Who should be the first salesperson of your company and why?
I want to start by describing the profile of the CEO of a B2B company. He’s a technical genius and holds a couple of patents. He possesses deep-tech expertise. His growth philosophy is based on technical excellence and operational efficiency. Unfortunately, ever since he took over, the company hasn’t seen a big break. They have been lurking below their competitors in spite of superior technology. He grills his BD team day in and day out.
But the real problem is something else. It’s his mindset. He doesn’t believe that he is the “First Salesperson of his Company”. In fact, he doesn’t believe he is accountable for sales. He hardly engages with clients or prospects. Instead, he prefers to delegate client interactions to his BD team. Of course, he reviews them a lot, but he never picks up the phone and talks to a client. Neither does he voluntarily schedule visits to clients. His philosophy is that if there is a problem with clients, bring it to me. Yes, he digs deep and spends hours on technical reviews when a client complains. In fact, he tells his clients, “I’m available 24×7. Call me any time!” Clients do call him to escalate, and they fire him, and he’s always on the receiving end. Going by the Pavlovian principle of classic conditioning, every time the client calls, he’s stressed and passes it all down the line.
We consider the head of any country to be the first among equals, the first citizen. The CEO of any organization is the First Salesperson of that Company. This is even more pertinent for B2B, as sales and marketing are largely a matter of human-to-human connection.
First Salesperson of that Company – Exemplars
On the contrary, let’s consider the leadership style of Marc Benioff, co-founder of Salesforce. He is known for his hands-on approach to sales and marketing and for actively engaging with customers. In one instance, when a major potential client expressed doubts about the security and reliability of Salesforce’s cloud platform, Benioff didn’t just rely on his sales team to address the concerns. Instead, he personally met with the client’s executives, listened to their concerns, and provided detailed explanations about the robustness of Salesforce’s infrastructure and the benefits of moving to a cloud-based CRM system.
Image credit : Guykawasaki.com
Marc Benioff’s hands-on approach to sales, his persistence in overcoming challenges, and his growth mindset pushed the boundaries of not only his company but the tech industry as a whole. Under Benioff’s leadership, Salesforce introduced the concept of subscription-based pricing for enterprise software, which departed from the traditional perpetual license model. This approach made enterprise-level CRM accessible to companies of all sizes, democratizing access to powerful business tools.
Benioff is not an exception. Larry Ellison, co-founder and former CEO of Oracle Corporation, was renowned for his aggressive sales tactics and direct involvement in major sales negotiations. In Oracle’s early years, Ellison took on the role of chief salesman, leveraging his industry connections and technical expertise to win over large corporate clients for Oracle’s database solutions.
Benioff and Larry are exemplary examples of the first salespersons of their company.
Without the First Salesperson, a company suffers the following consequences:.
- Brand Perception: A lack of sales focus can harm the company’s reputation and brand perception, making it harder to attract and retain customers.
- Weak Relationships: Strong customer relationships are crucial in B2B sales. If the CEO is not involved in or supportive of sales efforts, the company may fail to build and maintain strong customer relationships.
- Low Motivation: Sales teams often look to the CEO for inspiration and leadership. If the CEO doesn’t prioritize sales, it can lead to low morale and motivation among sales personnel.
- Competitive Disadvantage: Competitors with strong sales leadership will likely outperform a company with weak sales accountability, resulting in a loss of market share.
Ideal First Salesperson of a Company – What will he do?
Here are some things that the First Salesperson of a Company will do:
- Take ownership and accountability for sales and marketing rather than delegating it to the BD head.
- Active client engagement, such as regular and voluntary interactions with key stakeholders, rapport building and strategic conversations, visits, etc.
- Excellent and grass-roots-level understanding of the strengths and weaknesses of the products and services of your organization vis-à-vis competition
- Knowledge of market dynamics and nuisances
- Active participation in sales processes such as marketing campaigns, lead generation, client presentations, negotiations, and onboarding
- Good personal rapport with sales and marketing team members
As a simple rule, if the CEO of a B2B company spends more than 50% of his time on the above activities, there is nothing stopping their growth. But the unfortunate reality is that they spend time reviewing decks after decks, interviewing candidates for non-strategic positions, troubleshooting issues, and having hours of board room discussions about various strategies.
