To buy or not to buy? How Millennials are reshaping B2B marketing

To buy or not to buy?
How Millennials are reshaping B2B marketing
Carolyn Heller Baird
Global Research Leader, IBM Institute for Business Value
cbaird@us.ibm.com
@cjhbaird

©2015 IBM Corporation2
Overview
Making decisions at work
Millennials and B2B purchasing
Recommendations
Wrap up
Table of contents

©2015 IBM Corporation3 ©2015 IBM Corporation3
Millennials are having a profound impact on the B2B
vendors and marketers who want to connect with them
50%
USA workforce
75%
Global workforce
2020 2030
By 2020, Millennials will
be roughly 50% of the U.S.
workforce, and 75% of the
global workforce by 2030.1
As more Millennials move into decision making roles at work,
the influence they wield over B2B purchasing will only continue
to grow.
Just as consumer marketing is changing to appeal to
Millennials, B2B marketers also need to revamp their strategies
to connect with this new generation of decision makers.
Note: 1 Meister, Jeanne. “Three Reasons You Need To Adopt A Millennial Mindset Regardless of Your Age.” Forbes. October 5, 2012.

But what about business-to-business (B2B) marketing?
How do Millennials’ consumer shopping habits
impact their preferences for researching B2B products
and services and engaging with vendors?
These digital natives are driving a new era for
consumer marketing, one focused on…
values, transparency, relevancy and engagement

We surveyed
704 professionals
who influence or are responsible for B2B purchasing
decisions of US$10,000 or more for their company
Here is what we did
1965 Generation X 1980 Millennials1954 Baby Boomers
Generational breakdown
Baby Boomers
1993
 Sample size [704] is a subset of the IBV Millennial survey of
1,784 respondents
 Findings in this report are based only on the responses from
individuals who said they influence or are responsible
for B2B purchasing decisions for their organization
 All respondents are currently employed with at least a
Bachelor’s degree
 Global sample – respondents come from businesses large
and small across 12 countries and 6 targeted industries

My input is often
considered on purchases
US$10,000 or more
Roughly 1/3 of our Millennial study respondents
influence purchasing decisions for their business
Millennials
aged 21 – 34
Gen X
aged 35 – 49
Baby Boomers
aged 50 – 60
6%
26%
68%
4%
32%
64%
6%
26%
67%
Have little or no
influence on purchases
US$10,000 or more
I am the final decision
maker on purchases
US$10,000 or more
Note: Age of respondents at time of survey – Summer 2014.

IBM Institute for Business Value
Here’s what we found… Millennials’ B2C experiences are
influencing their B2B expectations
Millennials, especially, prize a hassle-free,
personalized omni-channel client experience
How do Millennials, Gen X and Baby Boomers go about
making decisions at work?
What are Millennials’ behaviors and preferences for
engaging with B2B vendors in four key stages along their
B2B purchasing journey?
 Researching B2B products and services
 Engaging with vendors during the sales cycle
 Deciding to purchase
 Sharing their client experience

Overview
Recommendations
Wrap up
Table of contents

Millennials and Gen X value others’ input…
…whereas Baby Boomers are likely to make decisions independently
Baby Boomers are the outliers when it comes to making decisions at work
64%
I make better decisions
when a variety of people
provide input
56%
49%
61%
55%
39%
It is important to have
group consensus
Source: IBV Millennial survey. Q27.2: I make better decisions when a variety of people provide input; Q27.3: It is important to have group consensus. Percentage of respondents who
agreed (selected 4 or 5 on a 5-point scale). This data is based on the full survey sample of 1,784 respondents (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)
Gen XMillennials Baby Boomers

When Millennials want advice…
Who Millennials consult when they need to make an important business decision
Source: IBV Millennial Survey Q28: How likely are you to consult the following people when you need to make an important business decision? Percentage of respondents who
selected 4 or 5 on a 5-point scale. This data is based on the full survey sample of 1,784 respondents (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)
100%
100%
100%
100%
Peers in my work group
Individuals outside my organization
with relevant knowledge
My mentor (formal or informal)
Colleagues who are not in my
work group
My friends or family (who
do not work with me)
My boss or other leaders at work 100%52%
100%
51%
45%
51%
49%
47%
…they consult a variety of sources, placing almost the same weight on
friends and family as their mentor or colleagues outside their work group

