From Promotion to Emotion

From Promotion to Emotion
Connecting B2B Customers to Brands
A Framework for Member Conversations
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WHY B2B BRANDING?
Impact of B2B Branding
79%
79%
80%
80%
No Brand Connection
64%
64%
60%
60%
High Brand Connection
40%
40%
15%
15%
0%
0%
5%
5%
Consideration
2%
2%
Purchase
Pay a Premium
n = 3,000 B2B buyers.
Source: CEB/Motista Survey; CEB analysis.
B2B BRANDING QUESTIONS WE WILL ADDRESS TODAY
1.How effective are current B2B brand strategies?
2.What is the best way to use B2B branding to boost preference and willingness to pay?
3.What should we do next?
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B2B BRAND PROPOSITIONS NOW FOCUS ON VALUE
Evolution of B2B Brand Propositions
Supplier-Focused
E.g., Innovation
Percentage of Buyers Who Will
Definitely Consider Youa
Value-Focused
E.g., Efficiency
90.0%
90%
80.9%
80.9%
45.0%
45%
19.0%
19.0%
0%
0.0%
Source: Schneider Electric 2009.
Source: Schneider Electric 2012.
Customers Don’t Customers
See Business
See Business
Value
Value
n = 3,000.
Source: CEB/Motista Survey; CEB analysis.
a
© 2013 The Corporate Executive Board Company. All Rights Reserved. MLC6918713SYN
Agreement with “We Will Definitely Consider This
Brand in Future” (Answers of 8, 9 or 10 out of 10).
4
BUSINESS VALUE IS NOT DIFFERENTIATING
Perceived Business Value, by Brand
Average Agreement with “This Brand Will Help Us Achieve Business Goals”
Customer Perceptions of Supplier “Unique
Benefits”
Customer response to “Do you see a real
difference between suppliers and value the
difference enough to pay for it?”
10
10
9
Agreement
8
7
55
86%
No
4
3
14%
Yes
2
1
Brands
Individual
Industrial Supplies
Professional Services
Tech Security
Software
Network Equipment
Shipping
Printing
n = 3,000.
n = 9,000+.
Source: CEB/Motista Survey; CEB analysis.
Source: CEB 2009 Customer Experience Survey; CEB analysis.
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THE ELEPHANT AND THE RIDER
Source: Jonathan Haidt, The Righteous Mind: Why Good People are Divided by Politics and Religion; http://en.wikipedia.org/wiki/File:Indian-Elephant-444.jpg; CEB analysis.
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WINNING THE ELEPHANT: PERSONAL VALUE TRUMPS BUSINESS VALUE
Percentage Lift
Commercial Impact of Perceived Brand Benefitsa
50%
50%
42.6%
42.60%
Edwards Lifesciences’ Personal Value Message
This moment
your skill meets our innovation
25%
25%
21.4%
21.40%
0%
0%
is everything.
Personal Value
Business Value
This is the moment your skill and technique
are complemented with the latest advances
■
Functional benefits
■
Business outcomes
■
■
■
Professional benefits
(e.g., promotion)
in heart valve therapies. It’s the moment
Social benefits
(e.g., popularity)
moment you partner with Edwards
Emotional benefits
(e.g., confidence)
world-class training, expert clinical support,
and meaningful innovations continue to
compliment your patient care. This is the
Lifesciences along your path to success.
Progress Confidently
Learn more about the history, products,
and educational opportunities in this moment.
n= 3,000.
www.edwards.com/ThisMoment
Source: CEB/Motista Survey; CEB analysis.
a
Familiarity, consideration, preference, purchase, repeat purchase,
premium payment, internal advocacy, external advocacy.
Edwards, Edwards Lifesciences, and the stylized E logo are trademarks of Edwards Lifesciences Corporation.
© 2012 Edwards Lifesciences Corporation. All rights reserved. AR08712
Edwards Lifesciences
Irvine, USA | Nyon, Switzerland | Tokyo, Japan | Singapore, Singapore | São Paulo, Brazil
edwards.com
Source: Edwards Lifesciences.
