Three Trends You Can’t Ignore, Results from the ITSMA How Buyers Consume Information Survey, 2012 Abbreviated Summary

Abbreviated Summary | December 2012

Results from the ITSMA

How Buyers Consume Information Survey, 2012

Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA

Dianne Kim Research Associate ITSMA

Three Trends You Can’t Ignore

www.itsma.com | F022AS | 2

ITSMA Survey | 2012 How B2B Buyers Consume Information

© 2012 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.

Abbreviated Summary

Last year’s ITSMA buyer research uncovered shocking revelations about changes in buyer behavior, most notably the

decline of traditional peer influence and the rise of the B2B social buyer. This year’s data confirms these two trends

and introduces a new one. Here are the three trends you can’t ignore:

In our 2012 buyer research, ITSMA is seeing major shifts in buyer behavior and preference in information

consumption. More than ever, buyers are looking to many different sources to inform their decisions.

Read this report to find out how to most effectively reach and engage with today’s buyer.

Note: This abbreviated summary highlights some of the significant findings from

Three Trends You Can’t Ignore: Results from the ITSMA How Buyers Consume Information Survey,

2012. A more in-depth analysis can be found in the full report.

1) Solution providers are a credible and influential source of information, even more so than peers.

1

3) Contrary to popular belief, buyers rely on sales at all stages of the buying process.

2) B2B social buyers and traditional buyers do consume information differently.

2

3




Last year’s study introduced the rise of

the B2B social buyer, who uses

on social media and online communities

during the purchase process. This year’s

data provides more insight on the profile

of the B2B social buyer.

They are young senior executives

with clout; for the most part they are

under 40, are decision-makers, and

belong to the IT organization. They

spend more time consuming content

than their traditional counterparts and

are less likely to delegate research during

the early stage of the buying process.

We are dealing with a new type of buyer:

proactive and empowered.

The B2B Social Buyer is a young executive

with clout

Age* 51

36

14

31

33

36

18–34

35–44

45–54

B2B Social Buyer(N=139)

Traditional Buyer(N=160)

73

27

51

49

IT

Business

Job Role*

19

17

25

40

31

19

22

28

Manager

Director/Assistant VP

VP/Senior VP/Head

C-level, GM, President

Job Title*

* Indicates a statistically significant difference. There were no significant differences found by size of company, industry, or gender. Source: ITSMA, How B2B Buyers Consume Information Study, 2012




The research results validate

that solution provider websites are now

the primary and source of information

for buyers during the early stages

of the buying process.

Many buyers turn first to solution

provider resources before they seek

counsel from their peers.

Peers, while still important as a

source of referral, recommendations,

and references, are no longer

the best source of information.

What were the first three sources of information you turned to when you began your solution research? (Rank order 1st, 2nd, 3rd) % of Respondents (N=299)

Buyers turn to solution provider

information sources first

36

29

28

27

27

23

21

19

17

14

13

12

10

9

8

6

Technology or solution provider websites

Technology or solution provider subject matter experts

Web search

Technology or solution provider sales people

Peers/colleagues

Industry analysts

Management consultants

Industry events/trade shows

Focused online communities/social networks

Focused industry or trade media

General business media

Sourcing advisors

Universities, research institutes, think tanks

Local or national professional trade associations

Social media/networks

Blogs 1st 2nd 3rd

Note: Respondents were asked to rank order top three. Source: ITSMA, How B2B Buyers Consume Information Study, 2012




We see an elevation in

solution provider credibility

At the same time the data shows

the decline in conventional peer

influence, we also see a rise in solution

provider credibility.

Buyers endorse solution

provider subject

matter experts (SMEs)

as the most credible source of

information during the

purchase process.

Solution provider

websites, and even sales people,

are also high on the list.

Traditional buyers are twice

as likely to rank peers as a

credible source of information than are

the B2B social buyers. But even the

traditional buyer find the solution

provider resources to be trustworthy!

Note: Up to three responses allowed; respondents were asked to rank order top three sources. *Indicates a statistically significant difference. Source: ITSMA, How B2B Buyers Consume Information Study, 2012

B2B Social Buyer

(N=139)

Traditional Buyer

(N=160)

32

29

28

24

23

16

25

20

13

13

16

12

16

8

17

8



Industry analysts

Management consultants


Peers/colleagues*

Web search

Focused industry/professional online communities

Industry events/trade shows

,Focused industry or trade media

Sourcing advisors

General business media

Universities, research institutes, think tanks

Local or national professional trade associations

Social media/networks*

Blogs

Which of the following sources of information are most credible? % of Respondents Rank in Top Three

35

28

25

21

28

31

17

18

18

19

15

11

15

14

2

4




B2B Social Buyer

(N=139)

Traditional Buyer

(N=160)

Marketers jobs are complex, they must

rebalance the marketing mix

Although both types of buyers are hungry

for fact-based content and thought

leadership, they differ when it comes to

preferred delivery channels or formats.

Addressing the needs of both B2B social

and traditional buyers means

marketers must re-balance the marketing mix and do a bit of everything to meet

the information demands and preferences

of a bifurcated market.

