As governments and organizations continue to work toward containing COVID-19 and stem the growing humanitarian toll it is exacting, the economic effects are also beginning to be felt. Through a series of regular, global surveys, we are tracking how customers’ expectations, spending, and behaviors are changing throughout the crisis across multiple countries over time. Please check back regularly for updates.
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McKinsey Survey: Italian B2B decision maker response to COVID-19 crisis
1. McKinsey & Company 1
Optimism is relatively low but growing: One-third are optimistic
about the economy, up seven percentage points from two weeks ago
Confidence level on economic conditions after the COVID-19 situation1
% of respondents
14 12
56
50
30
37
April 3 April 27
Optimistic: The economy will rebound in 2–3 months and grow
just as strong as or stronger than before COVID-19
Neutral: The economy will be impacted for 6–12 months or
longer and will stagnate or show slow growth thereafter
Pessimistic: COVID-19 will have lasting impact on the economy and will
show regression/fall into lengthy recession
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Figures may not sum to 100% because of rounding; a “prefer not to answer” option was given, but <1% of respondents filled it out in 2020.
2. McKinsey & Company 2
Italy remains slightly less optimistic compared to other regions,
ahead of only Japan, South Korea, and Spain
12 11 9 12
18
12 10
41
13 12 10
43 47 47
50
49
50
29
19
48
58
51
41
45 42 43
37
33
39
68 71
10
30
37
50
ItalyFrance UKSpainAll
countries
Germany
2
China India Japan S. Korea Brazil US
Confidence level on economic conditions after the COVID-19 situation1
% of respondents
Optimistic: The economy will
rebound in 2–3 months and grow
just as strong as or stronger
than before COVID-19
Pessimistic: COVID-19 will have
lasting impact on the economy and
will show regression/fall into
lengthy recession
Neutral: The economy will be
impacted for 6–12 months or
longer and will stagnate or
show slow growth thereafter
1Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Figures may not sum to 100% because of rounding; a “prefer not to answer” option was given, but <1% of respondents filled it out in 2020.
Europe APAC
1% -9% 4% 7% 0% 0% 12% 3% 2% 8% -10% -5%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
Percentage-
point change
in optimism
between April
1–9 surveys
and April 20–
28 surveys
3. McKinsey & Company 3
Italy overall budget continues to decline more so than Europe
averages; near term spend also reductions decelerate
64 64
27 23
9
April 3 April 27
12
Company’s budget (changes already made)2 Expected in the next two weeks3
Italy
Europe4
61 58
26 24
1813
April 28April 6
Spend shifts as a result of COVID-19
% of spend changes
56 47
32
34
19
April 3 April 27
12
56 43
29
33
16 24
April 28April 6
1“About the same” refers to ±3% change in budget.
2Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas? Percentages may not add to 100 because of rounding.
3Q: How do you think spending on the following may change in the next two weeks? Percentages may not add to 100 because of rounding.
4Includes survey respondents from (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414).
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
IncreasedAbout the same1Reduced
4. McKinsey & Company 4
Respondents report steep downward budget shifts across all
categories, with banking and insurance least affected to date
68
57
51
69
72
68
76
61
67
70
60
59
63
24
30
32
20
19
24
16
23
21
23
21
23
27
8
13
17
11
9
7
8
16
12
7
19
18
10
Distribution and transportation
Software and telecom
Banking and insurance
Commodity inputs
Packaging
Specialty inputs
Energy
Processing supplies
Finished goods
Vehicles
Capital equipment
IT hardware
Real estate
Reduced About the same3 Increased
Budget changes due to COVID-19 (changes already made)1
% of respondents
Net
intent2
Services
Inputs
Capex
-60%
-44%
-34%
-58%
-63%
-61%
-67%
-45%
-56%
-63%
-41%
-40%
-53%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas? Figures may not sum to 100% because of rounding.
2Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3“About the same” refers to ±3% change in budget.
5. McKinsey & Company 5
Advanced industries are experiencing the most significant decline
in budget across categories
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Budget net intent is described as the % of budget decreases subtracted from the % of budget increases.
2Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas?
3“About the same” budget changes are those that are +/- 3%.
Budget net intent1 per category for each industry2
Overall industry net intent
% where budget is about the same3
Advanced
industries
Technology,
media, and
telecom
Global energy
and materials
Pharma and
medical
products
Travel,
transportation,
and logistics
Global finance,
banking, and
insurance Consumer/Retail
Services
Inputs
Capex
Specialty inputs
Energy
Processing supplies
Packaging
Commodity inputs
Finished goods
Software and telecom
Banking and insurance
Distribution and transportation
Capital equipment
IT hardware
Vehicles
Real estate
17 26 17 29 24 32 22
Net intent: % of budget decreases subtracted from the % of budget increases
Below -50 -50 to -25 -25 to 0 0 to 25 25 to 50 50+
6. McKinsey & Company 6
In the next two weeks, pockets of near-term decline in spend are
likely to decrease in severity
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Net intent is described as the % of spending decreases subtracted from the % of spending increases.
