THE B2B PURCHASING PROCESS ONLINE - kyto.de€¦ · The B2B purchasing process online The B2B purchasing process online 4 5 Kyto – Your expert for B2B online marketing Kyto –

THE B2B PURCHASING PROCESS ONLINE

How buyers search online and how companies can respond

Kyto GmbH | Linienstraße 126, 10115 Berlin | Managing directors: Dr. Martin Mittermeier, Paul Wulff

Whitepaper series

VISIT US AT:WWW.KYTO.COM

http://www.kyto.com

The B2B purchasing process onlineThe B2B purchasing process online

32

Kyto – Your expert for B2B online marketingKyto – Your expert for B2B online marketing

How B2B buyers search for suitable products has changed severely within the last couple of years. Current studies show that the internet has become the most important source of information during the investment process.

Global sales markets used to be reserved for big companies, but with the help of the internet they are now open for small and medium-sized enterprises (SME) as well. Hence, sales markets increase in size rapidly. Therefore, thinking outside the box and looking at the B2C sector can be beneficial. The B2C sector has already successfully established the change to global sales and distribution with the help of search engines such as Google and platforms such as Amazon or Ebay.

Nowadays, many B2B decision-makers are Digital Natives as well. So we have to ask ourselves how this affects the B2B buying process and how B2B companies can react to these changes. Thus, this white paper will focus on today’s B2B buying process, how to adapt to it and which tools can be used.

This white paper answers the following questions regarding B2B online purchasing:

1. How can companies incorporate new sales channels into existing structures?

2. How important is the internet within the buying process?

3. Which marketing strategies are suitable for B2B companies?

Challenges for B2B BuyersB2B marketers have to consider a lot of information prior to deciding who they are going to purchase from. Crucial for the decision is the price of the investment. However, factors like terms of delivery and sale, supplier’s reliability and integrity, and comfort regarding clearing and settlement have to be considered within the buying process as well.1 The increasing importance of the internet as a promotional and trading platform has wide-ranging consequences for B2B buyers.On the one hand, the internet provides improved

transparency regarding comparability of prices or time of delivery. With the help of online research B2B buyers can compare the terms of delivery of several competitors online - fast and conveniently. On the other hand the internet does not provide reliable answers concerning new business ties regarding reliability or trustworthiness of the potential business partner. International trading makes it even harder to assess potential business partners. Here, B2B buyers have to rely on the information they find on the company’s website, trading platforms or listings in trade directories. The purchaser’s product search will therefore lead him to the homepage of the distributor via search engines, portals, or trading platforms. Thus, B2B marketers have to be visible online. Companies offering great services, but which cannot be found online by potential customers, do not get the chance to sell their products to a wide public.2

The typical investment process in three stepsBefore purchasing

The pre-buying period can last from a couple days to several months depending on the size of the planned investment. Times vary between companies, but generally the investigation period takes the longest. Options have to be compared and weighed carefully. Only then procurement mangers start contacting the few selected companies.

The times where selling was done on trade fairs, taking place just several times a year, belong to the past. Today companies need to demonstrate a strong online presence so they can be found by potential customers at any time. Complex buying periods a priori to trade fairs become less or even irrelevant, since the internet became the most important source of information for B2B buyers.

Today it is important for customers that the investigation period is easy and comfortable. In times of globalization, the search for providers should be region-, and branch-specific. Companies have to consider that and must reconceive how they meet. these specific demands.

2 Current survey about the use of search engines (source: Managementkompass)

1 Current decision maker survey regarding usage of search engines (source: Managementkompass)

“Global sales markets used to be reserved for big companies, but with the help of the internet they are now open for SMEs as well.”


54


During the purchase process

A recent study by the trade fair Interactive 3 showed, that after the initial search only one or two potential suppliers are taken into consideration. Hence, just a few companies actually get the opportunity to make an offer. Companies that are not part of the initial selection barely get the chance to achieve a completion of a contract. As a basic principle, companies should be present on the market the whole year, so customer’s requirements can be met at any given moment. Furthermore, the study shows that ordinary things like the contact form are pretty important to buyers. Inquiries via a contact form should be easy, clear, and convenient for the customer which also generates reliability. This facilitates valid inquiries. Companies should make it as simple as possible for buyers to get in touch, to receive information or to obtain an offer.

After the purchase

After a successful purchase it is important to keep up with the business connection over the long term. Operational buyers share their experience with other buyers, ideally leading to new business contacts. There, social media plays a minor part. Personal contacts, however, are very important.

