Meeting Service Level Agreements (SLAs) in B2B organizations can be difficult for a variety of reasons, including:
- Complex products or services: B2B companies often offer complex products or services that require specialized knowledge or expertise to maintain or repair. This can make it difficult to meet SLAs for repair or maintenance times.
- Long sales cycles: The B2B sales cycle is often longer than the B2C sales cycle. This can lead to delays in the delivery of products or services and can make it difficult to meet SLAs.
- Limited resources: B2B companies may have limited resources to devote to meeting SLAs, such as hiring additional staff or investing in new equipment.
- Lack of standardization: Different customers may have different expectations for service and support, which can make it difficult to standardize SLAs across all customers.
- Dependence on third-party vendors: B2B companies may rely on third-party vendors to provide certain products or services, which can make it difficult to control and meet SLAs.
- Limited visibility: B2B companies may have limited visibility into the performance of their products or services after they are delivered to the customer, which can make it difficult to identify and address issues that are impacting SLA performance.
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Sustaining client centricity can be difficult for a number of reasons, including:
- Resistance to change: Implementing a client-centric approach may require changes to existing processes and ways of doing things, which can be met with resistance from employees who are comfortable with the status quo.
- Lack of understanding: Without proper training and education, employees may not fully understand the benefits of a client-centric approach or how to implement it effectively.
- Limited resources: A client-centric approach may require additional resources, such as increased staff or technology, which may not be available.
- Lack of accountability: Without clear accountability and oversight, it can be difficult to ensure that a client-centric approach is being implemented and maintained.
- Difficulty in Measuring Success: Without clear metrics to measure the success of a client-centric approach, it can be difficult to evaluate its effectiveness and make adjustments as needed.
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There are several common ways to improve the existing account growth in B2B companies, including:
- Building strong relationships: Building strong relationships with existing customers is essential for growing their accounts. This can involve regularly communicating with customers, understanding their needs and goals, and going above and beyond to meet their expectations.
- Offering additional products and services: Another way to improve account growth is by offering additional products and services to existing customers. This can help to increase the value of each account, and can also help to cross-sell and up-sell additional products and services.
- Providing excellent customer service: Providing excellent customer service is also key to improving account growth. This can include responding promptly to customer inquiries, addressing customer concerns, and resolving problems in a timely and efficient manner.
- Offering customized solutions: Offering customized solutions to existing customers can help to increase the value of each account. This can include tailoring products and services to meet the specific needs of each customer, and developing specialized solutions that are not available to other customers.
- Implementing customer retention programs: Implementing customer retention programs can help to improve account growth. This can include loyalty programs, referral programs, and other incentives that encourage customers to continue doing business with a company.
- Regularly gathering customer feedback: Regularly gathering customer feedback is another way to improve account growth. This can include conducting surveys, focus groups, and other research to understand customer needs and preferences. This feedback can be used to improve the company’s products or services, and to develop strategies for retaining and growing existing customers.
They are all prescriptive. The question is, which one of these is relevant to your organization and why? That clearly depends on your current state, ground level challenges and growth aspirations. Only by implementing relevant strategies, B2B companies can work to improve the growth of existing accounts and drive sustainable growth for the company.
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Agile enterprises are customer centric because they prioritize the needs and goals of their customers in all aspects of their business. Agile methodologies, such as Scrum and Kanban, are designed to be flexible and responsive to change, which allows organizations to quickly adapt to the evolving needs of their customers.
In an agile enterprise, customer feedback is actively sought and incorporated into product development and decision-making processes. This allows the enterprise to continuously improve and deliver products and services that align with customer needs.
Additionally, Agile enterprises also tend to have a flat organizational structure, which allows for better communication and collaboration across teams and departments, enabling them to respond more quickly to customer needs. They also tend to use cross-functional teams, which are composed of individuals from different areas of the business, such as design, development, and marketing, to work together to deliver products and services that meet customer needs.
