The Number One Reason for B2B Companies to Use Social Media
By Amanda O'Brien
Fri, Apr 16, 2010
What is the number one reason people in B2B companies should use social media?
The answer is: Relationships help us make B2B buying decisions
B2C companies get a lot of attention in the social media space. B2C is easier to track because there is an immediate purchase decision at the end of the process for an individual.
The B2B buying process is more complicated. The process is longer; the decisions do not lie on the shoulders of one person. The products and services are more complicated and usually much more expensive. Also, when a decision is made it does not affect one person, it affects a whole company.
In the research phase of a B2B purchase you are trying to eliminate your risk in making this purchase. You want to know you are making the right decision. The margin for error is much smaller.
When researching these products and services we want to hear from other people like us that we trust about their experience with the product or service. The word of a stranger will not hold up as much as the word of someone we know and trust. You want to connect with people with similar backgrounds, businesses, goals, challenges and experiences.
One of the best ways to connect with people like us in this modern world is online. Not only do we have a network of people we know and trust online with sites like LinkedIn, Facebook and Twitter but we have a whole search network in those sites to find other people like us. Vendors, partners, suppliers and agencies must be part of those networks too, but not just as companies, but as the sum of the people who make up those companies.
We can search for people in the same industry, by company name, geographic education, interests and so much more. People we know online can connect us with people they know online in minutes. We can share files, comments, links, and reviews all day everyday.
A business relationship is a strong relationship. By participating in social media you are giving yourself the opportunity to create new relationships with people you may not have met before. The more business relationships we have, the larger the pool we have when making a purchasing decision, the more we can lower our potential risk in a B2B buying situation.
Amanda O’Brien is VP of Marketing at Hall Web Services, one of Maine’s largest web development firms. Follow her on Twitter at @amanda_pants
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Agreed! Social media is essential for connecting with potential clients. Most importantly it really ups the ante in terms of quality and business benefits overall for your company. It’s really a great, and many times overlooked, medium for BtoB companies.
I agree, in parts, that networking is a good reason for B2B companies to use social media.
I don’t agree that it is the number one reason. In my (humble) opinion, the number 1 reason for B2B companies to use social media is as a platform to monitor and satisfy customer expectations.
If B2B companies achieve this they are likely to increase customer acquisition and retention and, accordnigly, sales and revenue.
Graham,
Sounds like you are going to LOVE Adam’s post this morning: http://socialmediab2b.com/2010/04/b2b-social-media-customer-retention/
Thanks for weighing in!
Amanda,
Great post. And you’re close! but the #1 reason for B2B companies to use social media should be revenue! Relationships, are of course a huge part of that.
Nathan Egan would agree…
http://www.linkedin.com/in/nathanegan
Best,
Patrick
I agree, in parts, that networking is a good reason for B2B companies to use social media.
I don’t agree that it is the number one reason. In my (humble) opinion, the number 1 reason for B2B companies to use social media is as a platform to monitor and satisfy customer expectations.
If B2B companies achieve this they are likely to increase customer acquisition and retention and, accordnigly, sales and revenue.
Yes, it’s important part of the buying cycle. Our marketing teams at SAS are embracing what we call “Buy-cycle marketing”. The shift in thinking for traditional marketers is significant.
Amanda,
I agree in principle with what you are saying, but I am struggling at connecting the dots. In the last paragraph, you start with “A business relationship is a strong relationship” – but then you go on to talk about what are essentially weak ties “create new relationships with people you may not have met before” I am not sure I see the connection. Weak ties are important, people trust people “like me” as you state, but that does not make it a strong relationship.
I do subscribe to participation, and I am not trying to be argumentative, but I am struggling to follow your line of reasoning.
Mitch (@mjayliebs)
@Patrick, haha well yes, B2B businesses should be participating in social media for revenue. All marketing efforts should be based on generating revenue. Maybe I should change the title to ‘The number one reason for B2B companies to use social media to generate revenue’. Thanks!
@Michelle, thanks for the feedback. Monitoring and satisfying customer expectations could be a part of building relationships, no? I do agree. If you listen to the needs of your customers and target market enough you may not need to market yourself at all. You should also check out Adam’s post on social media for customer retention if you haven’t yet http://socialmediab2b.com/2010/04/b2b-social-media-customer-retention/ Good stuff!
@Deb Thanks! You should track your process and I would LOVE to hear how “Buy-cycle marketing” is tracked and reflections on it. Sounds really interesting and could help lots of other people!
@Mitch, I don’t think you are being argumentative at all. Love the feedback. Having good business relationships can make or break a company. Good vendors, referrals, partners, brand evangelists etc. etc. are the people that keep you stocked, locked and loaded and referring you to other people in their network that need your services and products. In many circumstances, I would refer a person I know from Twitter who has a great reputation that I have worked with in the past versus a “real life” friend from high school, college or my neighborhood.
I recommend getting to know people ‘like you’ that can help you when you need it. People who have the same needs, work in the same industry, have the same problems, have the same work goals, work ethic, business size, expertise or experiences (not all of those things mind you – just some ideas). For example, I had a client who needed a B2B video produced with a demo of their services. Through Twitter and then meeting those connection in real life at conference or for coffee, I now have probably 6 video experts I could refer. One of those 6, I have gotten to know better and referred him quite a bit of business. The other 5 video guys and girls are great but that one has the quality, turn-around, price and direction that many customers we seem to attract are looking for.
I don’t know any strong business relationships that started strong. Like any relationship, it starts and as time passes they become stronger (or not). You have to start with ‘weak relationships’, as you say, and they become stronger. I am assuming that in business relationships they tend to grow with people who are more like you and your business goals than those who are not.
Thanks again for the conversation! If we are still missing the mark, next time I am in Vermont (or you are in Maine) we should grab coffee!
A
Enjoyed the article, but I feel that the number one reason to use social media for your business is to give it a personality.
B2B can be very dry when it comes to having an identity that others can relate to and being able to give your brand a personality helps to draw in attention. And yes revenue is a result of the over all process, but I for one do not care to do business with an organization that sees the bottom line as their ultimate goal.