In March 2020, our usual business world abruptly came to a standstill. We all still remember very well and with a shudder that first, difficult lockdown in Germany – triggered by a virus.
This had enormous repercussions for countless sales departments across the country. According to the trade journal SalesExcellence (issue 1-2 | 2022), there are almost 4 million sales employees in Germany. Up until this point, most of them spent around 50 days a year1 „on the road“, so they spent a lot of time away from home visiting their customers. From one day to the next, this came to an end. Companies no longer allowed visits and many of the contacts moved directly to working from home.
For 89 percent of field staff, no in-person customer appointments were possible at all², according to the results of a 2021 survey by Ruhr University Bochum of 777 managers from B2B companies in the DACH region. The thread of communication with existing and new customers threatened to break.
As in the entire B2B sector, a rapid response was required in the audio industry, both from radio stations and national marketers. However, it now emerged that only just under a third had even used digital communication channels such as video calls or online demos, e.g. for product presentations, before the start of the pandemic. First and foremost, IT departments were therefore called upon to purchase PCs, laptops and smartphones with suitable software, especially for video conferencing, as quickly as possible. Both at work and at home, everyone was forced to use Zoom, Teams, GoTo and more. Most of these apps and programmes had been around for a long time. But until then, only a minority were interested in them, at least if they did their business in the region rather than across the Atlantic. Despite being free to use in some cases, it was not always easy for SMEs in particular to quickly equip all employees with devices and accessories. Webcams were often no longer available at all or only at significantly higher prices, and once everything was in place, the Wi-Fi capacity in many home offices and even in some companies was not sufficient for trouble-free online meetings.
In early 2020, sales organisations were struggling not only with technical problems but also with an increased need for persuasion and training for both inside and field sales staff. „How does this work?“, „What do I do if the connection with my customer breaks in the middle of a conversation or my children suddenly run through the screen?“, „I don't want to show my bedroom, which now also has to serve as a home office, to a business environment“ – these and similar questions occupied even the most experienced field sales staff, whereas previously they were equipped for all eventualities in the field, from spare batteries to spare jackets.
However, uncertainties and poor technical equipment are not good prerequisites for goal-oriented, relaxed, and successful customer discussions.
Distinction by customer size
One comfort: on the customer side, it looked pretty much the same! Suddenly, the cool guy from the advertising agency wasn't sitting in the design office anymore, but in his living room with a toddler on his lap, as nurseries and schools were, as we know, also closed. And the usually elegant look of the marketing manager from the furniture store had given way to a faded t-shirt at home. Many a „surprising“ online encounter and many a business meeting became very humorous, not least due to persistent technical problems. Over the course of 2020, according to the results of the aforementioned study by Ruhr University, 86.5 per cent of companies were already using video calls, and almost half conducted video calls via smartphone, for example via „WhatsApp“. Communication via LinkedIn also rose from just under 28 to over 44 per cent.
The study also found that international customers, so-called „Global Accounts,“ in particular, show a very high acceptance of „online visits.“ Just under 80 percent fully accept this type of contact with their suppliers. This is closely followed by A customers/Key Accounts with 76 percent acceptance. However, B and C customers show significantly more scepticism. For example, more than a third of C customers do not accept video calls but prefer in-person visits. What became a necessity, triggered by the pandemic, namely the use of digital sales channels, can be an additional opportunity today and in the future, but not for all parts of the „buying journey.“.
Distinguishing between new and existing customers
Sales departments should differentiate between new and existing customers when using digital sales communication. Almost three-quarters of all respondents in the aforementioned study see a high level of acceptance for existing customers for the following parts of the buying journey:
- Repeat purchase/reorder of a known product
- Advice on new products
- Processing, coordination and problem-solving
- Hearing date
However, direct human contact is indispensable for maintaining relationships. Digital communication channels make it difficult to recognise non-verbal signals such as posture, facial expressions and gestures. This is why even the longest-standing, most loyal existing customers should be visited in person. Sales departments must judge from experience how often this makes sense or - even better - find out by asking their contacts. Not only personal appointments in pairs and meetings in smaller groups are possible again, but also trade fairs and congresses as personal „touchpoints“ with customers. Whether invitations to your own company or the resumption of customer visits by the field sales team - SMEs in particular were able to quickly switch back to the tried-and-tested „analogue“ sales channels in the phase following the lockdowns. Nevertheless, they should not rely solely on this again and continue with the digital transformation.