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B2B BUYING IS VERY PERSONAL
B2C Brands
70%
40%
B2B Brands
Relationship Between Number of Perceived
Personal Risks and Emotional Connection
Strength of Emotional
Connection
Percentage of Customers Who Feel Emotionally Connected to Brands
0
1
2
3
Perceived Personal Risks
Risk of Losing a) Credibility, b) Time, c) Job
n = 3,000.
Source: CEB/Motista Survey; CEB analysis.
10%
n = 3,000.
Source: CEB/Motista Survey; CEB analysis.
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NON-CUSTOMERS DON’T SEE PERSONAL VALUE
Belief in Personal Value
Likely Purchase Outcomes
Buyers Who Do Versus Don’t See Personal Value
See personal value
Don’t see personal value
100.0%
100%
100%
100%
77%
77%
71.0%
71.0%
60.8%
68.8%
50%
50%
50.0%
50%
31%
31%
22.6%
22.6%
8.5%
8.5%
0%
0%
Customers
Non-Customers
0%
0.0%
Will
Purchase
n = 3,000
n = 3,000
Source: CEB/Motista Survey; CEB analysis
Source: CEB/Motista Survey; CEB analysis
© 2013 The Corporate Executive Board Company. All Rights Reserved. MLC6918713SYN
Will Pay a
higher Price
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END THE UNHAPPY VALLEY
Purchase Probability, by Purchase Stage
Purchase Probability
Typical
Supplier
Outreach
Emotional
Messages
Emotional
Messages
Unemotional Messages
80%
80%
Customers Who
Engaged with
Video and Social
Media
Everyone
60%
60%
40%
40%
Purchase
Process
Initiation
Criteria
Setting
Supplier
Search
Supplier
Evaluation
Supplier
Negotiation
n = 3,000
Source: CEB/Motista Survey; CEB analysis
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WINNING THE RIDER: DIFFERENTIATing YOUR BUSINESS VALUE
Drivers of Changing a Customers’ Direction
Magnitude of Driver Impact
Commercial Insight: Information that teaches
customers something new about their needs to
make them appreciate your unique value.
0.446
0.302
Teaching Customer
Something New
About Their
Business Needs
Providing
Customer with
Compelling
Reasons to Act
Statistically Significant Drivers
0.013
Being Easy to
Understand
Representing
Expert
Perspective
(0.047)
Containing
Interesting
Facts or
Anecdotes
(0.096)
Being Quick
to Find
(0.132)
Non-Statistically Significant Drivers
n= 545.
Source: CEB research 2012 B2B Customer Survey.
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WINNING BOTH ELEPHANT AND RIDER: PERSONALIZED INSIGHT
Personalized Commercial Insight
Xerox’s “Hue-Phoria” Youtube Video
Commercial Insight
Colors help children
learn and Xerox
printers have the
most vibrant color.
Personal Value
Teachers are “really
pumped” about how
much more engaged
children are.
Source: http://www.youtube.com/watch?v=cNTfEU4LaCI; CEB analysis.
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ADDING PERSONAL VALUE TO YOUR BRAND MESSAGES
1
2
3
EPILOGUE
Understand Personal Needs
Personalize Messages
Motivate Action
Develop
Commercial Insight
Customer Ethnography
Stakeholder Language
Mapping
Pain and Gain Messages
Challenger Marketing
Source: CEB analysis.
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OBSERVE CUSTOMERS TO UNDERSTAND EMOTIONS
Deere’s Emotion-Focused Research Process
Sample Customer Persona (Illustrative)
1. Open Observation
Interviews on customers’ farms
2. Objective Analysis
Analysis of interview videos
by psychologists
Studious
Tom Svrcek
“Farming feels like a game at times,
I’m always trying to beat my best
score”
Key Attributes
Did not grow up on a farm
Self-identifies with technology
Educated and intellectually curious
Invests free time “experimenting”
Functional Values
Precision technology
Information and advisory services
Emotional Values
Self-Improvement
Intellectual achievement
Pride
■■
■■
■■
■■
■■
3. Quantitative Clustering
Identification and validation
of themes
Orientation
Process Optimizing
Classification
Commercial agriculture
Revenue Tier 2
■■
■■
Outcome
Customer Persona
■■
■■
■■
■■
Source: John Deere; CEB analysis.
