Digital Transformation

How B2B
Omnichannel Businesses
Sales Can
Right Get
by Doug J. Chung, Isabel Huber, Jean-Charles Devignes, and Tom Clauwaert
January 24, 2022

Artur Debat/Getty Images

Summary. Buyers want it. Sellers need it. But how do you get B2B omnichannel
right? How do you create a seamless experience for customers and drive profitable
growth for suppliers? It’s not trivial, but it’s not rocket science either. The key is a
comprehensive, cross-channel... more

During the early stages of the pandemic, many B2B companies

considered remote interactions as a temporary patch, a way to
stay in touch with customers while sales reps were confined to
their home offices. Now, it’s becoming clear that omnichannel is
here to stay, and many businesses aren’t prepared for this
permanent change.
The latest B2B Pulse research from McKinsey shows that two
thirds of U.S. buyers opt for remote human interactions or digital
self-service at various stages of their decision journey, such as
identifying, searching for, reviewing, and evaluating new
suppliers, as well as for ordering and reordering. While this shift is
partly driven by Covid-related lockdowns and distancing
requirements, it is in tune with a larger trend that predates the
pandemic. Over the course of the past five years, the number of
channels B2B buyers use has doubled, from 5 in 2016 to 10 in 2021.
And a staggering 94% of respondents say that the new
omnichannel sales model is as effective as, or more effective than,
the previous sales model.

Although B2B buyers are enthusiastic about omnichannel

interactions, they are also very clear about what they want from
suppliers — and very willing to switch if “must-haves” are not
offered. For example, 82% of B2B decision makers will actively
look for a new supplier if a performance guarantee is not offered.
Players who get omnichannel right though can not only attract
new customers but retain existing ones, leading to higher
revenues, lower cost to serve, improved customer satisfaction
scores, and reduced churn rates.

A comprehensive view of each customer is key

B2B buyers expect the same level of omnichannel service and
flexibility as when they shop in their personal lives. They want to
be able hop from channel to channel as they advance in their
buying journey. They may start by researching their options at a
supplier’s website or a social media platform. When questions
come up, they want to be able to open a chat, call a sales
representative, or receive a call back within a few hours, and they
expect the sales rep to be up to speed on their history, provided
they have agreed to data collection. They may want a specialist to
meet them on site at their plant to select the perfect product or
solution for their purposes.
Many B2B players struggle with the implementation of
omnichannel interactions because they treat channels as silos
(“multichannel”), rather than as a set of interconnected tools a
customer may want to use at different stages of a decision
journey, or at different points in the relationship with a supplier
(“omnichannel”). To enable seamless end-to-end omnichannel
journeys, B2B players must create a comprehensive view of each
customer and deliver consistent messages across channels.
Successful omnichannel sellers use CRM tools that provide
visibility on the entire customer journey. Such tools enable them
to combine leads from different sales departments and channels.
Based on this kind of transparency, they can create a seamless
experience for customers, and they can reward sales
representatives regardless of where a customer makes the final
purchase.

Five success factors for moving to omnichannel sales

We’ve observed five elements of successful transitions from a
multichannel model, where multiple channels exist side by side,
to a fully integrated omnichannel model. The common factors
among successful businesses that make this shift are customer
centricity, a holistic approach, pro-active channel conflict
management, strong digital foundations, and agile collaboration
across functions.
Customer centricity: To create seamless and compelling
customer journeys, pioneers put customers and their needs at the
center of their omnichannel offering. Over half of B2B companies
in the U.S. conduct extensive primary research to better
understand customer decision journeys, with top performing
companies more likely to do so than slower growing companies.
They review transaction logs and conduct targeted research to
come to a clear understanding of customer preferences at each
touchpoint and stage of the decision journey. They build
comprehensive, fully integrated customer profiles and manage
relationships across channels. For example, a large technology
company faced increasing pressure from smaller, highly
customer-centric competitors. In response, the company
reimagined its customer experience and put customers back at
the center of its activities by designing, building, and operating a
digital customer experience platform. A corresponding pilot was
conducted with more than 450 customers to enable better
identification of customer needs and more targeted solution
recommendations. The program resulted in higher satisfaction,
reduced churn, and an uplift in digital sales.

A holistic approach: One in three B2B companies re-defined the

role of each sales channel in their company’s overall go-to-market
strategy within the past year. A specialty chemicals company
developed a holistic B2B omnichannel strategy that was tailored
to the specific needs and characteristics of the company’s
business model and customer base. The process involved setting
up three distinct sales channels (field sales, inside sales,
distribution) and a clear channel allocation approach. To forge a
truly holistic approach, the channels were complemented by
three supporting functions across the customer journey, spanning
all channels and enabling a seamless experience:

1. A lead generator role was set up to generate leads at scale

across all channels through market scans and by leveraging
business intelligence.
2. The online presence was upgraded to address customers’ needs
across the digital buying journey via multiple digital platforms,
including the company’s web site, social media profiles, and an
e-commerce portal.
3. A dedicated customer service team supported customers with
ordering and fulfillment.
Overall, this holistic approach enabled the company to increase
the number and frequency of customer interactions with
supporting digital information, to enhance the company’s reach
and relevance through external platforms and lead generators,
and to provide customers with more flexibility by offering online
ordering to all customers.

