McKinsey Survey: Global B2B decision maker response to COVID-19 crisis

McKinsey & Company 1
22 22
36 35
48 49
44 46
31 29
20 19
Considering
and evaluating
new suppliers
Identifying and
researching
new suppliers
Ordering Reordering
Most B2B supplier interactions are remote or
digital self-service
Current way of interacting with suppliers’ sales reps during different
stages1,2
% of respondents
1. Q: How do you currently interact with sales reps from your company’s suppliers during the following stages of interactions?
2. Figures may not sum to 100% because of rounding.
In-person
interactions
Remote human
interactions
Digital
self-service
interactions
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/27–8/11/2020 (n = 3,626)
of the time, B2B decision
makers have in-person
interactions with company
suppliers
~20–30%

23 23
36 35
45 48
43 44
32 29
21 20
Identifying and
researching
new suppliers
Considering
and evaluating
new suppliers
ReorderingOrdering
This current remote and self-service sales model
is exactly what is preferred by B2B buyers
Preferred way of interacting with suppliers’ sales reps during different
stages1,2
% of respondents
1. Q: How would you prefer to interact with sales reps from your company’s suppliers during the following stages of interactions?
In-person
interactions
Remote human
interactions
Digital
self-service
interactions
of B2B decision makers prefer
remote human interactions or
digital self-service instead of
in-person interactions, citing
ease of scheduling, savings on
travel expenses and safety as
their top three reasons why
~70–80%

15
31
29
20
6
August 11
Three in four B2B decision makers believe the new (mostly remote)
sales model is as effective or more so now than prior to COVID-19
11
25
29
28
7
April 28
Much less effective
Somewhat less effective
As effective as before
Somewhat more effective
Much more effective
Effectiveness of new sales model in reaching and serving customers1,2
% of respondents
1. Q: How effective is your company’s new sales model at reaching and serving customers?
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020 (n = 3,755), McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/27–8/11/2020 (n = 3,626)
65%
as effective or
more so
compared to prior
to COVID-19
75%
as effective or
more so
compared to prior
to COVID-19

B2B decision makers believe the new model is even more effective
for prospecting as it is for existing customers
Effectiveness of new sales model at reaching and serving customers and in acquiring new
customers1,2,3
% of respondents
15
33
28
20
5
August 11
Much more effective
Much less effective
76%
as effective or
more so
compared to prior
to COVID-19
2. Q: How effective is the new sales model in acquiring new customers (eg, those that have never purchased from your organization before)?
Current customers New customers
August 11
15
31
29
20
6
75%
as effective or
more so
compared to prior
to COVID-19

Belief in the effectiveness of new (mostly remote) sales model has
increased in all countries since April
Effectiveness of new sales model in reaching and serving customers1,2
% of respondents
15 11 16 8 12
38
21 18
31
24 28 25
29
30
46
31
21
45
35
27
29
42 33
38 28 37
23
35
15 30 21
29
20 23 29 23 21 23 15
26 15 16 18 20
11
65
46
All
countries
37 7
France Germany India
43
Italy
6
JapanSpain UK China US
4
6 6
3
S. Korea
6
Brazil
Much less effective
Much more effective
% of respondents choosing “as effective” or more so compared to prior to COVID-19X%
Percentage-point change in
respondents choosing “as
effective” or more so compared
to April
Europe APAC
10% 22% 7% 6% 13% 17% 11% 2% 4% 7% 19% 9%
75%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/27–8/11/2020, (US n = 602), (France n = 206), (Spain n = 200), (Italy n = 401), (UK n = 206), (Germany n = 401), (China n = 408),
(S. Korea n = 200), (Japan n = 200), (India n = 400), (Brazil n = 402)
71% 67% 74% 73% 75% 81% 70% 74% 78% 77% 74%

B2B decision makers believe the new (mostly remote) sales model is as
effective for prospecting or more so now than prior to COVID-19
Effectiveness of new sales model in acquiring new customers1,2
% of respondents
Much more effective
Much less effective
1. Q: How effective is the new sales model in acquiring new customers (eg, those that have never purchased from your organization before)?
15 10 15 11 13
35
8
22 19
33
22
31 29
33
30
44
31
30
46
38
27
28
35
32
38 25 34
25
35
15
27
23
27
20
28
26
18 22 24 15
25
14 15 15
22
10
6
5
France
5 2
GermanyAll
countries
4
6
5
Italy
5
Spain Japan
3
UK
7
China US
7
4
India
6
S. Korea
3
Brazil
77%63% 69%76% 70%75% 82%73% 73%81% 83%80%
% of respondents choosing “as effective” or more so compared to prior to COVID-19X%
Europe APAC

