B2B Buyers are People, Too
You might think that in the business-to-business space, brand awareness and loyalty is less important than it is for consumer brands.
But some branding experts believe that brands matter even more in B2B than in B2C. Why? Many B2B companies compete in a confusing or fragmented marketplace. Often they’re trying to differentiate highly technical offerings by focusing on functional aspects. It’s a cliché of B2B marketing that it’s all “speeds and feeds,” and that connecting on a more personal level is for the consumer realm.
But initiatives that focus on creating value for B2B brands can have tremendous payoff. A Harvard Business Review study on B2B brands concluded that the corporate brand is responsible for an average 7 percent of stock performance. Depending on your market cap, brand equity can mean hundreds of millions of dollars.
People Make Emotional Decisions
Preference and loyalty decisions are not unemotional, logic-driven events—even in the B2B space. Forrester analyst Laura Ramos, who blogs about areas of concern to CMOs, wrote that many B2B marketers still don’t understand that “B2B is really about the people.”
When I was studying integrated marketing in graduate school, one exercise came up time and again: Answer the question: “Do you have a favorite brand, and why?” Responses were mostly consumer brands, and explanations were always fascinating. Ask yourself about anything “Why do I want this or not want it?” Is it the color? Is it the ingredients? Is it what you feel in your hands? Is it the price? Is it the name? You can apply what you learn even to complex B2B products. A client of ours sells sophisticated scientific instruments and faces a competitor whose arguably inferior product has benefited from significant brand investment, best demonstrated by its sleek-sounding name. Even a marketplace filled with highly logical and analytical thinkers can be swayed by the sense that a cool brand makes the product inherently more desirable.
Some of our B2B clients inspire fanatical loyalty that most consumer brands can’t match. One of VMware’s customers tattooed the company’s logo on the back of his head. A tattoo is a pretty personal commitment, but the product enabled this person to feel like a rockstar in his professional life. Professional decisions are emotional choices. What matters in the end is that you’re offering your customers something that matters to them.