The buying process or “cycle” is an interesting process to say the least. Why do customers buy? What goes through their mind before, during and after a purchase? Why do they choose what they do to buy? How do they process all the information about products and services available to them? Marketers, as well as sales and business development professionals alike all seek to answer these questions to yield success.
The buying cycle can viewed as having 5 phases, as indicated in the graphic below
For the purposes of this discussion, we will focus on the first phase – Problem Identification. (Have no fear, we will discuss the remaining phases in the next series of blogs.)
The buying cycle begins when either (1) the buyer notices a problem is starting to arise, or – which happens more often than not – (2) the buyer begins to see the effects of a problem without knowing what the problem is exactly. For example, a car dealer who wants to communicate frequently and maintain a relationship with customers fails to employ a reputable CRM. They notice that their customer retention is low and can rightlyfully attribute the problem their CRM system. On the other hand, you have a car dealership who uses the best CRM system available in the industry and has a consistent direct marketing schedule but they also notice customer retention is low. This dealership is left scratching their head as to why their customers aren’t returning to their store for service needs and/or to purchase another new car.
This begs the question: how can companies who have products and/or services that can solve a particular issue reach prospects who are in the “problem identification” stage of the buying process? One suggestion that we strongly recommend is to have stimulating and engaging conversations online to get yourself infront of prospects who are in the midst of the buying cycle.
We’re not simply recommending that you jump on the social media bandwagon and create profiles on all the major social networks (i.e., Twitter, Facebook, and LinkedIn). Since a “build it and they will come” mentality does not succeed in social media, we urge companies to get their hands dirty by really getting involved online after profiles are created. You should ask thought-provoking questions to prospects, answering questions posed by prospects online, offer up “best practices” and tips and provide concrete information that will get prospects thinking more about their problem and how it can be solved. This can be done on Facebook, Twitter, LinkedIn and YouTube…and each can drastically improve your business development processes by generating qualified sales leads.
Don’t believe us? According to DemandGen’s recent report “BtoB Buyer Transformation Survey,” social media activity on networks such as those named above are “having a growing impact with business purchases.” In fact, they reported:
Over 20% of buyers connected directly with potential solution providers on social networks
Almost 40% posted questions on social media sites with the intent of looking for suggestions and feedback
A majority of respondents said Twitter and LinkedIn influenced their purchasing decisions during the “Problem Identification” phase
The results of this survey clearly indicate that social media has a significant impact on the b2b buying cycle and provide evidence to our recommendation above. Though “Problem Identification” is still the first step in a sometimes long and frustrating buying cycle, remember that engaging with prospects early in the game and building rapport throughout will improve your chances for a sale in the end.
For more information and recommendations, please watch as Gateway partner Jason Bahnak elaborates in the video below:
Many companies find it hard to believe that they can benefit from image sharing sites. Why should a B2B company use image sites?
Posting an image online not only increases your company’s search engine ranking and visibility online, it also provides resources for other professionals who are looking for content for a research document, or visual aid. [Images can range from company logos, to charts, to simple "How To" checklists]
Watch as Gateway partner, Jason Bahnak, explains how to successfully promote your business through image sharing sites.
If you’re not getting the amount of traffic you’d like to your website, the immediate solution isn’t always a website makeover.
Not getting enough web traffic? Before your company considers spending $15,000 on web design, evaluate your web traffic. If you aren’t receiving a substantial amount of web traffic, your first step will be to make people aware of your organization. How? Implement a social media strategy to Increase Search Engine Ranking, and Increase Brand/Company Awareness.
Watch as Gateway partner, Jason Bahnak, discusses how to increase visibility online without an immediate website overhaul.
A Case Study:
Nearly two years ago, Gateway Business Development Group created a promotional video to display on our homepage. The video was professionally produced and explained what we do, how we execute business on a daily basis, a self-proclamation of how great we are.
Since the video has been posted, Gateway has had two to three companies inquire about our services after watching the video. That’s roughly one inquiry every 182 days.
As we grow and change, so do our marketing tactics.
A little over a week ago, we posted a new video on our Facebook and YouTube pages. It was simple- just Jason Bahnak, a Partner at Gateway, getting interviewed by Rise to the Top’s David Siteman Garland. Jason candidly discussed what Gateway can offer companies, and a few words of advice. The interview was very laid back and gave viewers an opportunity to put a face to the company name.