What companies can learn from this

For companies it is highly relevant to be visible during the whole buying process. Companies that do not attract within the initial supplier search, will have a hard time selling the product. If they are not able to successfully place and promote their products so they can be seen by relevant targets, cannot be successful, not even with increased performance, a better product or reduced prices. Today, the buying process is much shorter than it used to be. Time-consuming preparations for trade fairs have been omitted or do not have to be planned months ahead. “After-Sales“ is just as important as “Presales“. During the whole process the company’s offerings should be accessible and traceable in order to provide information about the products for all those interested.

Additionally, companies should invest in customer satisfaction and should perform professionally at any point in time. Then, business connections are likely to continue over the long term and additional purchases will be made at a later point in time. A customer recommendation also becomes likely from which companies benefit a lot. After a positive experience customers are usually willing to stay with their supplier, even when they discover more favorable prices elsewhere.

Increasing relevance of the internetAs mentioned above, the internet becomes increas-ingly important, because it allows serving customer’s demands in the best way possible. Nowhere else customers can search for suitable offers so fast and easily. For B2B decision makers the internet has become the first and most important source of information procurement within the buying process. Studies show that 94 percent of all buyers use the internet to obtain information. Search engines are the most important starting point for B2B buyers. However, online marketplaces and trade directories contain a high level of information and are thus used increasingly 4.The internet as a trading and promotion platform is continuously gaining in importance. It enables companies of every size to increase their global reach, to develop international sales markets and to acquire new customers. To achieve that, companies have to make sure they can be found by potential customers. Online marketing provides an effective and - compared to offline marketing - an economic way to optimize a company’s online presence and thus increases sales figures permanently. B2B marketers should mainly concentrate on inbound marketing and deploy a pull strategy to achieve long-term success. That means, companies should appear whenever someone is looking for them, their products or services. Contrary to utilizing a push strategy, companies emerge every time when there is an actual demand. This can be accomplished

3 https://www.messe-interactive.de/fileadmin/user_data/docu-ments/DMI_Studie_Information_und_Kommunikation_im_Kauf-prozess_von_B2B_Unternehmen.pdf

4 Study by Fachhochschule Münster „Information und Kommunikation im Kaufprozess von B2B-Unternehmen“

over

94%of all buyerssearch online

*Source: 2014 State of B2B Procurement Study, Acquity Group


76


through content management, social media or specific search engine marketing 5. Regarding this topic we will further go into detail within this whitepaper. No matter the advantages of online marketing, the risks should be kept in mind as well. Due to the increasing globalization customers are confronted with a lot of allegedly equivalent services of multiple suppliers and can choose across national boundaries who they want to work with or where they want to place an order. Hence, companies have to face strong competitors. Despite that challenge there is no way around online marketing measures.

Acquisition of new customers must not be neglectedCompanies should not lose sight of the fact that finding new ways to acquire new customers is essential: Loss of customers can reach companies anytime and anywhere. Furthermore, customers are lured away by competitors. In some branches the end of the value chain is reached with the purchase. That means, the customer’s requirements are met in full. This makes it all the more important to efficiently acquire new potential customers.

New customer acquisition via internet

Studies reveal that the internet is the first source of information when doing research. Search engines are of top priority. Since clients search online for

5 http://blog.hubspot.com/blog/tabid/6307/bid/4416/Inbound-Marketing-the-Next-Phase-of-Marketing-on-the-Web.aspx

6 Study: Information and communication during the buying process of B2B companies, German trade fair Interactive 2012

services and product offerings, the internet becomes increasingly important as trading platform and sales market. The internet offers many advantages over non-digital sales markets. To mention only a few advantages, it allows fast and uncomplicated processing as well at the best possible price comparability. Since most operational B2B buyers are Digital Natives, the internet is used in order to find trading partners and suppliers. Studies have already demonstrated that the internet is the most important instrument for B2B decision makers in order to gain information a priori to a contract. Moreover, these studies show that the majority of the visitors reach the homepage via search engines like Google or Yahoo. This means that the company’s visibility is crucial for its position among search engine results and therefore the number of visitors on the homepage and the company’s volume of sales.