When addressing new customers In the B2B sector, one must first carefully examine and analyse the respective buying journey. It is clear that many people prefer to obtain initial information about a company and its offerings digitally. We all know from our private lives the advantages of online research using search engines, we appreciate inspiration from social media channels, and we cater to our specific interests through electronic newsletters, company websites, white papers, or chatbots. All of these media and channels are also useful online touchpoints in B2B sales for potential new customers. A wide variety of digital avenues should be offered to get to know the company, its services, and products.
Some interested parties will even want to go through the entire buying journey – from initial information about the offer, negotiation, conclusion, and processing of their order – completely digitally. However, according to the study mentioned, more than half of all new customers still wish for personal contact for initial engagement, initial consultation, price negotiations, and follow-up. The high social skills and wealth of experience of a good sales team are very valuable for these tasks. In other words, „human“ resources are used particularly effectively here. However, even for order processing, organisation, and coordination, digital communication channels can be used excellently, even with new customers.
Hybrid sales remain.
The diversity of digital and real communication channels, referred to as „hybrid selling“, is here to stay. „Hybrid Selling“ represents a productivity boost for B2B companies in multiple respects.1.
A quadrupled number of customer visits² is possible if they are carried out as video calls instead of on-site visits. According to calculations by Ruhr University Bochum, this results in an average of 8.5 additional hours of capacity per field employee. This time can be used for better market penetration and increases the effectiveness and efficiency of a sales team.
The ever-increasing shortage of skilled workers is not stopping at media sales. It is becoming increasingly difficult for radio stations and marketers to find and keep suitable sales personnel. This particularly affects field sales. However, hybrid sales channels allow parts of the buying journey to be taken over even better by inside sales staff or even fully automated digitally. Inside sales can also easily conduct online client appointments, for example, for processing orders or repeat purchases, which until recently were handled by field sales. Furthermore, the flexibility and thus the satisfaction of employees are increasing, who can achieve a better work-life balance through reduced travel and potential remote work.
Predominantly C clientele in the audio sector
For a long time, sales departments in the radio industry have faced the challenge of needing to serve numerous small "C" customers (e.g., local car dealerships). An on-site visit, including preparation, travel, the meeting itself, the return journey, and follow-up, takes just as long as one for a key account. Hybrid sales, on the one hand, allow for more customers with smaller revenue streams to be served and, on the other hand, enable them to be contacted more frequently and regularly. The task for sales managers now is to establish clear processes for hybrid customer service and to implement the necessary digital applications for this. A powerful CRM system is just as essential for this as a functional video call system integrated with a calendar, email marketing software that allows for success measurement, in the future also AI-based forecasting tools, and a well-thought-out digital marketing strategy concerning social media, SEO, websites, content, and inbound marketing.
Opportunities and challenges for leaders
Hybrid selling also offers many advantages in audio marketing:
- More productivity
- Automation potential for specific work processes
- More flexibility and therefore employee satisfaction
- Increased customer satisfaction through choice of communication channels and meaningful contact frequencies
- Increased data generation through digital collaboration, leading to a better understanding of customers and providing a basis for forecasting and analysis tools.
- Synergies between marketing and sales: „Marketing automation, online lead generation and lead nurturing become suppliers for sales.“³
- Last but not least: Cost and CO2 savings through the elimination of travel
Challenges and risks arise for managers from choosing the right systems, the overdue redesign of many work processes and finding a balance between digital and analogue communication channels. „Who wants to get in touch with us when and in which phase of the buying journey?“ Sales organisations have to ask themselves this question again and again. Last but not least, employees in back office and field sales as well as in marketing need to be taken along on this hybrid sales journey, which is now here to stay. Media consultants will not always be happy to give up the freedom of field sales in the long term. And not all office staff prefer video calls to the good old telephone call. Team spirit, close integration of all work processes, investment, self-reflection as a sales department, further training and coaching of employees are the key concepts here. And, of course, the customer should be at the centre of all efforts. But that was already the case before corona.
Sources
1Dr. Huckemann, Matthias: Featured article on sales work during the pandemic, SalesExcellence, Issue 1-2 | 2022, pp. 10
Prof. Dr. Schmitz / Dr. Huckemann: Hybrid Selling: More sales productivity through synchronised in-person and online visits, 2021, study by Ruhr University Bochum
³Heintze, Robin: Hybrid-Selling: This is what marketing and sales look like in 2022, t3n.de/news, 22.02.2022
Yours, Andrea Anders
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