B2B Social Media: Top 10 Reasons Why The World Is Your Web 2.0 Oyster.

In a Web 2.0 World brimming with MySpace teens, Facebook fans, Celebrity Twitterers and blogs about cute kittens, it's no wonder so many B2B companies view social media, and the Social Web, as strictly a "consumer play."

That mindset, however, is costing B2B companies potential revenues, new customer relationships, unparalleled reach and, quite frankly, their relevance. Even worse when B2B companies realize that this opportunity loss isn't something that's being done to them... but due to something that they're simply not doing.

While I'm pleased to see quite a bit more Web 2.0 movement and participation from B2B players, I frequently find myself building the "B2B Social Media Business Case" when walking professionals through the multitude of programs, tools and strategies now afforded to them. I'm happy to have these discussions as, aside from it being part of my role to transition companies to these new media and new practices, it's rewarding to see the looks on executives' faces when they connect the dots and ... poof!... social media becomes (really) relevant to them.

Yet along with explaining the world of social media opportunities now available to B2B companies, I also need to illuminate that the world is not awaiting their involvement. Nope. Because unlike all other media, customers now have the very same tools of creation, communication and sharing that companies do and thus, customers are moving forward at unprecedented rates and quite potentially moving onto other companies that are actively using social media to build relationships with them. 

Moreover, their competitors aren't waiting on them, either. Hardly. Those smart companies are rightfully enjoying first-mover advantages in their respective sectors due to so many companies sitting on the social media sidelines waiting for others to move first. But what is innovative about waiting for those you compete with to make the first move into qualified markets? You guessed it, not a single thing.

So, in the case that you, too, are working to nudge more B2B companies into Web 2.0, here are 10 key points to help you build the B2B Business Case for using Social Media:

•#1: Tap into highly ENGAGED audiences and communities. The Social Web is not another marketing channel but a thriving place of active, passionate communities, both consumer and professional. And it's essential to understand that professionals are “communal” by nature since they automatically qualify as engaged around their functions, disciplines and professions to ensure their ongoing career development and the best interests of their companies. Unlike consumers who are lured by the latest fad, professionals are committed to their professions and the online communities that can further their growth.

•#2: Over 90% of B2B buyers are ALREADY using these tools--you need to be where your buyers are. In February 2009, Forrester Research data found that 91% of B2B buyers are using social media tools, often to research and execute purchases, hailing the segment as "One of the most active groups of people when it comes to social participation." As businesses, it's just plain common sense to have a strong presence in the places where our markets present themselves.

•#3: Help DEMYSTIFY complex brands for your buyer audiences. B2B products and services are many times very complex and warrant a lot of analysis--and often necessitate a steep learning curve for buyers. The information exchanges delivered through these conversational media help to decrease confusion and, in turn, increase the purchasing rates of B2B products, services and offerings.

•#4: Lower buyer-side RISK. Favorable online WOM reduces buyer risk for big-ticket B2B items because customers are avidly speaking with one another about their interests, experiences, preferences, likes and dislikes--and credible, third-party referrals encourage enterprise purchases. So your objective is to encourage positive online WOM that lowers risk for potential buyers as risk is a particularly important factor in B2B purchasing behavior.

•#5: Social media are the most COST-EFFECTIVE media... EVER. While social media does require an investment of both budget and resources, it's nowhere near the equivalent of a large media buy. Thus, companies can implement social media programs even in times of tough economic climates and use the media to strongly position themselves going forward.

•#6: Build new customer RELATIONSHIPS across an exponentially broader reach. Through social media you now have access to the world and new ways to find new customers that have previously been "out of reach" for you. Whether it's Boise, Bangladesh or Belgium, it's just as easy to reach out both far and wide to build new relationships across once-distant regions.

•#7: Extend your THOUGHT LEADERSHIP efforts to a new medium that celebrates ideas and conversation. With social media, B2B companies have the ability to leverage their existing thought leadership efforts and share them with a wider audience while generating true conversation around them, resulting in more exposure and generating more prospective clients. Additionally, through social media programs company executives can prove their savvy and know-how, rather than rely on Web sites that only tell of competencies and benefits.

•#8: Gain (and maintain) COMPETITIVE ADVANTAGE--and you might just enjoy a first-mover advantage, too. Due to many B2B companies dismissing social media as merely a "consumer play," the prime time is NOW for first-mover advantages--but there's a limited window of opportunity before competitors move into this space. And apart from competitive advantage, as with any company be they B2B or B2C, executives need to remain highly mindful of remaining relevant (i.e. top-of-mind) with prospects... and in order to be on their minds, you need to be active in their media.

•#9: Decrease lengthy SALES CYCLES. The B2B sales cycle is far longer than the B2C sales cycle, but in using social media tools and platforms to build relationships and extend greater levels of value, you can gain trust and credibility which strategically work to decrease sales cycles--especially given that B2B purchase decisions are rationally based (vs emotionally-based like many B2C purchases) and necessitate more far more data and trust to support purchases.

•#10: A new way to nurture HIGH-VALUE customers. The B2B market is much smaller than the B2C market and thus, the value of each customer is far greater to companies. It's why Customer Relationship Management (CRM), both before and after the sale, is critical for B2B companies. Through Web 2.0 tools and platforms, companies are enabled new CRM methods for communications, customer connections, service, support and knowledge share.

And that brings us to the BIG takeaway for B2B marketers: In a world of Facebook fan pages, MySpace madness and online videos of lipsynching teenagers, you absolutely, positively should not relegate social media to the consumer corner.  Because the B2B opportunities in Web 2.0 are just as remarkable (if not more so).

So get into the Web. 2.0 World, plenty of pearls await you.

PS: To further build your social media business case, and find out the wealth of gains that companies receive through a Web 2.0 presence, just go to this archive of B2B social media-centric content.

Social Media Tips • Social Media *Extras* • Social Media Training • Contact CK

Comments

[Matthew Ray]

Thanks CK - Great thoughts. I found this post via @GregVerdino.

I feel at many B2B companies you have those fast movers that see the power of social media for their brand - and you alsp have those slow movers that see social media as not needed. It's tough out there to get your key stakeholders on board without proving the value to them.

Persistance pays off.

Starting with finding your audience to nuture your high-value customer (point #10) could be your first step in jumping into social media.

[Social Steve]

CK,

Simply - excellent! Great commentary and advice on how and why business must have social media integrated into their marketing strategy, plan and execution.

I think you have simplified an ongoing discussion that has had so much jargon and BS flung about.

Thanks,
Social Steve

[Michael Leis]

What a great list, CK. I would only add to #3 that aside from demystifying complex offerings, it really allows businesses to be complex in a way that is engaging, because it's boiled down to people-friendly terms and dynamics.

No one is going to (or ever did) take the time to unravel everything that makes the brand/ product offering tick. But SM provides the conversational content "pings" that help audiences come to a deeper understanding of that complexity over time.

You also can't forget how important social objects are in the B2B world. Showing your manager a bit of interesting research is just as socially valuable as the personality tests on Facebook. They strengthen relationships between prospect employees in corporate hierarchies, as well as with the brand.

See? Your post was so good it got me going.

[Gifford Morley-Fletcher]

Excellent piece CK, and all so true. After all B2B is still about people to people, so Social Media is just as relevant here as it is in the big 'old B2C world.

[Ricky]

Once again, we are of a like mind about so many things, CK. I see a lot of the same objections. Another one would be simple lack of awareness. Businesses trying to pay the light bills or meet payroll right now probably are not on top of the social web trends. I think a lot of B2B's will "wake up" once the financial pressures are not so great.