“This is great – but what about in B2B?” These are the words that chime out regularly at TMM webinars on almost any topic where we choose to go tactical.
B2B is important, but can often feel like the forgotten cousin of ‘the more exciting’ B2C. So, what do we need to know about B2B marketing? I thought I’d collect some non-exhaustive thoughts on B2B, drawing on my experiences working in an agency in the past, and also with help from the community.
The point of this piece isn’t to present it as a coherent single piece (unless you really want). Instead, let me encourage you to use the contents feature below to select what you need from this piece…
Table of Contents
- What stays the same in both B2B and B2C?
- What are the differences between B2B and B2C marketing?
- Theories that B2B Marketers should be aware of to influence your B2B marketing strategy
- The most effective tactics in B2B marketing and case studies
- Current trends in B2B marketing
- Recommended resources/follows for B2B marketers
- Wrapping up
What stays the same in both B2B and B2C?
A couple of months ago I sat on a Mini MBA Q&A with Mark Ritson and they asked a question about the difference between B2B and B2C. He likened B2B and B2C to the relationship between chimps and humans – they share 98.8% of the same DNA, with differences around the edges.
That means to say the principles around creating a good (or bare minimum) marketing strategy still remain relevant. I refer folks to the below video focused on diagnosis, strategy and tactics too often, but it was a real ‘unlock’ moment for me in marketing and speaks to B2B and B2C alike.
This reinforces two things:
Marketing is (largely) marketing. Get the basics right and you’re likely to be doing better than most folks.
The often quoted ‘remember it’s just people you’re marketing to!’ clichè, or ‘marketing is just ‘human to human’ isn’t it?’ rings true – even when discussing B2B and B2C.
Start with the basics of marketing and you’re going to be on the right track. Well… 98.8% of the way – anyway.
What are the differences between B2B and B2C marketing?
However, there is a difference between B2B and B2C – even if it’s just found in the 1.2%.
A good example comes from community member, Mattis Lofqvist who points out on Linkedin, a “challenge unique to B2B: The person who converts at the top of your funnel (website/webinar/ebook download) isn’t always the person who converts at the bottom of the funnel (purchase). And those two people usually have different interests.” Tricky.
I like Mattis’ point because it’s specific. There are, however, more general observations which can be summarised as so:
| B2B Marketing | B2C Marketing | |
| Buyer Motivation | Driven by efficiency, expertise and return on investment. | Driven by emotions, price, popularity, and convenience. |
| Sales Cycle | Long and often complex, involving many stakeholders. | Usually short, often involving just one or two individuals. |
| Relationship Management | Long-term relationships are often important due to high transaction value and reorders. | Relationships may be important, but the emphasis is often on quick, easy transactions. |
| Buying Decision | Based on a logical and structured process. Involves a buying committee. | More impulsive, based on individual wants and needs. |
| Communication Channels | Professional channels like LinkedIn, trade publications, email campaigns, and industry events. | Social media, television, radio, print advertising, and in-store promotions. |
| Marketing Content | Detailed, features-focused, often technical. Case studies and white papers are common. | Emotional, benefits-focused. Video, lifestyle images, reviews are common. |
| Pricing Strategy | Prices are often negotiable and based on volume of purchase. | Fixed pricing; discounts and sales promotions are common. |
| Product Knowledge | Buyers often have deep understanding of the product. | Buyers may rely on the seller to provide product information. |
| Boringness | Boring | Not boring |
Click on Linkedin on any given day and you’ll see someone saying something that reinforces these points.
Some of the closest to my experience are:
- The difference in the sales cycle length
- The difference in the number of people involved in the decision
- Pricing levels and negotiations
- And relationship management
However, accepting these at face value feels dangerous as it leaves them less likely to be debated or challenged.
The ‘B2B is boring’ feels about 1000 miles from the truth.
Same for the buyer motivation point. B2B is often spoken about as a rational decision but Andi Jarvis, points out “The myth of the rational buyer means that most B2B marketing teams focus on features and technical sales rather than considering what motivates people to buy.
A rationally planned purchase process isn’t the same as people purchasing rationally. If B2B marketers spent as long considering what informs buying decisions instead of just listing features, they’d be in a much better place.’
