5 Dec 24
It’s common for CEOs to expect marketing to drive fast, product-led growth, even when the nature of the sale makes that nearly impossible. Why does this growth fallacy exist?
Commercial productivity has been stuck in neutral, hovering at 62-64% for several years and despite advancements in technology and strategy, commercial efficiency is eroding. The culprit lies within the buyer’s experience.
In their recent webinar, Nick Toman, Chief Strategy and Product Officer, and Bryan Kurey, Head of Research, revealed insights from their latest study on commercial efficiency. Their findings point to a pressing need for a new approach, Headway Selling, to combat buyer friction and drive bigger, bolder purchase decisions.
Why Commercial Productivity Has Stalled
According to the study, buyers are encountering three main types of friction
- Supplier Friction: Buyers interact with an average of five supplier representatives, creating confusion and frustration when trying to make a purchase decision.
- Purchase Friction: With twelve decision-makers on average, buying processes have grown increasingly complex, and require many rounds of approval before a decision is made.
- Organizational Friction: Buyers face an average of seven significant change events during the purchase journey, leading to pivots and additional risk.
High-friction environments have resulted in a 43% reduction in the likelihood of completing a deal, with buyers often settling for “good enough” decisions instead of transformative ones.
Bold Purchase Decisions
Bold purchased decisions, defined as deals in which buyers spend 15% more than anticipated and show a 62% increase in advocacy, are critical for driving growth. However, only 24% of suppliers successfully deliver a differentiated commercial experience to enable these decisions.
The buying experience impact bold decisions more (59%) than the offering itself (41%). Suppliers who “get it” align their efforts with buyers’ broader goals, creating a seamless, supportive process.
A Transformative Shift to Selling
Headway Selling represents a transformative shift in the way commercial teams approach buyer relationships. Rather than merely showcasing the value of a product or service, this strategy focuses on aligning with the buyers’ long-term goals, demonstrating empathy for their challenges, and guiding them toward success.
A Headway Selling strategy acknowledges that buyer friction often stems from uncertainty, potential risks, and long-term outcomes. By embracing the inevitable changes and hesitations, Headway Selling equips buyers with the tools and confidence needed to move forward with a decision.
This approach anticipated and mitigates buyer concerns, transforming a potentially frustrating journey into one that feels manageable and aligned with their objectives. Headway selling centers on three pillars:
- Advance Customer Evolution: Suppliers who understand and prioritize buyer goals are 137% more likely to secure bold purchase decisions. This involves aligning account plans with customer initiatives and providing strategic guidance beyond the product itself.
- Anticipate Customer Roadblocks: Anticipatory sellers help buyers navigate decision landmines, making the process feel effortless. This approach driver 131% more bold purchase decisions by proactively identifying and addressing potential obstacles.
- Align Teams to Customer Direction: Buyers value consistent support across touch-points. Suppliers with aligned commercial teams drive 77% more bold purchase decisions, fostering trust and reducing buyer friction.
Why Headway Selling Works
Headway Selling works by focusing on enabling the buyer’s success rather than controlling the process and pushing selfish goals. By shifting from Headwind Selling, which narrows buyer thinking and provokes them to consider their hesitations, to Headway Selling, suppliers pull buyers along the purchase journey with clarity and confidence.
This approach is particularly impactful for larger, complex deals where change events and risk factors are prominent. For smaller, straightforward purchases, traditional value selling will still suffice.
Driving Commercial Effectiveness
Now is the time for sales teams to embrace commercial effectiveness. To do so:
- Review Metrics: Identify trends in KPIs such as win rate, sales cycle length, and deal size.
- Revisit Processes: Reinforce fundamental behaviors through consistent coaching.
- Optimize Talent: Ensure sellers are aligned with roles that maximize their strengths.
Headway Selling represents a new era in commercial differentiation. By reducing buyer friction, aligning with customer goals, and supporting the broader buying initiative, commercial teams can not only reverse declining productivity but also win bigger, bolder deals.
Watch the on-demand webinar for all of the findings.
