantial number of the Order Taker salespeople in the organization. Forrester predicts that the elimination of 1 million B2B sales jobs in the US will free up billions of dollars for B2B companies to use to fundamentally rearchitect their approach to selling. In addition. as well as increasingly automating customer segmentation. In addition. They’ll be able to put more resources into integrating with customer supply chains to trigger reorders and replenishment sales automatically. Reproduction Prohibited April 13. the website must be industrial strength and fully functional — which will require making substantial initial and ongoing investments. B2B companies must use new eCommerce syndication technologies to network their diaspora of channel partners into a tight and coherent eCommerce affiliate network capable of selling their products and services to a range of B2B buyers. B2B marketing professionals and B2B eBusiness professionals must join their digital sales enablement models. and applications to understand and act on customer needs in real time. w h at i t m e a n s Only B2B Companies That Disrupt Their Own Sales Models Will Survive Amazon has proven that it’s possible to produce tens of billions in revenue annually from selling products and services online. 2015 . This will involve aligning strategies on messaging and positioning in the pre-sales process. Forrester Research. In addition. eBusiness and marketing professionals must create a shared vision in the post-sales process to drive customer retention. they need to discover how to make the two channels incremental to one another. Since channel partners are now independently pursing digital customer engagement strategies. and lifetime value creation. as well. and lead nurturing.For EBusiness & Channel Strategy Professionals 17 Death Of A (B2B) Salesman iterate changes in short order. loyalty. Today’s eBusiness and channel strategy professionals at B2B companies are leading a fundamental transformation of their firms’ sales models that will: ■ Unleash significant resources for website and sales assist technologies. Inc. software. ■ Rationalize the eCommerce channel and partner channel. established software companies now offer trial downloads of full software packages that convert automatically into paid subscriptions — without the intervention of a single salesperson. B2B manufacturers need to figure out how to make their eCommerce channel and their partner channel peacefully coexist at a minimum. ■ Partner with marketing colleagues to automate stages of the buyer journey. all without salespeople. ■ Force B2B companies to wrap services around commoditized products. B2B brands will see greater traffic coming from search engines.23 The entry-level path into B2B companies will continue to shift from commission-carrying first-level salespeople to generalist data analysts and marketing specialists. B2B companies will struggle to find new salespeople. towel dispenser manufacturers such as Georgia Pacific and SCA currently sell touchless systems to B2B clients as a means to the end of driving a hand towel refill recurring revenue stream. B2B companies will drive automation in other parts of the sales process — such as with automated analytics. partner ecosystem data-sharing. but they won’t rely on humans to close sales. B2B companies will no longer offer hundreds of thousands of college graduates the opportunity to enter the workforce as salespeople. sites such as Grainger’s tiger brand Zoro leverage a low-cost-to-serve website to reach cost-conscious industrial parts and supplies buyers who are interested in transacting almost exclusively online. As companies reduce the number of entry-level commission-carrying salespeople. Such sites will offer limited customer service. Forrester also expects that by automating salespeople in the sales process.24 ■ Enable them to leapfrog B2C companies and lead change. Inc. They will also offer more services linked to razor. Forrester Research. and customer service. B2B companies have the opportunity to pioneer the use of technologies such as avatar-based selling. preferring instead stable pay and team-based environments. In parallel. Forrester believes that B2B brand manufacturers will be able to close the historical disintermediation © 2015. Omnichannel B2B companies will offer more vertical-specific low-cost sites that leverage an existing supply chain. insurance for transportation and product use. Being the first to replace salespeople with websites. Reproduction Prohibited April 13. and B2B companies will use digital programs to train them as support personnel for Consultants. with a profitable and customized single-use refill item that’s tied to a commoditized multi-use product.For EBusiness & Channel Strategy Professionals 18 Death Of A (B2B) Salesman ■ Create a path for salesperson-free new B2B business models. 2015 . B2B companies will accelerate their marketing of warranties on products. marketing. For example. and content syndication tools. and credit terms and financing for purchases. In a keyworddriven world. and online-only sites will piggyback on partners’ drop-ship infrastructure to capture a new class of low-frequency. B2B companies will increasingly be forced to differentiate and earn profit from core and adjacent services. ■ Transform a decades-old entry-level B2B career path. Look for Internet-only B2B industry-specific websites and customer-segment websites to emerge. with employees in their twenties and thirties eschewing traditional sales jobs offering variable pay and individually competitive environments. ■ Empower B2B brand manufacturers focused on converting captive traffic.and razorblade-like models. As products become more available across more distribution points and pricing becomes more transparent generally. low-volume B2B buyers — perhaps even compete for certain types of “prosumers” that currently buy via B2C sites. For example. B2B manufacturers will have special opportunities to target priceinelastic. Forrester expects eCommerce to reach $780 billion and represent 9. and early-adopter B2B buyers. At the end of 2015. Digital Frontier Press.For EBusiness & Channel Strategy Professionals 19 Death Of A (B2B) Salesman gap with end customers as B2B buyers increasingly insist on learning about products and services on. Until recently. and buying directly from. Erik Brynjolfsson and Andrew McAfee calculated that the number of salespeople per million dollars of real GDP in the US declined from 2. brand-enthusiast. Reproduction Prohibited April 13. See the “The New And Emerging World Of B2B Commerce” Forrester report. armies of sales reps.1 trillion and account for 12. As technology disrupts more distribution channels. See the “US B2B eCommerce Forecast: 2015 To 2020” Forrester report. 