Here’s what we do with Sales Transformation for B2B companies
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And how it benefits B2B organizations in achieving client centric growth
If I tell you that one thing you focus on can give you a 13% increase in profit margins, not only that, it can also lift customer loyalty by 8%, and what’s more, your products can grow two times faster; would you be interested in it?
A resounding yes, right!
What is it? It’s Sustainability.
The points above illustrate that sustainability is not just a moral imperative but also a strategic advantage for B2B organizations focused on client-centric growth.
For example, Microsoft, being a large B2B enterprise, has committed to and benefited from sustainability. Nike is another large consumer brand that has gone gung-ho on sustainability.
They have laid out 10 Principles for Circular Designs for creating sustainable products that I think many of us can imitate for the good of the world and for business benefits too. I’m really impressed by the simplistic appeal of the principles.
Nike’s 10 Principles of Circular Designs
Let’s see, what are they?
- Material Choices: Selecting low-impact materials that use pre- and post-consumer recycled content. As a result, Nike has increased the use of recycled materials, such as in their Flyknit products, that are made from yarn made from recycled plastic bottles.
- Cyclability: Designing products that can be easily recycled at the end of their life. For example, Nike’s Space Hippie shoes are made from recycled materials and are designed to be disassembled and recycled again.
- Waste Avoidance: Minimizing waste during the production process. For example, Nike’s Move to Zero initiative has significantly reduced manufacturing waste, with many facilities achieving zero waste to landfill status. Their Flyleather is made from at least 50% recycled natural leather fiber, reducing waste from leather manufacturing.
- Disassembly: Creating products that can be easily taken apart for recycling or repair. Nike’s ISPA (Improvise, Scavenge, Protect, Adapt) line features shoes that can be disassembled to replace worn-out parts.
- Refurbishment: Designing products that can be refurbished and given a second life. Nike’s Refurbished program takes gently worn shoes, cleans them, and resells them at a lower price.
- Green Chemistry: Using safer chemicals in the production process. Nike’s commitment to green chemistry includes eliminating hazardous chemicals from their supply chain, thereby improving safety for workers and reducing environmental impact.
- Durability: Creating long-lasting products to reduce the need for frequent replacements. Nike’s Air Max shoes are known for their durability and long lifespan.
- Versatility: Designing products that can be used in multiple ways or for different purposes. Nike’s Tech Pack collection features versatile clothing that can be worn in various settings.
- Packaging: Reducing the environmental impact of packaging. Nike’s Move to Zero initiative includes using recycled materials for shoe boxes and reducing packaging waste.
- New Models: Innovating new business models that promote sustainability. Nike’s subscription service for kids’ shoes, Nike Adventure Club, allows parents to return outgrown shoes for recycling.
Role of Design Thinking in creating the 10 Principles
Interestingly, Design Thinking played a crucial role in creating Nike’s 10 Principles of Circular Design by fostering a user-centered, innovative, and iterative approach. Here’s how Nike used Design Thinking:
- Empathy: Understanding the needs and challenges of both consumers and the environment. Nike engaged with athletes, designers, and sustainability experts to identify key issues and opportunities.
- Define: Clearly articulating the problem of environmental impact and waste in the fashion industry. This step helped Nike focus on creating solutions that address these specific challenges.
- Ideate: Generating a wide range of ideas for sustainable design. Nike collaborated with institutions like Central Saint Martins to brainstorm and develop innovative concepts.
- Prototype: Creating tangible prototypes to test and refine ideas. For example, Nike’s Flyknit and Space Hippie shoes were developed through multiple iterations to ensure they met sustainability goals.
- Test: Evaluating prototypes with real users and gathering feedback. Nike tested their products with athletes and consumers to ensure they were both functional and sustainable.
- Iterate: Continuously improving designs based on feedback and new insights. Nike’s commitment to sustainability involves regularly revisiting and refining their principles and products.
