Digital , Social Media , Industry News May 18, 2011

The New B2B Customer

According to census predictions, Generation Y (or Millenials) born between 1976 and 2000 outnumbered Baby Boomers and Gen-Xers in 2010.

Why is this important?

This is an important consideration for B2B companies for a number of reasons.  The Gen Y cohort has grown up in the age of technology. They are the most plugged-in generation yet with over 96% having joined a social network at some point in their lives. Gen Ys are:

  • Impatient
  • Speak their mind
  • Demand flexibility
  • Tech savvy
  • Have high expectations of themselves, the companies they work for, and the people they deal with.

And, most importantly:  These are your customers.

The Changing B2B Customer

Gen Ys have and will continue to have a dramatic social and economic impact on business.  These customers have changed the way business operates. Of today’s B2B buyers

  • 59% engage with peers online who addressed their challenges
  • 48% follow online industry conversations on topics
  • 41% follow online discussions to learn more about topics

(Source: Inside the Mind of the B2B Buyer)

The world has changed

  • Information is free
  • The traditional sales channel is no longer the only information conduit for customers to gain insight into products or services
  • Prospects are accessing information online
  • “Sales” is not able to read the digital body language of customers.

That means marketing now needs to take on a greater role in understanding and interpreting the needs of the buyer.

A New Reality

This shift towards more intensive use of the internet has also changed the way B2B buyers interact with companies when making a purchase decision.  Instead of a “sales funnel” there’s now a “consumer decision journey” (CDJ).  David Edleman discusses this concept in his article “Branding in the Digital Age.”

For years, marketers assumed that consumers started with a large number of potential brands in mind and methodically winnowed their choices until they’d decided which one to buy. After purchase, their relationship with the brand typically focused on the use of the product or service itself. New research shows that rather than systematically narrowing their choices, consumers add and subtract brands from a group under consideration during an extended evaluation phase. After purchase, they often enter into an open-ended relationship with the brand, sharing their experience with it online.

THEN: Sales Funnel Decision Process

NOW: Consumer Decision Journey

 

A core part of this revised sales model is the use of social media. B2B buyers are utilizing the internet to research their choices during the consideration and evaluation phases: reading blog posts, examining product reviews, checking the latest buzz on Twitter, and engaging with others in virtual communities.  Being a part of the social sphere ensures customers include your products and services in their evaluation process. Plus, engaging with customers after the purchase decision utilizing various social media channels (i.e. Twitter, Facebook. LinkedIn, blogs, communities, etc) makes sure they become loyal advocates of your brand.

Case in Point: Social Customer Service

Research conducted by CustomerThink Corp. shows that “today’s social customer, along with our fast-moving competitive world, demand more of a real-time approach.” Utilizing social media to monitor customer feedback, satisfaction, and loyalty is becoming more and more critical especially with the increasingly connected and tech savvy individuals entering the business world. This requires taking advantage of the social technologies and integrating them into your business processes.

Take for example Twitter, which is increasingly being used to enhance customer service and outreach capabilities. Set up an account, start a dialogue with current and potential customers, link back to your website for more information, and monitor conversations utilizing tools such as HootSuite or TweetDeck.  Develop a feedback loop internally to respond quickly to requests or concerns found by listening to the voice of the customer.

The result of taking the time to explore the use of social media tools could mean an increase in customer engagement, stronger relationships and ultimately increased sales with this new breed of customer.

How are you engaging with the new B2B customer?

Kim McWattDirector, Social Media & Senior Consultant

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Showing 5 of 5 comments

Thanks Simon! Ultimately, the customer will speak to a sales representative. At time of purchase, the experience with the sales representative makes a major impact. It's critical there is consistency in brand promise and marketing message across all the online channels and at the store/dealer/agent level to ensure the customer moves seamlessly from consideration to purchase.

Hi Kim, Really enjoyed reading this article. For our part, we regularly talk about how the buying process for B2B technology sales has become more complex. There are more buyers involved and, yes, decision-making certainly takes longer than it used to. Your concept of an extended evaluation phase is a great explanation of why the evaluation phase takes longer. It very much fits in with the concept we also discuss that the balance of power has shifted to buyers. B2B firms are no longer able to funnel buyers through a pre-determined sales process. Rather, buyers can extend or contract their evaluation phase at their own discretion. The increased ability to find new information at any point along the process can change their evaluation criteria or even their understanding of their need in a way that is organic and beyond the control of traditional sales and marketing techniques. It's certainly much more like an iterative loop than stages of a funnel.

  • 2011-05-20 12:34pm

Cool insights here. I think the big difference, either B2C or B2B, is the idea of "trust" is far more transparent. If the brand-stewards (for lack of a better term) don't want to engage me in conversation, I'll find someone who will. Then, it becomes quickly apparent -- regardless of the product attribute/ benefits/ capabilities I'm being told about -- which brand holds more 'trust value' with current and potential consumers. Tradition may be a bigger factor in B2B, but I would still think the mindset of the purchaser shows similarities.

  • 2011-05-19 8:36am

Thank you for your encouragement Mike! I'll keep your comments in mind for future posts.

Well done Kim. I'll be watching your posts closely. I do so much on-line work for business and community action that any education I can gain to make my work more effective (reach and impact) will be helpful. A lot of the principles cross into areas I am involved with.

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