Customer acquisition via traditional channels

A priori to planned investments personal contacts also play an important role within the information gathering process. Here, online marketing reveals some deficits: The personal exchange of technical information cannot be permanently replaced by online-channels. Besides the internet and personalcontacts, specialist media, trade fairs and supplier catalogues become important within the second step of the inquiry.

internet

personal contacts

supplier catalogues

specialist journals

trade fairs

promotion

newsletter

industry associationChamber of Industry

and Commerce

For B2B buyers the internet is the first source of information 6

Possibilities and potentials of B2B companies

Own website & search engine optimization (SEO)The own website should represent the basis of all online activity. Nowadays, it is the company’s digital business card to undertake reasonable

marketing efforts. As mentioned above, the company’s visibility concerning search engine results is essential for the number of visitors on the homepage and thus the company’s volume of sales. The content plays a significant role in obtaining a better placement of the website. This is not only relevant for search engines, but also for real customers who appreciate getting useful information by suppliers. Ranging from detailed product descriptions to company details, companies should fill their website with unique and valuable information. Therefore, a higher position on Google and Co. as well as additional transparency for the customers is guaranteed. Companies should not approach the topic “Online” as a sideline, but rather pursue a strategy that fits the company. Additionally, attracting as many visitors as possible to the own website should not be the overall objective, it is rather important to generate relevant traffic. This can be achieved through targeted online marketing, where search engine marketing represents a popular option.

Online Marketing & Search Engine Advertising (SEA)

Search engine advertising is ideal, if you want to increase the traffic on your website. It forms the basis, since customers reach the

website via special pages, so-called landing pages. As mentioned above, companies should be well- represented on the internet. With the help of Google Adwords, companies have the advantage of being visible and thus to generate a great number of leads and with it potential customers. Since this kind of

7 More about this topic in our white paper “Search Engine Marketing for B2B“

marketing is more complex and particularly costly compared to classical search engine optimization, a lot of companies make use of external experts or tools 7.

Business search engines & trade directoriesSpecialized trade directories are ideal for companies, since they can place their products target-group specific. Companies

can choose between different platforms, themed after special branches or regions. Having chosen suitable platforms, companies can apply settings such as the allocation of their products to certain categories. Tailor-made listings make sure that suppliers can be found by genuine customers – leading to higher conversation rates. Another advantage for companies is that platforms themselves conduct search engine optimization and occupy the top positions at Google and Co. for generic terms. First-time visitors are forwarded to business search engines or trade directories. Hence, listings in miscellaneous directories are nearly indispensable for B2B companies. The difficulty here is to get an overview of all relevant platforms – regional as well as international – in order to list products and company data target-group specific and to manage them on a long-term basis. Companies can make use of external administrators, in order to just have one contact partner and not to be obliged to manage the data in every single directory separately. 8

Social media & network platformsNetworking and the exchange via the internet are decisive factors for a company’s success. The rise of business and social

networking platforms like Xing or Facebook changed the way consumers find information online - via people with common interests. Evaluations of services rendered can be found quickly, which can be either good or bad for the company. This influence comes from the B2C sector, and companies must face this challenge as soon as possible, but at the same time should not focus on it.

8 More about this topic in our white paper „Engaging in Online Marketplaces B2B-Marktplätzen“


98


ResultsThis white paper showed the typical B2B investment process and presented concrete proposals for action to companies. Since buyers use the internet mainly as a source of information but also for selecting providers, it is indispensable for companies to be found online - nowadays and especially in the future. Companies can therefor adapt various measures from the B2C sector. A website providing value for customers should be the basis of all further online marketing activities. Search engine marketing is an established channel in order to attract new customers. Listings in trade directories achieve high conversation rates and social media gains in importance as well. In summary, buyers increasingly use the internet and it is decisive for companies to maintain a large and well-designed online presence. Without this companies cannot tap into new sales markets, acquire new customers, increase turnover or even continue to exist on the market.

“Search engine marketing is an established channel for attracting new customers.”


1110


About KytoKyto GmbH is a software-as-a-service provider headquartered in Berlin. We optimize the online presence of medium sized B2B companies with our individual online marketing solutions. Kyto assists its customers with choosing the right search engines, trade directories and B2B platforms. Furthermore we conceptualize and manage B2B online marketing campaigns and provide continuous monitoring and optimization measures.

Thereby we achieve an increase in highly qualitative traffic and a long-term revenue boost for our customers. Our clients benefit from our specific industry knowledge and our extensive partner network.

Do you have any further questions concerning online directories and marketplaces?

Don’t hesitate to contact us!

Kyto GmbHLinienstraße 12610115 Berlin

+49 30 994 040 130

[email protected]

www.kyto.de

CONTACT US FOR MORE INFORMATION

Do you have any further questions concerning online directories and marketplaces?

Call us: +49 30 994 040 130

Consultation times: Mon-Fr 9am - 6pm

mailto:info%40kyto.com%20?subject=

Documents

THE B2B PURCHASING PROCESS ONLINE - kyto.de€¦ · The B2B purchasing process online The B2B purchasing process online 4 5 Kyto – Your expert for B2B online marketing Kyto –