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

1. 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

3. ©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.

4. ©2015 IBM Corporation4 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

5. ©2015 IBM Corporation5 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

6. ©2015 IBM Corporation6 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.

7. ©2015 IBM Corporation7 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 ©2015 IBM Corporation7

9. ©2015 IBM Corporation9 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

10. ©2015 IBM Corporation10 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

11. ©2015 IBM Corporation11 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

12. ©2015 IBM Corporation12 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.

14. ©2015 IBM Corporation14 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

15. ©2015 IBM Corporation15 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 When making B2B purchases…When shopping as consumers*… 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 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 The way Millennials shop for consumer goods is influencing their B2B purchasing expectations

16. ©2015 IBM Corporation16 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)

17. ©2015 IBM Corporation17 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 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)

18. ©2015 IBM Corporation18 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.

19. ©2015 IBM Corporation19 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 Ease of doing business Ease of doing business 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

20. ©2015 IBM Corporation20 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

21. ©2015 IBM Corporation21 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

23. ©2015 IBM Corporation23 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 ©2015 IBM Corporation23

24. ©2015 IBM Corporation24 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 ©2015 IBM Corporation24

25. ©2015 IBM Corporation25 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 ©2015 IBM Corporation25

26. ©2015 IBM Corporation26 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 ©2015 IBM Corporation26

27. ©2015 IBM Corporation27 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 ©2015 IBM Corporation27

29. ©2015 IBM Corporation29 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.

30. ©2015 IBM Corporation30 For more information… ©2015 IBM Corporation30 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

Vous êtes en train de lire un aperçu.

Consultez-les par la suite

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

Plus De Contenu Connexe

Diaporamas pour vous (20)

Similaire à To buy or not to buy? How Millennials are reshaping B2B marketing (20)

Plus par IBM Watson Commerce (18)

Plus récents (20)