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Traditionally, most B2B businesses have operated based on internal processes and goals. Marketing campaigns tend to be driven by product launch dates or industry-scheduled events. The way marketing teams are organised is often determined by internal programs, processes and functions. This introspective approach doesn’t take into account the buyer, their buying process(es) or their timelines.
B2B businesses need to focus on the buyer and put buyer-driven marketing strategies in place. What's more these strategies need to reflect the new generation of 'digital natives' rising up the ranks into senior buying positions.
B2B buyers have become digital-first. The first wave of 'digital natives', who have always used cloud-based services and collaboration tools, are already becoming established in senior buying roles. Their professional experience doesn't pre-date search, e-commerce and professional communities and tools like LinkedIn.
The use of smartphones, social media, and other ‘digital’ advancements have blended into all our business lives, but this is especially the case for the new generation of B2B buyers. Recent research by Salesforce identfied that 80% of B2B buyers want a B2C experience. B2C marketing trends are influencing B2B. They are still different audiences, but consumers’ expectations of companies are very similar for both B2B and B2C buyers.
Since the advent of digital marketing the majority of B2B marketing investment has been made in 'performance' marketing - a short-term performance based strategy that can be valuable for generating quick leads and sales. We think this has led to an obessesion with short term results, when enduring success lies elsewhere.
The biggest growth opportunity in B2B is to influence the 95% of 'out-of-market' buyers who aren't even in the sales funnel yet.
When those 95% of buyers do come in-market, we believe that brands should be 'easy to mind and easy to find', because the brand that gets remembered is the brand that gets bought.
We're not saying that performance marketing doesn't have a place. It does! But according to LinkedIn data, B2B marketers spend around 8% of their budgets on brand awareness objectives. This means that something like 92% of B2B marketing budgets are committed to short-term, bottom of the sales funnel 'performance' marketing activities. The balance needs to be redressed, with more effort and investment being focused on the future i.e. influencing the 95% of 'out of market' buyers that will help deliver long-term success.
Redressing the balance won't just help deliver long-term success, it will also have a positive impact on all the (shorter term, 'performance') marketing activity directed at the 5% of buyers that are in-market. Strong brands outperform weaker brands in the same industry by 3:1 in terms of customer acquisition costs.
Ultimately, brand marketing creates more financial value than short-term performance marketing. Research carried out in 2019 by the B2B Institute, with Les Binet and Peter Field, showed that B2B brands that invest at least 50% of their budget in long-term brand building deliver the best financial returns in terms of market share growth, profitability and revenue.
Performance marketing has its place, but it shouldn't account for 92% of B2B marketing budgets! Building your brand, and being 'easy to mind and easy to find', are absolutely crucial to long-term success.
If this resonates with you, please get in touch to find out how our approach can add value to your B2B marketing.