Give Buyers What They Want - Results from ITSMA’s How Buyers Consume Information Survey

Paul Writer Great Indian Marketing Summit | 1 February 2013
Leela Palace, Bangalore

Give Buyers What They Want
Results from ITSMA’s How Buyers
Consume Information Survey
David Munn
President & CEO
ITSMA

Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 1

About ITSMA
ITSMA works with marketing
leaders and their teams to
provide research and insight
on marketing practices;
advice and guidance on key
initiatives; peer sharing
opportunities with other
marketers; and professional
development to advance
knowledge and impact. Online Library Follow us…


ITSMA’s 2012 How Buyers Consume Information Study
explored the preferences of Social and Traditional Buyers

Survey invitations were
emailed to Business and
IT Executives during
September/October 2012
Executives completed
299 the survey from the US,
UK, France, Germany

Marketers responded to
the Huunu Gamification
invite
ITSMA Analyzed the Data Seven Ways
By Social Media Use By Title
By Country By Size of
By Age Company
By Job Role By Industry


Buyer behavior is changing so fast that There is a
it is hard to keep up
disconcerting lag
between

changing
buyer behavior
and marketers’

perceptions,
budgets, and
programs


Last year’s ITSMA buyer research uncovered surprising
revelations about the changes in buyer behavior

• The rise of the B2B social buyer
2011
• The decline of traditional peer influence
• The elevation of solution provider credibility


With the 2012 ITSMA buyer research,
we now have validated trends

 Solution providers are a credible and influential
source of information, even more so than peers
 B2B social buyers and traditional buyers do
consume information differently

2012

2011


New in 2012

Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.
EPIPHANY AWARENESS INTEREST CONFIDENCE LOYALTY
Keeping up with Learning more Identifying a Evaluating and Building ongoing
industry/ about potential shortlist of solution selecting a relationship with
technology news solutions and providers solution provider/ solution provider
and events solution providers Making the final post-purchase
decision


Three topics for today

 Marketers’ perceptions vs.
buyer behavior
 B2B social buyers vs.
traditional buyers
 The new 70%


Marketers’ Perceptions
1.
vs. Buyer Behavior
There is a gap between
actual and perceived
buyer behavior


We asked 86 consulting and technology services
marketers to “predict” buyer behavior

Which of the following 1 Management consultants (e.g., McKinsey, Bain, boutique firms)
SUBJECT EXPERTS
2 Universities, research institutes, think tanks
will be the most
influential source of 3 Sourcing advisors (e.g., Everest, TPI)
information in the IT 4 Peers/colleagues
purchase decisions 5 Industry analysts (e.g., Gartner, Forrester, IDC)
during 2013? 6 Technology or solution provider sales people
7 Technology or solution provider subject matter experts


Marketers say…

Which of the following SUBJECT EXPERTS will be the most influential source of information in IT services
and solutions purchase decisions during 2013? (Marketers’ perceptions of buyer behavior)


Buyers say…

What were the first three sources of information you turned to when you began your information search?
% of Respondents (N=299)

Technology or solution provider subject matter experts 29

Technology or solution provider sales people 27

Peers/colleagues 27

Industry analysts 23

Management consultants 21

Sourcing advisors 12

Universities, think tanks 10

Source: ITSMA, How B2B Buyers Consume Information Study, 2012


Peers are also no longer the #1 source of information
during the early stages of the buying process—solution
providers are!
Q. What were the first three sources of information you turned to when you began your
solution research? % of Respondents 2012 (N=299)

1. Solution provider websites 36

2. Solution provider subject matter experts 29

3. Web search 28

4. Solution provider sales people 27

5. Peers/colleagues 27

Source: How B2B Buyers Consume Information Study, 2012


To some, solution providers are more credible than peers

Which of the following sources of information are most credible? (Rank order 1st, 2nd, 3rd)
% of Respondents (N=299)
Technology or solution provider subject matter experts 33
Technology or solution provider websites 28
Industry analysts (e.g., Gartner, Forrester, IDC) 27
Technology or solution provider sales people 26
Peers/colleagues 24
Management consultants (e.g., McKinsey, Bain, boutique firms) 22
Web search (e.g., Google, Bing) 21
Focused industry/professional online communities 19
Focused industry or trade media 16
Universities, research institutes, think tanks 16
Industry events/trade shows 15
Sourcing advisors (e.g., Everest, TPI) 15
General business media 12
Local or national professional trade associations 11
Social media/networks 9
Blogs 5 1st 2nd 3rd
Note: Respondents were asked to rank order top three.


Buyers want
access to your subject matter experts—

make them accessible


Which of the following 1 Technology or solution provider websites
INDUSTRY resources
2 General business media
will be the most
influential source of 3 Focused industry or trade media
information in the IT 4 Industry events/trade shows
purchase decisions 5 Local or national professional trade associations
during 2013?


