B2B or B2C: The Differences Are Real
There are real and stark differences in selling business-to-business and selling business-to-consumer. Those differences require very uncommon approaches and some very uncommon principles.
First, business-to-business sales are larger by degrees. It isn’t uncommon for business-to-business sales to be measured in millions of dollars. In all but a few cases, like say, selling a house to a Gates or a Bang, consumer sales are typically much smaller. With the exception of a home, there really aren’t many consumer buys that are nearly as large.
Business-to-business sales are sometimes based on long term relationships where the selling company may be tightly integrated into their client’s give chain; what they sell may be a strategic choice that impacts the client’s ability to compete and win in their space. Business-to-consumer sales nearly always have far, far less at stake.
Sometimes a family may make a choice together, but most business consumer sales aren’t complex in the way of choice-making and buying committees. By contrast, most business-to-business sales are more and more made democratically, requiring a uncommon approach and some uncommon activities.
These differences make a real difference as to how a salesperson approaches how they sell. Larger sales can’t be rushed. When there are millions and millions of dollars at stake, rushing the process facility against the salesperson, and it eliminates the entrust that is the necessary foundation of huge deals. Neil Rackham’s research, outlined in the first 65 pages of SPIN Selling, offer proof that sales increase based on more frequent closing behaviors as the cost and complexity of what is being bought declines.
The fact that large sales are often critical to the client’s competitiveness or their capabilities, a deep understanding of just what results must be produced, as well as all of the constraints that exist, requires a much more in-depth discovery process than is necessary in any business-to-consumer sale. Discovery in most consumer sales can usually be done in a single conversation.
Understanding all that is necessary to win and succeed for your client requires meeting with all kinds of stakeholders. These stakeholders are necessary to winning the deal, and often they have competing interests that have to be navigated and require all kinds of adjustments to the solution that is being sold.
All of these differences are right, but this isn’t to say one is better or simpler than another. Some business-to-business salespeople I have know failed miserably selling business-to-consumer because they were completely uncomfortable asking for a sale on the first interaction, and treated the process like they had far more time than they did. I have also known brilliant business-to-consumer salespeople fail at the transition, frustrated that they couldn’t close in a single sales call.
But these differences simplify the discussion too much. Uncommon products, uncommon services, and even uncommon companies within the very same competitive space can have very uncommon sales approaches. The most vital issue for your personal sales effectiveness, or that of your team is to know what your sales process should be, based on how you best obtain new clients—and then to follow that logical process.
ANNOUNCEMENT: On January 14, 2011, Future Selling Institute is being launched. It’s focused on sales leaders and aspiring leaders—sales managers, executives, general managers responsible for the sales function. It’s packed full of resources to help sales leaders excel! Any sales chief interested in their personal, professional and career development will want to join this community. Join us on January 14, 2011 for the kickoff conference.
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