PPB June 2015

Demery was citing an April 2015

study, “Death of a (B2B) Salesman,” by

Forrester Research, an independent

technology and market research com-

pany. One million U.S. B2B salespeo-

ple will lose their jobs to self-service

e-commerce within the next five years,

according to the study findings. The

study also notes that “while B2B buy-

ers overwhelmingly prefer to research,

and increasingly buy products and

services via a self-service website, B2B

sellers still force buyers to interact with

their salespeople as part of the pur-

chase process.”

The report details how and why

B2B product and service providers will

need to adjust their go-to-market sales

and distribution models to a buying

environment where “websites, not sales-

people, are at the heart of how B2B

companies buy and sell.”

It is becoming increasingly evident

that the promotional products industry

is not immune to the seismic shifts in

business-to-business buyer behavior.

Our industry, while slow to the dance, is

stepping up its game. Many of the

fastest-growing distributor companies

operate exclusively online or are at least

online-order enabled. Supplier compa-

nies continue investing in online mar-

keting, product sourcing, ordering and

inventory management.

But what about the hundreds of

thousands of real, live salespeople who

earn their living by selling promotional

products? This is an area that concerns

me more. “Traditional” distributors will

need to have an effective online presence

in order to keep and attract an increas-

ingly online business-to-business buyer.

Demery cites Forrester’s findings

that nearly 75 percent of B2B buyers say

buying from an e-commerce site is more

convenient than buying from a sales rep,

with 93 percent saying they prefer buy-

ing online when they’ve already decided

what to buy.

Most of the lost jobs, according to

Demery, will be among sales reps

involved in basic order processing, while

sales reps who offer higher-end services

to help buyers in large corporations

order complex products and systems will

fare better. The article quotes Forrester

researcher Andy Hoar’s finding, which

is this: “Order takers are the ones in

trouble. It all comes down to value in

the ordering process—whether sales

reps add value or not.”

Now where have we heard that

before? Helping members master con-

sultative sales and provide their clients

with added value continues to be the

critical mission of PPAI, and the service

and affinity partners we source on your

behalf. It is a theme woven through

every education session, magazine arti-

cle, town hall and Association board

meeting. It is the mantra of the national

volunteer and regional association com-

munity. We’re making progress but there

is more work to be done.

The research tells us that there’s

hope and opportunity for our industry’s

focused, informed and consultative sales

professional. Forrester’s projected loss of

jobs declines in an inverse correlation

with the level of service a rep offers, with

consultative reps offering the highest

value—actually growing by 10 percent.

Think about that, there is an oppor-

tunity to increase the number and rev-

enue of sales reps

they deliver value

beyond the transaction.

Conversely, all past- and future-

focused research tells us that order takers

who add little value will be the most easily

and quickly replaced by online ordering.

The choice and fate of the traditional

sales representative, now more than ever,

lies in your hands. My message to you is

this: Work to shift the focus from selling

on price and product to providing service,

consultation and solutions. Take advan-

tage of the hundreds of live and on-

demand professional development oppor-

tunities provided at the national and

regional level. Learn to be an expert in

the advertising media called promotional

products rather than just a resource to

procure

promotional products. And finally,

recognize that our industry, while gener-

ally slow to be affected by and adapt to

change, is not immune to the trends of

the broader marketplaces. Our future is in

our own hands.

Have any thoughts, ideas or sugges-

tions you’d like to discuss? Contact me

at 972-258-3050 or

paulb@ppai.org.

This Is Your Wake-Up Call

PERSPECTIVES

4 •

PPB

• JUNE 2015

FEW WEEKS AGO

I was forwarded an article by Paul Demery, managing editor of

Internet

Commerce

magazine. The headline screamed a message that cannot be ignored:

A Million B2B

Sales Reps Will Lose Their Jobs To E-Commerce By 2020.

The subhead was equally stark:

Those

most likely to lose their jobs take orders for commodity products.

Paul Bellantone, CAE

PPAI President And CEO

PERSPECTIVES