Marketers say…

Which of the following INDUSTRY resources will be the most influential source of information in the IT
purchase decisions during 2013? (Marketers’ perceptions of buyer behavior)


Buyers say…

% of Respondents selecting information source as one of first three would use during the purchase
process (N=299)

Technology or solution provider websites 36

Industry events/trade shows 19

Focused industry or trade media 14

General business media 13

Local or national professional trade associations 9



Buyers want
to find relevant information on your website—

create a customer-centric web experience


Which of the following
SOCIAL marketing 1 Web search (e.g., Google, Bing)
tools will be the most
2 Blogs
influential source of
information in the IT Social media/networks
3
purchase decisions (LinkedIn, Twitter, Facebook, SlideShare, YouTube, etc.)
during 2013? 4 Focused industry/professional online communities


Marketers say…

Which of the following SOCIAL marketing tools will be the most influential source of information in the IT
purchase decisions during 2013? (Marketers’ perceptions of buyer behavior)


Buyers say…

% of Respondents selecting information source as one of first three would use during the purchase process
(N=299)

Web search (e.g., Google, Bing) 28

Focused industry/professional online
17
communities/social networks

Social media/networks 8

Blogs 6



There is a gap between actual and perceived buyer
behavior

Are marketers out of touch?
Most important: Marketers Say… Buyers Say…
Subject Experts Peers  Solution Provider SMEs
 Solution Provider Sales
 Peers
Industry Resources Inconclusive Solution provider websites
Social Marketing Tools Communities Web search
Use for Social Media  Source New Ideas Keep up with industry news
 Build Relationships and events


B2B Social Buyers vs.
2.
Traditional Buyers
B2B social buyers and
traditional buyers
consume information
differently


The market has divided into B2B social buyers and
traditional buyers
How useful are social media channels and networks such as LinkedIn, Twitter, Facebook, SlideShare, etc.,
during the purchase process? % of Respondents (N=299)

Traditional Buyers: 54% Social Buyers: 46%
28 27

19

12 13

Not at All Useful 2 3 4 Very Useful
1 5

Note: Mean rating based on a 5-point scale where 1=not at all useful and 5=very useful.

B2B social buyers are young senior executives with clout

Age* Job Role*

51 73
18–34 B2B Social Buyer
31 IT
(N=139) 51
36 Traditional Buyer
35–44
33 (N=160) 27
Business
14 49
45–54
36

Job Title* Purchase Involvement*
19 83
Manager
31 Decision maker
53
17
Director/Assistant VP
19 13
Evaluator
25 25
VP/Senior VP/Head
22
4
40 Influencer
C-level, GM, President 22
28

* Indicates a statistically significant difference. There were no significant differences found by size of company, industry, or gender.


Both types of buyers have robust appetites for
information, but the B2B social buyers spend more time
consuming content

Average number of hours spent each week
keeping up with the industry and/or technology:

B2B
Social
Traditional
Buyer
4.3
Buyer 6.5 (N=160)
hours
(N=139)
hours



Both types of buyers consume the majority of content
online, but the B2B social buyers are shifting more of that
time to mobile platforms

B2B Social Buyer (N=139) Traditional Buyer (N=160)

Time spent
online vs. offline 38 Online 37
Offline
62 63

Time spent online accessing
information from a 33 PC 23
PC vs. a mobile device* Mobile
67 device
77

* Indicates a statistically significant difference.


The B2B social buyer is more “hands on” and less likely to
delegate during the early stages of the buying process
When you have a business problem that requires a technology solution, what percentage of the time would
you say you or your staff initiate research and find appropriate solution providers versus they contact you
first? % of Respondents

B2B Social Buyer (N=139) Vs. Traditional Buyer (N=160)

I do the research and find the
49 38
appropriate solution providers*

My staff does the research
23 and finds the appropriate 36
solution providers*

17 The solution provider
14
contacts me first

The solution provider
11 contacts my staff first 12

* Indicates a statistically significant difference.

B2B social and traditional buyers use different methods to
access their peers
How do you typically reach out to the peers and colleagues whose counsel you typically rely on most
about technology solution providers? % of Respondents

6 Via blog comments 22
Via public communities such as 7
13 LinkedIn, Facebook, Focus 10
13 Via a membership-based
or private online 23
11 community website
At a tradeshow, seminar,
or other event
17
Personal telephone call 29 89%
68% 15
In person
(other than a tradeshow,
seminar, or other event)
Personal email
24 28

Note: Differences are statistically significant.


Beyond research reports, B2B social buyers and
traditional buyers favor different marketing vehicles
Which information delivery channels or formats do you typically prefer?

Research reports 28 32
Social media* 25 6
Email newsletters* 22 11
In-person seminars/conferences/tradeshows* 19 42
Print journals/magazines 19 20
Virtual seminars/conferences/tradeshows* 17 28
Webinars 17 22
Sales calls or private briefings 17 22
Digital magazines 17 11
Videos 15 9
Website copy 13 18
Blogs* 13 6
White papers 12 15
Brochures (hard copy)/datasheets 9 11
eBooks 9 8
Direct mail 8 11
RSS Feed or other newsfeeds 6 7
Podcasts 6 3

Note: Respondents were asked to rank order top three channels.
*Indicates a statistically significant difference.