I feel only because Nike applied Design Thinking they were able to create a comprehensive set of principles that guide their efforts towards circularity and sustainability. Design thinking framework is really an underutilized framework for many B2B organizations that has a lot of potential for driving business growth.
Here’s what we do with Design Thinking for B2B companies
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Client Centric Strategies for Success: Lessons from Bisk Farm’s Growth
Many of our stories are about large brands or B2B organizations and their growth strategies.
This time, we have curated this piece about an Indian business growth story that faced challenges initially but overcame them successfully. If you are from the eastern part of India, it is very likely that you have seen confectionery from the brand Bisk Farm.
Bisk Farm is the flagship brand of SAJ Food Products, a FMCG company headquartered in Kolkata. It was established in 2000 by Krishnadas Paul, when he was 60. However, he was not a newbie to FMCG, as he had been a distributor for Nestle, Dabur, and Reckitt & Colman for over 30 years.
In 2000, SAJ pioneered the introduction of sugar-free biscuits in India. Long before health-conscious options became popular in the biscuit industry, SAJ Food Products set a precedent. Their sugar-free biscuits paved the way for healthier snacking, inspiring even industry giants like Britannia to follow suit in subsequent years. But it was not a cake walk!
It was a bold path for new market entrants. Growing a new product in a new market is always an uphill climb. That was the first speed breaker for SAJ Foods for the following reasons:
- Creating sugar-free biscuits that taste as delightful as their sugary counterparts isn’t easy. The challenge lay in ensuring that the biscuits remained crispy, crumbly, and satisfying, even without the usual sugar rush.
- Alternative sweeteners used in sugar-free products often come at a higher cost than regular sugar. Balancing affordability with quality was a bottleneck.
- Sugar-free products must adhere to stringent regulations regarding labeling, claims, and permissible ingredients.
- Convincing consumers to embrace sugar-free options required a hard marketing push. Many associate “sugar-free” with blandness or sacrifice.
- The biscuit market is fiercely competitive, with established players like Britannia, ITC, and Parle
SAJ Food Products had to reframe the narrative, emphasizing health benefits and appealing to health-conscious consumers. They had to carve a niche for themselves with a sugar-free range as a unique proposition.
Despite their best efforts, SAJ failed with their sugar-free products due to the following reasons:
- Distribution Network: You would know that in the FMCG, the presence of a deep and active distribution network is vital. But Bisk Farm’s network had new and inexperienced distributors. This led to poor channel penetration and intermittent supply issues. As a result, the biscuits struggled to reach a wider audience.
- Overcoming Skepticism: Consumers didn’t associate sugar-free biscuits with a delightful taste. A broader marketing campaign and deeper pockets were needed for this.
- Britannia’s Dominance: Taking on Britannia, a formidable player in the Indian biscuit market, was no small feat. Britannia’s established presence posed a significant challenge.
After 4 years of hardship, in 2004, Bisk Farm encountered losses amounting to Rs 15 crore. For a start-up, this was a big number. Krishnadas and his children made one last attempt to review the company, and here are the strategic actions they took to rise from the ashes:
- Regional Focus: They recognized the importance of regional appeal. So instead of targeting pan-India distribution, they chose to go regional. In doing so, they focused on Eastern India and introduced products tailored to local tastes. This shift in approach, coupled with targeted marketing efforts, proved pivotal in revitalizing sales and establishing a strong foothold in the region.
- Differentiation and Diversification: With the growing presence of competitors like Britannia, SAJ Food Products understood the need for diversification beyond biscuits. Bisk Farm deliberately carved a niche in the premium segment. This led to the launch of Just Baked outlets, offering a range of bakery products and snacks. By expanding its product portfolio and regional retail presence, the company not only mitigated competitive pressures but also tapped into new revenue streams, contributing to its overall growth.
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Merely by pursuing these 2 strategies, they were able to turn around and come out of their financial situation.
Below are the two important takeaways for any organization, B2B or B2C, that wants to achieve consistent growth and tap its full potential.
