1、Facing a new commercial realityCommercial trends study 2024January 20242Commercial Trends Study 2024Source:Simon-KucherEvaluation of B2B outlook and trends for 2024Action items and trend responseSimon-Kuchers recommendationsiStock/ipopbaWhats in store?Opinions and viewsof over 1700key stakeholders f

2、rom various B2B industriesIntroduction to this studyIn the dynamic landscape of 2024,companies have an optimistic outlook emerging from a turbulent 2023.Companies face exciting opportunities amidst global phenomena like macroeconomic shifts,innovation,evolving labour markets,and more.In total we hav

3、e had 1775respondents surveyed in the period between October 10thand November 21st3Sample overview Commercial Trends Study 2024Source:Simon-Kucher,Commercial Trends Study 2024 conducted from Oct 10th,2023 to Nov 21st,2023|Total n=1775SK Internal:Optional to include in deckAcross a variety of positio

4、ns Regions Industries and companiesChairpersonChief ExecutiveManagin DirectorMiddle managerNon Executive DirectorOther board level manager/directorOther senior manager/director below board levelOwner/ProprietorPartner71%17%12%EuropeAmericasAPAC2%3%3%3%4%5%5%6%6%7%8%12%14%23%Aerospace&DefensePaper&Pa

5、ckagingComponentsChemicalReal estateEnergyMedia/marketing/advertising/PR&salesLogisticsAutomotiveEducationTransportation&distributionConstructionManufacturing machineryBusiness services28%58%14%LargeCorporateCorporateSmallbusiness50010Revenue(mEUR)4Executive summary|Companies expect a positive outlo

6、ok on 2024 and are planning to launch measures to outgrow 2023 yet they are lacking readiness to executeSource:Simon-Kucher,Commercial Trends Study 2024 conducted from Oct 10th,2023 to Nov 21st,2023|Total n=1775 A.Evaluation of B2B outlook and trends for 2024B.Action items and trend responseCommerci

7、al Trends Study 2024A1B1Economic turmoil,talent retention and supply chain issues,etc.are still presentAnd despite being present for the past years,companies are lacking the readiness to combat the trendsCompanies are mainly considering commercial measures to mitigate the market situationAnd firms a

8、re looking across the globe to extract the potential from the intended commercial measures rather than specific regionsA2B2Despite troublesome market conditions,optimism is back with B2B companiesThere is an optimistic economic outlook for 2024,especially outside of Europe where 80%thinks of 2024 as

9、 a positive year Adapting the commercial engine is of focusThe key initiatives planned for 2024 to extract potential are expected to be revising the Commercial strategy,the operating model and improving the Sales processesA2B3Profits and revenue will grow,but commercial effectiveness is lagging behi

10、ndB2B companies are expecting to go back to revenue and profit growth in 2024,but the commercial effectiveness is trailing due to continued increases in costGeneral lack of readinessDespite having bold commercial ambitions for 2024,a lot of firms are lacking the readiness to drive and execute the li

11、sted initiatives and risk to fall short of their ambitionsInflation andinterest ratesTalent retentionEconomic uncertaintyOnly50%of companiesconsider themselves readyMost important trends69%Companies have a positive outlook84%expecting stable or increased profits65%81%Cost-cuttingCommercial measuresR

12、evising the commercial strategyRecruiting commercial capabilitiesImproving sales processes ImportanceMost important Initiatives62%Of companies consider themselves ready Despite being present and driving factors in 2023,companies are still struggling to cope with the inflationary environment,economic

13、 uncertainty and talent gap and retention There is an instilled confidence with firms torespond to sustainability and ESG trends in 2024 The geopolitical uncertainty is not expected to be of great importance to the B2B business around the globeB2B outlook|Market conditions that emerged in 2023 are e

14、xpected to continue to challenge firms in 2024A1Source:Simon-Kucher,Commercial Trends Study 2024 conducted from Oct 10th,2023 to Nov 21st,2023|Total n=1775|Survey questions:How important are the following trends for your business in 2024?“;How ready is your company with its current set-up to react t

15、o those important trends?“|Dont know excluded|Normalized resultsImportanceHighly relevant(100%)ReadinessVery low(0%)Very high(100%)Not relevant(0%)Neutral(50%)5Importance and readiness of commercial trends,average rating relative to lowest and highestEconomic turmoil,talent retention and supply chai

16、n issues,etc.are still presentCommercial Trends Study 2024Increased economic uncertaintyHigh inflation,high interest rate environmentGeopolitical uncertainty(e.g.war in Ukraine)Sustainability and ESGSupply chain pressureTech,automation and GenAIDeclining demandTalent gap and retentionEnergy crisisRe

