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
15
22
33 27
58 40
41 48
27
38
26 25
OrderingIdentifying and
researching
new suppliers
Considering
and evaluating
new suppliers
Reordering
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 China (n = 408)
of B2B decision makers have
in-person interactions with
company suppliers
~25–40%
Most B2B supplier interactions are remote or
digital self-service

2. McKinsey & Company 2
17 23
35 30
53 47
42
45
30 30
24 25
Identifying and
researching
new suppliers
ReorderingConsidering
and evaluating
new suppliers
Ordering
Preferred way of interacting with suppliers’ sales reps during different
stages1,2
% of respondents2
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 China (n = 408)
of B2B decision makers prefer
remote human interactions or
digital self-service instead of
in-person interactions, citing
ease of scheduling, safety, and
savings on travel expenses as
their top three reasons why
~70–75%
This current remote and self-service sales model
is exactly what is preferred by B2B buyers

3. McKinsey & Company 3
Four in five 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
5
25
21
43
6
7
40
23
28
2
51%
as effective
or more so
compared
to prior to
COVID-19 12
46
23
15
4
70%
as effective
or more so
compared
to prior to
COVID-19
81%
as effective
or more so
compared
to prior to
COVID-19
April 9 April 28 August 6
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 3/30–4/9/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020 (n = 443);
McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 (n = 408)
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.
5
22
18
52
3
April 9
45%
66%
78%
Effectiveness of new sales model in reaching and serving customers1,2
% of respondents
SMB3 Enterprise4
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 3/30–4/9/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020 (n = 443);
McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 (n = 408)
7
31
28
32
2
April 28
10
36
32
18
3
August 6
5
26
23
39
7
April 9
54%
71%
as
effective or
more so
compared
to prior to
COVID-19
82%
8
43
20
27
2
April 28
13
51
18
14
4
August 6
Much less effective Somewhat less effective Much more effectiveAs effective as before Somewhat more effective

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
13
44
25
15
2
August 6
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 (n = 408)
Somewhat less effective
As effective as before
Somewhat more effective
Much more effective
Much less effective
82%
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
12
46
23
15
4
81%
as effective or
more so
compared to prior
to COVID-19

6. McKinsey & Company 6
The effectiveness of the new model has 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 China (n = 408)

7. McKinsey & Company 7
18
40
18
22
1
$500,000 to < $1 million
under $50,000
$50,000 to < $500,000
$1 million or more
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 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. “I don’t know” option was offered but not included for analysis.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
would spend more than
$50,000 on a completely
self-service or remote
interaction
98%
of B2B buyers might
make a purchase in a
fully end-to-end, digital
self-service model
~80%

8. McKinsey & Company 8
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 e-commerce
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
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
60
50
20
52
22
62
67
35
49
21
66
24
70
72
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
-41%
-4%
5%
26%
9%
13%
7%

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 under “other” option not included in analysis and because of rounding.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
Before COVID-19 During COVID-19
E-commerce, videoconference, and online chat now drive the bulk
of revenue
-53%
-3%
17%
41%
42%
15%
11%
X% % change
Source of revenue before and during COVID-191,2
% of revenue % change
24
12
4
14
4
18
24
11
11
5
20
5
20
26
Traditional
Digital interaction
with sales rep
Digital
self-serve
In-person
Via video conference (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

10. McKinsey & Company 10
Revenue from e-commerce and videoconference has increased across
both SMBs and enterprise companies
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.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
23
13
26
23
E-commerce Videoconference
During COVID-19
Pre-COVID-19
24
15
26
19
E-commerce Videoconference
14% and 80% 9% and 23%
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

11. McKinsey & Company 11
Video is almost always ‘more helpful’ than audio
alone
77
74
70
75
15
18
20
19
8
8
11
6
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
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 other 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
Less helpful to use videoMore helpful to use video Neutral
of B2B customer
meetings now take place
via videoconference (eg,
Zoom, Teams, Skype,
etc.) where participants
can see one another
via video2
42%
B2B buyers also
believe video is
preferred for:3
Demonstration of
products/services
Pricing negotiations
Customer support/
trouble shooting
Day-to-day account
management

12. McKinsey & Company 12
Screensharing and seeing one other are the most helpful features of
videoconferencing
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
1. Q: What features/functionality of videoconferencing are most helpful for you?
75
69
58
44
40
Most helpful features/functionality of videoconferencing1
% of respondents ranking in top 3
Screensharing
Whiteboards
Breakout rooms
Annotation
Seeing one another

13. McKinsey & Company 13
5
22
37
28
8
One in three B2B companies has already reduced both their
in-person sales FTEs and number of physical locations
12
24
34
21
9
36%
companies reduced their
number of people (FTEs)
on their in-person sales
teams by more than 4%
due to COVID-19
30%
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
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
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

14. McKinsey & Company 14
-30 5-25 -15-20 -10 15-5
40
0 10 20 25
30
-30
-20
-10
0
10
20
Technology, media, and telecom
Advanced industries
Global energy and materials
Pharma and medical products
Travel, transportation, and logistics
Global finance, banking, and insurance
Consumer/retail
Many 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) to 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 China (n = 408)

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 4/20–4/28/2020 (n = 443), McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 (n = 408)
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
91%
are “very likely” and “somewhat
likely” to sustain these shifts
12+ months after COVID-19,
about the same
as April 2020
30
61
8
2
34
56
6
4
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
3
9
36
36
17
Most B2B decision makers expect their sales force to have in-person
meetings in 2020, but they expect half of meetings to be virtual
8
49
39
5
12%
of B2B companies
expect to have
in-person meetings
again in 2021
57%
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
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
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

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?
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
91% 92% 92%
Additional skills
for in-person to
remote transition
Basic video technology Tech beyond
videoconference
“Strongly agree,” “agree,” and “somewhat agree”
84% 90%
Redesigned
sales trainings
New profiles
of sales reps
of B2B companies
believe that they
have both
capabilities and
technology to sell
today, however…
92%
93%
Have both capabilities
and technology to
effectively sell today
Need both skill building
and technology
92% companies
believe that they
need to further
develop both
capabilities and
technology
93%
B2Bs believe that their sales teams need to adjust to
the following terms1
% of respondents
Skills and technologies needed2
% of respondents

19. McKinsey & Company 19
Three in four B2B companies are looking to potentially reduce their
numbers of sales reps as they refine their overall sales model
36
73
Have already reduced Expect to reduce
going forward
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.
73%
83%
93%
95%
Will be redefining sales roles to
focus on different sales methods
Will be decreasing the number
of sales reps
Need to switch to a different,
more dynamic resourcing model
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 China (n = 408)

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?
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #3 7/31–8/6/2020 China (n = 408)
Chinese 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% 60% to 70% 70% to 80% 80% to 90% >90%
Overall
China
(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 the long-term
sustainability of their
products and services
Global
finance,
banking, and
insurance