July 29, 2024

B2B marketing fundamentals challenged: Bain-B2B Institute study consigns traditional lead gen, KPIs, metrics to bin as ‘hidden buyers’ missed, trillions lost

56 minutes

$18 trillion’s worth of B2B transactions take place annually. But “40-60 per cent of deals get stalled”, says B2B Institute founder Jann Martin Schwarz, because B2B marketers are focusing on the wrong things and the wrong people. They are missing the “hidden buyers” that don’t show up in individual-focused lead gen and those buyers – procurement, finance, legals, IT security, the c-suite – don’t care about features. They just care about managing risk. They make group decisions (earlier than B2B marketers realise) based on compromise and the “least worst” option. On average, they represent half of decision-making heft, and they get to veto who gets the contract. That’s one of the key insights from a major global study conducted with Bain across 500-plus enterprise B2B buyers.

Across the study, “at every stage, familiarity and trust in a brand or vendor's reputation was the casting vote,” says B2B Institute EMEA and LatAm marketing lead Mimi Turner. Which means brand influences hidden buyers disproportionately, because it’s effectively “deal risk insurance”, per Schwarz.

The study effectively quantifies why nobody ever got fired for buying IBM and underlines why B2B’s brand and performance teams need to align much more closely to hone brand messaging to hit hidden buyers – and stop focusing on leads and individuals. They argue the findings all but obliterate the model on which B2B marketing is founded – and requires a wholesale rethink of lead gen, measurement and strategy.

Changing models means graft and pain, especially for the “rank and file KPI’d on reductionist metrics” acknowledges Schwarz. But if adopted, even moving the needle by 1 per cent will unlock $180bn of annual B2B deal-making upside – and early movers will get the biggest hit. Schwarz is willing to “stake my reputation” on brands that flip their models to reach hidden buyers will see “an immediate spike in activity” and “close deals faster”. A prospect, he says, no CEO or CFO will ever decline.

See omnystudio.com/listener for privacy information.

...more