B2Bs, The Purchasing Patterns of Your Buyers Are Dramatically Changing. Unless You No Longer Want Their Money, This Means That YOU Must Change, Too.

Long-time readers and colleagues well understand that when data is published which vindicates what I've long been saying, blogging, writing, WOMming, tweeting, nudging and all-out urging of B2B marketers... I tend to get a little bold in my advice.

Let's call it 'tough love'. Because I love B2Bs, and I've no hesitation in getting tough about the changes needed from them to better serve their business audiences, and their bottom lines. After all, rallying our businesses to change is a big part of a marketer's job, one might say our reason for being. And where some businesses move more quickly on change imperatives, other companies fail to ever truly adapt—and that never ends well (but certainly makes for many a cautionary tale).

After clocking many years in this profession, I know if there's *one* thing that moves B2Bs to action, it's data that shines a glaring light on the wide chasm between where they presently are vs. where they need to be in relation to their buying audiences. So you can imagine my delight when I came across this new study, conducted by DemandGen Report and Genius.com, titled Inside The Mind Of The New B2B Buyer. Why so delighted am I? Because the findings are proof positive of the vast changes occurring across the B2B business environment and confirmation of how, in particular, social media tools and technologies are driving a new set of purchasing patterns by today's business buyers.

I've highlighted many of the study's data points below, along with giving my take on the implications for today's B2B marketers. But before we start, it's important to note that it's not only the dramatic changes in B2B buying patterns that are remarkable... but the fact that they have occurred in just a *handful* of years. Because if we're already seeing patterns emerge that prove a sea change across many decades-old, staid purchasing processes, I assure you that we're only witnessing the tip of the proverbial iceberg. On that note, let's dig in:

*The Way That B2B Purchases Are Budgeted (And Approved) Is Changing.

Supporting data points:

• Less than ¼ indicated budget was approved/allocated during the beginning of the year
• Nearly half of the respondents indicated they determined “the potential impact through other adopters and built a business case for immediate adoption,” then received approval although the project was un-budgeted.
• 23% noted that budget was allocated after ROI was proven
• 9% indicated budget was taken from another line item

What do these changes signal for B2Bs?

Gone are the days of the set-in-stone budget that doesn't budge until the next fiscal year/calendar year. While buyers are more economically conscious in their spending, they are far more fluid in realizing their needs. Even budgeting has become more real time! This is good news for B2B marketers, because their efforts won't hit up against the "we-didn't-budget-for-that-this-year" objection. But with that said, now more than ever, B2B marketers must be prepared to build a bulletproof ROI case BEFORE the sale: if you can deliver on that data, you'll open a lot of doors and, perhaps, a place in the budget.

*The Level Of Time And Detail That B2B Buyers Are Placing Into The Purchasing Process Is Changing.

Supporting data points:

• 48% Utilized a wider variety of sources to acquire information at various stages of the buying process than during previous purchases
• 48% Took more time to research their buying options
• 36% Did more detailed analysis of costs/ROI on their own

What do these changes signal for B2Bs?

Welcome the age of the knowledge-savvy, highly discerning buyer who carries up-to-the-minute information over their shoulders (laptops) or in their pockets (Web-enabled mobile phones), with access to a world-wide network of colleagues with whom they connect at an instant's notice through a quick update, tweet, or forum posting. Make no mistake, as B2B Buyers are researching more viewpoints in various stages of the buying cycles, they're getting smarter faster and they're becoming far more sophisticated in their purchasing decisions.

B2B marketers need to focus on increasing awareness and ensure that they're always at the ready to answer questions and help buyers make decisions, whether those questions are submitted via phone, through email or over social networks. But more to the point, B2Bs must prepare for a more skeptical buying audience: because where the Web enables buyers to easily compare competitive offerings through a few keyboard clicks, social media lets them vet any and all marketing messages, ROI promises and data points through their entire networks.

*The Amount Of Purchase Influences (And Influencers!) On B2B Buyers Is Changing.

Supporting data points:

• 30% Had more internal team members provide input
• 27% Relied more on live customer feedback & recommendations

What do these changes signal for B2Bs?

While purchasing decisions may happen behind closed doors, the purchasing process is now a much more open discussion.  And B2Bs are no longer only courting the respective "Decision Maker" as he/she is less isolated, and is far more influenced by a larger pool of influencers. Not only are internal team members providing more input on potential vendors, but Decision Makers are also inviting recommendations from fellow professionals through online forums, blogs, social networks, etc.

