B U S I N E S SB U Y E RI N S I G H T S

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As B2B specialists, spotONvision and TNS NIPO collaborated to confirm what we believe is compelling new information about not only how marketers should market and how sellers can stay focused on selling, but also how Dutch buyers of high-end products or solutions (deals in excess of €100,000 or XL deals as we call them) march through the purchasing process. We did this by the most effective way we could muster. We asked buyers who cut the check how they did it, what they expected at each step, and for their help in busting a few myths along the way.

BUSINESS BUYER INSIGHTS XL 2014

What you’ll come to learn after reading this report is that the old days of marketing only dealing with brand awareness and sales either closing the deals or complaining about lead quality are over. This is particularly the case if you’re looking to close a deal of €100,000 or more.

Your buyers expect you to be in synch with each other. If your timing, messaging offers, or deal terms are in conflict, that big deal may be as good as gone.

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INTRODUCTION

The Dutch businesspeople we spoke with confirmed that they were more likely to buy from companies who focused on helping them solve programs rather than setting them up for a sale. This high-end buyer guidance of what happens at each stage in their “buyer journey” – coupled with what influenced their decision to buy or run away – is what we believe will move buying

and selling relationships forward in the years ahead. At the end of this report, we will deliver key takeaways for both marketing and sales from the people who buy on what you should do to win their business.

We hope you find our research useful and welcome your input or personal observations in the marketplace.

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Ingrid Archer spotONvision Linda Cornelissen TNS NIPO

Our findings are based on:

15 in-depth interviews with business buyers; directors of Marketing, HR, IT, Facilities, Sales Support, employed at larger companies, (re)orientating on contracts worth over €100,000

96 online interviews with business buyers involved in acquisitions over €100,000

Type of XL contracts that were bought / (re)considered (alphabetical order): Broadband services, Car lease, Catering, Cleaning, Consultancy, CRM/Sales tool, Energy, Flexible workforce, Housing, IT Security, Maintenance, Market Intelligence, Mobile phone/internet, Office equipment, Staff training and Web analytics

Fieldwork conducted in February - March 2014

A critical insight from this research and other buyer studies we’ve completed is that the way someone buys something and the way a company tries to sell it to them is often not aligned. Sales is trying to close a deal based on company name, size or target industry, while marketing is spending a lot of energy trying to get noticed by explaining product feature sets or expertise in an industry or business sector. Meanwhile, the buyers we spoke with were simply trying to gather information to help them solve a technical business challenge or achieve an objective – like saving

money, working more efficiently or doing more with fewer people. To achieve those objectives, buyers sought out people in their own networks who achieved similar goals or solved the problems they face.

It will be important and more lucrative for anyone attempting to sell to these problem-solving buyers that their marketing and sales efforts align with their target buyer’s procurement processes and what they expect to see from solution providers to discern their ability to do the work.

A typical buyer’s journey begins with someone impacted within a given company working to identify peers who may have overcome the challenge they currently face. In what we call the Awareness Phase, people seeking information are looking for suppliers that have helped others survive a similar plight. This allows the buyer to

begin building a list of potential suitors who have shown expertise in the area where they need help.

What you call “Awareness” as a marketer, the buyer usually is beginning the longlisting or Orientation Phase and it can take a lot longer than many sellers would like.

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A BUYER’S JOURNEY & HOW IT BECOMES A SALE

AWARENESS FOR YOU = ORIENTATION FOR YOUR BUYER

The average buying process, according to those prepping RFPs or RFIs, averages some four months for big-ticket purchases. Think servers and CRM systems over small software or business office purchases like computers or coffee makers. The length of this process, according to those surveyed, can also be shortened if they are a repeat buyer (3 months) instead of a new purchaser with a newer problem to solve (almost 5 months). It is therefore suggested that after sharing information requested

ORIENTATION PHASE (LONGLIST)

during the orientation / awareness phase that you provide the buyer a way to identify his or herself and ask the person to reveal their familiarity with the types of solutions you sell. This is commonly done via follow-up emails, phone calls, or, for those with email marketing platforms, by using web forms on landing pages that pose these questions online. Our XL buyers said this follow-up is welcomed and preferred within 24 hours of initial contact with the information provided.

130 days

91 days

REPEATED / ADJUSTED BUY

NEW CATEGORY BUY

ORIENTATION PERIOD

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What is interesting as it relates to the behavior of Dutch XL business buyers is that they appear to be more inclined to find peers in their own personal networks to contact first instead of taking to the Internet with problem/solution when it comes to bigger deals (€100,000+). This will make your efforts as a marketing and salesperson a bit of a challenge to gain that awareness in the early orientation stage of a buyer’s journey. This can be overcome by making yourself known

where your buyers congregate live or in virtually live events like webinars. Also professionals appreciate relevant knowledge for free. So dare to share!