17、gulationDeclining prices(i.e.higher price pressure)MitigatedtrendsBehaviourAffectersHeadache makersSource:Simon-Kucher,Commercial Trends Study 2024 conducted from Oct 10th,2023 to Nov 21st,2023|Total n=1775|Survey questions:“How would you describe the economic outlook for 2024 for your company?|Dont

18、 know excluded6Despite troublesome market conditions,optimism is back with B2B companiesB2B outlook|Despite turbulent conditions,the economic outlook for 2024 is more positive than for 2023,especially outside of Europe APAC and Americas optimistic63%83%86%EuropeAmericasAPAC69%Of respondents foresee

19、a positive economic outlook for 2024+12%compared to 2023 DACH most positive sub-region with brightest outlook in Switzerland Denmark least optimistic country albeit a rather positive outlook Only 11%of respondents consider the outlook for 2024 to be negative Most optimistic outlook in APAC and Ameri

20、cas,but still positive in Europe Brightest outlook in Brazil with -10%Between-10 to-3%More or less on2023 levelBetween+3 to 10%+10%(i.e.increase)Cost developmentPrice developmentIncreaseDecrease but the planned price increases are expected to only slightly outperform the development in costPrice-Cos

21、t delta9Companies are mainly considering commercial measures to mitigate the market situation2024 mitigating measures|Commercial topics seen as powerful mitigation measures by most of the companies Commercial Trends Study 2024Source:Simon-Kucher,Commercial Trends Study 2024 conducted Oct 10th,2023 t

22、o Nov 21st,2023|Total n=1775|Survey question:For your company,how are you mitigating the challenges posed by the current macroeconomic environment?“|Dont know excluded Only 1/5 of respondents look mostly at cost cutting Commercial topics seen as crucial to mitigate the challenges posed by the curren

23、t macroeconomic situationB1Americas mitigating measures are more commercial than in other regions 80%consider commercial topics at least as much as cost cutting measures 21%focus only on commercial measuresSimilar situation in Europe and APAC 80-90%consider commercial topics at least as much as cost

24、 cutting measures 1-3%focus only on cost cutting APAC with a high share of companies considering both cost-cutting and commercial topics as equally importantCostsCommercialEuropeAmericasAPAC3%18%45%23%11%Cost cuttingonlyMostly costcuttingEqualMostlycommercialCommercial only4%16%35%25%21%1%10%65%12%1

25、2%Higher%vs other regionsPrioritized planned commercial initiatives for 2024 include:The redesign of commercial operating model and strategy to fit a changing market and different requirements The recruitment of new talents and commercial capabilities that drive the business The professionalization

26、of sales departments and more efficient processesAs a second priority,companies plan to work on price increases,develop the product portfolio and increase digital presence10Adapting the commercial engine is of focusCommercial initiatives|Companies are planning commercial initiatives to react to the

27、current situation main focus on commercial operating model,organization and sales Importance and readiness of commercial initiatives,average rating relative to least and most relevantCommercial Trends Study 2024Source:Simon-Kucher,Commercial Trends Study 2024 conducted from Oct 10th,2023 to Nov 21st

28、,2023|Total n=1775|Survey questions:How important are the following commercial initiatives for your business in 2024?“;How ready is your company with its current set-up to carry out those important commercial initiatives?“|Dont know excluded|Normalized resultsActions related toImportanceTop 2 initia

29、tives by commercial areaAttracting talent and recruiting commercial capabilitiesRedesigning the commercial operating model to fit the futureImproving sales processes to become more efficientProfessionalizing salesPrice increasesTransitioning to recurring revenueLaunching new innovative productsDevel

30、op new sustainable offeringsUsing digital to improve commercial efficiencyCreating new digital offerings to match new market demandsAligning the commercial strategy to new market realityEntering new segments or geographic marketsSucceeding with digital marketingIncreasing marketing-spend effectivene

31、ssB2ReadinessTop 5 initiatives overallLowest level of readiness on some of the most important topic Highly importantNot as importantDigitalCommercial strategySalesPricingCommercial operating model and organizationMarketingProduct offeringEurope Major focus on aligning the commercial strategy to new

32、market reality,redesigning the commercial operating model and recruiting capabilitiesCommercial strategyProduct offeringSalesPricingCommercial operating modeland organizationEuropeAmericasAPACSalesDigitalMarketingCommercial operating modeland organization12354SalesProduct offeringCommercial strategy

33、Commercial operating modeland organizationMarketingCommercial strategy11Commercial initiatives|Organizations plan to improve the sales process and to fit the future by redesigning the commercial operating model and attracting talentsPrioritized commercial areas of development for 2024(top 5,by regio

34、n)Source:Simon-Kucher,Commercial Trends Study 2024 conducted from Oct 10th,2023 to Nov 21st,2023|Total n=1775|Survey questions:How important are the following commercial initiatives for your business in 2024?“|Dont know excluded|Normalized results Sales as well as commercial operating model and orga

