Industrial Growth Institute

The Five Buying Decisions Key to Industrial Sales Success

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A simplistic sales process sets your team up to fail. Most industrial sales teams never even know who makes the real buying decision!

Want to forecast accurately? You must understand how these five buying decisions shape the buying journey, and your sales process must address them!

Host Ed Marsh lays out his theory of five buying decisions in this solo Episode #71 of the Industrial Growth Institute Podcast

Summary

In this episode, Ed Marsh discusses the complexities of B2B industrial sales, emphasizing the importance of understanding the buying process and the critical decisions that influence sales outcomes. He illustrates that in most complex B2B buying decisions, the real decision is made without the reps, or even many influencers, even knowing.

The five buying decisions include:

  1. to commit some resources to evaluating the potential improvement of a change
  2. to request capital
  3. to approve capital
  4. how to select a vendor
  5. vendor selection

    6. And most complex sales teams and manufacturing marketing departments focus on decision number five - vendor selection - with endless talk about what they make and do.

    He highlights the challenges faced by sales reps, the need for business acumen, and the significance of engaging with decision-makers early in the sales process.

    The conversation outlines five key buying decisions that impact sales success and offers strategies for improving sales effectiveness in a competitive landscape.

    Takeaways

    • Most complex industrial purchases must pass through hurdles of five buying decisions
    • Decisions 2 & 3 determine whether there is even a purchase, and most reps don't know about it.
    • Most big-ticket complex B2B industrial sales forecasts are fantasies.
    • Sales reps often don't understand how business buying decisions are made.
    • Buying teams typically consist of eight to twelve people.
    • Sales reps need to bring business acumen to conversations.
    • Most buyers prefer a sales rep-free experience.
    • The first vendor contacted often wins the order.
    • Sales efforts focus too much on vendor selection.
    • Understanding the five buying decisions is crucial for sales success.
    • Sales reps must engage with decision-makers early in the process.
    • Creating projects rather than just finding them is essential for success.

      • Takeaway Quote from Ed Marsh

      • "In many cases, the board is going to sign off."

        • Learn more about the five buying decisions here.

        LinkedIn: Ed Marsh

        Twitter: Ed Marsh

        Instagram: Ed Marsh

        YouTube: @EdMarsh

        Show Transcript 

        Chapters

        00:00 Understanding the Flaws in B2B Sales Forecasting
        02:46 The Complexity of B2B Sales
        05:38 The Five Critical Buying Decisions
        08:00 The Role of Sales Reps in Complex Sales
        11:19 Navigating Capital Approval Processes
        14:10 The Importance of Business Acumen in Sales
        17:15 Creating Projects vs. Finding Opportunities
        20:05 Conclusion and Call to Action
        ...more
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        Industrial Growth InstituteBy Ed Marsh Consulting