Anyone looking to sell IT technology business-to-business (B2B) has it pretty hard these days. Decision-making processes have become more complex and more people have a say.
A recent Text100 study reported (registration required) that on average, six people (in Germany, seven) with very different functions are involved with purchasing decisions. Two-thirds of the companies surveyed said that once the decision had been made, the purchase still had to be signed off by the board. At the information gathering stage, decision-makers use numerous offline and online channels to do their research. This stage now lasts longer and more resources go into preparing and justifying decisions.
The study, which surveyed 1,900 people from around the world, asked questions about the influences that affect B2B decision-makers as they consider purchasing IT solutions.
During the research stage, people tend to rely mainly on the suppliers' websites, on IT magazines, online searches, and discussions with colleagues and consultants. The final decision appears to be influenced by two key factors: 1. the price, or rather the cost-saving potential (the study found this played a major role in all stages of the process) and 2. advice and opinions from acquaintances, as well as user reviews and recommendations.
The study identified four key influences on the decision-making process:
- Decision-makers — who are they and what are their needs?
- Influencers — Who do decision-makers trust the most? Who are the people that carry the most weight and have the best reputation in the field?
- Channels — Where do decision-makers get their information?
- Content — What do decision-makers want to see, read or hear? What kind of information do they want and value?
If technology companies want to succeed, they must take all of these aspects into account and integrate them into their marketing and communication strategies. The days of “simple” marketing are over. Tech companies need to adopt a mixed approach that combines corporate presence (owned media) with paid presence (paid media), social channels and targeted recommendations (earned media). The end result should allow potential customers to access a range of high quality information about the company and its technology.
Unlike in previous years, technical content alone will no longer suffice. IT decision-makers are increasingly being joined by those with “business focused” roles. Since these non-technical players are involved in the decision-making process, they want access to information that is relevant to them.
Customers Reach Decisions Before Vendors Know
Another point worth noting: a study conducted by CEB in collaboration with Google showed B2B buyers have on average completed 57 percent of their decision-making process before they reach out to the supplier. Forrester reports that, depending on the market and the complexity of the products in question, businesses might well have completed between 66 percent to 90 percent of the process before contacting the supplier.
Potential buyers use information sources in different ways during the different stages of the decision-making process. At the information gathering stage, a company's website plays a bigger role than it does in the stages where the decision is actually made. At that point, the focus shifts to recommendations, reviews and discussions with other customers (on and offline).
Marketing strategies should provide the information and modes of contact that buyers are looking for at every step of the decision-making process. Companies must adopt an approach that combines paid, owned and earned media over the entire purchase process.
Companies must also be careful not to underestimate the effect that relationships can have on business dealings. In particular, those in the B2B sector can have an enormous impact on decision-making processes. These relationships are no longer limited to the traditional, personal variety. In many cases, today's relationships begin on the Internet. A company's online reputation, visible in online communities, is fast acquiring the kind of influence that “real” relationships long possessed.
'Social Proof Makes or Breaks a Buyer’s Decision'
Social media and networks are having an enormous impact on marketing. Marketing efforts need to win over “influencers” and ensure that they have a regular supply of high-quality information. In the past, influencers were mostly journalists and analysts, but thanks to the Internet, the group now also includes bloggers and independent advisors who know the social media ropes. Social networks also give suppliers the opportunity to send in their own experts who can use the ropes to form opinions and increase the company’s influence.
By creating links between customers, and between customers, suppliers and partners, online activities create transparent and easy to find semi-public or public discussions. This means that marketing and sales need to start working more closely together. Marketing experts can use social media to speak to customers and potential customers. Sales experts should be connected to their customers via social media so that they can keep an eye on what their contacts and their businesses are “getting up to.”
- Endangered Species: The Corporate Intranet
- Forget Intranets, Give Me an ESN
- Are These Vendors the Best at Social Media Monitoring?
- Multitasking? You're Killing Yourself for Nothing
- Think Digital Marketing Technology: Think ... Microsoft?
- Beware Red Herrings: Intranet vs. ESN is a Sham
- Microsoft's New BI Tool Plays Nice, Even With 3rd Party Vendors