In summary, Agile enterprises are customer centric because they prioritize the needs of their customers, actively incorporate customer feedback, and continuously improve their products and services to meet those needs.
One example of how agility helped in client centricity is the case study of a large retail bank that implemented an Agile approach to managing their customer service operations.
The bank was facing a significant challenge in maintaining high levels of customer satisfaction, as their traditional, hierarchical structure was causing delays in responding to customer complaints and requests. Additionally, the bank was facing increased competition from fintech companies that were more agile and able to respond quickly to changing customer needs.
To address these issues, the bank decided to adopt an Agile approach to managing their customer service operations. They formed cross-functional teams composed of representatives from different areas of the business, such as customer service, IT, and compliance, and implemented daily stand-up meetings to ensure that everyone was aware of the most pressing customer issues.
The bank also began actively seeking customer feedback and incorporating it into their decision-making processes. They also implemented a system for tracking customer complaints and requests in real-time, which allowed them to quickly address and resolve issues.
As a result of these changes, the bank was able to significantly improve their customer satisfaction levels and reduce their customer complaint resolution time. The agility helped them respond to the changing customer needs in a timely manner. Additionally, the bank was also able to reduce costs and improve overall efficiency, which helped them better compete with fintech companies.
This case study shows how agility helped in client centricity by allowing the bank to respond more quickly to customer needs, improve customer satisfaction, and ultimately increase competitiveness.
One example of agile client centricity in a startup is the case study of a small software development company that specializes in building custom mobile apps for small businesses.
The company had struggled to retain clients in the past because they were not able to deliver products that met the unique needs of each business. The company decided to adopt an Agile approach to software development, which allowed them to be more flexible and responsive to the evolving needs of their clients.
The company began using Scrum, an Agile methodology, to manage their software development projects. They formed small, cross-functional teams composed of developers, designers, and project managers, and held daily stand-up meetings to ensure that everyone was aware of the most pressing client needs.
The company also began actively seeking client feedback and incorporating it into their development process. They implemented a system for tracking client requests and issues in real-time, which allowed them to quickly address and resolve problems.
As a result of these changes, the company was able to significantly improve their client retention rate. Clients were happy with the product as it met their needs and the company was able to deliver the product on time and on budget. Additionally, the company was able to reduce costs and improve overall efficiency, which helped them to better compete with larger software development companies.
This case study shows how agility helped in client centricity by allowing the company to respond more quickly to client needs, improve client satisfaction and ultimately increase competitiveness.
Here are a few simple ways to start incorporating Agile principles in a non-software environment:
- Start with small, cross-functional teams: Form teams that include representatives from different areas of the business, such as sales, marketing, and operations. This will ensure that everyone is aware of the most pressing customer needs and can work together to deliver solutions.
- Hold regular meetings: Hold daily or weekly meetings to discuss progress, identify any roadblocks, and ensure that everyone is on the same page.
- Prioritize customer feedback: Actively seek and incorporate customer feedback into decision-making processes. This will help ensure that products and services align with customer needs.
- Emphasize flexibility and adaptability: Be open to change and willing to pivot when necessary. Agile is all about being able to respond quickly to changing circumstances.
- Use visual management tools: Use visual tools, such as Kanban boards or task lists, to track progress and identify areas for improvement.
- Encourage collaboration and communication: Encourage open communication and collaboration across teams and departments.
- Test and Iterate: Continuously test and improve the process, gather feedback, and iterate.
It is important to note that Agile is a mindset and a set of principles, not a one size fit all methodology. Therefore, it’s important to tailor the approach to the specific needs of the organization and its environment.