Source: John Deere; CEB analysis.
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USE CUSTOMERS’ NATURAL LANGUAGE TO PERSONALIZE
MESSAGES
1. N
atural Language
Mapping (social listening)
Stakeholders’ Top Terms
“The volume of the data
we’re bringing in from
devices is a challenge, which
only increases with new
connectivity.”
2. M
essage Design Based
on Natural Language
Experimental Messages
3. S
ocial Media Testing
and Optimization
4. R
esonant Message
Selection & Use in Brand
Communications
Adoption Indicators
Optimized Messages
“Connectivity isn’t as high as
you think.”
“99% of the world is still not
connected to the internet.”
■■
■■
■■
Shares
Comments
Mentions
“99% of the
world is still not
connected to
the internet.”
Source: Cisco Systems; CEB analysis.
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HIGHLIGHT CURRENT PAINS (NOT JUST FUTURE GAINS)
TO DRIVE ACTION
Screenshots of Grainger’s “Downtime is a Real Downer” Video
“You see a
production line—I
see a thousand
potential things
that could go
wrong...”
“Grainger: for
the ones who
get it done.”
Source: http://www.youtube.com/watch?v=Ipc9qI4uiH4; W.W.Grainger, Inc.; CEB analysis.
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START WITH CUSTOMER NEEDS AND LEAD TO YOUR
DIFFERENTIATORS
Commercial Insight Generation Process for Education Sector
Xerox Differentiators
∆ Vibrant color
∆ Low cost ink
Customer Concerns
Poor student engagement
Funding
■■
■■
Poor student
engagement
UnderAppreciated
Impact?
∆
Insight-Led Interaction
“I’d like to talk to you about
the impact of color on
student performance.”
Student Performance:
Comprehension issues
Lack of engagement
In 77% of children—color
improves focus and interest
Vibrant color
Idea!
Maybe kids used to tablets lose
concentration when given blackand-white print outs…
■■
■■
Sales
Rep
Source: Xerox, CEB analysis.
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Conclusions
1.How effective are current B2B brand strategies?
Most B2B brand messages communicate business value effectively. This drives consideration, but not purchase or price premium.
■
2.What is the best way to use B2B branding to boost preference and willingness to pay?
Incorporate personal value into brand messages, as this has twice the impact of business value.
Synch up branding and commercial insight by adding a personal value dimension to insights.
■
■
3.What should we do next?
Identify customers’ personal needs/goals through open observation
Communicate personal value by using customers’ natural language
Drive action by reminding buyers that their current pains are worse than the pain of change
Develop a commercial insight with a personal dimension
■
■
■
■
Source: CEB analysis.
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WHAT TO DO NEXT
The Marketing Leadership Council and Google are pleased to offer the full research for free at http://ceburl.com/b2bemotion.
CEB Marketing Leadership Council®
From Promotion to Emotion
Connecting B2B Customers to Brands
From Promotion to Emotion
Connecting Customers to Brands
© 2013 The Corporate Executive Board Company. All Rights Reserved. MLC6918713SYN
For more information on
commercial insight, Click Here.
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Research Methodology
Buyer Research
Quantitative Buyer Surveys—Google and Motista surveyed
3,000 U.S. business customer respondents purchasing from 22
companies across 7 categories:
■■■
■
■
■■■
■■■
■
■■■
■
Industrial Supplies
Professional Services
Tech Security
Software
■■
■■
■■
Network Equipment
Shipping
Printing
Marketer Research
Marketer Interviews—CEB interviewed 70+ senior marketers at
the world’s leading B2B organizations
Expert Interviews—CEB interviewed 15+ academics, consultants
and researchers
Contributing Companies (Partial List)
Surveyed Brands (Partial List)
Source: CEB analysis.
© 2013 The Corporate Executive Board Company. All Rights Reserved. MLC6918713SYN
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