The point here is that even when speaking B2B vs B2C, a more relevant moderating factor is your company and the product and service you offer: take surface-level comparisons between the two at your peril.
Caveats in place – there are a few things that may help B2B marketers in particular.
Theories that B2B Marketers should be aware of to influence your B2B marketing strategy
Beyond diagnosis, strategy, and tactics mentioned above – the work of the Ehrenberg-Bass Institute in combination with the Linkedin B2B institute is well worth keeping on top of. Additionally, ‘How Brands Grow’ and the follow-on book ‘How Brands Grow: Part Two’ are heavy but worthy reads to have in mind when making B2B decisions.
I’d recommend checking out this page for a more detailed explanation of some theories B2B marketers should be aware of (even if you choose to not accept). But here are three summarised…
Physical and mental availability (Byron Sharp)
Physical availability refers to the breadth and depth of a product’s distribution, in other words, how easy it is for consumers to find and purchase the product across buying situations and locations. A product with higher physical availability is more likely to be chosen by consumers.
Mental availability refers to the likelihood of a brand coming to mind in buying situations – as Ian Bamford says – “The first search engine anyone uses is their memory”. Mental availability, therefore, includes brand recognition, recall, and the associations consumers have with the brand that can make it come to mind in various purchase situations. The more mentally available a brand is, the more likely it is to be chosen by consumers.
Basically… increasing both physical and mental availability is crucial for brands seeking growth.
95/5 rule (John Dawes)
The 95/5 rule refers to the general idea that at any given time, only about 5% of your target market is actively looking to buy, while the remaining 95% are not currently in the market for your products or services. The percentages are not exact, but the rule is a rough approximation to illustrate the point.
Therefore the goal is not to push the 95% to buy immediately but to build a relationship and trust with them, so that when they are ready to make a purchase, they think of your company first. Interestingly, research shows that 92% of marketing spend goes on chasing the 5% in market – leaving 8% for the remaining 95% who are not currently buying but will do one day. Good for short-term wins, perhaps – but not doing much to build a long-term brand.
Category Entry Points (Jenny Rominek)
You know when you’re in a particular situation, you think of a certain product? For example – a particular beer you buy at the weekend, or a meal you only eat on holiday? CEPs are specific situations, needs, or occasions that prompt consumers to think about and potentially purchase products within a category.
The theory suggests that to increase mental availability, brands should aim to be associated with as many relevant CEPs as possible. By doing so, they are more likely to be thought of when these situations or needs arise. Therefore, understanding and effectively leveraging CEPs can enhance a brand’s mental availability and influence consumer choice.
B2B Marketing strategies summarised
What we’re saying here is 95% of our B2B market isn’t looking right now – and we’re not focusing on these people enough. Instead, we should be brand building because when it comes to a particular situation or entry point – we want to be available in their mind and at their fingertips to be able to buy. So… how do we do that?
The most effective tactics in B2B marketing and case studies
One of the things I was most struck by in my B2B marketing days was that by the time a new client came in, it almost felt they were friends. “Oh yes – of course Herbert from Nike wants to work with us – I chatted to him three times last week!” (Not an actual example… unfortunately).
The longer sales cycle and smaller amount of folks within your target market mean you can get to know folks so much better and customise their journeys to eventually becoming a customer. For me, the is the number one reason why anyone calling B2B boring is missing a beat: those human relationships are a really fun bit of marketing.
Let’s look at three tactics which really help in the world of B2B, with some case studies to match.
Referrals
Community member Gemma Houghton says “Referrals/recommendations matter more than ever for B2B. That will be the first port of call for many when looking for new suppliers. It needs to be backed up by social proof, case studies, and demonstrating expertise/knowledge but recommendations, as well as sharing negative experiences, have more impact than anything – so needs to be in mind when determining priorities. Ultimately, building relationships tops everything.”
Zoho are an example of a company doing a smashing job here. Their referral program gives any referrer 15% of the referee’s subscription for a year in the form of credits.
The lesson here is Zoho would have done the equation to know their current acquisition cost or lifetime value of a new customer is equal to, or less than the referral fee – so this is worth pursuing.
