By Josh Tilley, Brand Strategy Director, Initials CX
In the world of B2B, a strong brand separates the ordinary from the extraordinary, the forgettable from the memorable and the commodity from the superior choice.
Ultimately, it’s what sets you apart in a sea of sameness and communicates your uniqueness to the world. In a crowded marketplace where businesses offer similar products and services, a strong brand differentiates your organisation.
After all, recent studies reveal that 90% of customers buy from a brand they already know – your “why” really is the reason people buy from you.
In spite of this, so many B2B businesses continue to overlook their brand: a huge mistake.
What makes a strong B2B brand?
As marketers we sometimes overthink things. Not least when comparing consumer and B2B brands.
Marketers may strive to make the distinction between them – but the average Joe doesn’t care. In both cases the same thing matters: a strong, distinctive position that is easily understood.
Enter a supermarket needing ingredients for a dinner party and you will likely choose one that’s known for its great flavour and quality. Similarly, when looking for a steel supplier, you’re going to pick a business you can trust to deliver a quality product and a reliable customer experience.
A crystal-clear proposition makes all the difference. Your company needs something that feels easily recognisable, whether that shows up as a brand asset or in the way you conduct business.
Take Hiscox as a prime example. The strength of the brand is in paying out claims based on the extensive due diligence the company conducts beforehand. Consequently, customers – whether in the insurer’s target market or not – are willing to pay a premium as they know Hiscox can be trusted if they ever run into issues.
As with Intel and Adobe, people might not necessarily know the intricacies of the product on offer but trust its reliability and quality. Such a level of awareness outside of the company’s core audience demonstrates the strength of a brand.
Brand awareness and trust are also intrinsically linked to a good customer experience. If your product breaks in transit, or no one is available to answer customer service calls, you are more likely to lose their confidence.
Even simple brand considerations can make all the difference, such as connecting your marketing team to ensure communications work in harmony at every touchpoint, and don’t overload or confuse the customer. All communications must reflect the behaviours and values that are important to your brand.
By ensuring your customer interactions are simple and satisfying, they are more likely to feel they have enjoyed a positive brand experience, returning with their custom and cash year after year. That’s just as true for B2B brands as it is for consumer products and services, even though the buying cycle can be far longer.
Why is a strong B2B brand so important?
When it matters, you buy the brands you know you can rely on.
If you’ve just purchased your family car, you’ll opt for premium tyres like Michelin or Pirelli based on their renowned safety, durability and reliability, rather than an unbranded product that doesn’t speak to those values.
The same is true in B2B, with 90% of buyers choosing a vendor they were already familiar with before beginning the buying process. That means if you haven’t achieved familiarity and loyalty with your target audience, you’re effectively fighting for just 10% of the market.
It’s no wonder, then, that B2B businesses with a distinct brand have a 46% higher market share. And often charge a premium to boot.
As the adage goes, “nobody ever got fired for buying an IBM”.
B2B buyers want to be seen to make good, solid choices. They can’t afford to go with an unrecognised or untested brand such as a start-up, because making the wrong choice could damage their career.
As such, they come back to what they know: the brands they can trust.
And with the cost of acquiring new customers rising, a differentiated brand has never been as important.
With a lack of stand-out brands, the B2B market is rife with businesses ploughing money into SEO and PPC, causing marketing costs to spiral. The price of PPC alone has risen by 66% since 2018.
To make matters worse, at any one time only 5% of B2B category buyers are actually in buying mode. Bucketloads of B2B businesses without a sufficiently strong brand opt for a ‘spray and pray’ digital marketing strategy – but 95% of their budget is wasted as soon as the campaign goes live.
Having a great brand isn’t just about building awareness – it’s about the commercial rewards.
By building a memorable brand, B2B businesses can wean themselves off a relentless focus on ROI, and instead build successful relationships with customers and prospects in new, exciting and efficient ways, building long-term value.