Market to Product/Service Fit
It is very important to create a good fit between your products/services and target customer segments. For this to happen, you will need to understand the customer pain and the unique value proposition that your products/services offer. In order to achieve a good fit, you may need to take tough business calls, such as narrowing the product range, features, and geography. At first, it might look very narrow and wouldn’t resonate with your larger vision. For Bisk Farm, selling just in the eastern region was a tough call, but it helped achieve their larger vision of becoming a complete food company in the long run.
Customer Insights
Due to the complex market dynamics in today’s VUCA world, it is very important for you to constantly gain customer/client insights and continuously fine-tune your product/service to market fit. Just doing C-Sat surveys and publishing scores wouldn’t help. Throughout its journey, SAJ Food Products has demonstrated a keen understanding of customer preferences and market dynamics. By leveraging insights into regional tastes and preferences, the company tailored its product offerings and marketing strategies to resonate with local consumers. So this can lay the foundation for sustained growth and market leadership.
Subsequently, SAJ Food Products pursued an aggressive expansion strategy. By investing in new production facilities in strategic locations like Siliguri and Bangalore, the company increased its manufacturing capacity and strengthened its distribution network. This facilitated its expansion into previously untapped regions. They kept the prices constant at Rs 10 and expanded to small pockets in Tamil Nadu and Andhra Pradesh with 1700 distributors, later expanding into 19 states as a pan-India brand. By 2023, Bisk Farm clocked a revenue of Rs.2,100 Cr and became the 4th largest player in India with a 4% market share.
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In a client-centric business growth strategy, effective meetings are indispensable. They ensure that client needs, expectations, and feedback are clearly communicated and understood. By structuring meetings to be concise, goal-oriented, and inclusive, businesses can foster stronger client relationships and trust. Effective meetings not only align internal teams with client objectives but also enable proactive problem-solving and innovation. Regular, transparent communication through well-executed meetings demonstrates commitment to client satisfaction and helps in building long-term partnerships. Ultimately, the effectiveness of these meetings is reflected in the overall growth and success of the client-centric business.
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Integrity plays a crucial role in client-centric business growth. When a business operates with honesty and strong moral principles, it builds a foundation of trust with its clients. Clients who trust a business are more likely to remain loyal, provide repeat business, and refer others, driving sustainable growth. Integrity ensures that the business consistently delivers on its promises, maintains transparency, and treats clients with respect. This not only enhances the company’s reputation but also creates a positive and ethical work environment, ultimately leading to long-term success and profitability.
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Resilience is crucial for client-centric business growth, as it fosters adaptability and persistence. In a dynamic market, resilient businesses can swiftly respond to client needs and market changes, maintaining strong client relationships. This capability to navigate uncertainties and recover from setbacks builds trust and loyalty with clients. A resilient approach ensures consistent service quality and innovation, turning potential disruptions into opportunities for growth and improvement. Ultimately, resilience is the backbone of a thriving, client-focused business strategy.
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A winning mindset in business growth revolves around prioritizing the needs and satisfaction of clients. This mindset encourages continuous improvement, adaptability, and a proactive approach to solving client challenges. With this mindset, embrace challenges and find ways to address them proactively. Ultimately, a winning mindset aligns your business success with the client success, driving mutual growth and long-term partnerships.
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In client centric business growth, setting boundaries plays a pivotal role. Boundaries define the scope of services, expectations, and communication, ensuring clarity and trust between a business and its clients. They help manage workloads, prevent burnout, and maintain high-quality service. By clearly outlining what can and cannot be done, businesses can focus on their core competencies, leading to more efficient operations and satisfied clients. Effective boundaries also foster a professional environment where respect and mutual understanding are paramount, ultimately driving sustainable growth.
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In client centric business growth, brevity is paramount. Clear, concise communication fosters trust and efficiency, key in building strong client relationships. By getting to the point quickly, businesses can demonstrate respect for the client’s time and attention, reducing misunderstandings and enhancing clarity. This, in turn, accelerates decision-making processes, driving faster results and higher client satisfaction. Brevity also highlights a company’s professionalism and focus, making interactions more impactful and memorable. In a fast-paced world, the ability to communicate effectively and succinctly is a significant competitive advantage, paving the way for sustained business growth.
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