2 weeks ago we started a discussion of the characteristics of business-to-business sales (B2B) and noted there are several differentiating factors. Today I’ll talk about the role of the decision maker in B2B sales. How it differs from consumer sales, and what you need to be aware of going forward in B2B sales.

An area that separates the 2 purchasing segments (B2B v. B2C) is the number of decision-makers. In consumer sales, the decision-maker is generally an individual, and that decision-maker is free to be driven by whatever motivators that matter to them at that particular moment. (It can be argued that obvious possible exceptions to this might be partners making a joint- purchase – married couples for example. But even in these cases, most research suggests that within couples, one person generally takes the lead, or even becomes the sole decision-making authority, in specific areas. One may drive car buying decisions, the other household and appliance decisions.)

Unlike most consumer purchases, the existence of multiple decision-makers almost always characterizes business purchasing, except in perhaps the most mundane areas. There may be several layers of decision makers, all of which are bound by pre-determined parameters for the determination of value.

Consider a large firm buying a PBX (an internal, company-wide phone system.) Who might be involved?
a)  A committee comprised of representatives from all the different types of end-users. These would be individuals who use the handsets at their desk, for example. They would determine which features are needed and which would add value, and then decide how well each vendor’s system meets those criteria.
b)  Engineers who will have the ongoing job of configuring and programming the system might evaluate it for ease of use and flexibility.
c)  A telecomm engineer will have input to review each product’s telco interface to make sure any selection makes optimum use of available line services

In short, there will be an array of individuals who will have strictly defined and rational criteria to evaluate the product. Also, because decision-making is a group project, each person serves as a check against the other, in case anyone is tempted to stray toward non-relevant criteria. The individual consumer, on the other hand, may enter a showroom intent on buying the cheapest car with the best gas mileage, only to abandon that to the temptations of extra cup holders and heated seats. It is this very fluid, and hard –to-define purchasing process that has historically made consumer marketing such a will ‘o’the wisp.

What does this mean for you?

1.  You need to learn who all the decision makers are
2. You need to learn who is concerned with what aspect of the decision. This is important. When you sell to each individual, address only the issues relevant to their concerns. In other words, don’t tell the accountant the technical wonders of your services. Discuss costs, long term benefits, and ROI.
3. Learn who will make the ultimate decision, once everyone has had input. Try to make sure you are in touch with that person.
4. Last note: Make sure you understand who is your official contact in an organization and respect that. Even if negotiations aren’t going well, or the process seems slow, never go above that person’s head in hopes of appealing to his or her boss. That is a serious breach of professional behavior and could permanently alienate you from the decision-maker, ending all chances of a sale.

We’ll continue this discussion in a later blog with the 3rd installment on B2B sales..