The COVID-19 pandemic had a far-reaching impact on business, including one that B2B sales professionals are still coming to grips with: a significantly altered buyer and buying process.

Moreover, the emergence of a digital-native workforce, which will constitute the majority by 2025, has greatly influenced how purchasing decisions are being made. Most buyers now independently complete the entire industrial buying process without engaging directly with vendors, and this trend has intensified considerably since the outbreak.

Industrial leaders must recognize and adapt to this evolving buyer behavior, with a focus on building trust and showing expertise in order to better engage with this new wave of buyers and effectively support their purchasing journey.

Jeff Summers, Tacton’s Chief Customer Officer, has identified five pivotal trends that are shaping the new era of B2B sales engineering. His article in SalesTechStar, “The New Era of the B2B Sales Engineer: Five Things To Know”, delves deeper into the trends and offers valuable insights on how firms and sales engineers can leverage these trends to their advantage, honing their competitive edge.

In our last blog we took a deep dive into the fundamental ways in which buyers have changed in industrial manufacturing. Today’s buyers are more informed, tech-savvy, demanding and want the same engaging experiences they get from B2C companies.  

With so much information in their pockets, buyers conduct extensive research before even considering purchasing, seeking our reviews, product comparisons and expert opinions. Having these critical insights and information has shifted the power balance from sellers to buyer, making it critical for manufacturers to adapt and engage their customers in new ways.  

Just like the buyers, the buying process has evolved greatly. The journey used to be much more linear, customers would talk with sales reps, understand the product and receive specs for the product they would purchase. Now the journey is characterized by multiple touchpoints across various channels.  

With these various channels, buyers expect a seamless experience, personalized interactions and fast response times. These high demands require manufacturers to reimagine their go-to-market strategies.  

Tacton CPQ is enabling manufacturers to reinvent their strategies by creating new and exciting ways for buyers to see their unique products. Let’s investigate the evolution of the buying process, the implications for manufacturers and how CPQ is helping leading manufacturers keep up with the new buyer.  

The evolution of the buying process  

Digital first approach and a hybrid buying strategy

The days of the buying process being over the phone, or in-person have shifted, today the whole process starts online. Modern buyers conduct extensive research before ever contacting a supplier. They utilize company websites, social media, and industry forums to gather information, compare products, and read reviews. This digital-first approach means manufacturers must put more effort into creating an exciting online presence and provide quality information that is easily accessible so buyers can make informed decisions.  

Extended decision-making process 

The decision-making process in manufacturing sales isn’t as easy as it once was. It’s more uncommon for one person to make a final decision, multiple stakeholders from various departments are involved in the buying process. Gartner even notes that a new decision-maker enters the buying journey in the last 5% to 10% of the buying experience. Each stakeholder brings their own criteria and concerns when buying products. This extended decision-making process requires sellers to engage with multiple decision-makers, address a diverse range of needs, and provide more detailed and tailored information. 

Real-time information is critical 

Without up-to-date information it makes it nearly impossible for customers to make a final decision on products. If manufacturers can’t provide accurate pricing and availability prospects will quickly move onto companies who can. They simply do not want to wait for days for a quote or product details. Real-time information is not just a convenience; it’s a necessity. 

What are some key features manufacturers can use to address customer needs?  

1. Self-Service options: Buyers increasingly prefer self-service options, allowing them to independently access information, configure products, and make purchases. Self-service portals empower buyers to take control of their purchasing process, offering convenience and speed without the need for constant interaction with sales representatives. Creating better buying engagement starts with being compelling and consultative. Manufacturers who can provide this type of information and consult online will win more deals. 
2. Virtual and augmented reality: The use of VR and AR is revolutionizing product demonstrations and virtual tours. Buyers can now experience products in a more immersive and interactive way, gaining a better understanding of the product’s features and benefits without being physically present. 
3. Analytics: Advanced analytics are transforming the way manufacturers understand and engage with their customers. By leveraging data analytics, manufacturers can gain insights into buyer behavior, preferences, and trends. This allows for more targeted marketing, improved sales strategies, and enhanced customer experiences. 

Strategies for manufacturers 

Digital engagement and buyer-friendly experiences:

Manufacturers who prioritize having a robust and easy to use digital presence will help attract and retain modern buyers and see improvements in sales.  

Real-time data integration:

Integrating real-time data into your systems is crucial to provide up-to-date information to buyers. This ensures that potential customers have access to the latest product details, pricing, and availability, which can significantly influence their purchasing decisions. 

