barrett-sales-blog-Decarbonised-Systems-and-Strategies

Sales trend 6 of the Barrett 12 Sales Trends Report for 2022 is about the key role a Sales System and a adaptive Sales Strategy have in decarbonising our sales operations.

This is a condensed version of Sales Trend 6, to read the original version you can download the report for free.

We cannot hide from the fact that we are now heading toward a decarbonised future.

A decarbonised world isn’t just a nice-to-have anymore, it’s a strategic imperative, a collective life-or-death decision we need to make on behalf of our planet and we have about 10 years to pull this off and ward off warming beyond 1.5 degrees Celsius.  

Any good business leader and strategy team would have already been doing their homework, looking at current and emerging business and market opportunities and the technologies, doing scenario and consequence planning, assessing workforce capability, the interplay of internal and external systems, investment and cost management strategies, and how the numbers stack up.

They will also take time to look into the future to pick up on trends, signs, information, technologies, models and ideas that are signalling significant change. This in turn will help set up the parameters that guide the systems, strategies and frameworks needed for a decarbonised sales operation.

Preparing our Sales Systems and Strategies for a decarbonised world

A Sales System is an open system that exists within the environment of an organisation and interacts with its markets, customers, competitors, suppliers, and society. A Sales System is the interface between a business and its markets and customers.

To decarbonise our sales operations, we first need to understand our sales operations emissions, and a Sales System is the best way to account for every part of a sales operation and how they interact. The ‘how-to’ will depend on the particularities of each industry, business, and people; however, a decarbonised sales operation will be more efficient and streamlined.

The first step to decarbonising is Tracking emissions

Tracking and management of emissions today is almost a hygiene issue, and as the process becomes more standardised and accessible, the more likely overall Net Zero targets are to be achieved.

The obvious areas for CO₂ emissions tracking and reduction wins in sales operations include:

  • Transport – cars, trucks, and flights
  • Energy – how we generate electricity onsite; lighting, and heating and cooling
  • Waste – physical promotional materials, product production and packaging
  • Technology & Equipment – electronic equipment, tools, and resources
  • Supply & Distribution – sourcing of materials, distribution and return of products

The know-how, systems, and technology to decarbonise are already here and in operation. Tech platforms are being designed to serve the environment. One key player in the sales space, Salesforce, announced it has become Net Zero across its value chain and has launched Sustainability Cloud 2.0, a platform designed to support organisations track and reduce their emissions across their operations and supply chain.

Salesforce is creating innovative ways for businesses, especially their sales, service, and procurement teams to connect and collaborate with suppliers and customers around science-based targets to drive sustainable actions while providing investor grade reporting.

Sales Strategy, execution, and de-risking

The next question is how do we still deliver what we deliver and create opportunity in a decarbonised way?

Our Go-to-market sales strategies and action plans will need to include customer sentiments, zero carbon buying preferences and emissions reductions and how we plan to decarbonise.

Supply chains account for 90% of corporate emissions and consumers are aware that they have considerable power over corporations as they voice their concerns and beliefs through boycotts and business public shaming. It is very clear now that customers, especially younger people, are becoming ever more concerned about the environmental impact of everything they buy.

Our sales strategy and market segmentation analysis need to step up to include how customers want to buy now, what they want to buy, who do they want to buy from and how are they judging who they buy from.  

So how do we de-risk our businesses and sales operations? How do we make it easier for customers and prospects to buy from us in a decarbonised way?

Demonstrating and promoting our genuine (evidenced based as opposed to greenwashing) green credentials can help build trust with customers and open new markets. This is not just the domain of big business and corporates. A 2018 OECD report noted SMEs also have the potential to engender substantial environmental improvements. If SMEs can demonstrate they are doing everything in their power to support the green economic recovery, consumers are likely to reward them. Meeting customers’ needs is likely to lead to a significant material advantage for those who can demonstrate leadership towards a more sustainable decarbonised economy.

In addition to paying more, customers will also be more willing to champion those businesses with the same OECD report stating that more than three-quarters (78%) said they were more likely to recommend a business if they knew it made a sustained effort to be environmentally friendly.

Consumers also plan ahead – the overwhelming majority of customers carry out research to find out whether a business’s products, policies or services are environmentally friendly – only one in five says they never check. However, many consumers report that information about the environmental credentials of brands was hard to find.

Why make it hard for customers to do business with us? We can change this by actively promoting our decarbonised credentials via our websites, on our packaging of the goods and word-of-mouth. Much of the power lies in our own hands.

We will also need to educate our sales and services teams, so they know how to sell and communicate the following:

  • How their companies’ products are designed and services delivered with a zero carbon footprint
  • Where raw materials come from – the use of ethical, sustainable, and alternative materials for production
  • Production process – how it reduces waste, uses smart and renewable technologies to make things
  • Shipping – how their companies’ products are shipped around the globe using decarbonised transportation and storage
  • Aftermarket – the use of Circular economies to provide spare parts, repairs, recycling, and disposal services
References:

https://www.eonenergy.com/content/dam/eon-energy-com/Files/renewable-returns-green-recovery-report.pdf

https://www2.deloitte.com/content/dam/Deloitte/au/Documents/risk/deloitte-au-risk-decarbonisation-extracting-value-from-decarbonisation-05032020.pdf

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