38
32
12
15
1
under $50,000
$500,000 to < $1 million
$50,000 to < $500,000
I would not make a purchase via
end to end digital self service
$1 million or more
Remote and self-service is not just for low-value
purchases; a majority spend $50K or more
Maximum order value you would purchase through end-to-end digital self-service
and remote human interactions for a new product or service category1,2
% of respondents
1. Q: What is the maximum order value that you would purchase through end-to-end digital self-serve and remote human interactions for a new product or service category?
2. Numbers do not add to 100% because “I don’t know” option offered was not included for analysis.
would spend more than
$50,000 on a completely
self-serve or remote
interaction
97%
of B2B buyers might
make a purchase in a
fully end-to-end, digital
self-service model
~60%

Before COVID-19 During COVID-19
The majority of B2B companies have shifted their go-to-market model
from traditional to digital, with heavy reliance on video and online chat
1. Q: In what ways was your company’s product or service sold before COVID-19?
2. Q: Now today, in what ways is your company’s product or service sold during COVID-19?
Go-to-market sales model during COVID-191,2
% of respondents
61
52
13
38
47
40
52
29
50
13
53
48
49
55
Traditional
Digital interaction
with sales rep
Digital
self-serve
In-person
Via videoconference (eg, sales reps interacting
with customers via Zoom, Teams, Skype, etc.)
Phone
Email
Online chat (eg, chatting with customers via web
chat, email, etc.)
E-commerce (eg, products/services sold directly
online with no sales rep involved)
Fax
X% % change
% change
-52%
-3%
-6%
41%
1%
23%
6%

1. Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…/during COVID-19 is now driven by…
2. Figures may not sum to 100% because responses under “other” option offered were not included in analysis, and because of rounding.
Before COVID-19 During COVID-19
Revenue from videoconference, online chat, and e-commerce has
increased substantially
6%
4%
69%
8%
31%
17%
X% % change
Source of revenue before and during COVID-191,2
% of revenue % change
28
13
2
11
13
11
20
13
14
3
19
14
14
23
Traditional
Digital interaction
with sales rep
Digital
self-serve
In-person
Via videoconference (eg, sales reps interacting
with customers via Zoom, Teams, Skype, etc.)
Phone
Email
Online chat (eg, chatting with customers via web
chat, email, etc.)
E-commerce (eg, products/services sold directly
online with no sales rep involved)
Fax
-55%

Video is almost always ‘more helpful’ than audio
alone
79
76
76
77
14
16
15
16
8
8
9
7
1. Q: How much more or less helpful is it to use video (eg, Zoom, WebEx, Teams) vs phone only in the following situations?
2. Q: What percentage of your customer meetings now take place via videoconference (eg, Zoom, Teams, Skype, etc.) where participants can “see” one another via video?
3. Q: If you are unable to physically meet in-person, for which of these commercial activities do you prefer video in addition to audio?
Helpfulness of video (eg, Zoom, WebEx, Teams) vs
phone only in different situations1
% of respondents
Meeting with others
in your company
Meeting with
existing customers
Meeting with
prospects
Meeting with
vendors/suppliers
More helpful to use video Neutral Less helpful to use video
of B2B customer
meetings now take place
via videoconference (eg,
Zoom, Teams, Skype,
etc.) where participants
can see one another
via video2
53%
B2B buyers also
believe video is
preferred for:3
Demonstration of
products/services
Pricing negotiations
Customer support/
trouble shooting
Day-to-day account
management

Screensharing and seeing one another are the most helpful features
of videoconferencing
1. Q: What features/functionality of video conferencing are most helpful for you?
75
67
40
38
36
Most helpful features/functionality of videoconferencing1
% of respondents ranking in top 3
Screensharing
Annotation
Breakout rooms
Whiteboards
Seeing one another

12
15
34
22
15
One in three B2B companies has already reduced both their
FTEs for in-person sales and number of physical locations
12
14
37
20
1537%
companies reduced their
number of people (FTEs)
on in-person sales teams
by more than 4% due to
COVID-19
35%
companies reduced their
number of physical locations
using in-person sales by more
than 4% due to COVID-19
Number of people (FTEs) in in-person sales
Number of physical locations3 using in-person
sales
1. Q: How has your organization changed your in-person sales team structure?
2. Figures may not sum to 100% because of rounding; “not applicable” option was given; however not included for analysis.
3. Dealerships, stores, branches, etc.
Reduced +11%
Reduced 4–10%
About the same
(within ±3%)
Increased 4–10%
Increased +11%
Changes to in-person sales team structure (changes already made)1,2
% of respondents

