B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.

1. McKinsey & Company 1
8 10
18 20
52 52
56 55
41 39
27 26
OrderingConsidering
and evaluating
new suppliers
Identifying and
researching
new suppliers
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 7/31–8/6/2020 Japan (n = 200)
of the time, B2B decision
makers have in-person
interactions with company
suppliers
~25–40%

2. McKinsey & Company 2
12 10
20 19
48 51
58 62
41 40
23 20
Identifying and
researching
new suppliers
Considering
and evaluating
new suppliers
Ordering Reordering
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?
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 7/31–8/6/2020 Japan (n = 200)
of B2B decision makers prefer
remote human interactions or
digital self-service instead of
in-person interactions, citing
savings on travel expenses,
safety and efficiency as their
top three reasons why
~60–80%

3. McKinsey & Company 3
Two in three B2B decision makers believe the new (mostly remote)
sales model is as effective or more so now than prior to COVID-19
Effectiveness of new sales model in reaching and serving customers1,2
% of respondents
19
33
42
5
1
21
44
28
4
3
53%
as effective
or more so
compared
to prior to
COVID-19
31
35
26
6
4
68%
as effective
or more so
compared
to prior to
COVID-19
70%
as effective
or more so
compared
to prior to
COVID-19
April 8 April 28 August 6
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/6–4/8/2020 (n = 200); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/28/2020 (n = 202);
McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 (n = 200)
Much less effective
Somewhat less effective
As effective as before
Somewhat more effective
Much more effective
1. Q: How effective is your company’s new sales model at reaching and serving customers?
2. Figures may not sum to 100% because of rounding.

4. McKinsey & Company 4
Both SMB and enterprise B2B decision makers view the new
sales model to be just as effective or more so
1. Q: How effective is your company’s new sales model at reaching and serving customers?
2. Figures may not sum to 100% because of rounding.
3. SMBs are companies with annual revenue less than US $100 million.
4. Enterprises are companies with annual revenue equal to or more than US $100 million.
10
50
38
0
3
April 8
60%
71% 70%
Effectiveness of new sales model in reaching and serving customers1,2
% of respondents
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/6–4/8/2020 (n = 200); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/28/2020 (n = 202);
McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 (n = 200)
2
23
46
26
April 28
3
1
26
43
25
4
August 6
2
22
27
43
6
April 8
51%
66%
as
effective or
more so
compared
to prior to
COVID-19
69%
4
20
42
29
April 28
4
5
34
30
26
6
August 6
As effective as beforeMuch less effective Somewhat less effective Much more effectiveSomewhat more effective
SMB3 Enterprise4

5. McKinsey & Company 5
B2B decision makers believe the new model is just as 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
4
31
35
25
7
August 6
Somewhat less effective
As effective as before
Somewhat more effective
Much more effective
Much less effective
70%
as effective or
more so
compared to prior
to COVID-19
1. Q: How effective is your company’s new sales model at reaching and serving customers?
2. Q: How effective is the new sales model in acquiring new customers (eg, those that have never purchased from your organization before)?
3. Figures may not sum to 100% because of rounding.
Current customers New customers
August 6
4
31
35
26
6
70%
as effective or
more so
compared to prior
to COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

6. McKinsey & Company 6
The effectiveness of the new model has some variations across
industries and customer interaction types
1. Effectiveness: % of companies who think new sales model is as effective or more effective.
2. Q: How effective is your company’s new sales model at reaching and serving customers overall?
3. Q: How effective is the new sales model in acquiring new customers (eg, those that have never purchased from your organization before)?
4. SMBs are companies with annual revenue less than US $100 million.
5. Enterprises are companies with annual revenue equal to or more than US $100 million.
Effectivenesss1 of new sales model in reaching and serving customers and acquiring new customers2,3
% of respondents
Effectiveness: % of companies who think new sales model is as
effective or more effective
<60% 61% to 70% 71% to 80% 81% to 90% >90%
Consumer/retail
Global finance, banking, and insurance
Travel, transportation, and logistics
Pharma and medical products
Global energy and materials
Technology, media, and telecom
Advanced industries
Overall effectiveness
Reaching and serving
customers
Reaching and serving
customers
Acquiring new
customers
Acquiring new
customers
SMB4 Enterprise5
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

7. McKinsey & Company 7
41
21
8
21
2
$50,000 to < $500,000
under $50,000
$1 million or more
$500,000 to < $1 million
I would not make a purchase via
end-to-end digital self service
Remote and self-service is not just for low-value
purchases; a majority spend $50K or more
Maximum order value that you would purchase through end-to-end digital self-
serve 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. “I don’t know” option was given however not included for analysis.
would spend more than
$50,000 on a completely
self-serve or remote
interaction
~50%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

8. McKinsey & Company 8
The majority of B2B companies has shifted their go-to-market
model from traditional to digital, with heavy reliance on video
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
62
44
19
21
45
29
23
39
45
20
41
47
36
31
Traditional
Digital interaction
with sales rep
Digital
self-service
In-person
Via video conference (eg, sales reps interacting
with customers via Zoom, 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
% change
-37%
2%
5%
100%
3%
25%
36%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)
Before COVID-19 During COVID-19X% % change

9. McKinsey & Company 9
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 to “other” option offered not included in analysis, and because of rounding.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)
Revenue from videoconference and e-commerce has increased
substantially
-43%
2%
12%
106%
15%
11%
45%
Source of revenue before and during COVID-191,2
% of revenue % change
38
13
4
8
14
10
7
22
13
5
16
17
12
10
Traditional
Digital interaction
with sales rep
Digital
self-serve
In-person
Via video conference (eg, sales reps interacting
with customers via Zoom, 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
Before COVID-19 During COVID-19X% % change

