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

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Presented by Dave Munn - President & CEO, ITSMA at Paul Writer's Great Indian Marketing Summit - IT Edition, 1 Feb, 2013, Bangalore …

Presented by Dave Munn - President & CEO, ITSMA at Paul Writer's Great Indian Marketing Summit - IT Edition, 1 Feb, 2013, Bangalore
webcast of the session available at http://www.24framesdigital.com/paulwriter/webcast/010213/in.asp

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  • Excited to be presenting to you ITSMA’s new customer data. This is one of my favorite projects of the year because we learn so much about buyer behavior that directly impacts the decisions we make in marketing. Let me warn you! This is a presentation on the results form the ITSMA How Buyers Consume Information Survey. That means it contains lots of data. There are lots of words and numbers on the slides. I did this because I am a researcher and I want to take you with me on the journey from data to insight. I don’t want you to just accept the things I am telling you. I want you to see the data for yourselves so you can see were the insights come from. My hope is that you will see new things in the data and that this will be the beginning of a fun and productive dialog.
  • Most of you around the room already know about ITSMA, and indeed in signing up for this course you no doubt checked us out! We are a membership organisation .......
  • Before we jump into the data, let me tell you a bit more about the research. I am presenting the results from ITSMA’s annual survey with buyers of large complex technology solutions. We have been doing this survey every year since 1999. Gives us exceptional insight into changing buyer behavior. This data is hot off the press. We fielded the survey in September and October. 299 respondents across 4 countries. Screened to include only senior execs at large companies that are involved in the purchase of complex technology-base solutions--$500K or more. Over half the respondents VP and C-level. 67% are the decision makers with the final authority. Half the companies with > $1B in revenue. We analyzed the data seven different ways to glean insights. The research explored the different stages of the customer’s buying process and how they use information throughout the process. The research will answers questions such as:Buying Process Who is involved in the purchase decision?When and why do buyers want to interact with services providers, sales, and subject matter experts?Information ConsumptionHave changes in the way buyers consume content changed the way decisions are made?What kinds of content are buyers looking for?Which information vehicles are preferred and trusted? How are social media and mobile sources being used? Preparing for the Social BuyerWhat is the right marketing mix balance to reach both the traditional and social buyers?Survey to include IT, Business executives involved with the selection of solution providers
  • Customer insightUpdated marketing skillsMarketing and sales alignmentReal-time decision-making and execution
  • I believe many of you are familiar with ITSMA’s 2011 how Buyers Consume information Study. But for those of you who aren’t, let me catch you up really quickly. In 2011 we revealed some fairly shocking revelations about buyer behavior. First, we identified a new type of buyer—the B2B Social Buyer who has very different buying behavior. One of the most prominent differences between the B2B Social Buyer and the more traditional buyer is less reliance on peers during the purchase process and more reliance on social media networks and channels, and community in general. At the same time we saw a decline in conventional peer influence, we saw an increase in credibility of solution providers. We were really scratching our heads when we saw this data. What happened to those very skeptical customers who didn’t trust their vendors? How could the services providers be considered just as credible as peers?Last year when we analyzed the data, we were understandably nervous about the findings. Could this really be true? At first the buyer behavior changes just seemed too drastic to happen in one year. So we reviewed our sample, methodology, and analysis. We didn’t find any flaws. Rather we found an explanation and that explanation was the new, younger B2B Social Buyers. The social buyers were changing buyer behavior.In 2011 we had one data point that was a complete departure from what came before. Despite our confidence in the methodology and analysis, going into 2012, you might imagine we were nervous about what we ere going to find. Would the 2011 findings hold up?
  • So here we are in 2012 and we now have 2 data points! Two data points make a line. With a line, we have a validated trend! Yes, solution providers are more credible, and even more influential, than peers as SOURCES of INFORMATION—I stress sources of information because peers are still the best source for references, referrals and testimonials. And yes, we have confirmed the existence of the B2B Social Buyers who have very different buyer behavior.In ITSMA’s research we are seeing that buyers are changing and it is hard to keep up. In fact we see a lag between changing buyer behavior and markets’ perceptions which is then perpetuated in marketing budgets and programs. The result is that marketing efforts are not as effective as they could be.
  • And with the 2012 study we have also uncovered a new trend. Buyers are relying on sales at all stages of the buying process. That means sales is active from the epiphany stage where buyers are keeping up with industry and technology trends before they recognize a problem, opportunity or need right through to the loyalty stage where they are building an ongoing relationship with their solution providers.
  • A prediction market is a platform that collects and aggregates the knowledge and judgment of a large, diverse group around a specific event or concept for the purpose of making predictions. The predictions represent the aggregated knowledge of the group and quantify the probability of future outcomes. In some instances, prediction markets may also be referred to as a preference market.
