The numbers are clear: there is an interesting imbalance set to dominate the B2B selling environment – the relationship between buyers and sellers is shifting, but not for the reasons you think. Driving the imbalance are factors like:
According to the US Department of Labor Bureau of Labor Statistics, the number of B2B salespeople is expected to grow 9%-25% through 2016. On the other side of the desk, the buyers, purchasing agents, and purchasing managers are expected to grow much slower, with some sectors shrinking by 9%. The current demographic makeup of buyers, purchasing agents and purchasing managers shows that 16.2% are older than 56 and almost 70% are between 35-55 (Institute of Supply Management 2006). It is easy to see that we are moving towards a younger workforce of sellers who must sell to an older workforce of buyers. In fact, with a population of 1.9 million B2B sales professionals and growing, this trend will significantly impact the professional sales ranks, and the Millennial Generation (born between 1981 and 2002) looks to be the generation contributing the most significant number of younger workers to this trend.
Companies are facing the prospect of seeing a large percentage of their sales force retire or become eligible for retirement. Some companies see younger salespeople as more updated, preferable, and cost-effective, while others are concerned that the loss of experienced sales veterans will negatively impact their bottom line.
In Economy 2.0, sales execution has changed from a sales activity, process-driven methodology to one that focuses on outcomes (not steps) and requires that the salesperson exercise good judgment and insight with their customers. In addition to their inexperience, younger salespeople entering the market face the challenge of establishing relationships with older buyers and executive decision makers.
In their study, “How salespeople deal with intergenerational relationship selling”, authors Ellen Pullins, Michael Mallin, Richard Buehrer and Deirdre Jones of the University of Toledo, ask the question, “is it possible (for Millennial sales people to relate to older buyers)?” and “how should it best be accomplished”?
They discovered through interviews with Millennials that they face significant “judgment and skepticism” hurdles from their older customers. They are frequently subjected to scrutiny and discrimination from buyers, which “creates an added layer of frustrating obstacles to an already challenging trade”. Primarily due to inexperience, their competence, credibility, dependability, and overall ability to support the customer’s needs are questioned by their older counterparts. In addition, there are generational differences in values, beliefs, and places in history, and it is easy to see how the Gen-X and Baby Boomers might not relate to their younger Millennial counterparts.
The emergence of this trend has caught management off guard—they pay little to no attention to the subject. Pullins, Mallin, Buehrer, and Jones point out that “management does a poor job tailoring training and work preparation to the unique needs of each generation” and offers no formal training to address the generational challenges that exist between buyer and seller.
In interviews with Millennials, the authors discovered that younger salespeople were “frustrated and dissatisfied with their inability to relate to older generations” but felt “confident that they can sell across the generations.”
To help Millennials and their managers deal with the challenges of intergenerational selling relationships, the authors isolated five strategies that can be used to bridge the age gap. They include:
We are just waking up to this trend. If you are a sales coach or manager, be certain to integrate intergenerational selling relationship skills training into your program. If you are a Millennial, know that you will face challenges with older buyers, but know that there are proven strategies to help you overcome the challenges and build a strong relationship with your customers.