Improving B2B sales performance

Some key internal and external influential factors

Sales performance
Widespread consensus prevails about the importance of identifying key sales performance
drivers. Various observers purport that growing need exists for better understanding of
these factors within an industrial context.
Many support the view that research should focus more on organizational and
environmental determinants. Part of the rationale for this is the ostensible scope of these
factors to have a significant yet variable impact on sales performance.
Some consideration in this area has been incorporated with different meta-analyses
conducted in the past. However, critics argue that most previous studies have largely
adopted a broader approach. Emphasis on issues like leadership in the sales function has
therefore taken precedence over attempts to identify and explore specific drivers.
The value of meta-analysis is to provide a solid foundation able to influence and guide future
research. A perfect illustration of such progression in this context is that initial recognition of
different organizational factors has been extended in subsequent work to likewise
acknowledge the potential role of those from the external environment.
Høgevold et al. (2021) consequently propose that in-depth investigation can more clearly
ascertain how internal and external factors can help improve a firm’s sales performance.
Hence, a core aim of this research is to develop a framework based on a more profound
understanding of certain organizational, environmental and leadership factors noted in
different prior meta-analyses.
In addition, there is growing awareness within the research community of the key role that
sellers play in a business-to-business (B2B) setting. It is claimed that they serve to help:
䊏 link the firm and its customers;
䊏 play a vital contribution to the effective management of key accounts;
䊏 facilitate wider relationship building between internal and external stakeholders; and
䊏 ensure sales strategies are appropriate to fulfill customer needs and meet internal sales
targets.
These issues are further explored by the authors in a study of different-sized Norwegian
B2B firms representing various product industries. Survey respondents included personnel
with different sales performance responsibilities and lengthy sales experience both
generally and with their current organization.

Key characteristics of the firm’s external and internal environments

Data analysis helps confirm the validity of the framework and proposed indicators. Extant
literature acknowledges that a firm’s should closely consider their external environment in

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the decision-making process. Given the degree of uncertainty that characterizes the
contemporary business world, this need has arguably accrued even greater importance.
In light of this, B2B companies must strive to:
䊏 increase their flexibility to enable them to adapt to change;
䊏 respond appropriately to unforeseen developments in the external environment; and
䊏 embrace and comply with new norms that transpire as the environment evolves.
Market orientation is a crucial aspect of any organization’s internal environment and one
with considerable scope to impact on sales performance. A strong rating in this area
typically indicates a firm:
䊏 where learning is integral to its organizational culture;
䊏 aware of key marketplace indicators like the actions of customers and rivals; and
䊏 which adopts a customer-centric approach to build and strengthen mutual trust with
external clients.

It has been pointed out that emphasis on market orientation can result in customers feeling
more positive about the company’s value offering. Increased ability of organizations to
respond appropriately as client needs change is another feasible outcome.
Few will be surprised to find teamwork identified as an internal component that can enhance
performance. A plethora of research confirms as much. Shrewd operators will be well aware
of this too and make efforts to:
䊏 develop a culture in which coworkers support each other;
䊏 ensure that managers are enthusiastic and supportive of collaboration; and
䊏 provide frequent opportunities to work within team settings.

Higher levels of engagement and productivity are just some outcomes that are more than
feasible in such a positive environment. In turn, this heightened work-ethic can turn
employees into role models for others and provide additional impetus for their performance.

The role of leadership

Similarly, the capacity of leadership to positively influence how a company performs hardly
needs spelling out. In this study, the proposed framework includes supervisory feedback in
the shape of positive behavioral feedback and positive output feedback. Although they are
respectively more general and specific labels, considerable overlap prevails. In both
instances, managers should aim to provide feedback which is fair. Delivered appropriately,
this can persuade employees to:
䊏 view feedback as being encouraging and helpful;
䊏 feel valued and believe their efforts are recognized and appreciated;
䊏 be motivated to perform even better; and
䊏 believe supervisors are interested in their development.

In addition, feedback from sales managers in this context plays a key role in ensuring
employees remain attuned to role expectations of a salesperson and stimulate them toward
performance enhancement. An emphasis on development can improve the impact of
communication and feedback on such as commitment, while simultaneously helping to
build and strengthen productive manager-employee relations.

VOL. 37 NO. 11 2021 j STRATEGIC DIRECTION j PAGE 17

 Part of the rationale for this is the ostensible scope of these
factors to have a significant yet variable impact on sales
performance.

The leadership style adopted will invariably go some way to determining whether or not these and
other desired outcomes are attainable. In this respect, numerous scholars assert that
transformational leadership features tick the right boxes. Exponents of this style grant subordinates
the autonomy to use their judgment and participate in decision-making. That such leaders serve
as positive role models who inspire others is also likely to favorably impact sales performance.
Mentoring and coaching are other facets of transformational leadership. The authors regard
the latter as significant in this context. Managers can work with employees on an individual
basis to transform them through appropriate engagements and activities. Encouragement
and informative feedback are likewise key ingredients in a package that can ultimately
improve sales job performance among those being coached.
Notwithstanding this, B2B companies must also consider the individual personalities of
sellers and accordingly adapt an appropriate leadership approach. It is important that
sellers are ‘coachable’ though, and this aspect should ideally be considered during the
recruitment process. Similar scrutiny when hiring managers would determine their potential
to become transformational leaders. Increasing sales manager awareness about the
required capabilities must be fundamental to this aim.
Firms can shape their internal environment by increasing the overall emphasis on training
and development. This positive effect on seller competencies then facilitates better sales
outcomes for the firm. Aims to further the performance potential of sellers might benefit from
marketing efforts and engagement with new technologies.
Given the degree of investment in sellers, companies should endeavor to limit staff turnover.
Training and coaching will help to some degree. In addition, it could prove smart to focus
on efforts to make sellers more closely identify with the organization and associated aspects
like the job role and leadership.

Comment
The review is based on: “Organisational and environmental indicators of B2B sales
Keywords: performance” by Nils M. Høgevold, Rocio Rodriguez, Gøran Svensson and Mornay
Business-to-business, Roberts-Lombard, published in Marketing Intelligence & Planning. Firms in the B2B context
Sales performance, can improve sales performance through an emphasis on several key performance
Supervisory leadership,
indicators. An approach that adapts to uncertainties within the external environment and
External environment,
Internal environment considers internal environment factors and sales leadership will become better positioned
to increase the ability of sellers and achieve desired sales outcomes.

Reference
Høgevold, N.M., Rodriguez, R., Svensson, G. and Roberts-Lombard, M. (2021), “Organisational and
environmental indicators of B2B sales performance”, Marketing Intelligence & Planning, doi: 10.1108/
MIP-03-2021-0100, ISSN 0263-4503.

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