B2B marketers not only need to be active and maintain a presence in the Social Web and in online communities, but to also create programs that facilitate exchanges BETWEEN their business audiences, so as to endear them to their brands in a manner that gets them talking (instead of you talking and them only listening). Remember, since social media gives business audiences the same marketing tools that companies have at their disposal, they're now the curator and champion of your messages... and you want them exchanging (positive) messages about you.

*The Way That B2B Professionals Are Researching Product Alternatives Is Changing.

Supporting data points:

• 78% started with informal info gathering
• 59% engaged with peers who addressed the challenge
• 48% followed industry conversations on topic
• 44% conducted anonymous research of a select group of vendors
• 41% followed discussions to learn more about topic
• 37% posted questions on social networking sites looking for suggestions/feedback
• More than 20% connected directly with potential solution providers via social networking channels

What do these changes signal for B2Bs?

Where B2B Buyers used to have to seek-out colleagues facing similar experiences, needs or challenges, now they simply run an online search, ask their peers on their online networks, or follow certain groups and topical discussions. And B2B Buyers are also interfacing with vendors directly over online sites and platforms, feeling far more confident about asking questions and making introductions through social-media tools.

There are really two action points for B2B marketers. The first is to maintain a presence on the sites pertinent to their buying audiences and to participate in prospect-rich, targeted communities. And the second, is to provide information (e.g. thought leadership) that directly addresses the needs, pain points and challenges of their audiences so as to be easily 'found' when B2B Buyers are looking for solutions. In other words, B2B marketers need to lay the groundwork for strategies focused on "pulling" buying audiences to them, over merely "pushing" information at them. Even better if this content triggers conversations and discussions as, again, you want B2B Buyers talking about your insights—since this gets them talking about your brands.

Here's a few more important findings from the study:

• Reaching the New B2B Buyer: 66% of respondents indicated that the “consistent and relevant communication provided by both the sales and marketing organizations” was a key influence in choosing that company as their solution provider.
• The Role of High-Quality Consistent Content Throughout the Buying Process: Almost 95% of recent purchasers said the solution provider they chose “provided them with ample content to help navigate through each stage of the buying process.” 
• The Importance of Post-Purchase Influence: 59% said they shared learnings from their research and buying process with others. 
The forums they used included: one-on-one discussions; Blog postings; discussion forums and tweets. 
  

In sum, what is changing about the B2B purchasing process and the buying patterns of B2B buyers? Pretty much...Everything. What should today's B2Bs do about it? Change accordingly—so as to increase their ROI and ensure their ongoing relevance with buying audiences.

For a slideshow and a terrific article by the producers of this report, please go here. Also, for other recent data points on business professionals using social media, please go here. And a treasure trove of B2B social-media marketing content awaits you here (with B2B mobile insights here).

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Comments

[Mark W Schaefer]

Once again you prove to be the oracle of B2B marketing wisdom. Great post!!

[renaissance costume]

yes.. Oracle of b2b maketing wisdom indeed! Thanks much for the great post!

[jeff fisher]

Really great blog article.

A fast emerging area of business analytics is Pattern Based Analytics (PBA). This has been launched due to the very large amounts of data and need for analytics that can reveal meaningful patterns that businesses can act on. A typical reaction to the large amount of data is “If I had seen this coming sooner, I could have acted faster, decreased my risk and enhanced my opportunities for growth. Pattern Based Analytics typically requires focus on a business areas, e.g. Sales, Marketing, Finance, etc. The key to Pattern Based Analytics is automatically revealing intelligence that is hidden in the data/information.

http://www.emcien.com

[Rich and Co.]

It is great to see a blog post based on data rather than just opinion. We work in highly regulated verticals and are finding the following:
- All ideas must come from the C-Suite. No one is willing to stick their neck out unless the senior leaders have said "I want this done by X."
- Safety, rather than growth or problem solution, is the main and pretty much only priority. No one wants to even suggest anything that may threaten their job. Doing nothing, while being involved in extensive information gathering and discussions, is usually the safest strategy.

A growing problem we're seeing at the Fortune 500 firms is that they have fired most of the staff so there is literally no one available to run projects.

With Summer coming on, there may be a little blip in spending in Spring, but likely '10 with be a status quo/no-go year for new ideas and projects. Would love to see data that's wrong!