7 Things you must know while selling to the Oil & Gas Industry
While the entire world is steering fast on the energy produced by them, the oil & gas industry itself struggled to adapt to modern solutions. With digital solutions changing the way most sectors deal with their functions, it was high time that the energy sector also caught up with the pace.
Industry leaders have been compelled to look towards technological solutions provided by B2B firms to reduce costs and enhance efficiency, which is why if you are a B2B start-up or an established enterprise, selling tech solutions to the oil & gas industry can be a career-turning-point for you. These figures show how important AI investments are going to be for most fuel big shots.
And if we’ve already got you thinking about it, check out a few things that you must know before you strengthen your determination to conquer the fuel world.
1. It’s a relationship business
Tech and oil & gas industry has very little in common. The former is already at a disadvantage when they first approach the energy giants who have neither the time nor the absolute willingness to hear about the solutions that you have to offer.
Networking is very important in this world. Be it local or international, the closer you are knit in the inner circle, the more you can establish relationships, which can produce innumerable benefits in the long run.
Further, if you know someone who is closely associated with the company’s functioning or can operate as an insider, there’s nothing like it. You can get a detailed view of the industry values, relationships, and other influential factors. They are indirectly putting in referrals, which continue to be the top source of B2B marketing leads, according to 63% of marketers.
Apart from this, before and after-sales service will also determine your relationship with the customer. You must be able to justify the customer’s trust and your credibility in the market with unmatchable industry insights. Long story short, establishing lost lasting relationships is the key to unlock successful sales in the oil & gas industry.
2. They have high budgets
Today, most of the world runs on oil & gas. Since there are very few (or nil) alternatives for oil & gas, the decision-makers in this industry have considered very high budgets. Though the revenue is divided among the various departments of each operational firm, the majority of it is in the hands of those who are dealing with the business at the forefront.
This means that they can make decisions quicker than the others and it’s simply a waste of time to be appealing to the IT or the HRD sections of a company.
The high budget collaboration of Microsoft, Schlumberger, and Chevron to apply the power of Azure to unlock new AI-driven insights that will help address some of the world’s most important energy challenges, including sustainability was one of the biggest industry partnerships.
3. Your data speaks louder than anything
If there is one thing you cannot compromise on, it is the data you collect from your research. No sales technique work without a plan and a plan requires knowledge and data.
When you knock on their doors with a sales pitch, you certainly can’t afford to not know the ins-and-outs of the organization. The challenges they face, its effect on their business, how you are going to help solve it, what impact it will have on them, the decision-makers, their driving force, the budget, and the competition you have – basically, everything!
When you present yourself equipped with data, it gives them the impression that you are interested in serious business and they are not wasting their time on you.
4. Oil & Gas Industry need a consultant more than a salesperson
We have already highlighted the importance of building relationships in the oil & gas industry. Although business makes up the majority of their time and budget, they appreciate people who come across as advisors rather than salespeople.
Understand the way your prospects work. Research about their channels of sales, their income options, profit patterns, and how they differentiate themselves from the competition in the industry.
Pitch your product/service/software in a way that it appears like an immediate solution to their long-drawn challenges. They don’t want people who are lured with the idea of closing high-value deals.
5. The sales cycle in the oil & gas industry is long
Sales cycles in the oil & gas industry are one of the longest in comparison to the other sectors. This means that every action you take today will affect the position and influence of your firm in the future phases of the cycle.
Hence, it is imperative that you do not make any blunder in the beginning. This situation can be prevented if you follow a solid, strategic plan. Don’t forget to maintain an online presence that is dominating over others as 74% of B2B buyers now prefer buying online.
Whether it is a high-value contract or a minuscule transaction, it is always wise to follow a strategy constructed with utter precision. Refer to templates or draft your own unique process, but adhere to one so that you do not lose out on the momentum. Firms that are always up and active have better chances at closing deals with the energy firms.
6. An industry insider can be very advantageous
Since there a lot of factors that decide your influence on a firm, having someone who is introduced to the insides of this industry can prove to be a great advantage.
When you have an experienced senior standing beside you, they can help you take a leap in the industry and prevent you from the pitfalls. An insider is this experienced senior for you in the oil & gas industry, not in age but inexperience and proximity to the decision-makers. They can also guide you with a company’s ideology, terminology, and priorities. An industry insider on your team can make all of your marketing attempts foolproof and successful within no time and all you have to do is build credibility with them.
Amazon Web Services, through its oil & gas division acting as an insider of the industry, became a provider of cloud technology for BP’s SAP applications running in its global Castrol Business.
7. The politics are deep-rooted
It is not always that the hierarchical order of a company works in the way it is formed. Every enterprise is subject to politics that is embedded in each level of the order. The oil & gas industry is no different and is characterized by work politics with regard to decisions and contracts.
Being a global sector in the accurate sense, energy providers tend to report and be subject to reporting at the unit as well as the locality level. Without understanding the bases that yield power and the amount of influence each of these holds, it is a tough job to appease any firm.
You can dodge this situation by pitching your services along a line that is extremely crucial to the company, assuring valuable outcomes, and creating agendas that are to the point and unparalleled. Do not work to appease the small group you’re talking to, but make it a part of their whole process.
Don’t forget to enjoy the experience!
Currently, the oil industry is brutally hit by the coronavirus attack and these graphs suggest an extremely scary picture of this industry. However, even with all of its politics, influential dynamics, and challenges, the oil & gas industry is a striking aspect of the B2B market considering its all-time-demand nature. It might seem ambiguous at the moment, but none of us can deny that: Energy is the present and the future!
So, if you have the passion for persevering continuously, learning from your mistakes and experiences, network rigorously, spend sleepless nights for the one project. And that can cause an adrenaline rush with its excitement and bring practical, comprehensive solutions to the problems faced by the industry, it is the right choice for you. Psst, it fills your pocket very handsomely as well!
If you strive to earn big and this whole process seems very challenging, you can reach out to a B2B sales and marketing consulting firms to fast-track solutions and achieve your desired goals.