For most marketers, business-to-business (B2B) marketing is boring and can’t be as exciting as socialising. I think most schools still teach B2B in the same old boring way, which is unfortunate.
The traditional B2B marketing can be moved in bits—or bytes, as all things virtual—to the social world as that is where the world—customers and stakeholders included— live. The entire marketing operation can’t migrate to social media but be prepared for disruption, given the behavioural changes brought about by the coronavirus outbreak.
Many B2B customers are okay with discarding the traditional B2B buying of items that are smaller in lots or commercial value such as consumables.
Not every purchase needs to undergo a multiple-level evaluation the traditional way for two reasons: first, buyers are getting social experiences every day as individuals. Second, advances in technology have accelerated transactions towards more transparency and made decision-making more inclusive, leading to fewer “black-box” kind of calculations in transactions.
A progressive B2B customer wants to be engaged and entertained while at it. With the millennials increasingly occupying critical purchase roles, they do not have the patience for tradition or just transactions. They seek transparent, collaborative and open relationships.
They don’t accept products and services at face value without having built a relationship first. Thus, the role of social media is undeniable as it allows for two-way communication.
From our work with a multitude of clients, we see four major streams of expectations from the B2B buyers:
1. Openness and transparency: Buyers expect suppliers to be transparent in their dealings, especially when it comes to pricing and specifications. They also expect and desire more open visibility into the supplier cost structures in large long-term contracts.
2. Relationship: Traditional B2B buying involves submissions of a lot of documents and modifications before the buyer says yes. However, with new technologies, most customers prefer a consultative approach involving members from both sides working together to arrive at the best solutions at the right price. Aligning the goals of the buyer with those of the seller is the expected outcome.
3. Co-creation: They believe partnerships are the key to a win-win relationship and want to come together with the supplier for co-creating solutions. Less price per transaction is no more of interest to many but creating value for all is.
They also like to get involved with R&D, product value-adds, knowledge-sharing, enhancement of service levels and productivity improvements on both sides.
Occasionally, we have seen customers opening up their knowledge reservoir to help the suppliers learn and improve.
4. Value add: A relationship is always a two-way street. Buyers are looking beyond the agreed terms and value additions. It could be in the form of product or productivity enhancement. Once value enhancement is proposed, the buyer would prefer to put it into a pilot. It could also be in the form of sharing knowledge.
As we advise our B2B clients, they must learn to become a social organisation. For that, they need to be open to changing structures to drive openness and conversations within and outside the organisation.
Suppliers need to be aligned with the buyer’s goals and vice versa for a creative pricing structure. For instance, no supplier is willing to share the cost structure. The fear that they would be squeezed to the last rupee is not unfounded if the buyer has different values. This can change if long-term interests are firmly established and B2B companies become more collaborative.
The seller needs to work with the buyer to create appropriate solutions with solid data support. Occasionally, big buyers can improve the cost structures of SMEs and help them benefit from optimised production.
A recent study of marketing channels used by B2B companies found that more than 60 percent used social media. Print and TV together accounted for only 12 percent. Very few are using mobile marketing but it could change this year, given the digitisation plans all around.
B2B marketers must focus on strategies that result in new customers to drive growth. From the same study, we found that 50 percent of the companies want their leads and pipeline to steadily grow, build brands and convert leads to sales.
To do all this, they must do two things—content marketing and stronger social-media marketing. They should also focus on trade shows, events and brand campaigns.
For the next few years, social media marketing, content marketing, lead management, sales and marketing alignment and search engine optimisation will be the key.
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