5 principles for B2B growth
Brand-building or sales-driving communication - what really drives growth? We often hear companies questioning the value of investing in brand-building communication. Many prioritize sales-driving activities that generate short-term leads and quick deals rather than building long-term value. But what is it that creates the best growth over time? We set out to find the answer to the question that has divided marketers throughout history.
New study for B2B
There are plenty of studies showing the importance of brand-building communication in B2C. When it comes to B2B, the evidence is much thinner. But now, The B2B Institute, a think-tank created in partnership with LinkedIn, has taken a closer look at how to create growth with the right communication in B2B. Together with two of the world's leading knowledge leaders in communications and marketing, Les Binet and Peter Field, The B2B Institute investigated which type of communication generates the strongest growth for a B2B company. The study is based on data from the UK IPA Databank, one of the world's largest communications resources, which contains aggregated data on 1,500 marketing campaigns over 40 years.
5 principles for growth
The study concluded that there are 5 principles that govern how well you succeed with your communication as a company in B2B. According to them, by following these, you have the greatest opportunity to grow.
1. invest in "Share of voice"
In B2C, there is a well-known correlation between a brand's 'share of voice', i.e. the share of the total marketing pie that the brand represents in a market, and the brand's growth. Companies that invest more in share of voice than their actual market share increase their share. And those companies that invest less in share of voice decrease. The study shows that there is statistically significant evidence that the case is the same in B2B. That is, if you are 'heard and seen' more than your competitors, your market share will increase.
2. Finding the right balance
The study shows that B2B communicators get the best effect if they invest their budget in both brand-building and sales-driving activities, with a certain emphasis on the former. The ratio in most cases should be around 60-40. The higher the premium feel of the brand, the more of the budget should be invested in brand building activities. It is the long-term brand building activities that maintain awareness and relevance so that the short-term sales-driving activities have an effect. Without these, you start from scratch every time.
3. Expanding the customer base
The study also shows that in B2B, strategies aimed at generating new customers are significantly more effective than strategies aimed at building loyalty. It turns out that campaigns aiming to build loyalty among an existing customer base usually underperform and that campaigns focusing on reach and on broadening the customer base do a much better job also in terms of building loyalty among existing customers if they are included in the target group.
4. maximize mental availability
In B2B, activities aimed at strengthening a company's 'share of mind' are most effective and the more well-known the company becomes, the better their business does, according to the study. As in B2C, it is the company that is 'top of mind' that is most often chosen, although potential customers go through a longer exploratory process before making their decision when it comes to B2B and infrequent purchase products and services.
5. Harnessing emotional power
In B2B, emotional messages are more effective in creating growth in the long term, while rational messages are more viable in the short term, according to the study. Creating the right emotional associations with the brand is important and highly influences decisions. The study also highlights that if we have positive feelings about a brand, we also tend to perceive more and stronger benefits of the company's services and products, whether this is true or not.
More about the study
If you want to download and read the study from LinkedIn and The B2B Institute in full, you can find it here. Good luck with your brand building and sales driving activities.
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