The Internet of Things (IoT) significantly transforms the way we do business. New business models, innovative and smart services, additional revenue streams, stronger customer relationships – the list of advantages from developing digital, IoT-based solutions is long. But, selling these new solutions remains a challenge, especially in B2B. Shifting traditional B2B Sales from selling devices to selling digital solutions requires a transformation of your sales organization.
«Are you ready to sell digital solutions?»
McKinsey reports that the majority of IoT value can be created in B2B applications. But especially in B2B, capturing this value has proved challenging. To successfully commercialize new digital solutions and unlock the potential value, it is crucial to consider who is selling your new solution. Is your sales team ready? How can you transform your organization? Here are three steps to get started.
1. Rethink Your Organization and Sales Set-up
As a traditional equipment manufacturer your sales organization is staffed with specialists selling instruments. Often structured in product-focused teams, they have clear responsibilities across Account Managers, Product-, Service-, and Inside-Sales. Selling digital solutions demands new expertise, roles, responsibilities, and even sales approaches. Answering below questions provides initial insights to get started.
Questions to answer:
- How are your sales teams structured?
- Who will be responsible to sell digital solutions?
- Do you have the right people in place?
- How is the sales process different from selling physical products?
Getting Started:
♦ Build Digital Talent. Identify talents within your organization and recruit from external. Offer development opportunities to digitally-savvy, young professionals instead of ramping up a new sales force. With proven track-record acquire external talents.
♦ Focus on Solution Selling. Understanding the customers goals and pain points is key in selling solutions. Change your sales process towards a consultative selling approach instead of transactional sales.
2. Close the Knowledge Gap
Promoting the value of IoT-enabled devices in combination with a digital solution or service requires new knowledge, skills, and a deep understanding of the technology and its applications. Make sure, you identify and close knowledge gaps of your sales force.
Questions to answer:
- What training is needed to equip my sales force to sell digital solutions?
- What kind of Point-of-Sales material is needed?
- Who can support with technical questions?
Getting started:
♦ Enable your sales teams. Ensure your sales teams understand the new technology, its benefits, and how it can solve your customers problems. Embed training into a comprehensive Sales Enablement Program providing information, content, and tools, such as case studies, sales presentations and demos to help your sales sell more effectively.
♦ Establish a digital support structure. Create a support network of subject matter experts to answer questions related to IoT technology, data integration, and data security. To make this available 24/7 consider an internal ChatBot.
3. Address Concerns of your Sales Reps
Companies often fail in engaging their sales force. Addressing concerns head-on helps to alleviate anxiety, build trust, and overcome initial resistance. Besides the ability to sell the new solution common Sales Reps concerns include (1) the impact on their commission or salary model, (2) finding the right customer contacts outside of their existing network, (3) talking to customers IT and C-Suite, and (4) dividing selling efforts between well-known products and new solutions.
Questions to answer:
- How do commission schemes need to evolve to incentivize digital solution selling?
- How can I make selling digital solutions more attractive for sales reps?
- How can other sales roles open doors and support in talking to new customer contacts?
Getting started:
♦ Create incentives. Offer separate incentives for digital solutions in your commission scheme to motivate your sales force and define related targets and KPI`s.
♦ Develop a value proposition for your sales teams. To address concerns, understand your sales reps` key pain points and gain creators selling the new solutions. Develop an internal value proposition to explain how selling digital solutions can help them do their job more effectively. To analyze what is relevant for your sales force use the Value Proposition Canvas.
Digital solutions will shape our future. Transforming your sales organization is a key success factor to commercialize digital, IoT-based solutions. Start early by evaluating your current sales set-up, enabling your sales force, and addressing concerns to get your B2B sales ready for IoT.