35、nization are the 2 major planned initiatives for 2024 Pricing considered as important initiative in Europe Commercial strategy considered as crucial in Americas and APACAdapting the commercial engine is of focusB2Commercial Trends Study 2024Americas Major focus on improving sales process,professiona

36、lizing sales,aligning the commercial strategy to new market reality as well as attracting talentsAPAC Major focus on professionalizing sales,aligning the commercial strategy to new market reality,selling”solutions”instead of”products”and increasing marketing-spend effectivenessReadiness|Commercial a

37、ctions are on the management agenda,however,companies still lack readiness in important topicsImportanceB3Highly relevant(100%)Ready for challengeAction recommendedActionrequiredSource:Simon-Kucher,Commercial Trends Study 2024 conducted from Oct 10th,2023 to Nov 21st,2023|Total n=1775|Survey questio

38、ns:How important are the following trends for your business in 2024?“;How ready is your company with its current set-up to react to those important trends?“|Dont know excluded|Normalized resultsReadinessVery low(0%)Very high(100%)Not relevant(0%)Neutral(50%)Neutral(50%)12Importance and readiness of

39、commercial initiatives,average rating relative to lowest and highestGeneral lack of readinessCommercial Trends Study 2024Aligning the commercial strategy to new market realityAttracting talent and recruiting commercial capabilitiesImproving sales processes to become more efficientRedesigning the com

40、mercial operating model to fit the futureUsing digital to improve commercial efficiencyProfessionalizing salesLaunching new innovative productsFrom selling products to selling solutionsPrice increasesOrganizing and aligning commercial teams in a digital ageSucceeding with digital marketingDevelop ne

41、w sustainable offeringsIncreasing marketing-spend effectivenessCreating new digital offerings to match new market demandsEntering new segments or geographic marketsTransitioning to recurring revenueStreamlining the portfolioFirms need to take action now to get ready for the most important issuesOpti

42、mistic outlook onLaunching commercial initiativesLacking readinessAct now to adapt to the new reality and harness the positive outlook of 202413Simon-Kuchers recommendations2024 is the year for actionCommercial Trends Study 2024Source:Simon-Kucher,Commercial Trends Study 2024 conducted from Oct 10th

43、,2023 to Nov 21st,2023|Total n=1775 iStock/ipopbaHave an optimistic outlook on 2024,with even higher numbers in Americas and APAC where+80%thinks of 2024 as a positive year indicates opportunities for growth69%Companies are looking into launching commercial initiatives that not only enhance their bu

44、siness but transforming and adapting them to the new reality81%Firms find themselves lacking readiness to implement and launch the desired initiatives despite high ambitions of commercial excellence in 2024,presenting an opportunity for getting ahead of competition38%Three reasons why to actSimon-Ku

45、chers recommendationsCPricing excellenceMarketing excellenceTransaction services14Simon-Kucher is your trusted advisor on commercial topics to excel in 2024Source:Simon-Kucher project databaseSimon-Kuchers recommendationsChannel set-up and mgmt.Hybrid sales operating modelSales force effectivenessSa

46、les excellenceefficiency gain and sales time10%Higher hit-rate(win/loss)Better customer penetrationMarket prioritizationValue proposition and USPsCustomer journey and segmentationGrowth strategy Improved share of wallet Increased sales effectiveness via targeted approachImproved strategy realization

47、 rate+30%Portfolio extension*Multi product line strategyBundling and offeringPortfolio and digital growthflop rate reduction20%Less cannibalization between product lines Higher value-orientationCommercial transformation programs/Tracking and KPIs/Data,platform,and IT capabilitiesCCommercial Trends S

48、tudy 2024iStock/Tetiana-VoitenkoGet in contact to receive an individual benchmarking against our commercial KPI databaseSK Internal:each vertical to adapt slide based on their findingsOur clientsOur clients come from 120+industries and range from Fortune and FTSE 100 firms to unicornsOur people Spec

49、ialists in Commercial Strategy and Pricing Consulting,Transaction Services and Private Equity,Digital and Software Our partners and experienced leadership team are hands on,delivering results at paceOur sector expertiseConsumer Financial Services Healthcare and Life SciencesIndustrialsTechnology Med

50、ia and Telecoms15Growth Strategies for Education Providers|Clear Price-performance Positioning as the Foundation for Achieving Goals|April 2023iStock/metamorworks45 Offices30Countries2,000+Employees1985Founded190PartnersSimon-Kucher is the leading global consulting firm specializing in unlocking better growth.Simon-Kuchers recommendationsCYour contacts at Simon-Kucher16Commercial Trends Study 2024Lisa JaegerPartner&Global Head TMT PracticeFrauke BeckerSenior DirectorLisa FrhlichManageriStock/DKosig