Showpad has revealed that 72% of UK salespeople believe they are losing out on commission due to employers resisting deploying a digital sales infrastructure in their organisation. The research, part of the Showpad State of Selling Report, equated the loss to £64k per rep per year. The question that Showpad appeared not to have asked is whether this lack will lead to Sales teams quitting for greener or more digital pastures to maximise their income.
For the businesses themselves, it means they might be missing out on as much as £1 million in annual revenue. 12% believe the impact is higher than a million and 5% think it is more than £5 million.
Hendrik Isebaert, CEO of Showpad, said: “Half of salespeople feel that they are simply not armed with the tools they need to succeed and this is costing them – and their employer – significantly. Nearly 40% of UK companies derive all or the majority of their income from B2B activity, showing the value of B2B companies to the business landscape and the central role of sales and revenue generation.”
Organisations should be concerned; while the 25th top reason for Salespeople leaving their job was the tools they use, the top one was low compensation, according to Peak Sales Recruitment.
Does digital-first selling make a difference?
There are two sides to digital selling. The first is whether sales reps engage with it and whether the tools do enough. The second is whether the buyers want to be sold to digitally.
While 77% of sellers say they have a clear understanding of digital-first selling, only 27% say that their business sales team fully incorporates it. 30% of respondents say it is a must have, though whether these sectors overlap is unclear. 39% indicated that it is a differentiator.
Many are unhappy that their organisations are not delivering enough tools for them to use. When asked what was missing, the responses were:
- 49% want better technology and platforming
- 32% want a sales or revenue enablement platform’.
- 27% would like them to leverage social media to reach more prospects.
- 28% would like to see better coaching and upskilling for sales reps, though it is unclear if this is a digital initiative.
Digital selling is here to stay, with 87% of buyers preferring to be sold virtually, replacing face-to-face meetings, which take up more time. Does this mean that relationship selling is now digital and that no face-to-face meetings occur? A qualitative interview might have surfaced more nuanced answers around this.
For those migrating to digital selling, the benefits are clear. 80% believe using digital sales technologies has boosted revenue, on average, by 23%.
Isebaert added: “Hybrid and digital sales technologies are fundamental to meeting customers where they are and creating tailored experiences that fulfill their preferences, with research showing this new approach to buyer engagement has boosted sales revenues by nearly 25%. Amidst a broader climate of business uncertainty and economic headwinds, now is the time to double down on all paths to revenue generation – and fast deployment of the tools and infrastructure that will shore up the financials for the foreseeable future.”
The rise of Social Media
Social media is also becoming increasingly important in digital selling, with sales reps engaging with customers across various platforms. Those that they are engaging with customers include:
- Facebook (57%)
- Instagram (56%)
- TikTok (48%)
- YouTube (43%)
- LinkedIn (42%)
Enterprise Times: What does this mean
While it is frustrating that organisations continue to highlight data from historical reports rather than take new angles, this data is interesting. Where it has deeper implications is whether the lack of sales tools is also leading to resignations as sales reps not only see other companies, perhaps rivals, introducing modern technology but also their peers getting bigger commissions, which probably has a greater impact.
What is noteworthy in this research is the return on investment that Sales leaders can gain from deploying digital sales technologies, such as that offered by Showpad. As with any solution, creating a business case is often the first step to proving to finance that the investment is worthwhile. However, other factors need to be considered as well. Digital Sales tools do not in themselves provide a solution it much be part of a marketing, sales and sales enablement strategy.
