How buyers use the internet to select vendors

The Game has Changed: How Buyers use the Internet to Select Vendors

Companies not building “virtual rela4onships” with prospects will play late in the game, if at all.

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Introduction

The Internet has changed the dynamics between buyers and sellers from sellers “pushing” their wares to one where buyers now “pull” what appeals to them in their own way and at their own pace. To determine the impact of the change, we surveyed 500 business people across industries to find out how they use the Internet when they are ready to buy. The context of the research and this report applies to consumer behavior on many levels, but has par4cular relevance to the B2B buying

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You have to put your best foot forward online as it’s your first chance to make a good impression.

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Beginning with Search

Our study showed that 92% of buyers prefer to conduct research online before talking with sales people. We found that the “over 44” crowd are more likely to strongly agree, 51% versus those under 44 which was 42%. Perhaps this has to do with the average age of workers in a posi4on to buy naturally being higher than those with less experience. Internet search has necessitated a different sales and marke4ng approach.

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The Power of Organic Ranking

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Quality content is the fuel that drives organic search. It must be frequent, relevant, accessible and engaging.

Marketers have known for years now the importance of organic search. Our data showed that 73% of buyers use organic search to guide them to vendor selec4on. We also found that men are more likely to rely on organic search than women (78% compared to 69%). Being seen on the first page of Google and other search engines has become impera4ve. In a comprehensive study by Marke4ngland near the end of 2014, News Editor Barry Schwartz found that “on average, 71.33% of searches resulted in a page one Google organic click. Page two and three get only 5.59% of the clicks.

B2B buyers generally shy away from paid adver4sing. However, it can s4ll be an important part of the marke4ng mix if managed well.

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Paid Advertising Challenge

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While paid adver4sing con4nues to play an important role in the B2C marke4ng mix, those using it for B2B should analyze its effec4veness carefully. In our research, 74% of buyers said they ignored paid ads when searching for a vendor. This doesn’t mean 26% of searchers click ads, it signifies they ignore them completely. Women are more likely to ignore paid ads than men and small business owners are much more likely (92%) to ignore paid ads. We believe many have come to view paid ads with some weariness as most of us do with adver4sing in general.

Building awareness through quality content in the right places is a cri4cal step in ge_ng buyers to consider you.

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Building Awareness is Critical

Our research showed that 71% of buyers have a vendor in mind before they even start searching. This doesn’t mean they had completely decided on that vendor, but it does signify they have been made aware of the vendor somehow already. In our data, 58% agree they had a vendor in mind, and 13% strongly agreed. Content plays a cri4cal role in building awareness and marketers need to leverage the trend that buyers will typically find three pieces of content about a vendor for every one they get directly from that company.

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Social media is a powerful way to interact with poten4al buyers and it generally drives them back to your website, so that be`er be good.

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The Impact of Social Media

Social media is the current darling of the online world. But many businesses are struggling to figure out how to use social media. They believe they should be doing it, but many don’t know how to do it effec4vely. This might suggest that a good part of your marke4ng budget should be applied to your social media efforts. Our data revealed that on average 32% of the survey par4cipants connect directly with others through social media when looking for a vendor. Unsurprisingly, it is those under 44 who are more likely to use social media. Small business owners however are also more social media aware and 46% will use social media when they're looking for a vendor.

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You need to turn your website into a valuable asset that differen4ates you from the compe44on.

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Comparison Shopping Continues

When poten4al purchasers have done their research, they will be choosing from a short list of poten4al suppliers. Our survey showed that 85% look at several supplier websites before making their choice. If anything, small business owners are less likely to look at several sites. Nevertheless this shows it is important to show your compe44ve strength through your website. It should be very clear why someone should be buying from you rather than from the compe44on.

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Marke4ng content now plays a key role in building and maintaining “virtual rela4onships” with prospects long before they are ready to buy.

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Summary and Conclusions

There’s no denying the Internet has fundamentally changed many aspects of tradi4onal sales and marke4ng models. Although the transi4on has been building for years, there has been a sharp accelera4on during the past few. The Internet has given prospects more control than ever before over the buying process by enabling them to understand product features and how they can benefit from a vendor’s solu4on. Much of the early sales cycle is now being circumvented and this greatly reduces the vendor’s direct interac4on in the decision-‐making process.

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Summary and Conclusions

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Research, Content and Thought Leadership Our mission is to help B2B technology companies get found, a`ract and retain customers with high-‐impact content. Using research as the founda4on, we help you differen4ate and add value. Services range from simple point-‐solu4ons to fully integrated thought leadership programs. For more informa4on, visit www.materialminds.com, or contact: Charles Plant 416.458.4850 [email protected]