B2B Business: Changed Forever?

A recent McKinsey survey showed what many business leaders felt intuitively: The old normal is gone forever. It will not come back even after the COVID-19 pandemic is over. Here are some statistics that show why.

• Only 20% to 30% of B2B buyers want to return to in-person visits from reps.
• Seventy percent of respondents feel comfortable spending $50,000 or more online.
• Seventy-four percent of B2B decision makers believe the new model is at least as effective as the old one was.
• E-commerce and videoconferencing now account for 43% of all B2B revenue.

These statistics are eye-opening because of the sheer numbers and because they take the blinders off for any companies that hoped things would go back to the way they were. Even use of phone conversations, which seemed invincible, is falling out of favor as people shift to videoconferencing and online chat.

Companies have adapted the ways they operate right from the start of the COVID-19 pandemic. Now that many of the changes they made are headed toward becoming permanent, companies need to think ahead and determine what they can do to keep up with customer demands.
The most important thing businesses have learned so far is that they need to be agile and resilient so they can respond to whatever is coming next. This means that the new business model, as nascent as it may be, has no room for complacency. Instead, businesses must:

• Constantly adjust to new things they are learning from the marketplace.
• Continually monitor important KPIs, such as customer engagement, so they can quickly adapt processes and procedures to respond.
• Monitor KPIs on a granular level because virtual and social media have leveled the playing field. There is no one-size-fits-all. Different market segments and industries respond differently, and businesses need to tailor their approaches to that information.
• Weigh the rate of return in each market segment and industry against the cost and amount of effort needed to attract and retain them.
• Remember that what is true for clients is perhaps even more relevant for employees. For example, when working virtually, employees with families are impacted differently than are employees who live alone. Paying attention to the various needs of each of these constituencies will result in better employee retention rates.
• Pay attention to training and development. Workforces are diverse. Some employees are looking for career advancement and others want only job security. Both groups need to feel valued, and each must be on a path to achieve their goals. This is especially important now, when it is difficult to find and retain highly talented employees — who can be in either group.

​Keep in mind that while B2B business is showing some signs that seem to have some stickiness, it is too soon to say what will work over the long term. The lightning pace of technological advancement we saw in the early days of the pandemic may have let up, but the market is still evolving.