Marketing and selling to the right audience has never been easier: By tailoring digital ads to shoppers' demographic profiles and interests with precision unimaginable just a few decades ago, businesses can move from generating interest to closing a sale with just a few clicks of a mouse.
But it's equally important for firms whose customers are other businesses to take full advantage of digital marketing and sales opportunities. Only 13% of B2B sales occurred online in 2019. Though the percentage of digital B2B sales has crept up to an estimated 17% for 2023, the ability of Marketing and Sales to simplify the purchasing experience for businesses is a revolution still waiting to happen.
Digital marketing channels such as Facebook, LinkedIn, Instagram, and YouTube allow sellers to engage business buyers with compelling video content to create interest and draw customers into the sales funnel. There, e-commerce channels can ensure fast conversion, easy reordering, and order tracking, plus upselling through product recommendations and special offers.
Yet, even in high-tech industries, most B2B commerce marketing and sales remain low-tech. Corporate vendors and buyers often cannot conduct transactions without first meeting in-person or spending hours on the phone. It's not uncommon to fax information to customers or vendors—in the year 2023!
The New B2B Business Environment
Business customers don't like those norms. Up to 80% of all B2B decision-makers prefer digital human interaction or self-service over person-to-person sales, according to a McKinsey survey. Gen Z in particular is attached to low-touch communication.
When COVID-19 made in-person sales and marketing impossible, buyers and sellers responded positively. By summer 2020, nearly half of marketers reported that the new model was more effective than their old methods; only about a quarter reported that it was less effective.
Buyers are increasingly willing to make big purchases without in-person meetings. About 70% are willing to make purchases of more than $50,000 online. More than one-fourth are willing to spend more than $500,000.
Today's labor force has grown up with new expectations. Millennials make up nearly half of all small business owners, and over 10% of Gen Z-ers said they planned to start their own business in the first half of 2023.
The younger generation of business leaders is less interested in phone calls and sales pitches over dinner than in texting and self-direction. Three in four millennials stay away from phone calls, viewing them as a waste of time. Gen Z is similarly phone-averse.
A Call to Action for B2B Commerce
Surprisingly, the life sciences sector—known otherwise for rapid innovation—has been among the laggards in adopting digital marketing and sales. Until recently, many research labs were able to order snacks for the break room with a few clicks but had to fax in their orders for everything from pipettes to advanced diagnostic equipment.
The pandemic helped change that. Most pharmaceutical industry professionals say they believe COVID-19 accelerated digital transformation efforts by at least three years, according to a GlobalData survey.
I've certainly seen as much at my company, a molecular diagnostics and life sciences firm. We've been able to tailor our digital marketing efforts to the specific needs of individual buyers. The feedback from customers has been positive: Finally, they can buy diagnostics tools as easily as they do home goods on Amazon.
For over a decade, even traditional brick-and-mortar retailers have viewed online consumer marketing and sales channels as existentially important—a way to reach customers who lack the time or desire to visit stores in-person or call in an order. Yet, many firms that cater to other businesses have stubbornly resisted that trend.
But resistance is no longer viable. B2B firms must take actionable steps to update their marketing and sales strategies or risk falling behind the herd.
First, many B2B firms could benefit from better aligning their marketing efforts with the B2C digital sales cycle. For instance, at my company, we've found that capitalizing on digital practices traditionally oriented toward consumers—e.g., Cyber Monday sales—has been surprisingly successful for B2B transactions.
Second, a common B2B digital marketing strategy is asking Web visitors to create an account and provide their email address in exchange for valuable information behind the login, such as handbooks or recorded webinars. Reliable contact information can help B2B firms learn more about the visitor's employer and its potential needs while making it easier for sales staff to follow up on potential leads in the future.
In the end, it's critical to realize that digitizing B2B marketing doesn't mean deprioritizing customer relationships or eliminating in-person sales roles. Moving administrative work online can free up time for sales staff to focus on customer experience. Some firms have even explored the idea of giving B2B sales employees a more "advisory" role, helping new clients integrate B2B purchases as successfully as possible.
These are just a few ideas. How B2B marketers adapt their practices to digital transformation will depend on a variety of factors, such as product offerings, geographic footprints, and sales budgets.
One thing is certain: When B2B firms make the leap to digital marketing and sales, they'll soon regret they didn't act sooner.
More Resources on Digital Transformation and B2B Commerce
How B2B Marketers Can Align With the Self-Directed Buyer Journey