Who Baby Boomers and Gen X consult when they need to make an important business decision
100%
100%
100%
100%
100%
100%
Source: IBV Millennial Survey Q28: How likely are you to consult the following people when you need to make an important business decision? Percentage of respondents who
selected 4 or 5 on a 5-point scale. This data is based on the full survey sample of 1,784 respondents (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)
62%
68%
46%
51%
55%
47%
35%
31%
37%
41%
33%
41%
Baby Boomers and Gen X mostly turn to bosses,
mentors and peers…
Peers in my work group
Individuals outside my organization
with relevant knowledge
My mentor (formal or informal)
Colleagues who are not in my
work group
My friends or family (who
do not work with me)
My boss or other leaders at work

100%
100%
100%
rely on analytics
to help them make better decisions
53%
Generation X
Baby Boomers
Millennials
63%
45%
Source: IBV Millennial survey. Q27.7: Analytics technologies help us make much better business-related decisions. Percentage of respondents who agreed (selected 4 or 5 on a 5-
point scale). This data is based on the full survey sample of 1,784 respondents (Millennials n=1,153, Gen X n=353, Baby Boomers n=278)
Millennials and Gen X employees
Percentage of survey respondents who think analytics
technologies help them make much better business decisions
Implications: Having ready access to meaningful data is essential for today’s decision makers at work,
and the need for analytics capabilities will only increase as more Millennials move into leadership roles.

Overview
Recommendations
Wrap up
Table of contents

55% of Millennials regularly turn to their
personal social media networks to get
information about their market and industry
However, when researching B2B products or
services, Millennials want to go directly to the
source and interact with vendors’ representatives,
even more than other generations do
Millennial consumers use the digital grapevine:
93% usually read reviews before making a
purchase – and most prefer to browse on
mobile devices
Millennial consumers trust their peers first:
89% believe friends’ comments more than the
claims companies make about their brands
Millennial consumers depend on word of
mouth: 93% have bought a product after hearing
about it from a friend or relative
Research
The way Millennials shop for consumer goods is
influencing their B2B purchasing expectations
When making B2B purchases…When shopping as consumers*…
*Source: Hoffmann, Melissa. “Here Is Everything You Need To Know About The Millennial Consumer.” Adweek. August 13, 2014

When it comes time to pull the trigger, Millennials
consult their organization’s data and look to friends
and family for advice
Millennial consumers turn to friends for
advice: 66% ask their friends for input, while 59%
consult their “significant other”
Deciding to buy
69% of Millennials say they will use social media to
post positive comments – but they are far less
likely to say anything negative about a B2B vendor
Millennial consumers share how they feel:
59% post details of very positive or negative
experiences after buying a product or service
Sharing the experience
*Source: Hoffmann, Melissa. “Here Is Everything You Need To Know About The Millennial Consumer.” Adweek. August 13, 2014
The way Millennials shop for consumer goods is
influencing their B2B purchasing expectations

1
1
2
2
1
4
4
4
7
8
9
When Millennials research B2B products and services…
they are more likely to want face-to-face contact – especially with the vendor
Implications
Having direct access to
vendors to experience the
brand is more important for
Millennials than older
colleagues.
It would be a miss if B2B
marketers only focused on
digital engagement for
Millennials.
Colleagues in my organization
Articles, papers or blogs from trade
or industry experts or analysts
Vendor’s customers
Vendor’s social media,
mobile or website content
Third-party websites or mobile
apps for reviews and comparisons
Tradeshows and conferences
Vendor’s representatives
Recommendations from my
social network
Family or friends outside my
organization
Preferred resources respondents turn to when researching B2B products or services
Millennials Gen X Baby Boomers
7
3
3
8
3
6
8
5
3
3
5
8
7
8
1
24
4
4
7
8
9 8
6
3
8
3
3
7
8
7
5
3
3
8
5
Source: IBV Millennial survey. Q34: What sources are you most likely to turn to when researching a vendor’s products and services?
Select your top 3. (Millennials n=447, Gen X n=154, Baby Boomers n=103)