  • Peers are no longer the #1 source of information during the early stages of the buying process—solution providers are! They used to be a few years ago.
  • Social media is still not considered very credible. People are using it mostly to keep up and stay abreast of what’s happening in the industry but they still want strong proof points
  • A prediction market is a platform that collects and aggregates the knowledge and judgment of a large, diverse group around a specific event or concept for the purpose of making predictions. The predictions represent the aggregated knowledge of the group and quantify the probability of future outcomes. In some instances, prediction markets may also be referred to as a preference market.
  • Another Accenture example – appealing to traditional buyers - is their commitment to airport advertising. Teresa Poggenpohl has been in the news lately telling how important that is still to their audience.
  • A prediction market is a platform that collects and aggregates the knowledge and judgment of a large, diverse group around a specific event or concept for the purpose of making predictions. The predictions represent the aggregated knowledge of the group and quantify the probability of future outcomes. In some instances, prediction markets may also be referred to as a preference market.
  • Last year in our research we discovered that the market has divided into two groups: The B2B social Buyers and the traditional Buyers. Who are the B2B social buyers? They are the buyers who use social media channels and networks during the purchase process. About 90% of the buyers we survey use social media during the purchase process, but we don’t consider every user of social media social buyer. We asked the respondents in the survey about the usefulness of social media during the buying process. So while 90% use social media during the buying process, 46% find it useful or very useful. About half the study sample is social buyers. How do they behave differently than the more traditional buyer? I analyzed the data to compare these social buyers to the people who answered this question 1, 2, or 3. So Who are these social buyers? Note: in 2011, 74% of the sample were social buyers. Country differences. (no India, Australia, Brazil)
  • Last year, age was the single identifying characteristic of the B2b Social Buyer. This year we are seeing a more complete picture emerge. It is no longer solely a generational divide. Yes, B2b social Buyers tend to be younger. But they are also senior decision makers who are more likely to be in an IT role.And as you will see as we look at the data, the there is a trend for the traditional buyers to become more social.
  • All buyers today have robust appetites for information. They spend a lot of time on and offline researching and learning about technology and their industries. They are looking for new ideas and ways to create competitive advantage. They are trying to understand what the should be doing now, and how they need to prepare for the future. We call this the Epiphany Stage of the buying process.We asked what is the average number of hours you spend each week keeping up with the industry and/or technology. The average for all 299 respondents was 5.4 hours. However, the B2B Social Buyers spend significantly more time consuming content. An average of 6.5 hours per week compared to 4.3 hours for the traditional buyers.So while both groups are consuming a lot of information, the social buyers are consuming significantly more.
  • Here’s some interesting data.The top charts show the percentage of time that the B2B Social Buyers and traditional buyers spend consuming information on and offline. The bottom shows the percentage of the time spent online accessing information from either a PC or a mobile device.There is no difference in the amount of time buyers spend online by social media use. Even the traditional buyers are spending nearly 2/3 of their time accessing information online.However, we do see a significant difference when it comes to accessing information via a mobile device. B2B Social buyers are more likely to be consuming information from a smart phone or tablet. In fact, they are spending about 1/3 of the time consuming information—as part of the buying process—on a mobile device. Making sure your content is optimized for mobile access is no longer optional. It is a necessity!
  • This is a variation of the question we first started asking about 10 years ago that was our first sign of what back then we called the New Buyer Reality. The NBR coincided with the rise of the Internet as a source of information and this created a fundamental shift in power from the seller to the buyer. We asked when you have a business problem that requires a technology solution, what percentage of the time do you initiate the research and fine the appropriate solution providers vs. they contact you first? Over the years we consistently saw and continue to see that about 70% of the time buyers are finding their own solution providers rather that waiting to be contacted. They were self directed, self reliant, doing their own research. They proactively buy. They aren't “sold.”This year we asked the question a little differently to find out who actually does the research, you or your staff. And what we found is that the social buyers are more hand on, doing their own research. They are less likely to be delegating. (no difference by title, but IT job role also do own research)
  • This slide shows a summary of both information sources and delivery vehicles and is helpful to see the kinds of things that both social and traditional buyers use and prefer such as xxxxxx. Then we show where there are differences – the B2B social buyer prefers xxxx and the Traditional Buyer prefers yyyy.We’ve seen a number of companies who have taken a much more outside in approach to understand how their customers and prospects want to consume information from them and what their preferred vehicles are to consume it. This has helped them readjust their spend. One company that has done more than just incremental change is Cognizant. They’ve decided to stop interruption marketing in physical places and focus on permission marketing or content marketing in virtual places. With a limited marketing budget it was a decision to be focused and efficient. They realize there are only a few thousand people they really want to reach not hundreds of thousands, so airport ads, WSJ ads aren’t for them. They made the decision to own the online experience. They've taken this integrated approach through Twitter, through Facebook, LinkedIn YouTube, and the usual places like HBR online, online business media, to leverage their content around the Future of Work. It's very targeted marketing, content-based permission virtual as opposed to some all the traditional approaches. Their web traffic, click throughs have been excellent….and their Alexa score has improved dramatically. Alexa provides traffic data, global rankings and other information on 30 million websites, and is a subsidiary of Amazon. Ok let me turn things back to Julie to discuss the third mandate.