Note: Respondents were asked to rank order top three channels. *Indicates a statistically significant difference. Source: ITSMA, How B2B Buyers Consume Information Study, 2012

Which information delivery channels or formats do you typically prefer? % of Respondents

28

25

22

19

19

17

17

17

17

15

13

13

12

9

9

8

6

6

Research reports

Social media*

Email newsletters*

In-person seminars/conferences/tradeshows*

Print journals/magazines

Virtual seminars/conferences/tradeshows*

Webinars

Sales calls or private briefings

Digital magazines

Videos

Website copy

Blogs*

White papers

Brochures (hard copy)/datasheets

eBooks

Direct mail

RSS Feed or other newsfeeds

Podcasts

32

6

11

42

20

28

22

22

11

9

18

6

15

11

8

11

7

3




70% 24 23 24

16 14

Sales is being brought back to the

conversation

Contrary to conventional wisdom,

buyers are no longer waiting longer

and longer to engage with sales. The

pendulum is swinging yet again and

sales is being invited to join

the conversation, at all

stages of the buying process.

But there’s a catch!

Sales people are expected to

educate and provide new and

provocative perspectives on the

market and technology solutions.

Marketing must enable sales

to do thought leadership selling

and act as the “frontline” subject-

matter experts.

Stage 1. Epiphany

Stage 2. Awareness

Stage 3. Interest

Stage 4. Confidence

Stage 5. Loyalty

Keeping up with

industry/ technology news and

events

Learning more about

potential solutions

and solution

providers

Identifying a shortlist of solution providers

Evaluating and

selecting a solution

provider/ Making the

final decision

Building ongoing

relationship with

solution provider

post-purchase

70% of B2B technology solutions buyers want to engage with

sales reps before they identify their shortlist.

-ITSMA

Source: ITSMA, How B2B Buyers Consume Information Study, 2012




Buyer behavior is changing at an accelerated pace and

marketers need to be at least one step

ahead of them, not constantly trying to

catch up. Marketers must leverage

solution provider credibility and give

buyers what they want: Easy-to-find

quality information, access to SMEs,

and strong thought leadership,

via both marketing campaigns and sales

interactions, that educates

buyers and bolsters

their company’s

reputation as an

industry leader.


34

29

26

26

24

1st 2nd 3rd

Buyers want easy to find information and

access to solution provider SMEs

Note: Respondents were asked to rank order top three.



Industry analysts


Peers/colleagues




Study

Methodology In Fall 2012, ITSMA surveyed, via the Web, 299

business and IT executives from companies that

purchase business or technology solutions for

individual contracts over $500,000. These respondents

represented larger enterprises, with 47% having

$1 billion or more in annual revenue from four

different countries: US, UK, France, and Germany,.

Respondents were interviewed in the following vertical

markets:

Manufacturing (Consumer/Industrial,

Process/discrete)

Financial Services (Banking, Insurance

(except healthcare), and investments)

Public sector/Healthcare

Communications (Telecom, media, entertainment)

Other (Retail/wholesale, transportation,

energy/utilities/oil/mining/gas, business services,

travel and hospitality, aerospace/defense)

Countries Represented % of Respondents (N=299)

US

57%

UK

15%

France

15%

Germany

13%

Note: Other includes, retail/wholesale, transportation, energy/utilities/oil/mining/gas,

business services, travel and hospitality, aerospace/defense


What is your company’s primary business? % of Respondents (N=299)

22

20

19

14

24 Other

Communications (telecom, media, entertainment)

Public sector/Healthcare

Financial Services (banking, insurance, and

investments)

Manufacturing (consumer/industrial,

process/discrete)




Respondent

Characteristics Purchase Involvement

Which of the following best describes your involvement with your organization’s purchase of major technology solutions for individual contracts over $500,000? % of Respondents (N=299)

67

19

13

Job Role

Are you a business or IT professional? % of Respondents (N=299)

Job Title

Which of the following most closely describes your job title? % of Respondents (N=299)


IT

61%

Business

39%

25

18

23

33

Manager Director/

Assistant VP

VP/Senior

VP/Head

C-level, GM,

President

Decision maker:

I have budget

and/or final

sign-off

authority

Evaluator:

I research potential

providers for inclusion

on the shortlist/I

evaluate the providers

on the shortlist and

select the best

solution

Influencer: I provide

input to help the

evaluators and

decision makers




Annual Revenue of Organizations

Represented

Approximately, what is your company’s annual revenue? (or operating budget if government) % of Respondents (N=299)

What is your gender?

% of Respondents

(N=299)

Male

76%

Female

24%

5

35 34

20

6

18–24 25–34 35–44 45–54 55+

6

21

25

21

14

6 6

$100–

249M

$250–

499M

$500–

999M

$1–

4.9B

$5–

9.9B

$10–

20B

Over

$20B

What is your age? % of Respondents

(N=299)





Want to learn more? Here’s what’s included in the full study

Table of Contents for Three Trends You Can’t Ignore: Results from the ITSMA How Buyers Consume Information Survey, 2012

For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Email: [email protected] Phone: +1-781-862-8500, Ext. 112

Slide

Executive Summary 3

Detailed Findings 36

Respondent Demographics 36

Current Environment: Challenges, Budgets, and Priorities

44

Buyer Behavior 50

Sources of Information 54

Solution Provider Websites 60

Social Media 65

Value of Sales 71

Solution Provider Selection Criteria 77

Crosstabs: 80

By Social Media Use 80

By Country 122

By Age 160

By Job Role 198

By Job Title 235

By Size of Company 273

By Industry 311

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