What are sales channels?

Every business wants to sell to more customers, and these customers can be anywhere in the world. The bridge that ensures a product or a service reaches the customer is a sales channel. Choosing the right sales channel(s) can do wonders for your sales team. Before we explore more about B2B sales channels, let's look at why they're crucial.

Reach more customers with B2B sales channels

Sales channels give you the ability to reach a wider audience for your product or service. By spreading your sales efforts across multiple sales channels, you can rest assured that each channel is ensuring more customers are reached.

Let's say you're selling CRM software. You'd prefer to go the direct sales way where you talk to the customer, demonstrate your product, and finally close the deal.

Let's say you want to expand to newer markets. You can work with a partner that knows the market really well and sell your software through them, making it an indirect sales channel.

You unlock a different level of specialization

Every industry(manufacturing, healthcare, automobile, etc) is different with their unique set of requirements and buying processes. Having the right channel partners can help you sell more to these different industries as they understand them better – the use cases, customer pain points, and decision makers.

This gives you a head start as your team does not have to learn all the complexities associated with an industry. All you have to do is choose the right channel.

They're cost efficient

Running a full-fledged internal sales team can get very expensive very soon. Their salaries, commissions, software licenses, and training will burn your pockets. Selling through different sales channels helps with this.

For example, digital sales channels like B2B marketplaces or self-service portals can help amplify your sales when combined with your internal sales team without costing you a fortune.

Let's now take a look at the different types of B2B sales channels.

B2B sales channels

1. Direct sales

Here's where you put your in-house sales team to work. They will be responsible for identifying potential customers, reaching out to them, scheduling demos, handling objections, and ultimately closing deals.

This sales channel is highly suitable for high-ticket SaaS products, or for services that require deep customization. The best part about the direct sales channel is that you have complete control over your sales process. This leads to efficient sales cycles and deeper, more meaningful, relationships with your customers. But bear in mind that recruiting and training your in-house sales team can be really expensive and time-intensive.

2. Indirect sales

This is where someone else does the selling for you. The list includes referral partners, consultants, distributors, resellers, agents, and affiliates, among others.

This is especially helpful when you want a wider reach and enter new markets, as you can tap into your channel partners' existing customer base. The downside could be that you are not always in control of the sales messaging and the customer experience.

Self service

In the age of e-commerce, metaverse, and AI, people have grown accustomed to purchasing everything online. The same is true for B2B customers as well. Gartner says that 83% of B2B buyers prefer buying online. This is where self service comes into the picture. Self service helps businesses deliver personalized customer experiences with reduced reliance on their sales teams.

Your website does the selling. Customers visit your website, browse through the information available there, and proceed to sign up for a free trial. They have access to a wide range of resources that educate them on your product or service. They make the buying decision after the trial expires.

B2B marketplaces

Like any other marketplace, a B2B marketplace acts as a platform that connects buyers with many sellers of services or products. For example, review-based marketplaces like G2 or Capterra can help boost the credibility of your product or service and promise better visibility. This serves as a cost-effective channel that aims to reach global customers.

Trade shows and industry events

Trade shows and events provide a two-way communication channel. Businesses can showcase their products or services and build a connection with their potential customers. They also help businesses by boosting their visibility to a larger group of people within the same industry.

Conclusion

Sales channels are the lifelines of any business. They are crucial for the role they play in bringing the business and the customer together. In the B2B space, every sales channel has its place. When they are put together as pieces of a larger sales cycle, businesses can reap the benefits better.