An innovative product is always at the centre of any B2B business, but many times, some of the most revolutionary products never gain their full potential and even fizzle out in the marketplace. Case in point: ScaleFactor.
Let’s retrace our steps to the year 2012 when ScaleFactor, a B2B fintech start-up that developed a platform to help businesses automate their sales and marketing processes. The company raised over $100 million in funding claiming that they would completely revolutionize accounting for SMEs by automating bookkeeping using AI.
However, ScaleFactor took a long time to develop its product, and when it finally launched, it was not well-received by customers. The company also failed to focus on sales and marketing, and it ultimately shut its operations in 2018.
The question is, why did this happen? While ScaleFactor had a great product at hand, what was missing was a well-planned sales and marketing strategy. And this is something that affects both large and small companies alike. Often, businesses get so caught up with developing an innovative product and making improvements to it that they lose sight of the sales and marketing efforts needed to make the product a market success.
Sales are the secret to unlocking the potential of any company’s product. Let’s take a closer look at why sales are the building blocks of B2B success.
The Innovation Paradox
For any B2B product to be successful, innovation is extremely important. The product must be unique and offer distinct benefits that help set it apart from the competition while creating a bank of returning customers. But it is very easy for companies to fall into the innovation trap, and when this happens, it can prove to be quite a pricey mistake.
This typically occurs when businesses become so fixated on their product and ideas that they overlook the key element that will ensure the success of their venture, i.e., selling their product. So, while R&D and product development are vital aspects, the success of the venture ultimately depends on the nitty-gritty of sales that brings the product to the end consumer.
How Can Sales Be a Path to B2B Product Success?
Sales are the vital conduit that serves as a link between your B2B product and the market. Sales play an essential role in:
- Validating the product-market fit: Typically, salespersons are at the front end of any business and interact with customers and potential leads. They help to showcase your B2B product and create a good perception in the minds of the customers. They also gather feedback about the product that can aid in making product improvements so that it meets the requirements of the target market.
- Earning revenue: Sales generate revenue for the business, and without a continuous revenue stream, even the most innovative product will not be able to achieve success.
- Creating robust customer relationships: The success of any B2B business depends on establishing strong bonds and a relationship of trust with your customers. Salespeople ensure that relationships with customers are maintained and that they remain loyal and satisfied.
Prioritizing Sales When Developing a B2B Product – Dos and Don’ts
Here are some dos and don’ts that B2B business owners must consider to balance B2B product development and sales.
The Dos
- DO include your salespersons in discussions regarding product development right from the start of the process. Your sales team can provide invaluable insights about your target audience’s needs and pain points that can be instrumental in shaping your final product.
- DO establish clear and actionable goals for your sales team that are in line with the goals of your product. The objectives should be very clear, whether it means getting a certain number of customers or achieving specific revenue targets.
- DO invest in training and ensure that your sales team is adequately equipped with the information and tools such as product information, sales techniques, and market trends required to sell your product.
- DO gather feedback from current and prospective customers and use the information to refine your product, as well as your sales strategy.
- DO monitor and analyse the metrics to determine the success of your sales effort and identify improvement areas in your sales strategy.
The Don’ts
- DON’T ignore market research. Make sure to have a pulse on the market and understand the customers' needs, preferences, and pain points with market research.
- DON’T depend on sales information alone to fix product problems or to improve it. Speak with your customers and the product development team regularly to identify product problems and improve them.
- DON’T assume that your product will stand apart in the cluttered marketplace, and never underestimate your competition. Evaluate the strengths and weaknesses of your competitors to make improvements in your product.
- DON’T ignore post-purchase support. Make sure that your post-purchase support helps resolve any customer complaints promptly and ensures customer satisfaction.
Wrapping Up
In the B2B universe, innovation and product development are no doubt the driving forces, but ultimately, it is sales that is the fuel responsible for pushing your product towards market success. Focusing on sales in the early stages of building your B2B product is not only a wise move but also a strategic necessity, and ignoring this can be harmful to even the most innovative product. By treating sales as an integral part of the B2B product development journey and keeping the dos and don’ts we have discussed in our blog in mind, you can ensure the long-lasting success of your B2B business.