Proactive channel conflict management: Many companies say

they have faced increased channel-competition challenges as a
result of field sales roles working from home similar to an inside
sales and they are very concerned about their relationships with
distributors which has stifled e-commerce progress.
Omnichannel outperformers do not avoid conflict. Rather, they
address it proactively, using segmentation to find the perfect fit of
channels, customers, and products or services. This is what one
industrial tech company did when it increased direct online sales
to generate higher revenue and increase margins, reduce reliance
on third-party distributors, and improve customer relationships.
The company needed to understand and mitigate the risk of
channel conflict, particularly with dealers. It mapped the
customer decision journey by segment with the help of
quantitative research and interviews. The segments were defined
by factors such as interaction preference, average order size,
purchase frequency, and expected lifetime value. The company
also modeled the economic impact of shifting products from one
channel to another (e.g., from distributors to direct sales, or from
traditional sales to e-commerce). It also applied war gaming to
determine how stakeholders might respond to a new channel
strategy. Based on these actions, the company’s omnichannel
taskforce was able to recommend specific channels for different
products and customer segments.

Digitally enabled sales and marketing: Successful omnichannel

transformations have a strong digital foundation. This requires
investments in the right technology (hardware and software) and
a strong connection between sales and IT, allowing organizations
to make significant improvements in advanced analytics and the
latest sales tools. Another important success factor is the
implementation of marketing automation with digital analytics
(e.g., for cross-/upselling and dynamic pricing). Leading players
also apply digital marketing and sales to drive personalization at
scale. An agricultural input distributor achieved significant
revenue and performance gains through an omnichannel
transformation focused on digitization and analytics. Specifically,
the company implemented new data streams to give sales teams
more accurate tools for lead generation. This goal was achieved by
combining three initiatives:
1. Multiple data sources were used to create digital lists that were
delivered directly to each salesperson.
2. Advanced data and analytics supported the creation of live
dashboards to track performance and value capture.
3. Customized lead lists were used to support digital marketing and
campaigns to increase conversion.
The new platform was backed by a flexible and scalable
technology and data stack to ensure long-term success.

Agile cross-functional collaboration: Successful businesses

implement agile ways of working across commercial and growth
functions. A crucial factor is attracting or developing the right
talent and getting people from different backgrounds to work
together. A travel company focused on agile collaboration to build
a successful B2B platform in only four months. It involved
creating cross-functional agile teams with developers, designers,
and product and business managers. Weekly meetings with
project sponsors supported a rapid decision-making process and
enabled the company to quickly remove roadblocks. Demos were
conducted to illustrate new processes and generate enthusiasm
within the organization. In addition, close collaboration between
marketing and commercial departments ensured the
development of a state-of-the-art platform.

An omnichannel maturity assessment

To drive targeted omnichannel transformation efforts, companies
should start by assessing their omnichannel maturity level. This
kind of assessment enables companies to prioritize investments
as they embark on an omnichannel transformation effort.

Level 1: Omnichannel launch. Companies at this level aspire to

offer customers a more integrated omnichannel experience.
Multiple channels are in place, but these work largely in isolation,
rather than as part of a seamless customer experience. Level 1
companies seeking to overcome silo thinking should focus on the
customer-centric reimagination and implementation of end-to-
end journeys. In addition, detailed role descriptions should be
defined for key functions (such as field representatives, inside
sales, and customer care). Also, a mechanism to manage channel
conflicts should be put in place (e.g., using segmentation and
cross-channel incentives).

Level 2: Omnichannel acceleration. An omnichannel model is in

place. Now the company is looking to differentiate its go-to-
market approach and leverage analytics to reach the next level of
growth. Level 2 companies aspiring to leverage analytics to reach
the next level of growth must consider the benefits of
marketing/sales automation. This can include the automation of
standard parts of the sales process (for example, with AI-powered
chatbots) or the implementation of website personalization. Data-
driven insights can be leveraged across channels to generate leads
and capture growth. The transfer of digital analytics to other sales
channels (for example, territory planning) can be helpful.

Level 3: E-commerce launch/acceleration. There are already

multiple channels in place, and they work together seamlessly.
The only thing missing is an effective e-commerce/digital
channel. For level 3 companies seeking to build their own
commerce portal or partner with an e-commerce marketplace, the
link to other channels is crucial. Many B2B companies set up their
websites as stand-alone solutions. While this may work well for
new, online-only customers, it can lead to frustration among
existing customers. Leading B2B companies use state-of-the-art,
cloud-based platforms to integrate customer data across channels
in real time. More importantly, they redefine the role of the sales
rep and recognize that traditional sales roles have evolved and
settled into an overall hybrid role. Hybrid and digital are the
fastest-growing sales roles outpacing growth in more traditional
roles like field sales.

Getting omnichannel right is far from trivial, but it’s worth the
effort. A company-wide commitment to omnichannel excellence
can be a real game changer for B2B companies. Early movers will
not only be in a better position to fend off competition, but they
can also capture cost savings, increase customer satisfaction,
reduce churn, and grow their businesses.

The authors acknowledge the contributions of Jan-Christoph

Köstring, David Sprengel, Candace Lun Plotkin, Yvonne Graf,
Cornelius Grupen and Julia Katharina Schmidt.

Doug J. Chung is an Associate Professor of

Marketing and the Director of the Sales and
Business Development Forum in the McCombs
School of Business at the University of Texas at
Austin. His research focuses on sales strategy
and compensation, and he has worked with
firms worldwide to develop effective employee
incentive compensation systems.

IH
Isabel Huber is a Partner with the Marketing &
Sales practice of McKinsey & Company. Isabel
mainly focuses on Sales Operations and
Commercial Excellence transformations in
Advanced Industries and Energy sectors.

JD
Jean-Charles Devignes is a Partner with the
Marketing & Sales practice of McKinsey &
Company. He specializes in indirect sales and
channel excellence as well as sales and channel
management especially in the Advanced
Industries sector.

TC
 Tom Clauwaert is an Associate Partner with
deep expertise in sales and channel excellence
especially in the Global Energy and Materials
sector.

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