In most countries, one in three B2B companies has already reduced
their FTEs for in-person sales…
2. Figures may not sum to 100% because of rounding; “not applicable” option offered was not included for analysis.
Reduced +11%
Reduced 4–10%
About the same
(within ±3%)
Increased 4–10%
Increased +11%
Changes in number of people (FTEs) in in-person sales (changes already made)1,2
% of respondents
x% percentage of respondents who indicated reduction of more than 4% due to COVID-19
12 8 10 7 10
31
13 12 17
15
13
17 17
13
14 22
11
17
13 12
15
34
43
40 39
38
39 37
49
15
35
23
32
22 23 24 21
26
20
28 20
18 27
17
19
15 13 11 10 16 16
8
13 19 12
32
16
ItalyAll
countries
6
France Germany Spain UK China Japan India S. Korea Brazil US
65
31%
Europe APAC
36% 35%37% 33%36% 36%42% 35%39% 49%37%

…and they’ve reduced their number of physical locations
2. Figures may not sum to 100% because of rounding; “not applicable” option offered was not included for analysis.
3. Dealerships, stores, branches, etc.
Changes in number of physical locations3 using in-person sales (changes already made)1,2
% of respondents
36%36% 28%35% 28%34% 30%45% 27%42% 51%34%
x% percentage of respondents who indicated reduction of more than 4% due to COVID-19
12 11 10 12 7
30
15
7
15
14
19 13
8
13
24
7
17
9
9
15
37
49
45
38
44
41
34
55
20
33
24
42
20 23
19
19
27
19
21
16 18
30
24
14
15 13 9
17 18 15
9
12 16 12
27
13
GermanyAll
countries
France
6
Italy Spain
6
UK China Japan India S. Korea Brazil US
6 2
Europe APAC
Reduced +11%
Reduced 4–10%
About the same
(within ±3%)
Increased 4–10%
Increased +11%

-25-30
-20
5-20 -10-15
10
-5 0 10
-25
-15
-10
-5
0
5
Consumer/retail
Advanced industries
Technology, media, and telecom
Global energy and materials
Pharma and medical products
Travel, transportation, and logistics
Global finance, banking, and insurance
The travel, transport, and logistics industry is seeing the sharpest
reduction in FTEs for in-person sales and physical locations
Number of
physical
locations
using in-
person
sales
Net addition1 of people (FTEs) in in-person sales and number of physical locations (changes already made)2
% of respondents
1. Net addition: % of respondents reporting reduction subtracted from % of respondents reporting increase.

0 5-15 -5-30 15
-15
-10-25 20-20 10
-35
-30
-25
-20
-10
-5
0
5
10
15
20
25
India
Brazil
France
Spain
S. Korea
Germany
ItalyUK
China
Japan
US
Most countries are seeing a sharp reduction in both FTEs for
in-person sales and physical locations
Number of
physical
locations
using in-
person
sales
Net addition1 of people (FTEs) in in-person sales and number of physical locations (changes already made)2
% of respondents
1. Net addition: % of respondents reporting reduction subtracted from % of respondents reporting increase.

McKinsey & Company 17McKinsey & Company 17
Contents
The next normal of sales is here to stay—what it will take to succeed

The next normal is here to stay—companies
expect the new sales model to persist
1. Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19? Figures may not
sum to 100% because of rounding.
Staying power of new sales models1
% of respondents
89%
are “very likely” and “somewhat
likely” to sustain these shifts
12+ months after COVID-19,
up from 80% in
April 2020
32
48
17
4
46
43
8
3
April 28 August 11
Very likely to sustain 12+ months after
Somewhat likely to sustain 12 months after
Unlikely to sustain 12 months after
Made no GTM changes
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020 (n = 3,755), McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/27–8/11/2020 (n = 3,626)