How do you reach the B2B social and traditional buyers?

Both Buyers Rely On
Your website & SEO
Your subject matter experts (SMEs)
 Sales calls and private briefings
Research reports

But some of the preferred delivery vehicles differ:
B2B Social Buyer Traditional Buyer
 Social media networks  In-person seminars, conferences,
 Email newsletters and tradeshows
 Blogs  Virtual seminars, conferences,
 General business media tradeshows
 Focused industry or trade media


3.
The New 70%


According to conventional wisdom, buyers are waiting
longer and longer to engage with sales

70% of the buying process in a complex sale is already
complete before prospects are willing to engage with a live
sales person. – SiriusDecisions
Research has shown that B2B buyers self-educate
during close to 70% of their buying experience,
invalidating the process salespeople have relied
on in the past to build relationships from the start.
– Ardath Albee, CEO, Marketing Interactions, Inc.

But that’s not what we found…


The New 70%


According to ITSMA’s research results, 70% of buyers
want to engage with sales reps before they identify their
shortlist
At what stage of the buying process do you find it most useful to engage with sales reps?
% of Respondent (N=270)

70%
24 23 24

16
14
Stage 1. Stage 2. Stage 3. Stage 4. Stage 5.
EPIPHANY AWARENESS INTEREST CONFIDENCE LOYALTY
Keeping up with Learning more Identifying a Evaluating and Building ongoing
industry/ about potential shortlist of solution selecting a relationship with
technology news solutions and providers solution provider/ solution provider
and events solution providers Making the final post-purchase
decision



For many, sales provides significant value at every stage
of the buying process, not just the negotiation and close
When you are interacting with solution providers' sales reps during the purchase process, what value do
they provide? % of Respondents (N=299)

Provide unique perspectives on the market and solutions 45 44 12

Stage 1: Challenge my thinking 40 43 18
Epiphany Educate me on issues and opportunities in my industry 41 45 14
Educate me on new issues in technology 51 41 8

Provide me with product or service information 57 35 8
Stage 2:
Tell me where on the website to find information 43 43 14
Awareness
Put me in touch with the subject matter experts 53 39 8

Provide me with benchmarks and best practices 49 39 12
Stage 3:
Interest Help me navigate among alternative solutions 39 48 14

Provide advice to help me make the right decisions 43 45 13
Stage 4: 50 39 12
Provide references for me to contact
Confidence
Help me build the business case 42 42 16

Significant Value Some Value No Value


Interestingly, the B2B social buyers see more value in
interacting with sales reps than traditional buyers do,
especially in an advisory role
When you are interacting with solution providers' sales reps during the purchase process, what value do
they provide? % of Respondents Reporting Significant Value
63
Educate me on new issues in technology*
40
Provide me with unique perspectives on the market and 61
technology solutions* 30
60
Provide me with product or service information
54
58
Provide me with benchmarks and best practices*
42
Tell me where on the website to find product/service 56
information* 32
55
Educate me on issues and opportunities in my industry*
28
Put me in touch with the solution provider's subject matter 55
experts 51
54
Challenge my thinking*
27
53 B2B Social
Provide references for me to contact
46 Buyer
Provide ongoing advice to help me make the right decisions 52 (N=139)
and avoid land mines* 34
50 Traditional
Help me build the business case*
34 Buyer
48 (N=160)
Help me navigate among alternative solutions* 30
*Indicates a statistically significant difference.


Buyers rely on sales, however they want to be educated,
not sold to

 Buyers are hungry for ideas and information Build
that will help them gain competitive relationships
advantage or solve a business problem with
thought
 Solution provider subject matter experts leadership
are the most trusted source of this kind of selling
information
 Marketing must:
– Facilitate access to subject matter experts and
their knowledge
– Help sales become subject matter experts in their
own right


Buyers want
ideas and advice from sales reps—BT’s KAM Live enables
more relevant conversations

Build
relationships
with
thought
leadership
selling


Buyers want
ideas and advice from sales reps—
turn your sales reps into front-line
subject matter experts
Build
relationships
with
thought
leadership
selling


Buyer behavior is rapidly changing and you
need to be at least one step
(if not more!) ahead of them
 Solution providers are a credible source of
information and to some, more credible than
peers
 Give buyers what they want! Relevant content on
your website and access to SMEs
 B2B social buyers and traditional buyers do
consume information differently
 Find the right balance in your marketing mix

 Buyers rely on sales at all stages of the buying
process
 Enable sales to do thought leadership selling


Remember, give buyers what they want!


Thank You!
David C. Munn
President & CEO
ITSMA
dmunn@itsma.com
+1-781-862-8500, Ext. 117


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