Beyond setting up a sophisticated referral programme, my first bit of advice in referrals would simply be to make a habit of asking the question ‘Is there anyone you could recommend us to?’. Experience says there is a profound difference between making the ask and not.
Content Marketing for B2B
Something most marketers will be familiar with is content marketing. The game is different in B2B than in B2C as it’s played over a longer period of time. This increases the importance of building trust by turning up as both distinctive and differentiated over a period of time.
Once again, it’s important to note that your content doesn’t need to be dry here. From the community, Dave Harland and the team from Knowlton both really stand out.
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Both embrace humour, but at the end of the day have a B2B target. Some would argue that a videography agency such as Knowlton is ‘exciting’, but for me, that’s putting the cart before the horse. Knowlton have made the choice to be exciting and interesting through their positioning and content.
ABM
Account-Based Marketing (ABM) is kind of like fishing with a spear instead of a net. You’re not trying to catch all the fish in the sea, just the really big ones that you know will make a great catch. ABM is super important because it makes the most of your resources.
I used to love ABM at my previous agency because it gave me the chance to really stretch my creative muscles. I once sent a personalised hammer to the Head of eComm at Screwfix. They posted it to their LinkedIn (and network of folks I wanted to reach) and it was a lovely awareness-based activity.
Similarly, Max Hoppy shared how he sent plants to people who could one day turn into customers with a 1:5172 ROI.
One of my favourite activities with ABM in mind is to list 100 dream prospects and spend a few hours researching each and sourcing something that would be meaningful and significant to them. It’s not a guaranteed acquisition play (remember the 95/5 rule!) but it’ll definitely get you remembered more than a cold message to a random list.
Tactics summarised
The usual suspects of marketing tactics apply in B2B and B2C, but hopefully, this is a starter for ten on some of the different tactics you can apply to reach the folks you would like to.
Current trends in B2B marketing
I thought I could write something on the current trends to close out this piece. But instead, I want to point to a Linkedin post from Dave Gerhardt which I think nails where we are in 2023 with B2B marketing:
“The 3 Trends in B2B Marketing Today
1. Do more with less
2. Burnout
3. AI
I was on a call earlier today with some executives at a well known B2B SaaS brand and they were asking about what the biggest observations + trends are in B2B marketing right now based on what I’ve observed running Exit Five, talking to marketing leaders through my podcast, and various conversations with startups and marketers.
Here was the short list I shared on the fly while walking my dog Moe:
1. Do more with less.
Marketers are dealing with budget cuts, layoffs, but still under pressure to grow still. While also under the microscope from the CFO, being asked to prove every dollar, thinking everything is a direct response tactic, etc.
2. Burnout.
In my [Dave’s] DMs and in the anonymous questions from the community over the last 3 months in Exit Five there have been more posts about stress/burnout/frustration/”does my work have meaning?” more than any time I’ve seen in my career at least…
3. AI.
This is the obvious one, AI is everywhere. But I think marketers are still underrating it. This is not a new buzzy tool. This is a fundamental shift in marketing. AI will change marketing and the role of marketing forever. From creating copy to video to design, many of the jobs marketing does today will be changed because of AI.
This is the time to lean into AI and see how you can bring it into your workflow and your company. If I were a marketer today I would be betting my career on this. People might think you’re crazy but that’s where you have the advantage. Few things happen in your career that you can truly be an early adopter on and gain an advantage. Sometimes speed wins and the quicker you can use AI to your advantage the more ahead of the game you’ll be. I agree there’s still a lot of improvement to be made and it’s early. But this feels like one of those “bet on it” moments. Marketing is a bit of a game of finding little advantages here and there, and getting smart about AI seems to be one of them.”
Recommended resources/follows for B2B marketers
- B2B Marketing Institute
- Refine Labs
- Exit Five
- Dave Gerhardt
- Chris Walker
- Hubspot’s B2B Marketing Guide
Wrapping up
The differences between B2B and B2C lie primarily in the 1.2%. But, that doesn’t mean it’s not important to acknowledge and adapt to the differences – but it does mean we need to get the basics of marketing correct, too.