Who Makes Buying Decisions? How Buying Committees Have Evolved

Who influences buying decisions in your target market?

The factors at play in determining who holds influence over B2B purchases lie not only in individual titles and departments, but also more universal forces such as advances in technology and shifts in buying behaviors.

Let’s take a look at how buying committees have evolved over the years, and explore what this means for your marketing strategy going forward.  

How Buying Committees Have Evolved

The concept of the buying committee was introduced in 1967, although at that time the term used was decision making unit (DMU). By the 1980s there was more conversation happening around the psychology of B2B marketing and sales, like identifying champions of purchasing.

In 2016, LinkedIn got in the game by releasing a report on which departments exert the most influence over buying decisions. Our findings revealed the next important piece of the puzzle by answering these two questions:

• What internal departments are most important to reach?
• Does the influence wielded by these departments vary by industry?
  

Influence is a matter of industry

What we found was illuminating. The following departments were the most influential over the typical B2B buying decision:

• Information Technology (32%)
• Finance (31%)
• Business Development (26%)
• Accounting (23%)
• Operations (22%)
• Administrative (21%)
  

We also found that the average number of departments influencing the buying decision differed by industry. For instance, the services industry had an average of 3.3 departments influencing the typical purchase decision. In manufacturing, the average was 4.6 departments wielding influence over the purchase decision.

This data showed that there is no such thing as a typical buying committee, and moved the conversation toward using insights to identify key players in target organizations. 

What’s Driving Change in B2B Buying

Marketers’ understanding of buying committees has evolved to keep pace with changes to B2B buying itself. The past decade alone saw a significant shift in both technological capabilities and purchasing behaviors in B2B. 

The world moved online

The narrative around online buying used to be much more narrowly focused on the rising influence of digital natives – a generation that engaged with technology from a young age. The pandemic, however, necessitated that everyone, regardless of age or experience, get comfortable with digital relationship-building and transacting. This essentially enforced a universal acceleration in digital literacy.

The funnel evolved

B2B purchasing has become a far more fluid process – a boon to buyers, but a mystery for marketers who aren’t making the most of their customer data.

Buyers are no longer guided from point A to B through a purchasing funnel. Our own Steve Kearns, Global Head of Content at LinkedIn Ads, doesn't hold any punches when addressing the state of the funnel: 

“Marketing simply does not work the way it used to, and it is unlikely to ever function that way again.”

Kearns offers this analogy instead, “While the suggestion that the buyer’s journey has changed from a funnel experience to that of a M?bius strip might sound like hyperbole, the truth is that marketing has become a three-dimensional function, and much like the M?bius strip, it is continuous – throughout the buyer and customer experience.”

Buying is far more self-directed

A study by 6sense found that B2B buyers are typically already 70% through the buying process before they initiate direct contact with sellers. This puts more weight on the work of marketers in identifying, reaching and engaging buying committee members.

To sum it up: More B2B purchases are happening online, requiring continual, personalized engagement with potential buyers. 

B2B Buyers: A Committee of Diverse and Unique Individuals

Buying committees now reflect the diversity of our global business environment. Stakeholders from multiple departments bring their unique perspectives based on professional and departmental priorities. These committees include a mix of cultural and generational influences that affect communication, decision-making styles and purchasing behaviors.

This diversification has led to a more decentralized decision-making process.

What can your team do to reach these diverse buying committees? Leverage data. Developing a deep understanding of the unique needs and challenges of the individuals within buying committees will position you to establish stronger, more effective connections with those who wield influence over purchasing decisions.

Learn how LinkedIn Ads can help you establish brand awareness with future buyers.