That said, online sources have a slightly larger influence when it comes to engaging prospects for new category contracts. For example when a prospect is looking for e-Learning solutions, or a supplier and implementation partner of a web analytics tool.

Fewer than a quarter of the Dutch business buyers who were interviewed face-to-face orientated themselves online when formulating their longlists on €100,000+ deals. Therefore, the influence of online sources in this phase is a lot less significant than many B2B marketers believe.

MYTH BUSTER #1

ALL BUYERS START ONLINE

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MOST IMPORTANT SOURCES OF INFORMATION USED

ONLINE SOURCES OFFLINE SOURCES

independentprofessional advisors

information by phone,at my own request

consultation withsales advisorwebsite providers

no online sourcesof information

search engines 32%

35%

54%

32%

36%

60%

Here is a breakdown of what recent buyers of XL purchases (again deals in excess of €100,000) told us about

the most important online and offline sources used throughout the buyer journey.

It’s important to note that one in three buyers (35%) did not use any online source of information in the buying journey. Having said that, half of the buyers did use website information of suppliers. When it comes to offline sources however,

the sales advisor is by far the most important source, while independent advisors come second, almost as important as information requested by telephone. It just goes to show the weight of personal contact.

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SO WHAT CAN YOU DO TO BE WHERE YOUR BUYERS ARE DURING THEIR ORIENTATION / AWARENESS PHASE?

Which brings us to Myth buster #2 – The Buyer’s Journey is more than

half over by the time a salesperson is brought into the mix.

Our XL business buyers say, do good work, be known for it and ask questions! All interviewed buyers asked an immediate colleague or key business partner about positive experiences with suppliers. Peer-to-peer recommendations therefore play a very significant role for Dutch buyers and comprise more

than simple online recommendations. They also suggested that while they didn’t often start their buyer journey online, being available or present when queries in relevant social networks like LinkedIn Groups can certainly help your cause to be seen, heard and recommended.

Dutch buyers reported a higher likelihood of contacting a known sales advisor or peer in a given industry early and often throughout the purchasing process to assess vendor viability and performance. This counters commonly quoted research in other countries that suggest buyers only contact sales in the final stretch to haggle on price, deal terms or value-added items to sweeten a deal. Dutch Business Buyers content they used sales and vendor resources in the Orientation, Proposal and Decision phase.

MYTH BUSTER #2

THE BUYER JOURNEY MORE THAN HALF OVER BEFORE SALES IS ENGAGED

The buyers we contacted told us that longlists were compiled when they talked to people or knew people. As they said it’s about the people

they would maybe one day be working with and not the company who employs them … or in Dutch: “De vent in plaats van de tent.”

PERCEIVED VALUE ONLINE SOURCES

degree of use OFTENHARDLY EVER

valu

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sVE

RY V

ALU

ABL

EN

OT

VALU

ABL

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EMAIL MESSAGES

SEARCH ENGINES

OTHER SOCIAL MEDIA

WEBSITESLINKEDIN COMMUNITIES

Online sources barely used during orientation:

Online videosOther online communities

TwitterFacebookBlogs

Know who your competitors are and keep an eye on them, comply with preferences and identify the relevant USP in the eyes of your prospect

Understand that negotiations start during first contact; this contact could take place in the form of an electronic newsletter about a certain topic or a webinar where you share some of your knowledge for free

DO’S AND DON’TS ORIENTATION PHASE

PERCEIVED VALUE OFFLINE SOURCES

degree of use

valu

e so

urce

s

OFTEN

VERY

VA

LUA

BLE

NO

T VA

LUA

BLE

HARDLY EVER

SALES ADVISOR

ADVERTISEMENT

TELEMARKETING

DIRECTMARKETING

CONFERENCE /SEMINAR WORD OF MOUTH

LEAFLETS

FAIRSINFO BY PHONE,OWN INITIATIVE

PROFESSIONALADVISOR

In the consideration stage as a marketer you should be working diligently to nurture your prospects gathered during the awareness phase so they get the information they need to convince themselves of the decision they need to make.

And in the case of very large purchases: convince board members and other key stakeholders that your product or solution will deliver a return on investment. It is here that marketers are qualifying leads before handing them off to sales reps.

