A simplistic sales process sets your team up to fail. Most industrial sales teams never even know who makes the real buying decision!
Want to forecast accurately? You must understand how these five buying decisions shape the buying journey, and your sales process must address them!
Host Ed Marsh lays out his theory of five buying decisions in this solo Episode #71 of the Industrial Growth Institute Podcast
Summary
In this episode, Ed Marsh discusses the complexities of B2B industrial sales, emphasizing the importance of understanding the buying process and the critical decisions that influence sales outcomes. He illustrates that in most complex B2B buying decisions, the real decision is made without the reps, or even many influencers, even knowing.
The five buying decisions include:
- to commit some resources to evaluating the potential improvement of a change
- to request capital
- to approve capital
- how to select a vendor
- vendor selection
And most complex sales teams and manufacturing marketing departments focus on decision number five - vendor selection - with endless talk about what they make and do.
He highlights the challenges faced by sales reps, the need for business acumen, and the significance of engaging with decision-makers early in the sales process.
The conversation outlines five key buying decisions that impact sales success and offers strategies for improving sales effectiveness in a competitive landscape.
Takeaways
- Most complex industrial purchases must pass through hurdles of five buying decisions
- Decisions 2 & 3 determine whether there is even a purchase, and most reps don't know about it.
- Most big-ticket complex B2B industrial sales forecasts are fantasies.
- Sales reps often don't understand how business buying decisions are made.
- Buying teams typically consist of eight to twelve people.
- Sales reps need to bring business acumen to conversations.
- Most buyers prefer a sales rep-free experience.
- The first vendor contacted often wins the order.
- Sales efforts focus too much on vendor selection.
- Understanding the five buying decisions is crucial for sales success.
- Sales reps must engage with decision-makers early in the process.
- Creating projects rather than just finding them is essential for success.
Takeaway Quote from Ed Marsh
- "In many cases, the board is going to sign off."
Learn more about the five buying decisions here.
LinkedIn: Ed Marsh
Twitter: Ed Marsh
Instagram: Ed Marsh
YouTube: @EdMarsh
Chapters
00:00 Understanding the Flaws in B2B Sales Forecasting 02:46 The Complexity of B2B Sales 05:38 The Five Critical Buying Decisions 08:00 The Role of Sales Reps in Complex Sales 11:19 Navigating Capital Approval Processes 14:10 The Importance of Business Acumen in Sales 17:15 Creating Projects vs. Finding Opportunities 20:05 Conclusion and Call to ActionPopular Podcasts
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by Audiochuck Media Company.
The Brothers Ortiz
The Brothers Ortiz is the story of two brothers–both successful, but in very different ways. Gabe Ortiz becomes a third-highest ranking officer in all of Texas while his younger brother Larry climbs the ranks in Puro Tango Blast, a notorious Texas Prison gang. Gabe doesn’t know all the details of his brother’s nefarious dealings, and he’s made a point not to ask, to protect their relationship. But when Larry is murdered during a home invasion in a rented beach house, Gabe has no choice but to look into what happened that night. To solve Larry’s murder, Gabe, and the whole Ortiz family, must ask each other tough questions.