Ariba Live is the premier forum for sharing ideas, forging partnerships, and shaping the future of business commerce. Ariba LIVE brought together peers, partners, and prospects to explore ways to truly enable the business of tomorrow today—by driving innovation, reaching new markets, generating competitive products, and creating new channels for growth. Sean Geehan, National Best Selling Author, CEO and Founder of the Geehan Group was a featured B2B Speaker at this great event and was captured in this candid interview sharing some of his personal insights regarding the biggest challenges the B2B world faces as well as marketing strategies to drive sustainable, predictable, profitable growth in your organization.
Much has been written about the differences between the B2B and B2C buying process. At its crux, the key difference lies in the amount of research, exploration, validation, concurrence, and approval necessary for B2B purchases due to the typically large investment they require. All of this activity extends the length and complexity of the buying process considerably as B2B buyers take the time and diligence needed to make absolutely certain the product or service will solve present and future needs. The success of B2B sellers, therefore, rests in their ability to assist and guide decision makers through each phase of this multifaceted process.
I recently read an article that showcases perfectly the Top 7 Attributes of B2B sellers, as identified by 700 B2B buyers who collectively represent $3.1 billion in annual purchases. According to these influential decision makers, top B2B sellers:
With the Top 7 Attributes clearly identified by those who are living what you are sellingTM, B2B sellers must now consistently demonstrate them so decision makers recognize and value them. Sales training and personal development can improve the individual acumen and skill in a B2B sales organization; however, this is just a start. Institutionally, B2B organizations must also gain a more intimate understanding of the world in which their customers and prospects live. The most effective route to gain this comprehensive view begins with an active Customer Advisory Board (CAB).
The most widely-known benefit of a well structured Customer Advisory Board is the platform it provides to help executives build relationships with key stakeholders, including customers, internal constituencies, suppliers, wholesalers, distributors, alliances, and partners. A successful CAB is unequivocally proven to turn customers into true advocates
while helping organizations retain and increase revenue opportunities. These results are well-documented by the companies who have achieved them.
When structured correctly, however, a CAB also helps organizations develop an unprecedentedly deep understanding of market conditions, key drivers of the industry, and how their customers are impacted by and react to them. Armed with this insight (knowledge which cannot be learned from reading blogs, articles, or other online content), B2B sellers can now better demonstrate the Top 7 Attributes by educating, collaborating, understanding, helping, and listening to decision makers at each point of the buying process with more immediate relevance. Therefore, the insight learned through a Customer Advisory Board enables B2B organizations to more effectively connect their solutions to buyer needs and craft solutions that are both compelling and invaluable to the decision maker.
If your organization currently operates an active Customer Advisory Board today, be sure you are developing the Top 7 Attributes by discussing key topics of their business and industry with them. If your organization does not currently operate a CAB, you might be losing out to those who do.
In our daily lives, we seek solutions from experts in the right industry. Whether it's a company providing goods and services to consumers (B2C), or a business looking to partner with another business (B2B), providing the right solutions + creating customer retention = success. As B2B and B2C organizations continually strive to improve customer retention and build customer loyalty, there is one solution across any company in any industry that can help do just that -- a Customer Advisory Board.
I recently read an article by a financial planner, Josh Patrick, CFP, and founding principal of Stage 2 Planning Partners. It's a great example of how industry agnostic CABs are, and I fully support his advice on the right way to build and maintain a CAB.
One of the benefits Josh outlines is 'synergy of the group.' How true! As CAB members share ideas and best practices, they not only learn from one another, they build on each other's ideas to help you. And that leads to another benefit - by embedding their feedback into your company's new offerings and services, the bond between you and your members grows even stronger over time. Members become loyal advocates and are willing to speak on your behalf, such as participating with you at an event and/or serving as a reference.
Our client base spans many industries from banking & financial services to healthcare to technology to media & entertainment. I've seen first hand that regardless of the industry, the benefits of a Customer Advisory Board (CAB) program are many:
An opportunity to listen to the priorities and challenges of your most important customers.
Advice, guidance and outside-in thinking to help drive your organization's strategic direction.
A better understanding of market trends from your customers' point of view.
An ongoing initiative that helps your executive team make decisions and allocate resources with confidence and clarity.
Greater alignment of solutions to the market.
Relationship building opportunities.
The result? Enhanced relationships with customer decision makers, loyal advocates and a greater understanding of the market you serve.
Marketers often times find it easier to apply the trusted tenets of B2C marketing to B2B selling. Unfortunatley, they then end up with disastrous results because of B2B marketing’s more complex and lengthier buying cycle. While some basic rules apply, B2B marketing is quite different and needs different tactics. It demands marketing involvement for a longer time, and with more specificity.
What else makes B2B marketing different? What should marketers change to get more results from B2B campaigns? How can a B2B marketer connect with customers and leverage innovation to drive business growth?
Join this free webinar sponsored by Regalix for a chance to engage directly with Geehan, as well as other marketing professionals. Don’t miss this insightful discussion on:
All registrants will receive an abstract from Sean's National Best Seller, The B2B Executive Playbook.
