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The jury may still be out on the gains of demonetisation but there is little doubt about the devastating impact the sudden withdrawal of high-value currency notes in November 2016 had on small and medium enterprises (SMEs). Just when these businesses were limping back to normal, the coronavirus dealt another brutal blow.
Whatever the verdict on demonetisation, one thing is clear: online payments, digitilisation and cashless transactions, which took off during the period and skyrocketed during the pandemic, are the way forward for businesses.
So, will business-to-business (B2B) companies embrace the change? A quick survey of B2B chief experience officers (CXOs) reveals that online purchasing seems to be on the rise globally. Does this mean job losses for salespeople? Marketing folks’ job will get complicated but the digital push can empower them to look after sales from start to finish.
It seems B2B buyers are happy to do research online but only a few buy online. As per a Forrester Group study, in the US alone, over a million salespeople will lose their jobs if self-service e-commerce goes full steam.
Getting ready for ‘self-service’
The impact in India could be considerable and hamper the government’s plan to create employment. The government should plan a balanced execution programme for digitialisation and upskilling.
As per our survey in India, about 70 percent of CXOs said it would be more convenient to purchase from the website than through a sales agent.
The majority of these buyers were comfortable doing their research online but would purchase online only if right systems and processes were available, both internally and on the sellers’ websites.
We, however, also learnt that online purchases would not immediately be appealing to heavy machinery or high-ticket item buyers. Essentially, wherever there is room for negotiating terms and price or customisation, there is little chance of an online purchase.
It is easier for commodities and regular supply replenishments, and these industries will see a quick transition to online self-service. We feel this move will actually benefit marketers in B2B.
Traditionally, marketing’s role has always been that of setting up leads for the sales force, branding and market-making. It is not easy to calculate the Return on Marketing Investment (ROMI) as there are always more intangibles than tangibles.
With the digital shift, marketers can drive awareness as well as tangible sales transactions and can close the gaps they complain about to sales teams.
Disruptor to the rescue
But not all marketers may be up to the challenge. Perhaps salespeople may want to take up the role of marketers to survive their jobs? The opportunity is wide open for both. Technology is the disruptor here and technology is also the solution.
Sellers can directly connect with buyers through websites or mobile apps. Companies can capture the behaviour of buyers and their buying patterns and plan for FAQs and the likes for an easy-to-use self-service facility.
For more complicated issues and queries, technology may not be the immediate solution, though some of our clients have managed this through remote technology. The advent of augmented reality, virtual reality and metaverse will speed things up.
What marketers can do is to reposition the commoditised product to a special solution or service and use the technology to create dialogue to manage the transition from product-selling to solution-selling. The idea is to address value creation for customers and end-users.
In the consumer industry, the transition has been quicker in the last couple of years, pushed by coronavirus-induced restrictions. Buyers are happy to download apps and help themselves, saving the seller companies money in terms of people and training for customer service.
B2B companies are now feeling the heat. They need to realise that customers are going to do what they need to do to drive their growth, irrespective of government policies. The biggest worry for the B2B companies is about the loss of jobs and managing the tech transition.
We have one piece of advice: do not sit around and worry about how your salespeople will manage the tech shift and what your dealers will do.
Look at how Amazon transformed from an e-commerce site selling almost everything to also become a cloud service provider in the B2B sector, giving IBM and Microsoft a run for their money.
So you better start doing what it takes to digitalise your business. Your shareholders need growth and profitability.
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