While business-to-business (B2B) and business-to-consumer (B2C) sales models share similarities in their focus on customer needs, marketing-sales alignment and data driven strategies, they diverge significantly in execution and audience engagement. B2B sales cycles are typically longer, engaging multiple stakeholders and involving detailed evaluations of business needs, while B2C sales models are characterised by shorter, more emotional and impulsive decision-making processes that target individual customers.
However, both B2B and B2C retail are transforming significantly with the introduction of ever-advancing technologies such as AI.
“There is a growing emphasis to provide a seamless and personalised experience to B2B customers,” says Mike Edmonds, senior strategy director for the worldwide retail and consumer goods industry team at Microsoft. “With AI, B2B sales teams have the opportunity to deliver highly personalised experiences by analysing customer data and predicting their needs.”
Changing customer expectations have also been a key influence on industry transformation following the emergence of AI. McKinsey & Company’s 2024 B2B Pulse Survey, for example, reports that B2B customers are now shifting towards consumer-like purchasing behaviour and demanding a more sophisticated buying experience.
AI also has the potential to optimise sales processes by automating repetitive tasks such as data entry, lead scoring, follow-up communications and engaging customers directly. This allows B2B sales teams to shift from focusing on transactions to prioritising strategic activities to improve customer engagement. For example, new sales agents accessible in Microsoft 365 Copilot streamline the sales process by converting contacts into leads and providing actionable insights from various data sources. Sales Agent and Sales Chat empower sales representatives to focus more on selling rather than searching for information, significantly improving efficiency and productivity.
But how can B2B retailers optimise their use of AI technology to ensure it enhances their sales models?
“They should take a people-first approach to evolving their sales models in the era of AI transformation,” says Edmonds. “Working backwards from key personas and the unmet expectations for each, retail and consumer goods companies can identify ways to unlock value in end-to-end processes and workflows to drive productivity.”
For example, key account managers can adopt AI tools to enhance joint business planning, orchestrate cross-functional teams, analyse sales data to refine strategies and training, and optimise territory management and pricing through simulation and predictive insights.
Meanwhile, field sales teams can utilise real-time data for on-the-spot decision-making, leverage AI-powered tooling to strengthen retailer partnerships and employ AI-driven tools to enhance customer visit planning, interactions and satisfaction. As these tools become increasingly prevalent, Edmonds believes that the outbound salesperson will “continue to become more of an advisor than an order taker”.
Lastly, pricing managers can deploy dynamic pricing models driven by real-time data analysis and implement data-driven promotional strategies to maximise return on investment, and customer service teams can capture and elevate customer service calls with AI insights and automate follow-ups to improve customer satisfaction.
Using Microsoft tools such as Fabric, Dynamics 365 and Copilot can help B2B organisations to leverage AI tools within their sales processes. Microsoft provides the tools needed to support organisations with their adoption process through resources such as its e-book AI Strategy Roadmap: Navigating the stages of value creation.
Woman with headset image, caption as: Equipping B2B sales teams with AI tools can significantly improve how they operate and engage with customers
For example, Microsoft supported Grand & Toy, a Canadian provider of workplace products and solutions, when it replaced its disparate CRM solutions with Dynamics 365. The company wanted to use a single system that would provide a 360-degree view of its customers, reduce inefficiencies, increase productivity and improve customer experiences.
The organisation chose Dynamics 365 due to its end-to-end capabilities, out-of-the-box AI potential and the continuous investment Microsoft makes in updates and new features.
Phases one and two of the migration took place between winter 2023 and spring 2024 and focused on implementing Dynamics 365 Sales and Dynamics 365 Customer Insights. Phase three involved implementing Dynamics 365 Customer Service and was completed in summer 2024.
Now, Grand & Toy is using Copilot to generate summaries and perform sentiment analysis to further improve customer service and increase employee satisfaction. According to Eduardo Fajardo, CRM product owner at Grand & Toy, Dynamics 365 has “introduced a new way of operating” for the firm, and they plan to leverage the platform and AI to “stay ahead of the curve”.
B2B organisations like Grand & Toy can also implement Microsoft’s latest agentic AI tools to enhance their operations, drive growth and provide superior customer experiences.
“AI agents can transform workplace management by automating tasks, which helps to optimise costs and improve employee engagement,” says Edmonds. “This leads to a more efficient and motivated workforce and ultimately enhances customer satisfaction.
“Retail and consumer goods companies can also significantly boost employee productivity by integrating agents into existing workflows and offering real-time insights and personalised support. AI-driven productivity tools align with an individual’s work style, which helps to streamline tasks and improve decision-making, enhancing overall efficiency.”
In addition to leveraging Microsoft’s own tools and resources, B2B organisations can implement specialised solutions developed by its comprehensive partner ecosystem.
For example, Fractal provides a range of AI-powered analytics solutions, such as the Customer Analytics Suite. These solutions offer capabilities such as call summarisation, which has helped its customers reduce agent call handling time by an average of 20 per cent and improve agent occupancy rate. This has led to a better understanding of customer issues, expectations and emerging trends and an average of 20 per cent improvement in customer retention and satisfaction.
Another partner is SymphonyAI, which provides AI software-as-a-service applications that focus on data integration and visibility, collaboration and growth across the entire production and supply chain. The firm’s solutions have helped clients achieve an average of five per cent category sales growth, 11 per cent increase in on-shelf availability and 23 per cent improvement in planogram compliance.
While the opportunities for B2B organisations are plentiful, there can be challenges involved with any organisational transformation. According to Forrester’s The State of AI Infrastructure, which was commissioned by Microsoft in 2024, half of executives believe their organisation doesn't have the proper infrastructure to support their desired workloads.
To ensure a smooth adoption process, Edmonds says “retail and consumer goods companies need to make sure their current systems are compatible with AI technology, and this starts with having a unified data estate to enable AI use cases that drive efficiencies for sales teams.”
The Forrester report also discovered only 33 per cent of leaders believe they have employees with the knowledge and capabilities to use AI effectively, so they must upskill or reskill sales teams.
It is also important that organisations maintain a human touch when implementing AI. McKinsey & Company’s B2B Pulse Survey recommends retailers follow the ‘rule of thirds’ to effectively balance automation and human interaction. In short, one-third of customers hope for in-person interactions, one-third want remote communications and one-third prefer digital self-serve options – and organisations should cater to all three.
Organisations must also implement robust cybersecurity measures when deploying AI and other technologies to protect sensitive information that could be compromised in case of a cyberattack.
“Ensuring the security and privacy of customer data is paramount,” says Edmonds. “However, once B2B organisations have established a strategy for AI adoption and meeting new customer expectations, they are in a prime position for rapid growth and transformation.
“Establishing this framework sooner rather than later will help organisations to better adapt to an evolving industry.”
Partner perspective
XTEL’s Cédric Guyot shares how the company is working with Microsoft to develop solutions that improve operations for B2B retailers
“XTEL recently launched MAX AI for enterprise planning in the retail and consumer goods industries, a solution that fundamentally disrupts traditional analytical, transactional and workflow-driven strategy and planning systems,” says Cédric Guyot, chief strategy officer at XTEL. “Based on a custom copilot that extends Microsoft 365 and is accessible through Microsoft Teams, MAX AI offers an intuitive, prescriptive, natural language interface to employees across all departments to seamlessly engage with comprehensive commercial plans. They can test strategies, adjust tactics and respond to competitive or external events, while MAX AI evaluates the sales and margin impact at the company level and constructs an optimal, detailed and ready-to-execute plan in real time.”
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