I spent ten years at Procter & Gamble immersing myself in the world of consumers. For me, moving to Shell was a first step on the journey from B2C, as I was effectively selling to both consumers and organisations. It certainly felt different. Here I learnt what was meant by ‘networking’ and the value of relationships in business. Indeed, this would later enable me to fulfill a lifelong ambition to create and run my own business. In my opinion, leveraging relationships and savvy networking are key differences to how to promote in the B2B world.
Relationships
So what is savvy networking all about? For me it’s about investing in meaningful relationships to create value. An analysis of the marketing consultancy that I founded in 2005, Size 10 ½ Boots , highlights why this is so important.
Our interest is in helping professional service firms grow. Our clients are typically law firms, accountancy practices, patent attorneys, and property professionals such as architects or quantity surveyors. Eight client projects have led to repeat purchases and 70% of revenues have been generated from existing relationships and referrals. This is because we try to add value over and beyond the brief.
Added value may take the form of free training workshops, business introductions, or just looking out for intelligence that may be of interest for our clients. There are two seminal books that elucidate this thinking: Robert Caldini’s ‘The Psychology of Influence’ which explains the law of reciprocity; and David Maister’s ‘The Trusted Advisor’ which highlights the value of partnership versus just being a supplier.
Touch Points vs. The Moment of Truth
It was drilled into me at P&G that what matters is what the consumer sees on the shelf in store. Regular store visits focussed on only four things: Distribution; Pricing; Promotion; Merchandising. Twenty years on, trying to influence contacts to invest thousands of pounds (usually their own money too as many professional service firms are partnerships or owned by the business), the risks are much greater. Buy the wrong washing powder and you can quickly replace it with another for £5-6. Make the wrong consultancy purchase and a client’s reputation is damaged, perhaps irrevocably. A consequence of this is that to get the consultancy sell, it typically requires 5-7 touch points. So, perhaps an informal discussion over coffee, a follow-up outline proposal via email, a more formal pitch interview, a telephone conversation, and perhaps a client testimonial. All in all, the timeline involved in the B2B market is, in my experience, a lot longer. Recent successes have taken 3-4 years to materialise and a lot of relationship building activity.
Similarities
I have homed in on two key differences between B2C: relationships and touch points. This said there are of course many similarities between the two. Buyers are individuals and individuals rely on recommendations. Is there really any difference between connecting with a client than a consumer? They are after all individuals connecting with individuals. Secondly, whether you are selling widgets or consultancy services, you need to differentiate. You need to demonstrate value creation and a compelling reason for someone to buy from you. At the heart of this is the need to first identify who the end user is (client or consumer), and why they need to hear your message. Brand therefore matters in both B2C and B2B environments.
The argument between product and service marketing will rage on. In the end though, does it really matter?
Touch Points vs. The Moment of Truth
It was drilled into me at P&G that what matters is what the consumer sees on the shelf in store. Regular store visits focussed on only four things: Distribution; Pricing; Promotion; Merchandising. Twenty years on, trying to influence contacts to invest thousands of pounds (usually their own money too as many professional service firms are partnerships or owned by the business), the risks are much greater. Buy the wrong washing powder and you can quickly replace it with another for £5-6. Make the wrong consultancy purchase and a client’s reputation is damaged, perhaps irrevocably. A consequence of this is that to get the consultancy sell, it typically requires 5-7 touch points. So, perhaps an informal discussion over coffee, a follow-up outline proposal via email, a more formal pitch interview, a telephone conversation, and perhaps a client testimonial. All in all, the timeline involved in the B2B market is, in my experience, a lot longer. Recent successes have taken 3-4 years to materialise and a lot of relationship building activity.
Similarities
I have homed in on two key differences between B2C: relationships and touch points. This said there are of course many similarities between the two. Buyers are individuals and individuals rely on recommendations. Is there really any difference between connecting with a client than a consumer? They are after all individuals connecting with individuals. Secondly, whether you are selling widgets or consultancy services, you need to differentiate. You need to demonstrate value creation and a compelling reason for someone to buy from you. At the heart of this is the need to first identify who the end user is (client or consumer), and why they need to hear your message. Brand therefore matters in both B2C and B2B environments.
The argument between product and service marketing will rage on. In the end though, does it really matter?
Bernard Savage
Managing Director, Size 10½ Boots
Bernard has 19 years of professional sales and marketing experience, including in-house roles at Procter & Gamble, Shell and Eversheds. Bernard is the founding member and driving force behind Size 10½ Boots.
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