  • In the age of instant and free information, talking to a salesperson is often seen as unnecessary.“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.Are buyers waiting till they have their short list to talk to sales people?I have a new 70%. 70% of Buyers want to engage with sales people BEFORE they select their short list. Not different for providers have existing relationship and new providersSales enablement is as important as ever.
  • XxxxyyyySales reps are not obsolete! Buyers do rely on sales during the early stages of the buying process. Not sure if you remember if but there was a slide I showed earlier. When asked the question: What were the first three sources of information you turned to when you began your solution research? They cited websites, SME’s, web search, then sales reps.
  • Interestingly, the B2B social buyers see more value in interacting with sales reps than traditional buyers do, especially in an advisory role
  • BT example: This is an example of one of the most innovative ways to implement ABM that we have seen. The KAM Live is so innovative, it won the ITSMA MEA for 2010. KAM Live provides real-time news, data, and compelling insight to the account managers of 120 of BT’s top multinational accounts every 24 hours—helping them to better understand and serve their customers. What BT has succeeded in doing is using automation to cost effectively develop deep knowledge about their top accounts to support their ABM efforts. In doing so they are able to expand the scope of their ABM marketing program to many more accounts. That means that marketing and account managers have the information and tools they need to spark epiphanies and move their most important clients from satisfaction to loyalty to trust.  (Done . All the other stuff is good info, but does nothing to support our key message. We can leave it out.)
  • Your websites are the #1 source of information early in the buying processB2B social buyers and traditional buyers do consume information differently—you have to have something for both audiencesBuyer behavior is rapidly changing and you need to keep up!

Transcript

  • 1. Paul Writer Great Indian Marketing Summit | 1 February 2013Leela Palace, BangaloreGive Buyers What They WantResults from ITSMA’s How BuyersConsume Information SurveyDavid MunnPresident & CEOITSMA Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 1
  • 2. About ITSMAITSMA works with marketing leaders and their teams toprovide 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… Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 2
  • 3. ITSMA’s 2012 How Buyers Consume Information Studyexplored 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 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 3
  • 4. Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 4
  • 5. Buyer behavior is changing so fast that There is ait is hard to keep up disconcerting lag between changing buyer behavior and marketers’ perceptions, budgets, and programs Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 5
  • 6. Last year’s ITSMA buyer research uncovered surprisingrevelations 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 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 6
  • 7. 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 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 7
  • 8. 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 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 8
  • 9. Three topics for today Marketers’ perceptions vs. buyer behavior B2B social buyers vs. traditional buyers The new 70% Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 9
  • 10. Marketers’ Perceptions1. vs. Buyer Behavior There is a gap between actual and perceived buyer behavior Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 10
  • 11. We asked 86 consulting and technology servicesmarketers to “predict” buyer behaviorWhich of the following 1 Management consultants (e.g., McKinsey, Bain, boutique firms)SUBJECT EXPERTS 2 Universities, research institutes, think tankswill be the mostinfluential source of 3 Sourcing advisors (e.g., Everest, TPI)information in the IT 4 Peers/colleaguespurchase 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 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 11
  • 12. Marketers say…Which of the following SUBJECT EXPERTS will be the most influential source of information in IT servicesand solutions purchase decisions during 2013? (Marketers’ perceptions of buyer behavior) Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 12
  • 13. 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 10Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 13
  • 14. Peers are also no longer the #1 source of informationduring the early stages of the buying process—solutionproviders are!Q. What were the first three sources of information you turned to when you began yoursolution 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 27Source: How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 14
  • 15. To some, solution providers are more credible than peersWhich 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 24Management 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 3rdNote: Respondents were asked to rank order top three.Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 15
  • 16. Buyers wantaccess to your subject matter experts— make them accessible Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 16
  • 17. Which of the following 1 Technology or solution provider websitesINDUSTRY resources 2 General business mediawill be the mostinfluential source of 3 Focused industry or trade mediainformation in the IT 4 Industry events/trade showspurchase decisions 5 Local or national professional trade associationsduring 2013? Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 17
  • 18. Marketers say…Which of the following INDUSTRY resources will be the most influential source of information in the ITpurchase decisions during 2013? (Marketers’ perceptions of buyer behavior) Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 18
  • 19. Buyers say…% of Respondents selecting information source as one of first three would use during the purchaseprocess (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 9Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 19
  • 20. Buyers wantto find relevant information on your website— create a customer-centric web experience Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 20