3 |
2 |
If you take price off the table…
…Millennials want convenience,
Gen X wants great service,
Baby Boomers want speed
Millennials Generation X Baby Boomers
Key attributes respondents look for when selecting a vendor
1 | Ease of doing business
Ease of doing business
Ability to deliver products/
services to my satisfaction
1 | Ability to deliver products/services
to my satisfaction
1 | Ability to respond quickly
Willingness to work collaboratively
with my organization
2 | Reputation for superior quality of
products or services
2 | Commitment to social and/or
environmental responsibility
3 | Industry and marketplace
expertise
Industry and marketplace
expertise
3 | Willingness to work collaboratively
with my organization
tied with
Use of the latest technologies –
e.g., cloud, data analytics, mobile,
social
35%
33%
31% 34%
35%
44%
31%
33%
42%
Source: IBV Millennial Survey. Q35: When selecting a vendor for your organization, what attributes – in addition to price – are most important to you?
Rank your top 3. (Millennials n=447, Gen X n=154, Baby Boomers n=103)

eMail
Phone calls
Face-to-face meetings
During the sales cycle, Millennials meet with vendors
Millennials’ current and preferred methods of engaging with B2B vendors during the sales cycle
Source: IBV Millennial Survey. Q36: How does your organization engage with vendors during the sales cycle currently, and how would you prefer to engage with vendors?
Select your top 3. (Millennials n=447, Gen X n=154, Baby Boomers n=103)
Current methods | Preferred methods
Text messages/SMS/WhatsApp/WeChat
Live chats/Video chats
Social media (Facebook, Twitter, LinkedIn, etc.)
24%
24%
21%
19%
62%22%
69%
18%
20%
21%
69%37%
… but they would much rather engage remotely via email or phone
When in research mode, Millennials want to interact with vendors in person, but once the sales cycle starts,
they want the quick, easy, convenience of a phone call, email or text message.

3 |
2 |
When it’s time to pull the trigger and buy…
Millennials Generation X Baby Boomers
Top three influences on respondents when deciding whether their enterprise should purchase an individual product costing
US$10,000 or more
1 | My organization’s data
analysis
Ability to deliver products/
services to my satisfaction
1 | My personal
experience/impression of the
product or service
1 | My personal
experience/impression of the
product or service
Recommendations from family
or friends outside my
organization*
2 | Recommendations from
independent analysts/or industry
experts
2 | My organization’s data analysis
3 | My personal experience /
impression of the product or
service
Customer reviews* 3 | Recommendations from
independent analysts/or industry
experts
36%
36%
34% 37%
38%
42%
37%
40%
44%
Note: * Influences selected as a top three priority by only one generation
Source: IBV Millennial Survey. Q37: When determining if your organization should purchase and individual product or service costing US$10,000 or more, which sources influence
you the most? Select your top 3. (Millennials n=447, Gen X n=154, Baby Boomers n=103)
…Millennials look to family and friends for advice to the same
degree they rely on business data

Millennials
Gen X
Baby Boomers
69%
56%
58%
Post positive comments, photos or
video on social media
10%
27%
24%
Post negative comments,
photos or video on social media
Post a negative rating or review
on a third-party website
3%
16%
10%
10%
23%
24%
Post a complaint on the
vendor’s website
34%
37%
37%
Post a positive rating or review on
a third-party website
69%
56%
61%
Post a compliment on
the vendor’s website
Most respondents are more likely to post positive
than negative comments about the vendors they use
…especially Millennials
Percentage of respondents who said they were likely or very likely to post a comment
Millennials
Gen X
Baby Boomers
Millennials
Gen X
Baby Boomers
Millennials
Gen X
Baby Boomers
Millennials
Gen X
Baby Boomers
Millennials
Gen X
Baby Boomers