Adoption of innovative technologies:

Embracing technologies like VR, AR, AI, CPQ, self-service options, and analytics can dramatically enhance the buyer experience. These tools not only provide a more engaging and informative experience but also help streamline the sales process and meet the evolving demands of buyers. 

How is CPQ enabling these strategies?  

Manufacturers who have CPQ at the center of their selling process have found it easier than ever to address a diverse array of challenges and opportunities that are being driven by their customers. Here are just a few ways CPQ is helping modern sales strategies succeed: 

Enhancing the digital first hybrid approach 

With CPQ manufacturers are always able to provide detailed, accurate product information online. This ensures that every product is valid, buildable and deliverable. CPQ also enables buyers to explore different configurations and pricing scenarios, improving their understanding and giving them confidence to make a final purchase.  

Supporting the decision-making process 

Giving buyers the full picture of a product, complete with comprehensive and precise data, CPQ can offer detailed proposals that can address the concerns of any decision maker in the process.  

Providing real-time information:  

CPQ systems deliver real-time updates on product availability, pricing, and configurations. This immediacy meets the expectations of modern buyers for instant information, reducing the wait time and increasing buyer satisfaction. 

Using visualization and augmented reality for lead generation 

It is also possible to use product visualization in your lead generation activities by offering visual configuration software on your website for anonymous users. By offering your full portfolio online you can influence your prospect’s buying criteria before they reach out to your sales reps. 

Empowering Self-Service and buyer engagement:  

CPQ can support self-service portals by offering tools that allow buyers to independently configure products, obtain quotes, and make purchases. This empowerment aligns with the preference of modern buyers for control and convenience. 

Driving insights through analytics:  

CPQ collects and analyzes vast amounts of data, providing manufacturers with actionable insights into buyer behavior, preferences, and trends. These insights drive more targeted and effective sales and marketing strategies. 

The generational shift in manufacturing is here to stay

Buyers will only become more focused on purchasing products quickly, and online. Manufacturers who take advantage of these new buyers will find themselves in a position to grow their business in the years to come.  

Tacton CPQ was built specifically to help the sales needs of leading global manufacturers. Companies such as Siemens and Vantage are using Tacton to revolutionize their sales process. Find out more in our latest eBook “Keeping Up with The Modern Manufacturing Buyer”.  

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With manufacturing feeling the fundamental shifts in buyer engagement, sales models, and even sustainability, they are also facing new challenges when it comes to employee retention and the challenges it causes. As of June 2024, the employee turnover rate in the manufacturing industry was 37%.  

With employees leaving at such a high rate, manufacturers face the common challenge of brain drain. As many employees retire, or find new jobs, much of their product, sales and engineering knowledge is lost. This causes companies to struggle to properly create products without errors and meet the needs of new and demanding customers.  

This phenomenon can significantly impact an organization’s efficiency, innovation, and competitive edge. However, with the right tools and strategies, companies can preserve valuable expertise and mitigate the effects of brain drain. One solution, Tacton Configure, Price, Quote (CPQ) is helping leading manufacturers combat brain drain and achieve new levels of profitability and efficiency. Let’s look at the current situation and how CPQ can help.  

What is brain drain?

Brain drain is the gradual loss of intellectual capital, skills and industry and product knowledge when employees leave an organization. This challenge can be particularly difficult in manufacturing where intricate processes, complex product configurations and industry specific knowledge are critical for selling. These are some common challenges faced after key employees leave: 

Loss of efficiency: Remaining employees may struggle to match the productivity level of their former colleagues, leading to delays and increased costs. New employees will find challenges about learning specific product information that would help them onboard and sell faster.  

Decreased innovation: Without experienced team members and their product knowledge it can become more difficult to drive innovation.  

Knowledge gaps: Critical knowledge about customer preferences, product configurations, and unique solutions can be lost, affecting customer satisfaction and sales. 

How does CPQ mitigate brain drain?  

Your sales team spends two-thirds of its time away from customers. By implementing CPQ, you can automate most tasks, including quoting, filling out spreadsheets, and attending to administrative tasks. 

When you free up your agents, they become more effective because they have more time to spend building impactful relationships with current customers, seeking new clients, and pursuing professional development. Here are a few more ways Tacton can help: 

Knowledge capture and standardization 

With the help of CPQ, manufacturers can document and standardize their product configurations, pricing rules and quoting processes. By creating a centralized source of truth with CPQ it’s easier for companies to withstand the effects of the loss of critical information when employees leave.  