Since the video has hit the web, it’s gotten over 20,000 views, and Gateway has received 5 inquiries has 4 proposals for new business. That’s roughly one inquiry every 2 days.
Prospects are looking for raw, honest information. They’re not looking for a ten minutes sales pitch about the great things you’ve done, they just want to know how you can help them make more money.
For business owners, creating web videos is a win-win situation. The cost of creating these “interview-style” videos won’t blow your budget, and the reach is very extensive. Not only will they humanize your company, they can be fed through a variety of outlets that will, in turn, improve your search engine ranking. You have the ability to strategically place your video on networks and platforms and tailor the message to the network’s demographic.
With the help of a company that specializes in social media, your web video can be marketed in the most efficient way.
Take a look at our newest video blog for Jason’s full take on web videos.
Social Media sure has created a buzz for itself, ironically using social media to do so in many cases. There is tons of information about social media, yet I often get asked the simple questions like “What is social media” and “How or why should my company use it?” Alternatively, traditional B2B lead generation seems simple. You find some targets, pick up the phone and see who’s interested in what you offer. Does simple mean ineffective in today’s business environment? Not at all.
Let me try to kill 3 birds with one stone with an analogy about social media and explain (1) what it is, (2) why you should participate and (3) what to expect:
Pretend the internet does not exist. Pretend there is a large networking event coming up, such as a cocktail hour, and your company needs to make a BIG impression, as you need new business. You also know that there will be some great prospects attending this event, Presidents and Owners of large companies that can make your year if they do business with your company. These prospects will be talking about business, discussing needs, perhaps asking some questions of each other, requesting advice, and generally opening the door for your company to present its solutions.
Now imagine the best possible way your company could be represented in this environment to impress prospects and generate opportunities. Would you send your “closer” to this event, someone who doesn’t take “no” for an answer and will ask prospects the equivalent of “what can I do to get you into this car today?” Will you send your engineer, who has the most detailed knowledge of your process, but also has trouble talking with people? Neither.
Here’s how I imagine your best presence: You send someone who communicates well, but listens before they jump into a conversation. This person circles the room, first gaining an understanding of what prospects are discussing. When they encounter someone who has a general question relating to your industry, rather than try and “close” them, your representative politely answers their question, asking nothing in return, and hands them a business card in the event they have further questions. When your rep encounters a prospect with an immediate need, they eloquently describe how your company has helped other companies like theirs, and extends an invitation to present your solution at a later time. When your rep meets someone who doesn’t express either a need or a question, they communicate with that prospect on a personal level, trying to get to know them rather than appear to have an agenda. Best of all, if a prospect asks another event attendee if they know anyone who can help with a specific issue, that person points to your rep and says, “He’s provided us with some great advice and he knows what he’s talking about, I’d ask him.”
What I’ve described above is, in essence, social media marketing. Social media marketing is communicating with peers on a one-on-one level, but using the Internet to do so. It’s not “selling”, it’s “talking”.
You should participate because the conversations I described above are happening by the thousands, daily, by prospects who you want to attract. It’s worth mentioning that, like my analogy, these online conversations are not “sales conversations” by nature. They’re conversations involving the “asking for” and “providing of” advice…for free.
You should expect to generate interest in your company…not close business quickly. Much like marriage, dating comes first, and before that, friendships, and before that, communication.
B2B lead generation on the other hand is the more direct approach. In the example of the networking event, it’s as if you’re only jumping on the “immediate need” conversations. It is the quickest, most direct path to new opportunities. Where social media takes time, and is geared toward developing relationships, B2B lead generation (prospecting) tries to “cut to the chase” and convert leads into sales. It’s a focused effort on new business…finding the low-hanging fruit. B2B lead generation is a direct tactical approach to new business…it doesn’t beat around the bush.
When budgeting for either social media or B2B lead generation, consider your immediate needs. If they’re primarily to build relationships or interest, social media works great. If your need is to drive new business NOW, consider B2B prospecting. It’s more direct, and less “conversational”.
I hope this post has been helpful to those wondering where to allocate resources and what to make of this “social media revolution”. For any further questions about either topic, feel free to visit our blog at www.gatewaybizdev.com/blog.
This blog was created to share our thoughts on B2B customer development in the hopes that this information will be useful for organizations working toward increasing new sales opportunities.