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Improving Your Organization’s Sales Analytics Capability
With the advent of Big data and Analytics, every single discipline of business entities have seen tremendous benefits derive out of data based insights. While Analytics has penetrated Operations, Supply Chain, Marketing, HR, and IT, one of the biggest beneficiaries that directly contributes to the top line of the organization is Sales Analytics. Marketing Analytics & Marketing Automation has ensured high return on investment for the marketing costs, increasing reach and quality of marketing communication. The demand so generated through effective marketing has to be converted to business volumes. This is where Sales Analytics plays a big role. Sales processes are quite complex, involving various partner organizations, internal functions, several legal and regulatory requirements. Adding to this complexity are factors such as engagement of off-role employees, high staff attrition, competition activity and economic conditions.
Sales Analytics plays a significant role in this pursuit. The dynamics of sales data and the factors mentioned above, demand that Sales Analytics be approached a little differently from other analytics programs such as Supply Chain or Operations Analytics. Traditional focus has been on acquiring an efficient Sales Analytics Solution, Sales Process Automation and Sales Intelligence technology tool. There are a variety of products in the market with incredible capabilities such as SAP Business Objects, Oracle Business Intelligence, Salesforce Wave analytics, Alteryx, Tableau, Qlik Sense Enterprise, Sisense, Microstrategy, etc.,
However, now-a-days, the business benefits from Sales Analytics are not usually constrained by technology capabilities rather by other factors such as:(arranged in no specific order)
- Data Quality & Data Governance
- Conviction of Sales Leadership towards data based selling
- Sales Analytics Talent & Capabilities
- Cross-functional Alignment
Unfortunately, leaders spend too much energy in selecting the right technology tool only to realize their team members aren’t ready for a heavy dose of data driven insights or ecosystem isn’t ready.
Data Quality & Data Governance
It’s no secret that sales data quality is a challenge as it involves partners, customers and external factors. Though hand-held devices, cloud storage and real time analytics tools have made eased things, no one can disagree that getting data that is reliable isn’t easy in sales. Further, many times it is difficult to audit its authenticity. Read More about the Importance of Data Quality & Data Governance for Sales Analytics.
Conviction of Sales Leadership towards data based selling
Sales is considered an art and building relationships with customers is considered as an enabler. Many Sales leaders don’t believe in looking beyond sales numbers. Metrics and data that provide insights and help us identify drivers aren’t given too much importance. Without this conviction, it is very difficult to see any real ROI for Sales Analytics investments. In fact, this is a show stopper. Read More about the Tips to build Sales leadership buy-in for data based selling through Sales Analytics
Sales Analytics Talent & Capabilities
In order to fully leverage Analytics and Big Data, Sales leaders need to build skills & capabilities among sales teams that include Quantitative Skills, Data or Fact based Decision Making & technical skills, Data based Problem Solving which will help them to decide what data is needed in any given scenario, framing hypotheses and validating the hypothesis through data. Read More about What specific analytical skills are needed for Sales Managers in the era of Analytics?.
Cross-functional Alignment
Prima facie, Sales Analytics seems to be an internal matter of the Sales function.However, true and meaningful Sales Analytics will require strong alignment of various functions such as Marketing, Supply Chain, Manufacturing, Quality, Product Development, Service, Business Planning, HR, etc. Studying the association of cross functional factors on Sales or Business Outcomes such as Market Share, Revenue, Profitability is very important. This means cross functional data sources will need to be analyzed in Sales Analytics. Read More about Non-Sales Data & its value in Sales Analytics.
Thus Building Organization’s Sales Analytics Capability needs a thoughtful & comprehensive approach.
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Channel Management Metrics and Sales Analytics
Whether B2B or B2C, nowadays growth based organizations have multiple channels to access their customers. Large organizations across sectors such as Automotive, FMCG, Consumer Durables, BFSI, Retail, e-Commerce, Telecom, IT & Tech have both direct sales as well as channel partners. Many B2B sectors such Industry IT, capital goods, aviation, chemicals also have channel partners.
Managing the performance of the channel, channel partners performance and improving overall channel effectiveness is a significant success factor for both the principal and the partner. Towards this, the role of analytics, particularly Sales Analytics is vital in achieving business goals and in making consistent progress.