CONSIDERATION TO PROPOSAL

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The proposal phase is typically when, after amassing their likely candi-dates, business buyers and often their procurement leads ask the top 2 or 3 suppliers from their longlist for a proposal (av: 2.6 proposals). Most companies who are selling the product insist on holding a meeting to nail down technical specifications and gain competitive selling proposi-tions insight before they formulate a final proposal. Buyers indicated they have little tolerance or ability to secure the time of stakeholders for what could be as many as six meet-ings total for three vendors before a decision. Strong procurement teams

will often have documents prepared for the seller to fill out in excruciating detail to combat this need for a spec meeting. In addi-tion, they expressed a willingness to field questions via email to account for this and rely on the supplier/vendor to respond in the proposal how they will address the company’s concerns via their product or solution. It is then that typically one meeting is convened with all stakeholders for each vendor to present proof that what they’ve outlined in the RFP can be demonstrated.

This usually starts by featuring content to illustrate client success stories, financial return on investment, cost of ownership (TCO) timeframes, implementation partnerships and other verifiable or third-party information that shows your company is a strong partner for purchase consideration. You’ll also

find that this proves to be the stage where marketing and sales synergy is at its most potent. In this stage, marketing knowledge creation and sales RFP response are often joined together to gain shortlist approval by a buyer and critical to move your company into a decision phase.

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PROPOSAL PHASE (SHORTLIST)

At this stage, you are now engaging directly with decision makers and detractors. It is therefore critical that both marketers and sellers take great care in managing your buyer’s expectations and emotions.

Managing projects is managing people and the fact is people look to reduce the risks of making a bad decision. Half of the buyers we

contacted stay with their existing supplier, a quarter returned to a supplier they have worked with in the past, the remaining quarter are, therefore, open to new relationships. Consequently, the power of the

incumbent provider is greater than that of other suppliers on the shortlist. This means the sales strategy for repeat purchases will or should differ from the strategy used for new purchases.

This also emphasizes the importance of account-based management and lead nurturing you undertake in the consideration phase.

DON’T FORGET THE HUMAN ELEMENT

CHOICE OF SUPPLIER

ULTIMATE CHOICE SUPPLIER

51%26%

23%

New supplier never been subscribed before

Known supplier have been subscribed before

Known supplier still subscribed to

Once you have familiarized yourself with the people, mission, culture and frictions within a company, you are two steps ahead of new competitors

Prepare for the specific business issue and country coverage, instead of telling the prospect what a great (international) player you are

Help the client by pinpointing potential pitfalls and sharing your past experiences

Talk about the emotions you know, feel or are suspecting, and do this explicitly

DO’S AND DONT’S PROPOSAL PHASE

For marketers this is where you bring your best and most compel-ling information to life. And by ‘bring it to life’ we mean put buyers in a position to actually see what you do – in person if at all possible. This could take the form of conferences, demos in-person at the company premises, and offers to trial run or test onsite what is being offered to ensure a purchase. It’s also well received to have a star customer meet and talk to a prospective buyer to help allay concerns. Make no mistake, this is a marketers role and not a sales role. Sales will be there to close the deal, but it is the marketers job to leave no doubt in the customer’s mind that the decision to purchase

is the right one. And as we pointed out earlier, no one does that better than a peer once in their shoes.

Dutch buyers acknowledged that their business buyer journeys typically involve linear, fact-based and step-by-step approaches, with few diversions back into what has already been decided. That said, they say the biggest mistake however, is to not leave enough space for emotions – and have the agility to respond to changing tides quickly with verifiable information. Often, when sellers are in this situation, buyers can be reluctant to cite reasons for roadblocks to a decision, often because it points to indecision in the upper ranks of a company.

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Despite the fact that the products and contracts may concern millions of euros, emotion is a strong factor influencing the buyer journey. This counters commonly quoted belief that B2B buying distinguishes itself from B2C as being very rational.

MYTH BUSTER #3

THE XL BUYER JOURNEY IS A RATIONAL PROCESS

DECISION PHASE

At this point, it would be in the seller’s interest with his or her support team in engineering or product disciplines to have a candid conversation with the buyer about how or if they can address the company’s or buyer’s emotional barriers. This involves an open, no-topic-too sensitive, discussion of where challenges lie and how your company can or if they can overcome them. As a sales person, don’t be afraid to be transparent with your prospect about past failures. It shows candor and

honesty. Just make sure you have a happy ending with a conclusion that results in you overcoming that failure to drive customer success.

At this stage, you have to be prepared, despite all of the effort to date, to either meet the company’s expectations or be willing to walk away. Overpromising and under delivering in the future won’t serve you or your reputation in future sales engagements with other prospect, so don’t do it, our buyers warned.

