Explaining the significance of inside sales in B2B companies
Posted: Wed Dec 04, 2024 6:55 am
As digital sales have been gaining attention in recent years, inside sales have become important in many businesses, regardless of whether they are BtoC or BtoB. In the Japanese business scene, the release of Yasutaka Fukuda's book " THE MODEL " in 2019 has further boosted the popularity of inside sales, and it is being increasingly adopted by foreign companies and startups.
However, while the idea of "THE MODEL" sales division of labor is becoming more widespread, there are also an increasing number of companies that are considering introducing it but are finding it difficult to apply an inside sales organization to their own company.
In this article, we will explain in student phone number list detail the significance of inside sales in BtoB companies, citing the current environment surrounding BtoB companies and the role expected of inside sales.
If you are having trouble recruiting for your inside sales organization or are considering recruiting, please read this article to the end.
Changes happening in B2B companies
When considering the future of inside sales in B2B companies, it is important to be aware of the impact and changes that the recent global spread of COVID-19 and the resulting rapid development of digital technology have had on B2B business.
Digitalization and the decline in face-to-face interactions due to COVID-19
According to a survey by US company McKinsey , B2B sales have been massively affected by recent digitalization and the global COVID-19 pandemic, and one of the major changes has been the overwhelming decline in face-to-face sales.
More than three-quarters of both buyers and sellers in B2B businesses say they prefer remote human interaction and digital self-service over face-to-face interactions, and this trend has only intensified rather than weakened even now that the COVID-19 pandemic has subsided to some extent.
There is no denying that one of the major reasons for this decrease in face-to-face meetings was infection prevention. However, it could also be said that this was merely the catalyst.
The COVID-19 pandemic has brought digitalization into the spotlight, and it has rapidly developed and spread, making it commonplace to easily obtain various information, order products, and request services online. Buyers enjoy the speed and convenience, and even now that the sense of danger of infection has subsided, not many people are keen to go back to face-to-face business.
The same trend is true for sellers: Even in sectors where the field sales model has traditionally been dominant, such as pharmaceuticals and medical products, only around 20% of salespeople say they want to go back to face-to-face selling.
mckinsey_B2Bsales_vs_Covid
(Source: McKinsey )
The massive digital shift caused by COVID-19 has seen video and live chat become the main channels for connecting B2B customers with sales, which can also be said to be one of the reasons for the sharp decline in sales activities such as face-to-face meetings and visits.
mckinsey_B2Bsales_interactions_afterCovid
(Source: McKinsey )
B2B buyers' online purchases are doubling
Another big change in B2B business in recent years is the doubling of online purchase amounts by B2B buyers.
Digital sales have boomed in recent years, and one of the biggest drivers is said to be the comfort B2B buyers feel about making large new purchases and reorders online.
As mentioned in the previous section about the decline in face-to-face interactions, remote interactions and digital self-service can be carried out more easily, cheaply, and quickly than traditional face-to-face interactions. For this reason, it can be said that many B2B companies that have experienced this are now more proactively shifting their own transactions to digital.
However, while the idea of "THE MODEL" sales division of labor is becoming more widespread, there are also an increasing number of companies that are considering introducing it but are finding it difficult to apply an inside sales organization to their own company.
In this article, we will explain in student phone number list detail the significance of inside sales in BtoB companies, citing the current environment surrounding BtoB companies and the role expected of inside sales.
If you are having trouble recruiting for your inside sales organization or are considering recruiting, please read this article to the end.
Changes happening in B2B companies
When considering the future of inside sales in B2B companies, it is important to be aware of the impact and changes that the recent global spread of COVID-19 and the resulting rapid development of digital technology have had on B2B business.
Digitalization and the decline in face-to-face interactions due to COVID-19
According to a survey by US company McKinsey , B2B sales have been massively affected by recent digitalization and the global COVID-19 pandemic, and one of the major changes has been the overwhelming decline in face-to-face sales.
More than three-quarters of both buyers and sellers in B2B businesses say they prefer remote human interaction and digital self-service over face-to-face interactions, and this trend has only intensified rather than weakened even now that the COVID-19 pandemic has subsided to some extent.
There is no denying that one of the major reasons for this decrease in face-to-face meetings was infection prevention. However, it could also be said that this was merely the catalyst.
The COVID-19 pandemic has brought digitalization into the spotlight, and it has rapidly developed and spread, making it commonplace to easily obtain various information, order products, and request services online. Buyers enjoy the speed and convenience, and even now that the sense of danger of infection has subsided, not many people are keen to go back to face-to-face business.
The same trend is true for sellers: Even in sectors where the field sales model has traditionally been dominant, such as pharmaceuticals and medical products, only around 20% of salespeople say they want to go back to face-to-face selling.
mckinsey_B2Bsales_vs_Covid
(Source: McKinsey )
The massive digital shift caused by COVID-19 has seen video and live chat become the main channels for connecting B2B customers with sales, which can also be said to be one of the reasons for the sharp decline in sales activities such as face-to-face meetings and visits.
mckinsey_B2Bsales_interactions_afterCovid
(Source: McKinsey )
B2B buyers' online purchases are doubling
Another big change in B2B business in recent years is the doubling of online purchase amounts by B2B buyers.
Digital sales have boomed in recent years, and one of the biggest drivers is said to be the comfort B2B buyers feel about making large new purchases and reorders online.
As mentioned in the previous section about the decline in face-to-face interactions, remote interactions and digital self-service can be carried out more easily, cheaply, and quickly than traditional face-to-face interactions. For this reason, it can be said that many B2B companies that have experienced this are now more proactively shifting their own transactions to digital.