In sprawling, complex channel sales networks, sometimes it’s hard to decide who your communication efforts and marketing strategies should target. The typical B2B company targets their end users, which may not be the best tactic. Those who study B2B markets have found that, while engaging and marketing to end users is important, it’s better to reach out to decision makers and influencers in B2B companies. Directly engaging sales channel decision makers using incentives can result in stronger B2B partnerships, which ultimately helps you increase sales and gain market share in supply chain industries.
Supply Chain Misconceptions: The Be-All, End-All End User
As a B2B business, there are many moving parts in your supply chain, carrying products from supplier to end user:
• Decision Makers, who sit at the top of the sales channel “food chain” and control which companies they do business with
• Influencers—researchers, technology experts and committee members—who provide decision makers with the data they need to make informed choices
• The Purchasers, who buy the product
• The End Users, who actually utilize the product or service
Since end users are the parties who actually need and apply your product or service, it makes sense to aim most of your communications and B2B marketing strategies at them, right?
Not so fast.
How to Get More Input from Sales Channel Decision Makers Using Incentives
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How to Get More Input from Sales Channel Decision Makers Using Incentives
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Click to edit Master title styleIn sprawling, complex channel sales networks, sometimes it’s hard to decide who your communication
efforts and marketing strategies should target. The typical B2B company targets their end users, which
may not be the best tactic. Those who study B2B markets have found that, while engaging and
marketing to end users is important, it’s better to reach out to decision makers and influencers in B2B
companies. Directly engaging sales channel decision makers using incentives can result in stronger B2B
partnerships, which ultimately helps you increase sales and gain market share in supply chain
industries.
INTRODUCTION
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Click to edit Master title styleAs a B2B business, there are many moving parts in your supply chain, carrying products from supplier to end user:
SUPPLY CHAIN MISCONCEPTIONS: THE BE-ALL,
END-ALL END USER
• Decision Makers, who sit at the top of the sales channel “food chain” and control
which companies they do business with
• Influencers—researchers, technology experts and committee members—who
provide decision makers with the data they need to make informed choices
• The Purchasers, who buy the product
• The End Users, who actually utilize the product or service
While B2B end users are certainly important, they’re not really the ones who control your fate. That’s B2C thinking.
In a sales channel business model, your relationship with the influencers and decision makers is far more important.
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A lot can go wrong when B2B companies ignore the most important people in their supply chain.
SUPPLY CHAIN MISCONCEPTIONS: THE BE-ALL,
END-ALL END USER cont.
A surprisingly large number [B2B companies] are either not paying enough attention to
executive decision makers or are ignoring them altogether…In fact, our research has
found that the average B2B company spends 75% of its time and money marketing and
selling to end users and purchasing agents, the two groups of customers who have the
least say in purchase decisions. Influencers, who do play an important role in deciding
purchases, receive substantially less attention [15%]. And decision makers, the
executive customers who actually make the purchase, receive the least investment of
all [10%].
—The B2B Executive Playbook, Sean Geehan
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When you’re more in touch with your end users, you may have an enviable database of those who use your products
and what their purchasing habits are. But, when you’re not also in touch with your influencers and decision makers,
you’re simply reacting to the market instead of staying ahead of it.
SALES CHANNEL DECISION MAKERS: THEY
SOUND IMPORTANT…BECAUSE THEY ARE
The relationships we have built with strategic accounts enable us to help design
the industry’s future standard, not follow the standard…a much preferred position.
—Harris Morris, President of Harris Corporation Broadcast Communications
division
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SALES CHANNEL DECISION MAKERS: THEY SOUND
IMPORTANT…BECAUSE THEY ARE cont.
Without input from decision makers, sellers and manufacturers have little insight into the needs, challenges, goals
and priorities of their B2B customers. This increases the likelihood that suppliers will produce products and services
that are irrelevant to their customers. Furthermore, B2B influencers and decision makers have no idea what their
suppliers’ benefits are, so they can’t make an informed choice about which one would best fit them as a business
partner.
We have always found…that executives are genuinely mystified by the lack of effort
their key suppliers and other sellers make in reaching out to them.
—Sean Geehan
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Even if it does prove difficult to get in touch with B2B decision makers, do you really want to risk your competition
getting there first and developing the kind of close-knit channel partner relationship you could’ve had?
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USING SALES INCENTIVE PROGRAMS TO CONNECT WITH
B2B DECISION MAKERS
In 2004, Oracle…quickly realized that most of their executive customers didn’t have the
time to attend multiday trade shows, no matter how interesting and enjoyable they
were. So, Oracle’s senior vice president and chief customer officer, Jeb Dasteel, was
assigned the task of designing, launching, and overseeing an ongoing executive
customer program.”
[According to Dasteel,] ‘We realized how important additional input and relationships
with other parts of the decision chain would be for our future. Without the perspective
and insight of decision makers, we would be lacking a whole category of customer
input today.’
—The B2B Executive Playbook
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For the most effective decision maker input initiative, you can
offer incentives on both sides of the information exchange. Offer
your internal departments incentive rewards for reaching out to
channel partner decision makers, then offer those decision
makers and their businesses rewards for supplying their input.
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USING SALES INCENTIVE PROGRAMS TO CONNECT WITH
B2B DECISION MAKERS cont.
Geehan recommends the following distribution of marketing funds:
Ideally, you should use incentive program providers like Loyaltyworks, who specialize in channel sales
incentive programs, so you can implement a rewards system tailored to achieve ROI in a B2B environment.
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When you showing B2B decision makers appreciation for their input, it proves to them that you value
being a trusted advisor and reliable business resource, not just a commodity supplier. As you develop a
more meaningful and substantial relationship with influencers and decision makers, all parties will reap
the rewards of reliable, profitable sales channel partnerships.
CONCLUSION
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Today’s consumer-conscious
customers expect the following:
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