2Q: How do you think spending on the following may change in the next two weeks?
3“About the same” spending changes are those that are +/- 3%.
Net intent: % of budget decreases subtracted from the % of budget increases
Below -50 -50 to -25 -25 to 0 0 to 25 25 to 50 50+
Next two-week spending net intent1 per category for each industry2
Overall industry net intent
% where budget is about the same3
Advanced
industries
Technology,
media, and
telecom
Global energy
and materials
Pharma and
medical
products
Travel,
transportation,
and logistics
Global finance,
banking, and
insurance Consumer/Retail
Services
Inputs
Capex
Specialty inputs
Energy
Processing supplies
Packaging
Commodity inputs
Finished goods
Software and telecom
Banking and insurance
Distribution and transportation
Capital equipment
IT hardware
Vehicles
Real estate
27 32 28 26 29 59 35
7. McKinsey & Company 7Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
Pharma and
medical products
Technology,
media, telecom
Advanced
industries
Global energy
and materials
Travel,
transportation,
and logistics
Global finance,
banking, and insurance
Consumer/retail
All industries are shifting capacity down in light of tempered
demand; advanced industries and travel seeing sharpest declines
Flat
-15%
Demand
for
products/
services
Operational capacity (eg, production)3 Flat-15%
Impact of COVID-19 on demand and capacity1,2
% change due to COVID-193
1Q: How has the coronavirus (COVID-19) situation affected your company’s production (operation) capacity? Percentages may not add to 100 because of rounding.
2Q: How has the coronavirus (COVID-19) situation affected demand for your company’s products/services? Percentages may not add to 100 because of rounding.
3Weighted average uses following midpoints: “increased/reduced 25+%” is +/- 30%, “increased/reduced 11–25%” is +/- 18%, “increased/reduced 4–10%” is +/- 7%, “About the same (+/- 3%)” is 0%.
8. McKinsey & Company 8
Companies are reducing marketing spend in all regions; nearly 60
percent of Italy’s B2B companies have reduced their marketing
62 63 58 56
68 71
62
69 65 71
58 57
18 19
21 23
18 14
19 8
26 20
16 20
20 18 21 21
14 15 19 24
8 10
26 23
SpainAll
countries
Germany ChinaFrance USItaly UK India S. KoreaJapan Brazil
Europe APAC
Marketing spend change1
% of responses
1Q: How has the coronavirus (COVID-19) situation affected your company’s marketing spend across all channels? Percentages may not add to 100 because of rounding.
2“About the same” refers to ±3% change in budget.
IncreasedAbout the same2Reduced
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
9. McKinsey & Company 9
The importance of digital sales has doubled over that of traditional
sales interactions since the onset of COVID-19
Importance of digital vs traditional to
B2B buyers themselves1,2
Points allocated out of 100
1Q: Prior to COVID-19, how important were each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more points to the method that you believe is more important to
you personally when interacting with your suppliers.
2Q: Now, thinking about the next two weeks given the environment with COVID-19, how important are each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more
points to the method that you believe is more important to you personally when interacting with your suppliers.
3Q: Prior to COVID-19, how important was each method in delivering an overall outstanding sales experience? Distribute 100 points across these items, giving more points to the method that you believe is more important to your customers.
4Q: Now, thinking about the next two weeks given the environment with COVID-19, how important are each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more
points to the method that you believe is more important to your customers.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
Importance of digital vs traditional to
B2B company customers3,4
Points allocated out of 100
45
65
55
35
Before COVID-19 April 27
+45%
48
69
52
31
Before COVID-19 April 3
+45%
Traditional Digital
10. McKinsey & Company 10
Digital, self-serve, and directed channels are now seen as the most
beneficial for researching suppliers
28
22 22
18
15
29
18
8
16 16
14
13
11
23 23
15
Supplier
website
Live chatInfo on
mobile
app
Online
material
from
supplier
Post on
social
media/
online
Google/web
search
Email from
sales rep
Text from
sales rep
Trade
show
Industry
publication
Customer
referral
Referral
from
someone
in my
industry
Print
material
from
supplier
Meeting
sales rep
in person
Call from
sales rep
Direct
mail from
sales rep
1Q: What ways of interacting with a supplier would be most beneficial to you when researching/considering suppliers going forward? Rank up to 3 that would be most beneficial. A free-response option was given, but <1% of respondents filled it
out in 2020; ~12% of respondents answered ‘None of these’ as one of their top three responses.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400)
Most beneficial supplier interactions for researching/considering suppliers1
% of respondents ranking in top 3
Digital
Self-serve Directed Self-serve Directed
Traditional
11. McKinsey & Company 11
Self-serve ordering is preferred significantly more over other
methods
50
42
35 34
39
28
25
21
Ordering
from sales
rep in person
Using call
center/customer
service
Using my
company’s
e-procurement
portal
Using a supplier’s
website
Calling sales repUsing a
mobile app
Using my
company’s
procurement
department
Emailing sales rep
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400)
1Q: Which of the following methods do you/would you most prefer to use when submitting your order? Please rank up to 3 that would be most beneficial.