For managers who are responsible for Channel Management and partner performance, such as Territory Sales Managers, Area Managers, Regional Managers, National Sales Managers, Account Managers, Dealer Management, Sales Analyst, Sales Planners, Business Heads here are a set of important metrics that they can monitor regularly. Once enough data is available, extensive sales analytics can be performed by channel sales managers using simple tools such as Excel to come up with insights for revenue growth. As the dynamics of Channel Partner Management for B2B and B2C are very different, I have split this into two groups – B2C Channel Partners and B2B Channels Partners
The type of metrics include Business Performance Metrics, Product Performance, Network Performance, Partner Profitability, Partner Sales Operations, Partner Staff Effectiveness, etc.
Region/Territory Level (B2B and B2C):
Following are a set of metrics that can be tracked at the Area Office, Region Office or Head Office Level to evaluate the performance of various channel partners and draw comparison between various channels.
- Market Share – by Category, by Segment
- Conversion % – by Lead Source, by Segment, by Model
- YoY Revenue Growth
- Network Penetration against potential
- Product Mix against competition
- Gross Margin – by Product
- Partner Cannibalization
- Product Cannibalization
- Contribution – by Category, by Segment
- Cross-sell and Up-sell % – by Channel, By Segment
- Customer Acquisition Cost – By Channel
- Repeat Business Revenue to Total Revenue – By Channel
- Carry over stocks
- Unfilled Staff Positions
Partner Level Metrics for Product Based Businesses:
In sectors such as Automotive, FMCG, Consumer Durables, Retail, Telecom, Technology products, etc, the trade channel includes Distributors, Dealers & Retailers who are appointed by the principal. In addition to the above, companies may appoint Modern trade partners such as large format corporate, e-commerce and have company owned outlets. When it comes to managing partner performance, below metrics that cover areas such as Partner Profitability, Operations, Inventory Management, Staff development are relevant for any Area or Sales Manager.
- Days to Break Even
- Profit per employee
- Sales Productivity – by person, by Segment, by model
- Conversion % – by Lead Source, by Segment, by Model, by person
- BTL Activity Productivity – by activity type
- Sales Process Satisfaction
- Overdue Customer Delivery
- Enquiry to Sale Lead Time
- Avg # of follow ups before lead drop
- Order cancel rate
- Average Leads per salesperson
- Sell through rate
- # of Stock Outs – by Model-Color
- # days of inventory
- Carry over stocks
- Inventory Funding
- Interest Coverage Ratio
- Pending incentive disbursal
- Staff attrition %
- Unfilled staff positions
- Product training adherence %
- Win-Loss Pareto
- Customer Retention %
- Cross-sell and Up-sell %
- Repeat Business Revenue to Total Revenue
Partner Level Metrics for Services Based Businesses:
In sectors such as IT products and services, industry IT, capital goods, aviation, chemicals, etc appoint resellers, franchisee, business associates in addition to direct selling done by the brand. When it comes to managing partner performance, below metrics that cover areas such as Partner Profitability, Operations, Inventory Management, Staff development are relevant for any Channel Partner Managers.
- Days to Break Even
- Profit per employee
- Sales Productivity – by person, by Segment, by model
- Conversion % – by Lead Source, by Segment, by Model, by person
- Campaign Productivity – by activity type
- Sales Process Satisfaction
- Enquiry to Sale Lead Time
- Avg # of follow ups before lead drop
- Order cancel rate
- Average Leads per salesperson
- Sell through rate
- % of Leads accepted by principal
- Pending incentive disbursal
- Staff attrition %
- Win-Loss Pareto
- Avg Cost of Acquisition
- Customer Retention %
- Cross-sell and Up-sell %
- Repeat Business Revenue to Total Revenue
Once a management routine to measure and report these metrics have been established, performance improvement can be achieved through advanced sales analytics such as:
- Trend Analytics – impact of seasons, month, week, day of week, time of sale
- Market basket analysis for bundling products
Factors resulting in poor conversion - Factors influencing Profitability and Contribution
- Effect of Sales Campaigns and BTL (Below The Line) promotion activities
- Factors driving known best performers
- Best combination for upsell and cross-selling
- And many more….
