Human behavior change as a result of the pandemic has impacted nearly
every aspect of our lives: our expectations, our priorities, our work, our employees, and, perhaps most dramatically, our
customers. Vistage research revealed in Q4 2021 that 78 percent of small-
and midsize-business leaders have seen a change in customers' buying behavior
as a direct result of the pandemic. In Q4 2022, another 47 percent further noted a change in
customers' buying behavior due to skyrocketing inflation.
Now, as the dust clears and we settle into a new reality, it's crucial to understand the evolving needs of
the new customer. The following are the three driving forces shaping the new
customer:
1. Behavior Change
Like everyone else, customers have made a mass shift to digital after
learning about its benefits during the shutdowns of Covid-19. While digital
shopping was a growing trend pre-pandemic, it is now a staple of modern B2C and
B2B sales alike. When the pandemic hit, sales meetings were suddenly forced to
become virtual. However, when face-to-face meetings became safe to conduct
again, it quickly became evident that the world would never go back to how
it was.
Virtual sales calls are often more
convenient, cost-efficient, and productive for both parties. Plus, with more
individuals enjoying hybrid or remote work schedules and empowered by
technology that allows them to do so, it is intuitive for sales and purchasing
to follow suit.
Now, 70 percent of B2B decision makers
actually prefer remote human interactions or digital service, per a McKinsey
survey, which also states that 70 percent of B2B decision
makers are willing to make fully self-serve or remote human interactions for a
new product or service costing over $50,000--behavior that was traditionally
reserved for smaller-cost purchases.
2. Market Change
As we enter 2023, interest rates and inflation
remain high and unemployment remains low. After the extreme volatility of the
last few years, the 2023 economy will be a low, slow, and relatively steady
burn. Many buyers are pulling back and tightening their budgets, resulting in a
slower sales cycle.
While a slowdown is undoubtedly a challenge, it
also brings forth a potential opportunity to gain market share from competitors
who may have been forced to increase sales prices or reduce capabilities or
services. This is a unique chance to win over individuals whose needs are no
longer being met.
3. People Change
Over four million people in the U.S. quit their
jobs in October 2022 alone. The JOLTS report recorded a record-high 47 million
annual quits in 2021. In the wake of the Great Resignation and the continued
workforce revolution, the workforce has changed drastically. Because of the
expedited turnover, many key relationships between sellers and buyers have been
broken. And new relationships must be forged in a digital environment, where brand loyalty is
harder than ever to obtain.
Embrace the New Customer
For many, this will require re-evaluating
selling processes: Businesses must have a compelling, engaging, and
customer-focused digital presence, and sales and marketing teams must be
equipped to create and foster meaningful relationships virtually. From customer
service chatbots, to emails, to calls and social media posts, today's
professional salesperson must be prepared to promptly meet buyers wherever they
are with the information they need to close a deal. Leaders should also ensure
their processes are flexible: Some buyers will want occasional in-person
meetings, while others will prefer self-serve with minimal human intervention.
Being able to master hybrid sales can serve as a true differentiator.
While the economy may be entering a low, slow
grind before our next growth cycle -- as long as employment remains high, the
economy will keep inching forward. It's important to remember everyone is
on a level-playing field, dealing with the same business conditions. Leaders
who strategically utilize this time of slower growth and decreased volatility
to adjust to the new customer will be the ones at the front of the wave when
the economy picks back up. The resulting opportunity is ripe for the picking.
BY JOE GALVIN, CHIEF RESEARCH OFFICER, VISTAGE@JOEGALVIN
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