By Jennifer Stanley, Partner at McKinsey.
A major shift has taken place in B2B. Sellers are rapidly pivoting to digital as they invest in innovative ways to present their offerings. Simultaneously, buyers are continuing to change their behaviour, acting more like consumers than traditional B2B customers and pushing leaders to balance digital self-service with in-person human interaction.
At McKinsey, we’ve been researching B2B buying and selling for more than a decade. This year, we surveyed nearly 4,000 B2B decision-makers across eight major industries globally. One key insight stood out: more than half of buyers (54%) are willing to walk away from their chosen supplier if they do not receivethe sophisticated purchasing experience they desire. When we dug deeper into what motivates buyers and their expectations of a B2B experience, the results crystallised into five fundamental truths. While the cost for B2B organisations of getting this wrong can be significant, the rewards for getting it right are equally large.
Truth 1 – The rule of thirds
The “rule of thirds” dominates the buying journey. This means that wherever buyers are in their purchase journey, a third of the time they want to connect with suppliers in-person, another third of the time they want remote interactions, and for the remaining third of their interactions, they want fully digital self-service options. Interestingly, this pattern is consistent across industries, geographies and purchase types, from high-value transactions to repeat buys. B2B buyers seem to want the same experiences everywhere, every time.
Truth 2 – Indispensable e-commerce
The centrality of e-commerce is the second fundamental truth. Almost three-quarters (71%) of B2B respondents to our survey offer e-commerce, with online sales accounting for 34% of their revenue. Since last year, for this group, e-commerce has dethroned in-person sales to become the top revenue-generating channel. For the fourth year in a row, e-commerce was ranked as the most effective channel by those who sell online.
The evolution of in-person
Our survey recorded the lowest percentage of revenues from in-person sales seen since the end of the pandemic – a finding that applied across all three archetypes of decision makers our study identified.
Among adapters – who are relationship-orientated, willing to try new channels but tend to stick with behaviours they are familiar with – 30% of revenue comes from e-commerce, with 20% reporting that in-person is the biggest earner. Seekers – those who demand a seamless omnichannel experience and are willing to shift to new suppliers – said 35% of revenue was from e-commerce, compared to 13% from in-person. Finally, innovators on the cutting edge who use newer technologies and gen AI to research suppliers get 38% of revenue from e-commerce compared to 19% from traditional in-person buying.
In response to this changing landscape, companies are allocating more money to e-commerce, whilst buyers’ interest in remote or self-service spending has accelerated – especially for orders of about $500,000 and in industries such as medical technology, which has been slower to adopt digital buying behaviours. Customers are also increasingly comfortable with remote and self-serve purchases, even for transactions exceeding half a million dollars.
Truth 3 – Omnichannel is gold
Omnichannel excellence is critical, our survey revealed. B2B customers now use an average of ten interaction channels – double the number from 2016. However, offering multiple options isn’t enough. Over half of buyers demand seamless integration across channels and will switch suppliers if their experience isn’t smooth.
Truth 4 – Hybrid work is working
Hybrid work environments are proving effective, with companies that adopt flexible location models achieving higher revenue growth compared to those with a single-location workforce. Businesses that enable employees to varytheir work locations demonstrate more growth compared to those where employees work ina single location for four or five days per week, with 35% of respondents from hybrid companies reporting revenue growth greater than 10%, compared to 28% for non-hybrid businesses.
Truth 5 – Gen AI’s got game
Generative AI is gaining traction, with 19% of B2B sales teams actively implementing it and 23% experimenting. Teams that combine data-driven personalisation with gen AI are 1.7 times more likely to expand market share, underscoring the technology’s transformative potential.
Adapting to a dynamic market
When navigating the new market reality, it is important for sellers to recognize that there is no longer a single customer type. Go-to-market models should provide multiple points of interaction, enabling all buyers to purchase when, where and how they wish. Each account requires a different approach. For example, key accounts may benefit from a dedicated sales representative along with self-service options, while transactional customers, who only occasionally need virtual or in-person meetings, can often be served well with self-service alone
Investing and reinvesting in omnichannel experiences ensures that customers’ needs are met and reduces the risk of them from walking away. However, this requires a shift in sellers’ mindsets. Those who get this right become “journey orchestrators” who deeply understand their customers and seamlessly guide them throughout the buying journey. E-commerce is the cornerstone of omnichannel, revenue growth, and the generation of valuable customer data, which can improve future experiences and help to personalise journeys.
By empowering sales teams and giving them choices about where to work, leaders can drive a positive impact on employee retention, engagement and productivity – but this doesn’t mean that location is irrelevant. B2B sales teams must sometimes be in office, so setting clear expectations and making strategic, transparent decisions will help boost the effectiveness of hybrid working.
Responsible adoption of gen AI is also becoming a commercial imperative. Top focus areas include enhancing customer engagement through omnichannel integration, optimising sales interactions, and boosting employee productivity. Advanced customer data management is critical for breaking down silos and streamlining technology ecosystems, driving innovation by combining generative AI with hyper-personalization.
Whatever decisions leaders make, one point is clear: they need to determine how to respond to the changing market. As buyers become more demanding and technological advancement becomes increasingly critical, choosing the right B2B strategy today is essential for future growth.