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Sales Problem Solver’s Skills
We all are problem solvers at our own level. Handling challenges, hurdles, persistent issues and alleviating them is what differentiates a great sales manager from the rest.
Tools and techniques for solving problems are well established for a long time now and there are various methods, techniques and tools that can be used. For example, Lean Six Sigma, TQM, Agile, Scrum, Design Thinking, etc are few such frameworks. Various sectors have seen success with these methodologies. However, when it comes to functional success, business development and sales is a unique function in that, it is highly dependent on external factors. Even many internal factors are not within good control of the sales organization. Thus, there are certain unique challenges that sales managers face when they try to apply such proven problem solving methodologies for sales problems.
More than a structured approach or framework for solving sales problems, the first thing Sales Managers should develop is a Sales Problem Solving Mindset. The skills that support this mindset are described below. Each of these skills can separately add value to every sales manager’s performance. When applied in the form of a structured problem solving framework, it becomes very powerful.
Problem Framing Skills
The first step in solving business problems is knowing exactly what is the problem that has to be solved. This might sound like a no-brainer. But don’t underestimate the power of clarity. If the organization wants to improve its market share in a particular segment, the problem may have to be framed keeping in consideration points such as – Is our market share very low compared to peers, how long has it been this way, what have we done and why have they failed, what is the customer’s perception about us?, etc. After sufficient exploration, we may narrow down and define the problem that we wish to solve as “How can our employees engage with our channel partners effectively?” instead of “How to improve our Market Share?”
Sometimes, we can define the problem and then collect data, but on other occasions, we have to do the reverse. Thus framing a problem for a given scenario is a skill in itself and Sales Managers need to master this.
Data Collection Skills
In order to permanently solve any problem, we need to go to the root cause of the problem, and use data or facts to validate really if a particular cause is the reason for the problem. Often, Sales Managers are plagued by reasons that their team members use to justify their poor performance. But these have to be validated with data. Unfortunately, the problem in sales is that required data is not often available. Sales managers should develop necessary skills to understand what data is needed to validate a given problem or cause and how to gather that data. Sometimes surrogate measures will have to be used and sometimes they have to live with surveyed data. Thus the ability to know what data is needed in a given scenario and how to gather that is the second skill needed for Sales Managers wishing to solve business problems.
Quantitative Analytical Skills
Today’s sales enablement systems such as CRM, ERP, etc provide enough data to get started with some basic sales analytics. However sales managers need to upskill themselves in analytics. They need to know how to perform necessary analysis from the data available. While Sales Analysts are well versed in crunching numbers and preparing charts, many Sales Managers are not even comfortable with relevant formulae and charts in Excel. The ability to work with data, using visualization methods to validate association or relationship between various factors, use statistical tools to identify sources of inconsistency in performance & factors driving it, ability to identify known best performers from data, using probability principles to validate demand-supply problems in sales and statistical association/correlation studies to identify causes are all essential analytical skills for sales managers.
Qualitative Discovery Skills
To solve most sales problems, an augmented approach of using both Data and ‘Gemba’ is needed. There are several aspects such as field observation, validation or audit of sales standards across the sales process, partner sales rep skill and will validation, qualitative evaluation of customer objection handling, benchmarking competition best practices, picking up verbal and non-verbal clues, etc., that require strong discovery skills that sales managers need to develop.
Experimentation Validation
The willingness to accept that not everything that we are doing is going click & that too the very first time is the basis for experimentation validation. When solutions are put in place, often sales managers are anxious to see the results right away. In reality, many of our action plans are unique to the circumstances and the mindset to see it as a series of experiments and set logical check points, learn the lessons and move forward to refine the action plan or solution is any skill that sales managers need to acquire too.
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