  • 21. Which of the followingSOCIAL marketing 1 Web search (e.g., Google, Bing)tools will be the most 2 Blogsinfluential source ofinformation in the IT Social media/networks 3purchase decisions (LinkedIn, Twitter, Facebook, SlideShare, YouTube, etc.)during 2013? 4 Focused industry/professional online communities Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 21
  • 22. Marketers say…Which of the following SOCIAL marketing tools will be the most influential source of information in the ITpurchase decisions during 2013? (Marketers’ perceptions of buyer behavior) Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 22
  • 23. 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 6Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 23
  • 24. There is a gap between actual and perceived buyerbehavior Are marketers out of touch?Most important: Marketers Say… Buyers Say…Subject Experts Peers  Solution Provider SMEs  Solution Provider Sales  PeersIndustry Resources Inconclusive Solution provider websitesSocial Marketing Tools Communities Web searchUse for Social Media  Source New Ideas Keep up with industry news  Build Relationships and events Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 24
  • 25. B2B Social Buyers vs.2. Traditional Buyers B2B social buyers and traditional buyers consume information differently Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 25
  • 26. The market has divided into B2B social buyers andtraditional buyersHow 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 5Note: Mean rating based on a 5-point scale where 1=not at all useful and 5=very useful.Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 26
  • 27. 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.Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 27
  • 28. Both types of buyers have robust appetites forinformation, but the B2B social buyers spend more timeconsuming 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) hoursSource: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 28
  • 29. Both types of buyers consume the majority of contentonline, but the B2B social buyers are shifting more of thattime to mobile platforms B2B Social Buyer (N=139) Traditional Buyer (N=160)Time spent online vs. offline 38 Online 37 Offline 62 63Time spent online accessinginformation from a 33 PC 23 PC vs. a mobile device* Mobile 67 device 77* Indicates a statistically significant difference.Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 29
  • 30. The B2B social buyer is more “hands on” and less likely todelegate during the early stages of the buying processWhen you have a business problem that requires a technology solution, what percentage of the time wouldyou say you or your staff initiate research and find appropriate solution providers versus they contact youfirst? % 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.Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 30
  • 31. B2B social and traditional buyers use different methods toaccess their peersHow do you typically reach out to the peers and colleagues whose counsel you typically rely on mostabout technology solution providers? % of Respondents B2B Social Buyer (N=139) Traditional Buyer (N=160) 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 28Note: Differences are statistically significant.Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 31
  • 32. Beyond research reports, B2B social buyers andtraditional buyers favor different marketing vehiclesWhich information delivery channels or formats do you typically prefer? B2B Social Buyer (N=139) Traditional Buyer (N=160) 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 3Note: Respondents were asked to rank order top three channels.*Indicates a statistically significant difference.Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 32
  • 33. 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 mediaSource: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 33
  • 34. 3. The New 70% Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 34
  • 35. According to conventional wisdom, buyers are waitinglonger 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… Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 35
  • 36. The New 70% Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 36
  • 37. According to ITSMA’s research results, 70% of buyerswant to engage with sales reps before they identify theirshortlistAt 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 decisionSource: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 37
  • 38. For many, sales provides significant value at every stageof the buying process, not just the negotiation and closeWhen you are interacting with solution providers sales reps during the purchase process, what value dothey 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 14Awareness 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 contactConfidence Help me build the business case 42 42 16 Significant Value Some Value No ValueSource: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 38
  • 39. Interestingly, the B2B social buyers see more value ininteracting with sales reps than traditional buyers do,especially in an advisory roleWhen you are interacting with solution providers sales reps during the purchase process, what value dothey 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 providers 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.Source: ITSMA, How B2B Buyers Consume Information Study, 2012 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 39
  • 40. 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 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 40
  • 41. Buyers wantideas and advice from sales reps—BT’s KAM Live enablesmore relevant conversations Build relationships with thought leadership selling Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 41
  • 42. Buyers wantideas and advice from sales reps— turn your sales reps into front-line subject matter experts Build relationships with thought leadership selling Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 42
  • 43. Buyer behavior is rapidly changing and youneed 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 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 43
  • 44. Remember, give buyers what they want! Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 44
  • 45. Thank You! David C. Munn President & CEO ITSMA dmunn@itsma.com +1-781-862-8500, Ext. 117 Results from ITSMA’s How Buyers Consume Information Survey | 1 February 2013 | E130201 | © 2013 ITSMA. All Rights Reserved. | 45