2020: The Enterprise Sales Process Goes Virtual
There will be a “new normal” in Enterprise Sales. Products will need to address real pain points and be remotely integrated in days not months. As the entire FinTech infrastructure is digitized, accelerated by COVID-19, these are both opportunities and challenges for innovators. At Arbor, we manage a largely B2B Fintech portfolio and I have been asking all of our CEOs “How are you going to sell to company X if you are at home with kids crying and a dog barking?” My conclusion is that nice-to-have products will struggle as many enterprises will only purchase solutions that solve an immediate need. Many companies have revised their forecasts for a 6-month sales freeze on new accounts and will rely on existing accounts for revenue in 2020. The idea that the world will return to a mobile and globally fluid business environment in the next year is very unlikely. Even if we had a COVID-19 vaccine tomorrow, it takes time for production to ramp up and for billions of people to be vaccinated. Entire industries will need to reboot. In travel alone, thousands of pilots will need to be put in simulators to refresh their skills and airlines will need to move airplanes off of dormant tarmacs. Looking beyond the logistical considerations, it will be a long time before the economic hangover passes and business investment returns to pre-COVID levels.
Every B2B company’s approach to enterprise sales will have to change becoming a key differentiator between success and failure. The pre-sales, sales and integration processes need to target acute pain points, be data-driven and demonstrate value immediately. We are now in the world of bite-sized offerings with flexible pricing that minimize in-person contact. For buyers, thrift is the norm as they become more pricesensitive and deal-conscious. Sophisticated B2B buyers demand higher value at lower costs. If a large contract is stuck on the CFO’s desk, startups will need to be creative to find ways to demonstrate value and be paid as they go. Startups should create value by demonstrating flexibility with prospective customers. This does not mean giving products or services away for free, but if you have the right solution don’t be afraid to be paid a higher unit price for success without minimums.
The tools employed used to engage prospective customers will need to be upgraded. Self-service sales infrastructure will lower costs and with the right architecture can provide just as much customer/market feedback. Mobile and web-based price optimization tools, automated quote generators, digital customer input and feedback mechanisms and sales force automation technologies will further transform traditional sales methodologies.
Perhaps the biggest obstacle in the sales process going forward will be integrations. Ease of onboarding is essential. Integrations that use APIs and involve limited stakeholders in the decision and onboarding process will win. Meanwhile, deals that require extensive coordination amongst product, engineering, legal and compliance will struggle to maintain momentum with many grinding to a halt. Enterprise solutions will need to be “plug and play”. This may seem oversimplified, but it has been done before. Stripe is a great example of a company that solved a problem by using a few lines of code to simplify a complex integration. Companies that can eliminate on-site integrations, streamline communication flows and eliminate the paperwork and back and forth with an integrated solution will benefit over their competitors.
COVID-19 will be a transformational event for enterprise sales. Those who are able to adapt and pioneer new methodologies will emerge as winners. As Charles Darwin said, “It is not the strongest or the most intelligent who will survive but those who can best manage change.”
Written By: Melissa C. Guzy, Managing Partner of Arbor Ventures