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Dare to downsize and emphasize your specialization, a shift is taking place from one-size-fits-all to customization by smaller-scale specialists

Continue to pay attention to the customer during the buyer journey, and do this in an authentic manner. Contracts are increasingly being made and transactions entered into on the basis of a sound relationship, rather than price

Digital appearance should focus on the (LinkedIn) (mini-) biographies of your client-facing employees, business buyers like to know with whom they are dealing

DO’S AND DONT’S DECISION PHASE

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Confirm the nature of the deal

KEY TAKEAWAYS FROM OUR RESEARCH FOR MARKETING AND SALES SUCCESS

It is of utmost importance that you determine whether the buyer is working on a repeat/adjusted buy or whether it is a new category buy for the organization. Not only does this have an impact on the length of the buyer journey and sales cycle, it will also likely determine who you are competing against. For instance: repeat buy of an energy contract often results in a longlist that is a no-brainer, search engines are barely

used in such processes. This is totally different than the first-time buyer of, say, a CRM system, where the longlist can involve significant fact-finding to just uncover who the key vendors are. Whether or not it concerns a first buy, when buyers are planning to buy products or services worth more than €100,000, personal contact is essential throughout the process and shouldn’t be reserved for sales contact in the middle or at the end.

Pay attention to emotions

Education is critical throughout the Buyer’s Journey

Managing an RFI/RFP means managing people, including your prospect or client. Creating goodwill starts in the orientation phase. Do not be afraid about the emotions

you encounter, feel yourself or suspect in others. Document them and plan a well-crafted, results-oriented response.

Your buyer needs your help overcoming obstacles, fears, misin-formation and internal objections. You need to resolve this with carefully crafted material at each stage in the buyer cycle at the time those hurdles are encountered. This will feature your understanding of the problems they face and how

your product, service, processes or internal expertise can solve those problems. your product or processes. It goes without saying that marketing and online presence can still play a significant supporting role in this process, but ignore the Dutch business preference of personal contact and relationships at your peril.

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TAKEAWAYS FOR MARKETING

TAKEAWAYS FOR SALES

For business people who make considerable (€100,000+) purchasing decisions in The Netherlands you are a highly valued, consultative resource source for information throughout the buyer journey.

Make sure you present yourself as that knowledgeable resource by not only knowing your product but also demonstrating that you are uniquely qualified l to help them make an intelligent decision.

Personal relationships are key so make you buyers know you with mini-biographies detailing your expertise in your proposals and / or on your website.

Don’t be shy about probing into the emotional dimensions and pitfalls experienced by buyers and how your product or service that is going to be a smart decision.

Know who your competitors are and keep an eye on them online and offline to keep abreast of unique buying propositions to win the deal.

Understand that negotiations start during first contact; this contact could take place in the form of an electronic newsletter about a certain topic or a webinar where you share some of your knowledge for free.

Balance your marketing investments by supporting your sales team objectives at each of its phases – Orientation, Proposal & Decision – with the content expected by buyers at each stage. Realize that the role of sales is important and that online presence should be mostly focused on education in order to support what your sales colleagues are telling the client. Nurture prospects with all means at your disposal – online and offline – in a way the same way you would help a friend or family member overcome a problem rather than sell them a product.

Founded in 2006, spotONvision is a B2B marketing agency with a strong and proven track record in helping marketing professionals drive strategy and pipeline growth. With a dedicated passion for B2B marketing, a vast knowledge of the buyer process, content marketing and technology, spotONvision believes in customer-based and holistic marketing. By bringing strategy, execution and technologies together, spotONvision helps customers to increase the value of marketing in the organisation.

Our four-cornerstone framework of buyer insights, content marketing, lead management and marketing automation combined with hands-on, strategic B2B marketing professionals enables our clients to drive pipeline, credibility and value.

With a vast amount of experience in marketing, sales and communica-tions, spotONvision serves clients in various B2B markets. spotONvision is also the founder of the B2B Marketing Forum in The Netherlands. www.spotonvision.comtwitter: @spotONvision

ABOUT SPOTONVISION

TNS NIPO is the Dutch branch of the international organisation TNS, which has a footprint in more than 80 countries. TNS NIPO has decades of experience when it comes to covering business-to- business markets. We develop precise plans that identify growth opportunities for our clients who for instance have a focus on innovation, product development, positioning, branding, customer experience or for instance pricing.

We have a dedicated panel of business decision makers, have parented initiatives such as the B2B Marketing Barometer and publish a monthly corporate sentiment study (‘Ondernemerspeil’ in Het Financieele Dagblad).

If you want to know more about our expertise in B2B or in other markets, please visit www.tns-nipo.com or follow us on twitter: @TNS_NIPO

ABOUT TNS NIPO

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