Selling life science products is starting to look a lot like selling consulting
As a consultant, working with marketers to position and sell B2B products and services, I’ve been thinking about how selling products today has become a lot like selling consulting services and what we can learn from this. Here are 5 things product marketers and sales reps can learn from management consulting.
1. Consulting clients are well informed and highly demanding
Consulting projects are often complex and costly. Potential clients do extensive due diligence before they approach a consulting firm to discuss their project and they will probably consider three or more firms before they request proposals from them.
Consultants have always understood the value of content and thought leadership (e.g. McKinsey quarterly or the annual Deloitte’s Life Sciences and Health Care Industry Outlooks). Consulting is sold on the strength of the value that the consulting firm offers which is built on reputation and sustained through the content they present and publish.
Product customers are becoming much better informed before they engage in buying. Sales people are no longer the primary source of product knowledge.
A 2015 IDC survey sponsored by Salesforce found that 65% of B2B buyers only engage with vendors’ sales reps after they have made the purchase decision (1).
While buyers may not reach out until a purchase decision has already been made, 83% indicate that they appreciate being approached by a vendor if the interactions are relevant and contextual1. Today’s product marketers need to find ways to engage potential customers with relevant content that shows the company’s leadership position in a particular product category. By creating compelling content, marketers generate a gravitational pull which attracts customers. It should engage the audience in ways that might challenges the customer’s current perception of the product and allow them to experience the product’s value proposition.
2. Most consulting business comes from referrals.
Consulting is a relationship business. The vast majority of engagements come through referrals and through the consultant’s network built up over a period of time. Typically as much as 80% of consulting business comes from repeat customers. To achieve this consultants keep themselves top of mind with their customers and continue to demonstrate value for their clients between projects, for example, by keeping clients up to date with industry trends.
When customers buy products these days, they look for recommendations and reviews that speak to product quality and seller reputation.
84% of B2B buyers are now starting the purchasing process with a referral, and peer recommendations are influencing more than 90% of all B2B buying decisions (2).
Selling products is much more than shifting units, it’s about crafting a customer experience that will compel your customers to recommend you to others.
Product marketers need to find ways to continue to add value to the customer after the purchase event. This might include providing training videos, helpful hints and tips and offering user communities where users can benefit from the experience of others. Post sales value add serves to strengthen customer relationships increasing loyalty and referrals and maximise customer life time value.
3. Consulting sales cycles are long
Companies typically engage consultants when they have a need that they can’t address with the skills that they have in-house. While relationships with a particular consultancy can span many years, the amount of time between engagements can be long and the sales cycle can be complex and long winded depending on the number of stakeholders and level of corporate approval needed.
Product sales cycles are also becoming longer. The availability of more information means that companies feel compelled to spend more time researching various options to reduce the risk of making a wrong decision as budgets continue to attract scrutiny.
Product marketers and sales representatives need to work on how to nurture leads that aren’t ready to buy yet with relevant content as well as devoting effort to post sales marketing to strengthen long term customer relationships so that both purchases and repeat purchases happen fluidly.
4. Consultants must be highly responsive
Consultancy is a people business and successful consultancies are highly responsive to client needs. They understand that they need to make themselves available, often at short notice, and be flexible around the timing and needs of the client to help address business critical issues.
For product sales, while customers are only coming to the attention of salespeople much further along the sales journey, they have greater buying intent when they do make contact. They expect the supplier to be highly responsive; the customer wants to buy and he/she wants to buy now. They’ve done their research and made their choice and if you can’t respond quickly they will go to one of the other suppliers that they evaluated along the way.
5. Consultants know their client’s business
Consulting is not only about solving the customer’s problems but also about providing access to the consulting firm’s knowledge base and industry understanding acquired through many years of experience. Consultants spend time with prospective clients to understand their issues and requirements. They make observations and recommendations and add value early on to build trusted relationships which form the basis of the consulting engagement.
Customers no longer asked sales reps rudimentary product questions but expect them to know more about the industry. Reps must have the expertise to understand the context surrounding the customer’s problem and how the product will address it.
While customers might be able to do their own research to gather the product information that they need, they might not be able to translate this into long term value. This presents an opportunity for sales reps to differentiate themselves.
By taking a more consultative approach, product marketers and sellers can build relationships, build trust with buyers, and maximise sales wins.
Sources:
1. How B2B Sales Can Benefit from Social Selling, Laurence MinskyKeith A. Quesenberry, HBR NOVEMBER 08, 2016 UPDATED NOVEMBER 10, 2016
2. PARDOT: New Research Reveals How to Turn More Prospects into Customers, July 16, 2015