7 © 2015. most B2B companies relied on thick print catalogs. 3 Source: Forrester/Internet Retailer Q1 2015 US B2B Buyer Channel Preferences Online Survey. Endnotes Source: Erik Brynjolfsson and Andrew McAfee. We conducted in-depth interviews with over 30 eCommerce and sales executives from October 2014 to March 2015 about the current and future state of their offline and online selling operations. and well-staffed call centers to drive and support customer purchases. Race Against The Machine. ■ Executive briefings. 5 Source: Forrester/Internet Retailer Q1 2015 US B2B Buyer Channel Preferences Online Survey. 2015 . Inc. 4 Source: Forrester/Internet Retailer Q1 2015 US B2B Buyer Channel Preferences Online Survey. 6 Forrester estimates that B2B eCommerce will top $1. Supplemental Material Methodology Forrester used a combination of two primary data sources in the creation of this report: ■ B2B buyers survey.79 in 2002.08 in 1995 to 1.3% of total B2B sales in the US. January 2012. 1 2 Forrester defines self-serve eCommerce as fully functional eCommerce websites that B2B buyers use to place orders with B2B manufacturers and distributors. Forrester Research.1% of all B2B sales in the US by 2020. Forrester surveyed 224 US-based B2B professional and non-professional buyers in the Forrester/Internet Retailer Q1 2015 US B2B Buyer Channel Preferences Online Survey. manufacturers’ websites.98 by 2012. Forrester estimates that the number of salespeople per million dollars of real GDP in the US declined even further to . chron. or $135. Inc.g. 10 Source: Annelise Reynolds. 2012 (http://www. Individuals in different roles and at different organizational altitudes have unique perspectives about their challenges and the value of solutions.).html) 9 Technology vendors are spending. on average. 19 Source: Daniel H.com/company/press/press-releases/atlassian-posts-anotherbanner-year-with-44-revenue-growth). Pink. 2014 (http://www.” WorldatWork.262 per quota-carrying salesperson. Few are aware of this enormous amount because the costs are hidden — tucked away in many different budgets dispersed throughout the organization. as the organizational scope and impact of decisions increase. See the “Uncovering The Hidden Costs Of Sales Support” Forrester report. September 10. Revenue Percentage.atlassian. See the “Elevate Your Sales Training Impact With A Strategic Framework” Forrester report. multidimensional challenge. 17 Forrester applied its seller archetype model to the entire population of 4. etc. Forrester Research.” Atlassian. 2012. 16 Source: Kelsey Snyder and Pashmeena Hilal. the BLS only publishes 10-year employment projections the second year of every decade (e.5 million B2B salespeople and reviewed both detailed historical and present-day data from the US Bureau of Labor Statistics (BLS) to construct a bottom-up model of B2B salesperson pool growth or contraction by seller archetype. 12 Source: February 2015 Forrester in-depth executive interview. December 2013. but the reality is that too many of these large-scale change programs fail.worldatwork. in support-related activities. 14 Source: October 2014 Forrester in-depth executive interview.org/waw/adimLink?id=61615) and Kevin Johnson. gov/ooh/). 2015 . Traditional wisdom encourages firms to approach such a wholesale change as a big-bang transformation program. 8 Source: “2012 Sales Compensation Practices Survey For The High-Tech Industry. 22 © 2015.” Houston Chronicle (http://smallbusiness. “Atlassian Posts Another Banner Year With 44% Revenue Growth.For EBusiness & Channel Strategy Professionals 20 Death Of A (B2B) Salesman Source: Forrester/Internet Retailer Q1 2015 US B2B Buyer Channel Preferences Online Survey. so do the number of people who will have input into decisions within an agreement network. 19% of their selling. 11 Source: February 2015 Forrester in-depth executive interview. 20 While some salespeople still sell to individual procurers. and administrative (SG&A) costs. 2014 (https://www.” Think with Google. 2002. March 2015 (https://www.thinkwithgoogle. general.html). 13 Source: January 2015 Forrester in-depth executive interview.com/sales-expense-vs-revenuepercentage-30579. See the “Develop A Digital Business Road Map That Drives Innovation” Forrester report. January 8.com/articles/the-changing-face-b2b-marketing. “The Changing Face of B2B Marketing.bls. 15 Source: “Occupational Outlook Handbook. To Sell Is Human: The Surprising Truth About Moving Others. 21 Digital business transformation is a multiyear. 2022. Reproduction Prohibited April 13.” US Bureau of Labor Statistics. 18 The Bureau of Labor Statistics (BLS) updates employment data every year. Riverhead Books. “Sales Expense vs. However. Inc. February 6.com/articles/why-its-so-hard-to-fill-sales-jobs-1423002730?KEYWORDS=Why+It%E2%8 0%99s+So+Hard+To+Fill+Sales+Jobs). 24 © 2015.” The Wall Street Journal. Forrester Research. 23 Source: Timothy W.wsj. Reproduction Prohibited April 13. “Why It’s So Hard To Fill Sales Jobs. 2015 . 2014 (http://www.For EBusiness & Channel Strategy Professionals Death Of A (B2B) Salesman 21 Source: Lauren Weber.” The Wall Street Journal. Martin.com/articles/paper-or-power-nothing-cut-anddried-about-hand-washing-in-restrooms-1403663581).wsj. June 24. “Paper or Power. 2015 (http://www. Nothing Cut and Dried About Hand Washing In Restrooms. and corporate performance. We ensure your success by providing: Data-driven insight to understand the impact of changing consumer behavior. n Forward-looking research and analysis to guide your decisions.5730.com. Our clients face progressively complex business and technology decisions every day. Forrester helps you create forward-thinking strategies to justify decisions and optimize your individual. please contact Client Support at +1 866. technology. team. and act upon opportunities brought by change. n for more information To find out how Forrester Research can help you be successful every day. For a complete list of worldwide locations.com. strategize. ensuring their business success today and tomorrow. please contact the office nearest you. processes. 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