10. McKinsey & Company 10
However, e-commerce and videoconference revenue has increased
more among enterprise companies than SMBs
Source of revenue before and during COVID-191
% of revenue
1. Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…/during COVID-19 is now driven by…
2. SMBs are companies with annual revenue less than US $100 million.
3. Enterprises are companies with annual revenue equal to or more than US $100 million.
9
7
11
9
E-commerce Videoconference
Pre-COVID-19 During COVID-19
6
8
10
20
E-commerce Videoconference
16% and 18% 72% and 152%
increase in revenue from
e-commerce and
videoconference,
respectively, for SMBs
during COVID-19
compared to pre-COVID-19
increase in revenue from
e-commerce and
videoconference,
respectively, for enterprises
during COVID-19
compared to pre-COVID-19
SMB2 Enterprise3
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

11. McKinsey & Company 11
Video is almost always ‘more helpful’ than audio
alone
73
75
67
72
17
16
22
19
10
10
12
10
1. Q: How much more or less helpful is it to use video (eg, Zoom, WebEx, Microsoft Teams) vs phone only in the following situations?
2. Q: What percentage of your customer meetings now take place via videoconference (eg, Zoom, 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, Microsoft
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, Microsoft Teams,
Skype, etc.) where
participants can see one
other via video2
39%
B2B buyers also
believe video is
preferred for:3
Demonstration of
products/services
Pricing negotiations
Customer support/
trouble shooting
Day-to-day account
management
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

12. McKinsey & Company 12
Screensharing and seeing one another are the most helpful features
of videoconferencing
1. Q: What features/functionality of videoconferencing are most helpful for you?
71
66
46
31
28
Most helpful features/functionality of videoconferencing1
% of respondents ranking in top 3
Screensharing
Breakout rooms
Whiteboards
Annotation
Seeing one another
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

13. McKinsey & Company 13
6
11
49
20
13
One in three B2B companies has already reduced both their
in-person sales FTEs and number of physical locations
7
7
55
16
1233%
companies reduced their
number of people (FTEs)
on in-person sales teams
by more than 4% due to
COVID-19
28%
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 offered was 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
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

14. McKinsey & Company 14
Most industries are seeing reductions in FTEs for in-person sales
and physical locations
Number of
physical
locations
using
in-person
sales
Number of people (FTEs) in 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.
2. Q: How has your organization changed your in-person sales team structure?
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)
105-55 -35-50 -40
20
0-45
-60
25-25 -20 15-15 -10 -5-30 20
-50
-40
-30
-20
-10
0
10
30
40
Global energy and materials
Consumer/retail
Advanced industries
Technology, media, and telecom
Pharma and medical products
Global finance, banking, and insurance
Travel, transportation, and logistics

15. McKinsey & Company 15McKinsey & Company 15
Contents
The next normal of sales is here to stay—what it will take to succeed

16. McKinsey & Company 16
The next normal is here to stay: companies expect
the new sales model to persist
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/28/2020 (n = 202); McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 (n = 200)
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
77%
are “very likely” and “somewhat
likely” to sustain these shifts
12+ months after COVID-19,
up from 63% in
April 2020
18
45
30
7
36
41
17
7
April 28 August 6
Very likely to sustain 12+ months after
Somewhat likely to sustain 12 months after
Unlikely to sustain 12 months after
Made no GTM changes

17. McKinsey & Company 17
24
15
21
12
29
In-person meetings might not return at scale until 2021;
even then, more than half are expected to remain virtual
18
37
32
14
39%
of B2B companies
expect to have
in-person meetings
again in 2021
55%
of B2B companies
expect to have less
than 50% in-person
interactions even
when their sales
force is capable of
having 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
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

18. McKinsey & Company 18
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?
83% 83% 87%
Additional skills
for in-person to
remote transition
Basic video technology Tech beyond
videoconference
“Strongly agree,” “agree,” and “somewhat agree”
74% 78%
New profiles
of sales reps
Redesigned
sales trainings
of B2B companies
believe that they
have both
capabilities and
technology to sell
today, however…
78%
88%
Have both capabilities
and technology to
effectively sell today
Need both skill building
and technology
~80% companies
believe that they
need to further
develop both
capabilities and
technology
~90%
B2Bs believe that their sales teams need to adjust to
following terms1
% of respondents
Skills and technologies needed2
% of respondents
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

19. McKinsey & Company 19
Three in five B2B companies are looking to potentially reduce their
numbers of sales reps as they refine their overall sales model
33
59
Expect to reduce
going forward
Have already reduced
2X
1. Thinking about your company’s future in the context of COVID-19, how much do you agree or disagree with the following statements?
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.
59%
74%
81%
83%
Need to switch to a different,
more dynamic resourcing model
Will be decreasing the number
of sales reps
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”
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)

20. McKinsey & Company 20
Companies expect to make other adjustments in addition to shifting
their sales model
1. How much do you agree or disagree with the following statements?
B2B companies believe that they need to adjust to the following terms as new normal1
% of respondents
% of respondents who agree (includes “strongly
agree,” “agree,” and “somewhat agree”) <60% 61% to 70% 71% to 80% 81% to 90% >90%
Overall
Japan
(all
industries)
Advanced
industries
Technology,
media, and
telecom
Global
energy and
materials
Pharma and
medical
products
Travel,
transport,
and logistics
Consumer/
retail
Will shift geographic
focus to areas of
lower risk for
COVID-19
Will introduce new
products or services
as a result of
COVID-19
Will increase focus on
long-term
sustainability of
products and services
Global
finance,
banking, and
insurance
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 Japan (n = 200)