Implications
Create relevant, personalized,
authentic B2B client experiences that
Millennials (and older generations) desire
Businesses need to
provide their decision
makers and employee
influencers with …
B2B vendors/marketers
need to connect with
clients by offering …
─ technologies to capture/analyze relevant data
─ actionable insights derived from data
─ enterprise collaboration tools
…To empower decision makers with the knowledge and input
they need to make the best decisions possible
─ ready access to information/data
─ opportunities to connect and collaborate
─ easy, fast, convenient engagement
…To create branded, relevant, omni-channel client
experiences that all clients want

Overview
Recommendations
Wrap up
Table of contents

Create client experiences
that matter
Millennials’ high expectations for consumer brands is impacting
their expectations for B2B engagement.
Even though Millennials are digital natives – they place a lot of
value on direct, personal, authentic experiences with a brand and
the vendors’ reps.
B2B marketers need a mix of digital and experiential
opportunities to connect with Millennials.
How to get started
 Leverage client data to get meaningful insights
 Conduct a client experience assessment
 Identify where pain points can be eliminated and
improvements can be made
Recommendation
1

Influence the influencers
Key people influencing Millennials’ decision to buy B2B
products/services often come from outside the business.
Vendors need to consider their brand reputation, even beyond
their normal trade circles.
Data analytics can help vendors learn more about their clients’
ecosystems.
How to get started
 Create client personas informed by data insights from your
current client base
 Build a 360-degree perspective of your clients’ likely
influencers
 Use social listening tools and analytics to see if influencers
have sufficient exposure to your brand
Recommendation
2

Deliver data—anytime, anywhereRecommendation
3
Data is a key ingredient in Millennials’ decision making process.
To help Millennials—and their older colleagues—make the best
choices, organizations need to arm them with analytics tools and
data insights.
B2B vendors/marketers also need to offer easy access to their
relevant data and information.
How to get started
 Vendors/Marketers can use cloud-based development
technologies to create relevant mobile experiences for clients
 Develop mobile business apps that decision makers
and their teams can use to access data and perform
specific tasks
 Ensure content is authentic to the brand, accurate, relevant to
what the client needs to know, and easy to access

Make it easyRecommendation
4
For Millennial clients, it’s all about ease of doing business, on
their terms.
Millennials want to interact with vendors via social media and
instant messaging and expect quick responses.
They value vendors’ expertise and want to collaborate, but the
process needs to be convenient.
.
How to get started
 Integrate Millennials into your sales and marketing teams
 Have Millennials help design the guiding principles for
client convenience
 Introduce Millennial reps to Millennial clients

Share the love
Satisfied clients—especially Millennials—are eager to share their
experience with others.
Make it ridiculously easy for clients to tell their success stories
and become evangelists for your brand.
Leverage social media, content marketing or other innovative,
collaborative initiatives to share client stories.
.
How to get started
 Make capturing and sharing client references a
strategic priority
 Reach out to satisfied clients to let them know you want to
share their story
 Develop strategies that spotlight client success stories via
digital, traditional and experiential channels
Recommendation
5

Overview
Recommendations
Wrap up
Table of contents

Wrap up
A new era for B2B purchasers,
vendors and marketers
 Businesses need to empower their decision makers and teams
with social collaboration tools and easy access to meaningful
data insights.
 Millennials expectations for consumer experiences have
impacted their expectations for B2B client experiences:
relevant, personalized, authentic and seamless.
 B2B vendors who provide easy processes, tools and policies
designed for clients’ convenience and speed will delight
decision makers of all generations, not just Millennials.

For more
information…
Carolyn Heller Baird
Global Research Leader, IBM Institute for Business Value
cbaird@us.ibm.com
@cjhbaird
The first paper in the study series is:
Myths, exaggerations and uncomfortable truths –
The real story behind Millennials in the workplace
ibm.biz/millennialmyths
This is the second paper in the IBV
Millennial study – a 2-part series
Get the Executive Report :
To buy or not to buy –
How Millennials are reshaping B2B marketing
ibm.biz/millennialsb2b

To buy or not to buy? How Millennials are reshaping B2B marketing

To buy or not to buy? How Millennials are reshaping B2B marketing

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