How to improve your B2B sales

What is B2B sales?

B2B sales is when a business sells its products or services to another business or organization in the commercial, industrial or government space. In comparison, business-to-consumer (B2C) sales involves selling products or services to the general public, usually in a retail setting. 

Most of Canada’s economic activity comes from B2B sales. That might come as a surprise, given that you engage in B2C sales whenever you go to a store or shop online. But B2B sales transactions typically involve much more money, often thousands or even millions of dollars at a time.

Both B2B and B2C sales are challenging in their own way. With B2C, the difficulty comes from having such a broad audience. How can you appeal to as many people as possible and convince them to pick your product off the shelf? With B2B, the challenge is in the sales process itself. While the range of potential customers is typically much narrower than B2C, the B2B sales cycle is longer because more people need to sign off on a deal.

“Behind the scenes, there may be 15 different people who have some degree of influence on the purchasing process,” says BDC Senior Business Advisor Chris O’Shea. “That can make B2B sales a long and winding road, rather than a linear path.” 

What are some examples of B2B sales?

There are many different types of B2B sales. The two most common are:

• Commercial direct sales: This involves one company selling directly to another company. What’s being sold might be physical products, services such as marketing or accounting, logistics (i.e., selling the movement of goods across the globe), utilities such as power generation or telecommunications service, and more. The company will employ a team of sales reps to meet and negotiate with potential buyers.
• Wholesale distribution: With this approach, the company sells its goods at a reduced margin to a company that then resells those goods to its end customers. In this case, the initial company does not employ a direct sales force. Instead, that function is outsourced to the external agent or distributor. 

“When doing wholesale distribution, you need to make sure you have the right partner at the table,” says O’Shea. “That means somebody who’ll do their utmost to ensure your products are sold to the markets you want to be in.”

Whether you choose direct sales or wholesale distribution will depend on your market and how quickly you want to scale up your business. With direct sales, you’re limited by the ability of your in-house sales team to go out and drum up new business. By working with a distributor, your product could reach more markets than would be possible on your own. However, you’ll have to give up control over that part of your sales process, which may be unacceptable for some businesses. O’Shea advises companies to never just hand over their products to a distributor. The wholesale partnership must be very well managed for it to be successful.

What are the stages of the B2B sales cycle?

The B2B sales process is highly variable. Companies in different industries or with different customer bases will have different approaches to sales. In general, however, the B2B sales cycle involves the following stages:

• Prospect: Understand your potential customers and determine whether they’re a good fit for your products or services.
• Negotiation: Present initial pricing to a prospect and deal with any questions or objections.
• Conversion: Complete final discussions related to price, scope and product specifications.

Tips for increasing B2B sales

The key to any kind of sales is to focus on your customers’ needs and their experience when buying from you. Then, by taking as much friction out of the process to make buying as easy as possible, you’ll greatly increase your chances of closing the deal. 

Part of removing friction from the process involves being available to prospects outside of a pure sales discussion. Always keep in mind that only a handful of prospects are ready to buy from you right now. The rest might buy from you eventually, just not today. Maybe they need more information or want to get to know you better. Make sure those not-yet-ready prospects know you exist and recognize you as an expert in your field. That way, they’re more likely to think of you first when they’re ready to buy.

“The more you can do to be their key resource for information about your products or your industry, the easier that eventual sales discussion will be,” says O’Shea. “Slowly build up your reputation and your relationships, as that can lead to business down the road.”

According to O’Shea, too many companies focus on getting in front of the people who are ready to buy right now. As a result, they forget to nurture relationships with those who aren’t at that stage yet. While a short-term focus on winning deals now is important, a longer-term mindset will help you build a steady pipeline of customers that will benefit your business well into the future.

What are the key skills for B2B sales?

In-depth knowledge about your products and your industry is essential, but O’Shea says these are table stakes every B2B salesperson should have. If they want to stand out from the competition — and help cultivate that pipeline of future sales — your B2B salespeople should devote time and effort to developing a personal brand.

“People tend to buy from someone they know, like and trust,” he says. 

What a personal brand looks like will differ from salesperson to salesperson based on their own strengths and comfort level. It could involve being visible at trade shows and other industry events. Those good at writing might start a blog to showcase their expertise on the issues that matter to their industry and customers. The most outgoing might launch a YouTube channel. Regardless of the method, the goal is to increase visibility with the target customer.

“I can guarantee every salesperson in every industry knows that one person who’s out there all the time talking about something related to the industry online or at events,” says O’Shea. “That person should be you.”

Can technology tools help with B2B sales?

Small businesses can tap into a variety of free or low-cost software tools that can help with B2B sales. A customer relationship management (CRM) system, for example, provides a centralized platform for real-time customer, sales and other data so you see where you stand with conversions, revenue and other metrics. A CRM can also help automate your sales processes, streamline account management by tracking every interaction with each customer and quickly generate quotes to close deals faster. Modern CRM platforms are now infused with artificial intelligence (AI), leading to smarter lead prioritization and more accurate sales forecasting.

Many businesses are also using AI-powered apps to generate and optimize text, images and videos, helping them tailor their messaging to their audiences and improve customer engagement. However, O’Shea says you should never let AI write your marketing content for you. Instead, use it as an engine to come up with ideas, then produce unique content that is entirely your own.

Keep pace in B2B sales with expert guidance and support

B2B sales can be challenging, especially in the face of changing buyer behaviours and preferences. To be successful, your B2B salespeople will need to stand out from the crowd, have a strong personal brand and be available to your customers — even those who aren’t yet ready to buy.

“Things are changing so fast in B2B sales, it’s tough to keep up,” says O’Shea. “Don’t struggle all by yourself. Seek out sources of help, whether that’s other entrepreneurs, industry supports or expert advisors. Having someone who has been through the same issues you’re facing can help take the potholes out of the road.”

Next step

Draft a structured and convincing sales pitch by downloading BDC’s free business proposal template.