Business strategy books fill bookstore shelves, but none draw attention to the unique ways in which B2B organizations need to strategize and run differently than B2C companies in order to achieve true sustainable, predictable, and profitable growth.
Please join me at Ariba Live In my feature break out session, where I will identify those unique differences and demonstrating how B2B companies need to apply B2B strategies with proven approaches. Everyone attending this session will receive a signed copy of The B2B Executive Playbook.
Don't miss this amazing event where you’ll learn to optimize the connectivity and analytics made possible by business networks and the Cloud, gaining essential insights that empower you to transform business commerce. This event includes informative breakout sessions, dynamic keynotes, and engaging networking opportunities, where you'll learn how to buy better, sell more, and manage cash more efficiently.
In the B2B World, 80% of your revenue comes from 20% of your customers. The reality is that losing just 5% of those customers could potentially sink your organization. So in this age of big data and rapidly evolving technology, what are the best ways to retain and ultimately grow those customers?
B2B companies must meaningfully engage with their customers to evolve loyalty into advocacy, and engagement begins with a relationship. Through our work with over 50 leading B2B companies, we have found time again the following three key relationship building practices lay the foundation for account retention and growth:
1. Educate, Don't Sell. B2B relationships start with education, not a sales pitch. Educate yourself on your customer's industry, market, challenges, and opportunities, and then demonstrate how you can show them a path forward. Providing relevant content through discussions and forums, blog posts and articles, and research is an excellent way to establish your credibility and begin the customer loyalty to advocacy journey.
2. Customer Advisory Boards create a platform where you can leverage happy customers and drive innovation through customer co-design and collaboration. The end result is overall market alignment in offerings, communications, and strategy.
3. Executive Summits bring key decision-makers together to preview a strategy, product, or market innovation. Through these focused exchanges, customers become first-to-know, first-to-buy, and first to advocate your solution in the marketplace.
Structured, proven, and dynamic educational forums, customer advisory boards, and executive summits help organizations develop a deep understanding of market conditions while building the rapport with key executives. This powerful formula turns customers into true advocates and is the best recipe for retaining and growing your top customers.
One of the biggest differences between B2B and B2C is branding or positioning your company. Many extremely successful marketing leaders in B2C have a difficult time making the much needed adjustments to be successful. In my book, The B2B Executive Playbook, I referred to Michael Jordan’s dominance in basketball and being labeled “World’s Greatest Athlete.” But, the world’s greatest athlete failed miserably when he tried professional baseball.
He may still be the greatest athlete, but he needed to apply his skills much differently to be successful in baseball. What he also lacked was experience in baseball. I’ve witnessed dozens of successful B2C marketing executives who have been met with the same results as Jordan did when they crossed over to B2B marketing.
Commonly, I run into high-profile executives much like the one I worked with who came over from a major soft drink company. He is a great individual. He amassed all kinds of accolades and had great success at his former company as a brand leader of its flagship product. His honors included national advertising and marketing awards as well as several industry awards. The financials were incredible too…market share gains, profitable growth, etc. Then he jumped to a B2B and became the CMO in an industry which he had no experience. The CEO was so excited to land him and even made him over product development as well. He applied the B2C formula that made him a huge success at his old company.
Well, his new company had about 10,000 customers, but their top 50 customers were 50% and the top 200 were around 75% of the revenue of this $5 billion company. He didn’t fully understand the impact of this and violated nearly every B2B success principle outlined in the book. Most of what he did was in the name of branding, (new look, logo, tagline, positioning, etc.). He committed millions to what made him wildly successful at his B2C Company…updated look and feel of logo, tagline, entertainment/event sponsorship and a broad ad campaign.
The results were brutal: sales went down, market share slid, margins tumbled, and because he also oversaw and shifted R&D dollars to marketing, their product started falling behind because they weren’t reinvesting like the competition. In addition, many of their top customers were leaving them, signing exclusive long-term deals with the competition…never to return. The only thing that collapsed more than the financial results during his tenure was the company morale.
That CMO lasted three years. He has been gone for about three years now, and they still haven’t recovered from the damage that the B2C approaches caused to this great B2B Company. It was like wearing a basketball uniform to a football game. It was ugly.
While there is no universal agreement on the definition of brand, the core is simply how the market views your company - your reputation. It includes aspects like what your firm is known for, where the market believes you have value or have credibility, and your company’s personality and culture.
In the B2C world, the brand position is achieved much differently. Let’s take the world’s most valuable brand, Coke. I drink more Diet Cokes than I do anything else. I have it stocked in my home fridge, in my work fridge and order it every lunch, etc…
The image of the Coke brand, for me as the customer, is contained to the advertising, the package design, others’ perceptions and my experience. Think about it. Even if the package is damaged, in my head I assume my local grocer dropped it while putting it out on the shelf. If it tastes bad when I order it at a restaurant, I put it on the restaurant for not have the right mix (syrup and water). I actually do not know a single person who works for Coke! My touch points and interactions with Coke, as well as all my other brand goods, are similar to this (Crest, Nike, Sony, Tommy Bahama).