Self-serve Internal processes
Most preferred method for ordering1
% of respondents ranking in top 3
Sales rep involvement
12. McKinsey & Company 12
58
50
42
42
3
18
44
51
48
2
In-person/field sales team (eg, meeting with
customers face to face)
Online/web support (eg, chatting with customers
via video/website/mobile app to support purchase)
Inside sales team (eg, interacting with
customers on the phone)
E-commerce (eg, products/services sold directly
online with no sales rep involved)
Other
During COVID-19Before COVID-19
Go-to-market sales model during COVID-191,2
% of respondents
96%
shifted their GTM
model3 during
COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
The majority of companies that serve other businesses have shifted
their go-to-market model in response to the COVID-19 crisis
1Q: In what ways was your company’s product or service sold before COVID-19?
2Q: Now today, in what ways is your company’s product or service sold during COVID-19?
3Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19?
13. McKinsey & Company 13
E-commerce revenue is up more than 35 percent since the onset of
COVID-19
Percent of company revenue driven by e-commerce before and during
COVID-19 (among companies that sell online)1,2
Average % of total revenue
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
47
64
During COVID-19Before COVID-19
+36%
1Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…Figures may not sum to 100% because of rounding.
2Q: Approximately what percentage of your company’s revenue during COVID-19 is now driven by…Figures may not sum to 100% because of rounding.
14. McKinsey & Company 14
E-commerce share of overall B2B company revenue is up in all
countries, most notably Brazil and Italy
Percent of company revenue driven by e-commerce before and
during COVID-19 (among companies that sell online)1,2
Average % of total revenue
45
56
51
47 46 47
44 42
47
61
42 40
56
65
56
64
51
57
52
47
53
68
62
52
All
countries
IndiaFrance JapanUKGermany SpainItaly China S. Korea Brazil US
1Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…Figures may not sum to 100% because of rounding.
2Q: Approximately what percentage of your company’s revenue during COVID-19 is now driven by…Figures may not sum to 100% because of rounding.
Before COVID-19
During COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
Europe APAC
23% 16% 11% 21%36% 20% 12%13% 11% 46% 29%12%
X% % change
15. McKinsey & Company 15
2
14
37
42
6
As effective as before
April 3
Much less effective
Somewhat more effective
Somewhat less effective
Much more effective
100
1Q: How effective is your company’s new sales model at reaching and serving customers? Figures may not sum to 100% because of rounding.
68% of B2B decision makers believe the new sales model is as effective
or more so than prior to COVID-19 (up from 52% in early April)
Effectiveness of new sales model in reaching and serving customers1
% of respondents
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
5
20
43
26
6
April 27
100
53%
as effective or more so
compared to prior to
COVID-19
68%
as effective or more so
compared to prior to
COVID-19
16. McKinsey & Company 16
Companies are likely to keep their new sales model for more than
12 months after the onset of the COVID-19 crisis
35
47
13
4
Very likely to sustain 12+ months after
N/A, made no go-to-market changes
Somewhat likely to sustain 12 months after
Unlikely to sustain 12 months after
82%
are “very likely” or “somewhat
likely” to sustain these shifts
12+ months after COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
Staying power of new sales models1
% of respondents
1Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19? Figures may not sum to 100% because of rounding.
17. McKinsey & Company 17
More than 80 percent of B2B companies have adjusted incentives in
response to the effects of COVID-19
32
28
16
16
14
13
No change
Lower quotas
Short-term bonuses/incentives
Higher quotas
More fixed incentives
More variable incentives
Sales team incentive structure changes in response to COVID-191
% of respondents
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Q: To what extent has your company made changes to the incentive structure of your sales team in light of COVID-19? Figures may not sum to 100% because of rounding.
18. McKinsey & Company 18
22
18
15
14
14
10
7
Advanced industries
Technology, media, and telecom
Global finance, banking, and insurance
Pharma and medical products
Global energy and materials
Travel, transportation, and logistics
Consumer/Retail
9
20
19
18
20
14
$1M to < $25M
$1B to < $10B
$25M to < $100M
$100M to < $500M
$500M to < $1B
$10B+
7
7
15
14
25
14
9
8
10,000–49,999
<50
50–99
500–999
100–499
1,000–9,999
50,000–99,999
100,000+
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1 Percentages may not sum to 100 because of rounding.
Survey respondents by no. of employees of company
% of respondents1
Survey respondents by role in company
% of respondents1
Survey respondents by industry
% of respondents1
Survey respondents by annual revenue of company
% of respondents1
19
18
15
14
9
7
7
6
6
Shipping/logistics
R&D/Innovation/Product design
Top management
Purchasing
Operations
Sales
IT/computer services
Marketing
Engineering
B2B Pulse Decision-Maker Pulse #2: Respondent Overview
Pulse #1 closed on April 3, 2020 Pulse #2 closed on April 27, 2020