The world has gotten infinitely smaller. This has led to commoditization that has driven up the need to differentiate. One of the many ways businesses go about this is branding, and this is especially true in the case of B2B companies. Branding is the process of building an identity for a commodity/service/ firm.
95% of B2B marketers agree that brand marketing plays an important role in differentiating products from competitors, and we at Growth Jockey agree.
For many years, many B2B firms invested more in sales and products than in brand marketing, believing that superior specifications and personal relationships would win the day. They constantly underestimated the power of brands and trademarks in business-to-business decision-making, and branding was always put down as a consumer-facing communication.
Over the years, this has changed. Research states that investing in B2B branding for four years will yield a ROMI of 640%! This is because, at the end of the day, a business buyer is still a human buyer, and emotions play a large part in B2B purchases as well. Microsoft, Siemens, General Electric, Allianz, and MasterCard are prominent examples of powerful brands that appeal to corporations as well as consumers.
Just like in a B2C environment, branding in the B2B arena also enhances the effectiveness of demand-generation activities, lowers the cost of sales, and commands a price premium. In this blog, we’ll examine the benefits of branding and why more and more B2B businesses are looking to brand their commodities.
Consider the detrimental implications of selecting the wrong supplier for a critical business process. It is to avoid this error that business buyers choose brands that are more vocal about their company personality.
The importance of brand growth cannot be underestimated. Malcolm Gladwell goes on to explain in his book, Blink: The Power of Thinking Without Thinking that customers do not always rely on their analytical minds to make purchases. They make judgements based on initial impressions formed from stored memories, sensations, and visuals. This is also true in the case of B2B companies.
This emotional aspect of B2B buying can be taken advantage of with branding. It sets a business apart from its competitors because there is a prominent sentiment among B2B enterprises that they do not need to pay attention to branding efforts. This is attested by the fact that only 30% of B2B companies invest half of their budget in building their brand.
By creating the appropriate connections in the minds of your prospects, upscale businesses may clinch the deal far sooner in the sales process. They also have a higher chance of retaining customers.
Aside from the power of emotion, we're also seeing key market trends that emphasise the need for smart branding in B2B. These new realities, both technological and cultural, make it more important than ever for B2B marketers to focus on brand—specifically, how purpose, values, and user experience impact their messaging and behaviours.
Bottom line: B2B organisations that underinvest in brand marketing are selling themselves short. Growth Jockey can provide proper guidance as to how to market your brand like a pro.
How to increase brand growth, you ask? The answer is tied to branding. Here are a few advantages of branding in B2B businesses.
Branding drives customer decisions- Decision makers regard the brand as a key rather than a peripheral component of a supplier's proposal. It increases the willingness to try a product and helps inspire trust.
Branding increases revenue- A branded product is perceived to be of higher quality, thus enabling businesses to charge a higher rate. It also lowers the sensitivity to price increases due to changes in the market environment. This is especially useful in B2B transactions, where the cost of an error can be high.
Brands drive differentiation- Research shows that companies generally pick suppliers based on perceived honesty and field expertise. By leveraging business branding for competitive differentiation, companies can capture a disproportionate audience in the domain. Fact-based corporate branding offers a unique chance to bridge the gap between suppliers' statements and the demands of decision-makers.
We, at Growth Jockey, can help with brand growth in B2B sectors. Unlock your full growth potential today!
The benefits of branding are real and tangible. With a proper balance of long and short-term marketing branding initiatives, one can revolutionise their business’s goals and cement their place in the industry.
In the book, 'The Long And Short Of It', authors Les Binet and Peter Field propose a 60-40 split of the marketing budget, with the larger chunk going towards brand-building. This may lead to a more positive long-term view, allowing the business to flourish not only in the next quarter but for years to come.
The following are a few reasons why more B2B companies are focusing on brand growth in business.
The new business model largely focuses on the digital avenue. This is especially true in the B2B domain, where legacy technology providers and professional service companies must include software solutions, frequently with subscription arrangements. To renew and grow these subscriptions, B2B businesses must elevate the entire marketing process to satisfy the customer.
Keeping this in mind, numerous B2B companies become true resources committed to their client’s success. Take, for example, Microsoft. This consumer-oriented brand shed its ‘relatively bland’ image to unveil vibrant business-facing stories. Microsoft hosts several processing and cloud platforms that help businesses ease their business flow. With optimal digital help provided, Microsoft ensured that the business customers knew that using their platforms makes a difference.
Digital transformation has broken the walls between brands. It has become extremely difficult for any brand to bring about differentiation at the product or feature level. This is where the branding comes in, and this is where Growth Jockey can help you.
Branding tells your customers that you offer something extra. With branding, a business can increase its scale and resources while, at the same time, meeting modern business demands and opportunities.
Case in point- American Express. To grow its business among small businesses, American Express aimed to attract more shoppers to its outlets. This was done through the 'Open Forum', a virtual platform for small business owners to connect with Amex and one another. It worked as a catalyst to make businesses successful and also hosted numerous educational resources and tools. This is how American Express cemented its position as an advisor to small businesses and evolved from "yet another credit card company."
Additionally, with their ‘small business Saturday’ initiative, they became synonymous with business owners of small and medium companies. The initiative was a huge success, increasing income for small companies while also altering American Express's brand positioning to be purpose-driven and unique.
Brand growth in business changed rapidly when millennials became decision-makers. They expect the B2B companies they partner with to give customised and seamless experiences.
Furthermore, millennials make up the bulk of the workforce. According to a study conducted by American Express, 78% of millennials would only work with a company with whom their values align. This means building a brand ethos that acknowledges the employees as well as the clients and rewards those who live the brand.
An engaged workforce is frequently a B2B business's most valuable marketing asset, more successful than any sponsored channel at dispersing brand messaging and establishing a consistent experience. It is important to note that the talent a business acquires defines the brand it will become.
Salesforce, a SaaS company, walks the walk. With initiatives like stakeholder capitalism and a 1-1-1 program, the brand focuses on a mission that benefits the clients and the employees. These programmes were immensely successful, leading to a happy and productive workforce. It's no surprise that this brand building has worked wonders, making them one of the market leaders in the United States.
B2B branding may be a new idea in comparison to consumer-facing branding, but the gap between its efficacy and present prevalence in the market might be a significant advantage. Take charge of your B2B enterprise immediately, and you will be able to distinguish your organisation from both direct and indirect rivals in the market.
Of course, getting there will take time and effort. The B2B marketing strategy should directly impact current and desired brand perceptions and also bring about the long-term impact.
The good news is that your business does not have to go through this alone! Consult Growth Jockey, and we'll help you optimise your plan and process, leading to improved results and deeper customer relationships.
At Growth Jockey, our unwavering dedication lies in creating custom solutions that effectively tackle the crucial challenges confronted by our clients across diverse industries, ultimately leading to brand growth. Regardless of the size of your company, whether a small-scale enterprise or a large corporation, you can now leverage the advantages of our cutting-edge solutions to fuel your brand growth.
Take the decisive step towards unlocking the next level of growth for your brand by contacting us today and discovering how our tailored strategies can drive brand growth for your business.