How Telecom Leaders Can Win in the B2B Market

The telecommunications landscape is at a turning point. Once coveted, the B2C sector has become saturated to the extent that further growth seems confined. In contrast, the B2B horizon is bright with promise — a promise quantified by market research projecting the global B2B telecommunications market to swell to $181 billion by 2030, charting a robust compound annual growth rate of 14.8% from 2021. Not only that, but over half of enterprises aim to increase their spend on telecommunications in 2024 alone — a small increase from last year despite inflation concerns. 

This emerging market opportunity not only signals the dawn of a very lucrative era for telcos, but it also signifies the criticality of them strategically pivoting to meet the needs of enterprises who are ready to invest in a better equipped digital future. How? This will require two things. First, a recalibration of services and sales approaches to harness the burgeoning demand for high-speed, business-focused connectivity solutions. Second, a tech-agnostic, composable architecture that allows you to launch faster, experiment easier and move away from heavily depending on IT — i.e. a faster time to market with a lower total cost and risk.

B2B is a broad term, covering everything from small businesses to large multinational companies with thousands of employees. McKinsey’s latest B2B Pulse GTM survey of the tech and telecom sector shows that telcos are embracing this vastness and are accelerating the adoption of new sales tactics and integrating omnichannel experiences, tailoring their offerings to meet an eclectic array of B2B needs. 

For example, during his fourth-quarter earnings call,  John Stankey, CEO of AT&T, shared with investors that the company is working to build its mid-market B2B segment. However, he acknowledged that it’s a slow process because the needs of these businesses are so different from their large enterprise customers. “It requires us to bundle and repackage the products a bit differently to be effective in that space, which we've been doing,” he said.

His comments reinforce the simple fact that capturing the B2B customer takes more than simply shifting target audiences, launching a B2B commerce site and introducing new messaging. A telco has to fundamentally remodel and uplevel its sales tactics similar to the approach with consumers. They must be technologically and operationally prepared to continuously deliver the best omnichannel experience by being available everywhere their customers are without channel conflict throughout the sales process. 

There’s simply no one-size-fits-all solution. Some telcos are experiencing growing pains from adapting to so much change, so quickly. Regardless, the McKinsey report outlined that the strides that telcos are making to advance their sales tactics are working — with 73% reporting that their sales model is more effective at reaching and serving customers than it was a year ago.

With 42% of buyers (McKinsey) viewing eCommerce as the most effective sales channel, telcos can no longer dismiss the shift from traditional channels to online commerce. The report showed that buyers are increasingly opting for online commerce over traditional channels, with substantial preferences given to vendors offering product availability, competitive pricing and exemplary customer support. 

This makes it clear that establishing a robust online presence is imperative for telcos aiming to conquer the B2B arena. However, they must remember that retaining these customers requires having technology in place that makes it easy for them to evolve their digital experiences as new technology and channels emerge and as customer needs change. This is particularly where composable commerce solutions become critical. 

True composable solutions give telcos the operational agility and technical flexibility needed to adjust and adapt customer experiences or change a component without investing in a new platform — ultimately modifying with market shifts and preferences. This lowers business risks and financial exposure across the infrastructure while safeguarding their growing position in the emerging market. 

As the McKinsey report pointed out, “Tech and telecom B2B companies that provide the best omnichannel experience are seeing their market share jump by at least 10 percent annually, while those that fail to do so are losing share on a regular basis.”

For telecommunications companies, the B2B market is not just another revenue stream, it is fast becoming the path to success. By embracing adaptable sales strategies and committing to omnichannel excellence, telcos can position themselves advantageously within a market that's ripe with opportunity.