I've always been one to embrace change and goes back to leaving home and joining military in my teens. So with the emergence of AI/ML in sales, I'm loving it! After all, if we're helping clients with uses of AI, we better have a first-hand experience of using it with our own profession.
So, I've recently been asked by a prospect, how do I see or envision AI helping us B2B professionals? I've outlined my view on this below:
By 2025, AI will have a profound impact on B2B sales, transforming the way businesses sell to other businesses. Here's a detailed description of how I see systems, processes, and talent evolving:
1. Systems: AI-powered sales automation systems will become more intelligent and capable of handling complex tasks such as lead generation, sales forecasting, and customer engagement. These systems will leverage machine learning algorithms to analyze vast amounts of data, detect patterns, and identify opportunities for sales growth. They will also provide real-time insights into customer behavior, enabling sales teams to tailor their approach and improve their chances of closing deals.
2. Processes: AI will streamline B2B sales processes, making them faster, more efficient, and more personalized. For instance, chat-bots will become more sophisticated, able to engage in natural language conversations with customers, and provide personalized recommendations based on their preferences. Additionally, sales teams will be able to use predictive analytics to identify the most promising leads and allocate their resources accordingly.
3. Talent: As AI takes over routine tasks, B2B sales teams will need to develop new skills such as data analysis, machine learning, and customer engagement. Salespeople will need to be proficient in using AI-powered tools and systems and be able to interpret the insights they provide. Additionally, businesses will need to invest in training programs to upskill their sales staff and ensure they are equipped to succeed in an AI-powered world.
In summary, by 2025, I believe AI will revolutionize B2B sales, transforming systems, processes, and talent. Businesses that embrace this new reality and invest in AI-powered sales systems and training programs will be well-positioned to succeed in a rapidly-evolving marketplace.
How will AI will improve win rates, average deal size, ARR, CLTV, and CAC? 1. Win rates: AI-powered sales systems will help sales teams identify the most promising leads and tailor their approach to each prospect's needs. This will improve the relevance of sales pitches and increase the chances of closing deals, resulting in higher win rates. 2. Average deal size: AI will enable sales teams to identify cross-selling and upselling opportunities by analyzing customer data and behavior. This will lead to more targeted and effective sales pitches, resulting in larger deal sizes. 3. ARR (Annual Recurring Revenue): AI-powered sales systems will help businesses identify the most profitable customers and tailor their sales efforts to maximize revenue. This will result in higher ARR and more predictable revenue streams. 4. CLTV (Customer Lifetime Value): By providing personalized service and anticipating customer needs, AI-powered sales systems will improve customer satisfaction and loyalty. This will result in longer customer lifetimes, higher CLTV, and lower customer churn. 5. CAC (Customer Acquisition Cost): AI-powered sales systems will help businesses identify the most promising leads and allocate their resources more efficiently. This will reduce the cost of acquiring new customers, resulting in lower CAC and higher profit margins. In summary, I believe AI-powered sales systems will improve win rates, average deal size, ARR, CLTV, and CAC by enabling sales teams to be more efficient, effective, and customer-focused.
Let's cover some key potential use cases for automation and AI in growing B2B revenue in 2023:
1. Personalized marketing: Using AI algorithms to customize marketing messages and outreach for individual customers or target accounts, improving relevance and conversion rates.
2. Sales forecasting: Predicting future sales trends and identifying opportunities or risks in the sales pipeline using predictive analytics and machine learning.
3. Lead generation and qualification: Automating the process of identifying, scoring, and prioritizing potential leads based on their attributes and behavior, increasing efficiency and accuracy.
4. Customer service and support: Using chat-bots and other AI-powered tools to provide fast and accurate customer support, reducing response times and improving satisfaction.
5. Pricing optimization: Analyzing market and customer data to determine optimal pricing strategies for different products and segments, maximizing revenue and profitability.
6. Supply chain management: Using real-time data and predictive analytics to optimize inventory levels, reduce waste, and improve delivery times, enhancing customer experience and reducing costs.
7. Fraud detection and prevention: Using AI algorithms to identify and prevent fraudulent activities in financial transactions, protecting the business and customers from losses.
8. Contract management: Automating the process of drafting, reviewing, and managing contracts, reducing errors and delays and improving compliance.
9. Performance analysis: Using data analytics and visualization tools to track and analyze key performance indicators (KPIs) for different functions and teams, identifying areas for improvement and optimization.
10. Product development and innovation: Using AI-powered tools to analyze customer feedback, market trends, and competitive landscape to identify new product opportunities and improve existing products
Finally, let's address what are the top five AI companies that are leading the evolution in B2B sales? 1. Salesforce: Salesforce is a leader in AI-powered sales automation systems, with its Einstein platform providing predictive analytics, lead scoring, and customer insights. It also offers AI-powered chat-bots and voice assistants to improve customer engagement. 2. IBM: IBM's Watson AI platform is widely used in B2B sales for lead generation, sales forecasting, and customer engagement. It also provides natural language processing capabilities that enable businesses to engage in conversational sales with customers. 3. Oracle: Oracle offers an AI-powered sales platform that provides predictive analytics, lead scoring, and sales forecasting. It also offers chatbots and voice assistants that enable businesses to engage with customers in a more personalized way. 4. SAP: SAP offers an AI-powered sales platform that provides predictive analytics, lead scoring, and customer insights. It also offers chat-bots and voice assistants that enable businesses to engage with customers in real-time and provide personalized recommendations. 5. Microsoft: Microsoft's Dynamics 365 platform provides AI-powered sales automation capabilities, including predictive analytics, customer insights, and lead scoring. It also offers chatbots and voice assistants that enable businesses to engage with customers in a more personalized way. I see these companies leading the evolution in B2B sales because they have invested heavily in AI research and development and have built platforms that provide businesses with the tools they need to succeed in an AI-powered world.
They have also demonstrated a track record of success, with many businesses reporting significant improvements in win rates, deal size, ARR, CLTV, and CAC after implementing their AI-powered sales systems.
Enclosing some related links and insight on growing and measuring growth. Please see below:
https://www.mattallendevelopment.com/post/key-measures-strategies-for-the-cro-m-allen-s-pov
https://www.mattallendevelopment.com/post/cro-sales-pro-what-s-your-plan-this-month-this-week
I hope you are having a great close to this week and if you have interest in diving into your own situation or challenge, would love to help.
Enjoy the weekend.
Matt Slonaker Founder & CEO of M. Allen (M) 972.740.4300 (E)mslonaker@mattallendevelopment.com (W) www.mattallendevelopment.com
About the author:
Matt Slonaker is a highly accomplished business executive, with a strong track record in generating revenue growth and leading teams. He has experience working with both startups and multibillion-dollar market leaders, and has managed over a billion dollars in revenue in the last decade. He has founded his own company, M. Allen, and served over 20 clients since 2020, and has also worked in executive roles at global companies such as Firstsource, Morgan Stanley, JP Morgan Chase, and H&R Block. He is skilled in operations, revenue enablement, information technology, and other areas. Additionally, he is a US Military Combat Veteran and a career coach for military veterans in transition to the civilian sector since 2017.
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