customers’ value creation in a digitalized world?
The emergence of new digitalized tools has had a radical impact on both business-to-consumer (btoc) and business-to-business (btob) custom-ers’ buying behavior. Many service providers are struggling to meet the new expectations customers have. In this paper, we focus on understand-ing btob customers in an increasunderstand-ingly digital world. Modern btob buyers have very different ways of searching for information and communicating with service providers to support their buying decisions.
Sales used to be about selling services and products and the btob seller was both a product information specialist and an order-taker. However, fueled by new waves of digitalization, business customers are increasingly empowered by information and it is critical for service providers to com-municate relevant content about their offering through different channels.
In the 21st century, selling has transformed into a strategic activity where it converges with marketing and aims at building and maintaining long-term relationships with the customer. Salespeople are more often involved in value-based selling, where they collaboratively solve problems with cus-tomers and seek to provide meaningful value in every customer interac-tion (Storbacka, Ryals, Davies & Nenonen 2009).
Digitalization has changed the overall way in which customers and service providers interact with each other, as customers engage with firms and their digital channels through various new touchpoints (Kannan &
Li 2017; Straker, Wrigley & Rosemann 2015; Lemon & Verhoef 2016).
Overall, btob companies use digital channels and social media to attract new customers, interact with suppliers, build relationships, increase aware-ness, communicate their brand online and receive feedback (Michaelidou, Siamagka & Christodoulides 2011). Salespeople can no longer rely solely
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on their interpersonal contacts in customer relationship building but need to consider digital channels as additional and parallel touchpoints for in-itiating and maintaining customer relationships (Heinonen & Michels-son 2010). Mobile Internet, social media and other new technologies have changed the overall intensity of customer and service provider interac-tion. Customers can communicate with salespeople and peer customers through various technology-mediated channels and platforms. In addi-tion, customers can use self-service technologies to handle such tasks that used to require contacting the company’s salespeople (Meuter, Ostrom, Roundtree & Bitner 2000).
The responsibilities of sales and marketing professionals have also changed. Product information, previously kept by salespeople, is now made available for customers in various online channels administered by marketing or customer service. By creating relevant content for different channels, marketing helps customers identify their problems, become in-terested in a company’s offering and move on with their customer jour-neys. Marketing often also gets the first contacts from potential customers searching for information online, who are then sent forward to salespeo-ple, who start building a relationship with them. (Storbacka et al. 2016.) According to Rawson, Duncan & Jones (2013), companies need to iden-tify key customer journeys, and then engage the entire organization in redesigning the customer experience. This requires shifting from siloed to cross-functional approaches where marketing, sales and product develop-ment work for the same customer experience and changing from a touch-point to a journey orientation.
Sales should be viewed from a new perspective. Customers can no longer be expected to match the service provider’s logic, but the service provider needs to work on understanding the customer’s logic instead. The emphasis should be on trying to match the service provider’s capabilities and resources with the customer’s tasks and goals. The increasing focus on customer experience arises because customers now interact with firms through multiple touchpoints in different channels and media, resulting in more complex customer journeys. (Heinonen & Strandvik 2015.)
What with the changed circumstances in btob sales, the DIVA project undertook the challenge to
develop new insights, competencies, and methods to unders-tand and support the customer’s journey through all phases of the purchasing process
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understand the btob customer’s online experiences
create new insights into the methods of affecting btob customers online
integrate marketing and sales based on a deep understanding of the changed customer behavior in btob sales.
To provide solutions and new insights into the challenges driven by the transformation of customer behavior in btob sales, the DIVA project re-searched how value is created in digital channels and in the subsequent encounters. Customer understanding was gathered by conducting an on-line survey among 2000 customers and by interviewing 60 btob buyers in different phases of the buying journey. On top of that, the use of digital sales tools, such as sales robots, to support the btob buying process was prototyped with the partner companies of the project.
This paper combines results from the DIVA research with findings from other relevant sources to shed light on btob buyers’ expectations at different points of the customer journey. It also gives suggestions on how organizations could make use of these new opportunities to co-cre-ate value in digital channels with customers. The importance of viewing sales and marketing as one function, smarketing, is analyzed from both a theoretical and an empirical point of view. The second chapter of this paper discusses the customer journey and buyers’ expectations. The fol-lowing chapter goes into the role of social media and content creation in btob sales. The fourth chapter looks at how to make use of sales meetings as a platform for innovations. The fifth chapter discusses the role of sales robots and online chats in the sales process. The sixth and final part gives recommendations for sales professionals on how to move towards smart sales.
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