This also makes the onboarding process for new hires that much easier. They will be able to quote with 100% confidence as CPQ ensures that no invalid product configurations make it into production.  

Guided selling and configuration 

Navigating complex product configurations has been a challenge for sale reps, that isn’t a problem anymore with the help of Guided Selling. Guided Selling provides step-by-step guidance ensuring that the newest sales rep can accurately configure products according to customer requirements. This helps insulate manufacturers from over reliance on a few key experts across the organization.  

Seamless end-to-end connections  

Using CPQ as a centralized hub connected to other business critical systems such as ERP, CRM, PLM and more, it’s easier than ever to have up-to-date information for your team. Creating this automated process minimizes the need for manual and admin tasks and reduces the error-prone quoting process by delivering correct and detailed product information. It also frees up experienced employees to focus on more strategic tasks, rather than routine administrative work. 

Centralized knowledge repository 

With the help of CPQ manufacturers can create a central hub for product and sales knowledge. This approach ensures that all employees have access to the latest information. It also facilitates knowledge sharing and collaboration, fostering a culture of learning and improvement.  

Analytics and insights  

Tacton CPQ provides valuable analytics and insights into sales and product performance. By analyzing this data, organizations can identify trends, optimize their product offerings, and make informed strategic decisions. This data-driven approach helps maintain the organization’s competitive edge; even as experienced employees leave. 

HMF Cranes combats brain drain with CPQ  

One of our customers, HMF Cranes, one of the world’s leading manufacturers of truck-mounted cranes strives to be the most innovative business in manufacturing. In 2022 they implemented Tacton CPQ to help their quoting and ordering process. Another added benefit they saw was how quickly they could onboard new hires.  

Onboarding new employees also became faster with Tacton. Without CPQ it was a time-consuming process to teach new employees the intricacies of the product, as this would be an error-prone learning process. Now with Tacton it’s easier to train new employees with the new system, and it gives them responsibility to configure a crane with the knowledge that it’ll be correct. 

With the changing economy, pricing is also an important factor for HMF in selling their cranes. With Tacton, keeping up to date with the latest prices is easy and always accurate. 

As Alicia Vivier Brockhoff notes:

“It’s easier to be a customer and an HMF distributor. It’s easier for us to implement new products and train new salespeople. There are a lot of great benefits”

HMF is just one example of companies Tacton is helping create a centralized tool for all things sales, engineering and customer experience.  

Are you ready to take the next step?  

Brain drain is a significant challenge for many manufacturing organizations, but it can be effectively mitigated with the right tools and strategies. Tacton CPQ offers a comprehensive solution for preserving and leveraging critical knowledge, ensuring that expertise is retained and accessible across the organization.  

By capturing, standardizing, and automating complex product knowledge, Tacton CPQ empowers companies to maintain efficiency, drive innovation, and continue to deliver exceptional value to their customers. 

Are you ready to future-proof your organization against brain drain? Explore how Tacton CPQ can help you preserve expertise and maintain your competitive edge in the ever-evolving manufacturing landscape. 

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The past five years have demonstrated just how quickly things can change for an entire industry. Since the beginning of the COVID-19 pandemic, manufacturers typical B2B sales journey has been fundamentally altered. This shift is driven by a younger and digital native buyer. The traditional, relationship-driven sales approach has evolved as buyers demand digital-interactions, speed, and transparency.  

Today’s buyers are more informed about the products and companies they want to purchase from. Over 80% of the buying process now occurs without engaging a vendor (Gartner), it was 67% just 3 years ago. These new customers also want the same exciting and personalized experiences they encounter in the B2C world. 

As manufacturers navigate this shift, understanding the new expectations and behaviors of these modern buyers is crucial. Manufacturers are increasingly turning to Configure, Price, Quote (CPQ) solutions to adjust to the needs of the newest buyer by streamlining the sales process, enhancing customization, delivering fast and accurate quotes and providing an exciting way to buy online. Let’s look deeper into the new buyer behavior since the pandemic and how leading manufacturers can leverage these insights with the help of CPQ to enable a new level of buyer engagement.  

This opportunity is enormous for manufacturers who act quickly to meet and engage with these customers anywhere in their buying journey.  

What does the new manufacturing buyer look like?

Today’s buyers are comfortable with digital tools an expect seamless online interactions 

Since the pandemic, manufacturing buyers have increased their use and reliance on digital tools. The shift to virtual interactions has made the job of top sales rep much more difficult for your business. That’s why nearly half of buyers would prefer to never interact with a salesperson.  

