B2B companies with strong brands outperform the weak ones and by just 20 percent margin.
What does this mean?
Studies have shown that strong brand equity of B2B brands has earned them an edge over their competition by 20% more, purely because of their brand recognition.
So even if you were right on every checkpoint of the sales process, a stronger B2B brand gets ahead of you in no time. Because they have already worked on their branding & marketing and have built brand equity for themselves.
Do you know that apart from quality perception, a Strong B2B Brand contributes about 20% in getting a favorable decision for its company?
It is the backing & confidence that a strong B2B brand gives to its decision-maker or B2B buyer, which the buyer doesn’t get from other relatively lesser-known or a lesser strong brand that makes the difference. This is an extremely important reason. Hence, take care of the negative thinking your B2B buyer can do.
Avoidance of Negative Emotions in B2B Branding & Marketing
When looking to shop for something, we balance the pleasure of the potential possession with the pain of acquiring it.
When negotiating with others, our desire to avoid guilt, disappointment, and regret can impact our buying strategies in the same way as our desire to get the best product or service for ourselves.
In B2C marketing, marketers often maximize the anticipation of positive emotion by appealing to aspirational feelings.
In contrast, the strongest B2B brands capitalize on the avoidance of negative emotions. This is because there’s an asymmetry between the upside and downside of B2B purchases.
The B2B client making the purchase decision doesn’t usually get to experience the product or service and its advantages directly. Hence, the reward for making a complex decision right doesn’t come back to him. But, in case his decision isn’t right or even isn’t seen as right, it can destroy the buyer’s reputation and damage his job security.
The classic example of great B2B Branding & Marketing is “nobody ever got fired for purchasing an IBM”.
B2B branding & marketing plays a great role in building trust within the buyer’s mind. And it should reach him from various sources, not just through sales representatives.
One way to realize trust is by being a dominant leader in your B2B category. Since that’s not an option for many B2B companies, the simplest way to build a B2B brand of trust is to become a trusted advisor or come out as a thought leader in your field.
Companies with strong B2B brands often have better financial performance.
● Benefits of creating a Strong B2B Brand Strategy & Marketing and B2B Branding: Strong B2B always enjoy the certain luxuries in a buying cycle.
● Better Openness – Greater willingness to try a product or service, even if it is new
● Less time needed to make the final decision
● Greater probability of decision going in favor
● Willingness to award a bigger share of purchase requirement
● Willingness to pay a price premium
● Lesser sensitivity towards increases in price
● Lesser inducement to try a competitive offering
● Branding also tends to bring more referrals as customers are more comfortable recommending a trustworthy brand
● Reduces dissonance. A solid brand image provides confidence
● More forgiveness for mistakes for well-branded companies
All of the above is part of the science behind B2B Branding and Marketing and doing it accurately with effectiveness is a specialized art that requires expertise & precision. Just like a specialized senior doctor needs it for carrying an open heart surgeon.
Yes, very few people realize this, but then it is those few brands that reap the numerous benefits of creating a strong B2B Brand i.e. achievement or surpassing of short & long term Sales & Marketing numbers and creating Brand equity which is an added Asset.