When expanding your B2B business into Europe’s complex landscape of 44 countries and 24 official languages, choosing the right sales approach can make or break your success. In this blog post we’re going to look at the significant value of having local salespeople when expanding into Europe.
What Makes Selling into Europe Different?
Selling in Europe has its own unique challenges. Because Europe is made up of 44 different countries speaking 24 ‘official’ languages (really there are over 250 if you include regional dialects), this means that you’re selling to a hugely diverse audience when it comes to culture and language.
There is also different business etiquette and buyer expectations in Europe as a whole when compared to the UK and North America, with further differences in France, Germany and other EU countries regarding things like risk aversion and sales cycles, the latter of which are often relationship-based. All of these factors highlight why salespeople in Europe really need to understand local nuances.
Challenges You May Face Entering the EU Without Local Salespeople
You may be tempted to attempt a B2B expansion into Europe using a remote team or one in your home country. You wouldn’t be the first organisation to do this, but we ought to point out some of the drawbacks of this approach.
Language & Cultural Barriers
As we’ve already mentioned, 24 languages (and then some!) are spoken across the EU, and buyers in countries such as France, Germany, Spain and Italy expect to be sold to in their native language. Sales reps who only speak English, or even those with an intermediate understanding of European languages, will struggle to make the connections that are so vital in converting customers in Europe.
On top of language barriers, differences in business culture can be particularly challenging to foreign sales teams. Business etiquette varies considerably across the EU, rendering generic sales pitches that might work elsewhere ineffective.
Relationship-based Sales & Longer Sales Cycles
In the US and the UK deals can often be done quickly. In Europe things are a little different. B2B buyers in the EU tend to move slower and base their decisions on established relationships. Selling in Europe requires spending time to build trust with a buyer. Hard-charging tactics that might work in the US or the UK – such as aggressive outreach – are liable to backfire, whereas patience and credibility often lead to success.
Regulatory Complexity
GDPR requirements mean that US businesses expanding into Europe in particular need to make a shift from more permissive American data practices to the EU’s stricter, ‘privacy by design’ framework. They need to understand new compliance processes, the broader data scope of these rules (covering business contacts, IP addresses, employee data etc.), and they need to ensure third-party service providers meet the same standards. They also need to remember that US companies even without European offices can still be subject to GDPR when processing EU residents’ data. Fines up to 4% of global revenue can be levied if regulations aren’t followed. And then there are other rules particular to each country within Europe that must be adhered to.
Complicated Sales Structure
Selling successfully in Europe also means developing a solid understanding of complex native sales structures. Many industries – such as the automotive sector – use account-based, multi-tier channels. In Germany, for example, this sector has intricate OEM and supplier tiers, and deals often take a very long time.
Local Competition
Europe has mature markets that are already entrenched with local competitors and distribution networks. This means breaking in without a local partner is particularly difficult, and new entrants lacking native sales channels, experts or credibility, often struggle to get traction.
How Local Sales Teams Give You a Competitive Edge
There are evidently a number of considerable obstacles to expanding your B2B business into Europe. But that doesn’t mean they can’t be overcome. Let’s take a look at how outsourcing sales to local teams can help you establish a positive presence and start converting clients quickly.
Native Language & Cultural Fluency
The only real way to overcome language and cultural barriers is to remove them. A local sales team not only speaks your prospects’ language fluently – they also understand local culture, business etiquette and buyer expectations. This helps build trust quickly and avoids miscommunication. It also means your pitch can be tailored perfectly for your audience, and delivered so that it lands just right, engaging buyers and making them feel respected.
Existing Networks & Credibility
Having experienced local account executives with existing relationships with partners and buyers can be invaluable in the EU. Such execs often have an established network of industry contacts that can unlock doors that might remain closed to reps from the UK or the US.
Let’s return to the example of the German automotive industry. An experienced German account executive might already have relationships with key decision-makers at major auto OEMs, significantly accelerating introductions and referrals when compared to a foreign rep who’s yet to make local connections.
Market Knowledge & Sales Expertise
We’ve touched on this a little but it really is worth emphasising the importance of local salespeople understanding regional selling styles. They can take your pitches and tailor them to meet local expectations, emphasising the points that are valued most in each country. This might be data-backed proposals and the promise of reliability in Germany, or the establishment of personal rapport and a softer approach in Southern Europe.
Regulations
Navigating regulations in new territories can be a pain. However, sales reps already working in these countries will already know them well, ensuring you don’t fall foul of any local rules. In-market reps will also have established best practices around these regulations, which can help you hit the ground running.
Faster Market Expansion
Speaking of avoiding wasting time, outsourced sales enables you to ramp up quickly and gives you immediate market access and the chance to start generating revenue right away. This is a vital benefit when you’re inevitably investing a lot of money in your expansion efforts.
Research states that European sales reps are over 11% better at attaining their quota compared to US reps, so using outsourced European talent could be the business advantage that you need to outstrip your competitors.
How Excelerate360 Can Help
If your B2B organisation is expanding and selling into Europe then outsourced sales teams with local expertise could be the best approach. Here at E360 we can give you access to experienced, industry-matched European account executives.
These reps speak the native language, have in-depth regional knowledge and can be deployed quickly, helping you enter new markets without delay.
Using local experts means there’s no need for local entity setup, you get greater flexibility, scalability and faster ROI, and our local salespeople have a proven track record across different sectors, including SaaS, Fintech and Autotech.
If this is the competitive edge you’ve been looking for, or you’d like to learn more, get in touch today.