Today’s buyers are more than happy to buy their products fully online, and they expect manufacturers to provide seamless and efficient online interaction to complete these purchases.  

Manufacturers must ensure their digital channels are intuitive, responsive, and integrated, providing a user experience that meets the high standards set by consumer technologies. Implementing Tacton CPQ software can streamline the online buying process, offering real-time customization and accurate pricing that enhances the overall customer experience. Check out our latest ebook for an in depth dive into the new customer profile! 

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Demand for personalization 

Modern B2B buyers expect the same level of personalization in their professional purchases as they do in their personal lives. They seek solutions that are specifically tailored to their unique needs and preferences, rather than generic offerings. This demand for personalization extends beyond products to include personalized content, recommendations, and interactions.  

Manufacturers can meet this expectation by leveraging Tacton CPQ that allows for detailed customization of products and services. These tools can provide tailored quotes and configurations that address individual customer requirements, quickly enhancing customer satisfaction and loyalty. 

Informed decision makers 

With so much information at the fingertips of every buyer it’s easier for buyers to make fully informed decisions before they purchase or reach out to a sales rep. Access to detailed product information, customer reviews, customer stories and even competitive analysis means that buyers enter the sales conversation with a higher level of knowledge and expectations from a manufacturer.  

Customers demand transparency, accuracy and value in every interaction. For manufacturers this means the sales approach must be consultative, providing valuable insights and solutions rather than just products and product information. Utilizing Tacton CPQ software can help sales teams quickly generate precise quotes and configurations, allowing them to respond promptly to the informed queries and complex requirements of today’s savvy buyers. This not only improves the efficiency of the sales process but also builds trust and credibility with customers. 

Key Factors Driving Change for manufacturers

Digital Native Demographics 

A large factor driving the change in buyer behavior is the growing number of digital native demographics with buying power in the manufacturing industry. A digital native is a person who grew up with the presence of digital technology or in the information age.  As younger professionals move into decision-making roles, they will take their internet first mentality to their buying decisions.  

Sustainability and regulatory compliance standards

Sustainability has become a critical consideration for many buyers. With impending legislation and regulations there is a growing emphasis on purchasing products that are both high-quality and produced with the environment and social responsibility in mind. Buyers are scrutinizing manufacturers’ practices and choosing partners who align with their own values of sustainability and ethics. They demand transparency in how products are made, and the impact their product will have after it’s been purchased. Manufacturers can use Tacton’s Environmental Footprint Configuration to quickly calculate the impact their products will have and share that quickly with customers. By integrating sustainability into their sales process, manufacturers can appeal to this growing buyer priority and build stronger, more loyal customer relationships. 

 

Implications for manufacturers 

It’s time to invest in a seamless online buying experience 

As buyers become increasingly digital-savvy, manufacturers must invest in enhancing their digital engagement. This involves creating a seamless, integrated online buying experience that meets the expectations of today’s buyers. Tacton CPQ can play a crucial role in this transformation, offering tools that streamline the configuration, pricing, and quoting processes, and ensuring that digital interactions are smooth and efficient. 

Leverage customer data for personalized solutions 

To meet the demand for personalization, manufacturers need to collect and leverage customer data effectively. By understanding individual customer preferences and needs, manufacturers can offer tailored solutions that enhance the buying experience. Tacton CPQ facilitates this by capturing detailed customer data during the configuration and quoting process, enabling manufacturers to provide highly personalized products and services. 

Transparency in sustainable practices to meet buyer and regulator expectations 

Transparency and sustainability are becoming non-negotiable for modern buyers. Manufacturers must be transparent about their supply chains and demonstrate a commitment to sustainable practices. Tacton CPQ can help manufacturers communicate their sustainability initiatives and product features clearly, providing the transparency that buyers seek. By doing so, manufacturers can build trust and meet the evolving expectations of their customers. 

In closing 

The landscape of industrial manufacturing sales has been irrevocably transformed by the COVID-19 pandemic, ushering in a new generation of buyers who are digitally savvy, demand personalized experiences, and are well-informed. 

Leveraging Tacton CPQ software is a key strategy in this adaptation, enabling manufacturers to meet the heightened expectations of modern buyers with seamless digital interactions, tailored solutions, and transparent practices. By embracing these tools and focusing on enhancing digital engagement, personalizing customer experiences, and committing to sustainability, manufacturers can successfully navigate the changing market dynamics and build stronger, more loyal customer relationships. 

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