All of these B2C companies invest millions into understanding the various personas, segments, demographics, geographical nuances, etc. to determine how to position and manage these brands. The same is true about all respected B2C CPG (Consumer Packaged Goods) brands.
There are two additional elements in the other major B2C category: Retailers. For retailers such as Starbucks, Disney, McDonalds, Target and others, the brand is also impacted by the store (look, experience, etc.) and the people (knowledge, culture, interactions, etc.).
In the B2B world, the brand position is also established with all of the above-mentioned brand-building components. The difference, however, is the priority and weighting these elements are assigned, as well as the impact that a very few customers can have. And while it’s only one element, that impact can be the difference between Branding Nirvana and losing your job (CMOs have the shortest tenure of all C-level positions and functions).
Because in the B2B world, the people you are selling to are industry veterans and most are also subject matter experts. Simply put, they are living what you are selling. They live and breathe in the industry you are supplying. When GE Aviation sells jet engines to Boeing, the people that are evaluating and making the decision are engineers that have been in the Aviation industry for 15-25 years on average. When Harris Broadcast sells content distribution solutions to Disney, the people evaluating and making the decisions are have 15-10+ years in the media industry. The expertise, level of complexity, layers of customer contacts and overall sophistication of the prospect is exponentially different.
In the B2C world, in a blind taste, 90% of the population can’t tell a $10 bottle of wine from a $100 bottle. Nor can they tell the difference from free tap water and a $5 bottled water of Fiji. But a sophisticated and highly emotional marketing and branding program can yield premium dollars for something which the buyer honestly can’t tell the difference.
In the B2B world, it’s just the opposite. While they may not know your specific offering, they usually know their industry better than those who supply it and how they will uniquely apply your product, solution or service. They will scrutinize, compare, benchmark, test, and go to third parties and associations for references and validation.
Think about the CIO who has worked in the financial services industry for 22 years. If you have IT solutions to serve this market, your company better know his needs, priorities, his environment and requirements…and most of all, you better have peers (fellow CIOs) he can talk to about working with your firm. If you don’t have this, a well-designed logo, powerful tagline, slick campaign, elaborate brochure or PPT presentation will not overcome the lack of credibility to support a premium position. Too much is at risk in his world: security of the bank assets, privacy issues, government compliance, the customer experience and the CIO’s reputation and career. In fact, in a recent meeting, CIOs rated peer input as the #1 credible and trusted source for supplier selection.
In the B2B world, the most effective way to build or reposition a strong credible brand is through your current customers. It’s how they describe their experience working with your company; it’s what they say you successfully delivered to them (or fell short of). And the higher level they are, they more impact they will have.
There are so many Social Media Channels today. So which ones are the most effective and sustainable for B2B organizations and deserve the most effort and manpower?
For B2B organizations the 2 most effective social media platforms are discussion groups and blogs. According to a Forrester Research report, 75% of B2B Decision Makers interact with discussion groups by posting ratings or by leaving comments on blogs.
Discussion groups often pose questions, relevant concerns, and testimonials for certain products or services. Engaging in these conversations can showcase your expertise or product solution and build confidence in potential clients.
Blogs have the potential to reach clients globally. These concise short articles, usually packed with relevant information provide an organization with credibility and reach that showcase their expertise, while also opening a channel of communication between author and readers.
Finding the best discussion group and building a following for your blog takes time and dedication, but is the most effective and sustainable Social Media Strategy for B2B Organizations.
Are you considering starting a Customer Advisory Board (CAB), or do you have one in place and are wondering how to ensure continued success? We've executed hundreds of CAB meetings, and while there are many keys to success, when someone asks me what makes a CAB program successful, I respond with these three important elements:
Based on your CAB strategy, make sure the customers you invite are able to help you think through key issues and areas of your business, and answer the critical questions you will pose to them that will help drive your strategy, future services and/or product direction. People who can answer these questions are typically the decision-makers and high-level influencers, and you want to hear their combined perspectives. Also, attendees from your organization should be made up of the leadership team and/or P&L owners, plus functional leaders in Marketing, Sales, Development, Finance, and Strategy. Their only requirements are to be good listeners, ask probing or clarifying questions and never, ever fall into "selling" mode.
Put an agenda together that includes topics of interest to your customers as well as to your internal team. What are customers' market needs and aspirations? Identify gaps; understand where they believe your organization may be able to help. What does your internal team need feedback, guidance, and input on - strategy, marketing, sales, product? Use this forum to listen and validate your team's perspectives on how they view customer needs. Leverage your time together to share ideas and learn from each other.
The final element to ensure CAB success is to follow-up with your advisory board members after the meeting. Based on their feedback, determine with your executive team what actions to take, who will be accountable, and the timing to complete. Let your CAB members know you've taken their feedback seriously by developing an action plan and sharing it with them. See another blog I wrote on this topic: Take Action After Your CAB Meeting.