As always, trends from the B2C market are being reflected in the B2B environment, but at a slower pace. As B2C has become extremely customer-focused and personalized, it is becoming more evident that this is the present and the future of B2B as well. And no wonder, because after all, we do business with people, not companies.
If people get accustomed to a certain level of service in their private lives, it’s only a matter of time until they start to expect it in business transactions as well.
However, the pace of adoption in B2B is slower and still inconsistent. B2B sales are a more complex experience, characterized by different motivators and a number of decision-makers in the process.
Customer-centric approach
Moving from a product-oriented to customer-oriented mindset is nothing new, but it seems that now is the last call to all those who don’t take it seriously enough. Manufacturers are concentrated on delivering the best product at optimal production cost and timeframe, which is understandable.
Nevertheless, the competition is getting tighter and means of differentiation are getting scarcer. Customers require more. What can be done to serve industrial customers even better?
Increasing value of retention
In industries with a limited market size, customer retention has become more important than ever. The old notion states that it costs 5x more to get a new customer. Although the world of sales has changed in the meantime, depending on the industry it can still be much more expensive to acquire a new customer. Going after new markets is a must for many, but acquisition and retention strategies should not be perceived as mutually exclusive.
To win and keep customers, more manufacturers are prioritizing deeper customer relationships. Building customer loyalty is an important part of the strategy, and B2B relationships should be built to last.
Sometimes it can be as simple as making people feel appreciated: putting the effort into getting to know the customer and their perspective, with the purpose of providing personalized customer service and solutions to their problems.
Being smart with digitalisation
Talking about adoption of B2C trends, customers want an easy experience, the same they’ve grown accustomed to in their private life. Having the right technology in place is fundamental. Digitalisation enables smooth experience and easy data tracking – it may involve new software tools, communication channels or other, more advanced tech.
The choice of technology is entirely dependent on your customers and should be tailored to their wants.
For example, a lot of the U.S. industrial manufacturers are connecting increasingly through digital channels to their distributors, which enables distributors to obtain easy and instant access to information, e.g. stock levels1.
On the other hand, there are instances where customers prefer direct communication and not digital channels. Digitalisation should be treated as a tool with a clear purpose, enabling companies to implement their strategies and drive growth, but not to unnecessarily complicate the experience.
Aligning a business model to customers’ needs
Getting closer to your customers and offering them the services they truly need is the guiding principle of customer-centric approach.
Moving away from a product-oriented business model, leading manufacturers have started to extend their offering into service sales. The focus on after-market services was also brought about by decrease in new orders, and it essentially answers the important question: “How can we serve our customers better?”.
Customers today want complete solutions and manufacturers are beginning to see themselves as solution providers
It seems simple: products coupled with services equal complete solutions. The key is knowing exactly what the customers need and what could make their business activities easier, what’s missing (or could be done more efficiently) in their ecosystem.
Some business models from other industries are starting to be utilised efficiently in manufacturing as well. For example, subscription models enable manufacturers to stop relying on one-time sales and focus on a better customer experience.
Customers are becoming less concerned with buying equipment and more focused on buying results, as this approach makes them more focused on their core business. A manufacturer acting as a complete solution provider at subscription cost seems to be a win-win situation for both sides.
Getting real feedback
The most simple but often overlooked approach: listening to the customers. Customer feedback is one of the most valuable sources of information for the long-term success of any organization. And we’re not talking just about market research and data analysis, but also direct communication: talking to customers one-on-one during live, virtual or phone meetings. Listening is about really hearing what the customers have to say and what troubles them, even beyond what is explicitly and formally stated.
Conversations with customers, as well as their own customers, can generate useful insights and ideas for improvement.
Commitment is imperative
Putting the customer at the core of the what, the how and the why is the foundation of a sustainable business model.
Many companies have started that way but their approach has diluted over time as it requires constant engagement. Like all other business activities, it needs to be continually revisited, adapted and evolved.
As the customers are changing, so should the offerings. Without any doubt, commitment to satisfying customers brings real competitive advantage with sustainable financial returns.