11
29
30
19
11
In-person meetings might not return at scale until 2021;
even then, more than half are expected to remain virtual
14
46
32
8
40%
of B2B companies
expect to have
in-person meetings
again in 2021
60%
of B2B companies
expect to have less
than 50% in-person
interactions even
when their sales
force is able to
have in-person
meetings again
Quarter when sales force is expected to have in-person
meetings again1
% of respondents
In-person vs remote interactions (when your sales
force is capable of having in-person meetings)2
% of respondents
1. Q: When do you expect your sales force to have in-person meetings again? Figures may not sum to 100% because of rounding.
2. Q: When your sales force is capable of having in-person meetings, what percent of interactions do you think will be in-person vs remote? Figures may not sum to 100% because of rounding.
76–100% in-person
51–75% in-person
26–50% in-person
1–25% in-person
Aug–Sep 2020
Oct–Dec 2020
Jan–Mar 2021
Apr 2021 or later
Already having
in-person meetings

11 9 8 10 15 9
24
8
16 13 14
29 28
20
34
31 39
9
15 41 24
38 34
30
23 36
31 25
30
36
21
33
33
31
28
19
28 20
17
16
14
36 12
17
13
14
17
11 12 16
8 14 8
17
29
16
6
BrazilSpainAll
countries
France Germany Italy UK China Japan India S. Korea US
2 4
3
In-person meetings might not return at full scale until 2021
40%
Quarter when sales force is expected to have in-person meetings again1,2
% of respondents
1. Q: When do you expect your sales force to have in-person meetings again? Figures may not sum to 100% because of rounding.
2. Figures may not sum up exactly due to rounding.
Aug–Sep 2020
Oct–Dec 2020
Jan–Mar 2021
Apr 2021 or later
Already having
in-person meetings
% of respondents who expect sales force to have in-person meetings again no earlier than in 2021x%
Europe APAC
37% 28% 44% 46% 48% 12% 39% 49% 40% 51% 48%

Even once in-person interactions become feasible again, more
than half of all interactions are expected to remain virtual
1. Q: When your sales force is capable of having in-person meetings, what percent of interactions do you think will be in-person vs remote?
2. Figures may not sum up exactly due to rounding
14 16 18 17 15 17
8
18
10
17 15
46
51 52
43
59
42
49
37
38
40
47 47
32
26
26
33
23
35 39
32 39 44
25 31
8 7 7
14 13 11 10 8
USChinaItalyAll
countries
France Germany UKSpain Japan
6
India S. Korea Brazil
554
6
60%
Percent of interactions (in-person vs remote) when your sales force is capable of having in-person meetings1,2
% of respondents
76–100% in-person
51–75% in-person
26–50% in-person
1–25% in-person
% of respondents who expect their salesforce to have no more than 50% in-person interactions once feasible againx%
Europe APAC
67% 70% 60% 74% 59% 57% 55% 48% 46% 64% 62%

Most companies believe that their sales teams need both
skill building and technology for effective remote selling
1. Q: How much do you agree or disagree with the following statements?
2. Q: Thinking about your company’s future in the context of COVID-19, how much do you agree or disagree with the following statements?
85% 83% 81%
Tech beyond
videoconference
Additional skills
for in-person to
remote transition
Basic video
technology
“Strongly agree”, “agree” and “somewhat agree”
68% 76%
Redesigned
sales trainings
New profiles
of sales reps
of B2B companies
believe that they
have both
capabilities and
technology to sell
today, however…
87%
81%
Have both capabilities
and technology to
effectively sell today
Need both skill building
and technology
~90% companies
believe that they
need to further
develop both
capabilities and
technology
4 in 5
B2Bs believe that their sales teams need to adjust to
following terms1
% of respondents
Skills and technologies needed2
% of respondents

One in two B2B companies is looking to potentially reduce their
number of sales reps as they refine their overall sales model
37
58
Expect to reduce
going forward
Have already reduced
1.5X
1. Thinking about your company’s future in the context of COVID-19, how much do you agree or disagree with the following statement?
2. How has your organization changed your in-person sales team structure?
3. For example, ability to shift sales rep territories or quotas mid-year to target-higher value opportunities.
58%
72%
81%
83%
Will be decreasing the number
of sales reps
Need to switch to a different,
more dynamic resourcing model
Will be redefining sales roles to
focus on different sales methods
Will introduce a more agile sales
planning process3
B2B companies believe that they need to adjust
to the following terms as new normal1
% of respondents
…and as an implication, future reductions
in the number of sales reps are expected1,2
% of respondents
“Strongly agree,” “agree,” and “somewhat agree”

McKinsey Survey: Global B2B decision maker response to COVID-19 crisis

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