3 "Truths" About B2B Buying

Why your customers buy and continue to be your customers should be the most important question every company asks themselves. This week I am exploring 3 common “truths” about B2B buying and my thoughts around why these conceptions are not entire true + what you could do to challenge this thinking in your organisation.

1. B2B buying is relationship-based, not transactional

B2B customer relationships are typically driven by long-lasting partnerships and personal connections between individuals. Compared to consumer buying, B2B buying is more complex and buying cycles are longer, involving various stakeholders from decision makers to influencers. Thus there is a general acceptance of a higher cost of selling and a need to establish trust with various decision-making roles through personal contact.

It is true that most B2B interactions are relationship-driven, but it would be a generalisation to say there is nothing transactional in B2B buying.

Firstly, not all B2B accounts are similar in terms of their size and monetary value. What we typically tend to see is a share of 20% (or even 10%) of accounts generating 80-90% of the total revenue. These are the major accounts, the high-value ones. These are the customers who get “wine and dine” invitations and regular check-up calls from their nominated key account manager. But what about the other accounts? What we also see are so-called “volume accounts,” the small and mid-size accounts. These accounts are not big in terms of monetary value or growth opportunities if we look at them individually. But when we add them together, we see they bring in that additional 10-20% of total revenue.

It is not possible or recommendable to have a nominated account manager for every single account. So these smaller accounts are often handled in a more transactional manner – instead of a nominated contact person, these accounts are directed to online support. Instead of regular meetings or joint planning, these accounts are expected to handle their needs via self-service channels.

Secondly, not all B2B buying is strategic. Let’s take a typical example of an existing customer ordering a spare part or an upgrade. In these instances, customers hardly expect a long process of capturing their needs and discussing different solutions. When the need is rather straightforward and imminent (such as a spare part order), B2B customers look for information on stock availability, delivery times, and the ability to self-serve and track the delivery. This is a very transactional way of buying, similar to the consumer world. If you order a book via Amazon with a couple of clicks and can track its travel through the world, why wouldn’t you expect a similar straightforward way of handling a spare part order for your heating system?

So instead of "pushing" all customers to the relationship model, start by understanding your customer needs. If the need is to form a new partnership and plan long-term strategic targets, the relationship model works best. But if it is an existing customer who is looking for replacement or an upgrade, make it easy for them to handle their buying in a transactional manner.

2. B2B buyers base their decision on logic and not on emotions

This is typically the most repeated misconception of B2B buying: “B2B buying is based on rational thinking, ROI calculations, and there is no room for emotions.” This kind of thinking implies B2B buyers – who are humans, to be precise – can separate their emotional and rational sides of the brain, depending on whether they are buying sneakers or a heating system. It implies B2B buyers are somehow different from the rest of us humans – with the ability to put emotions fully aside and base decisions on rational thinking. Sounds like some kind of superhuman from the future if you ask me!

Jokes aside, neurological research shows it is simply not possible to have a rational thought before experiencing an emotion. As human beings, we would like to think we are more driven by rational thinking than emotions, but science shows it is the other way around. It is true B2B buying is not based on emotional impulses and instant satisfaction, similar to consumer buying. But this does not mean B2B buyers are immune to their own emotions and how emotions impact their behaviour and decision making.

Businesses are about people, and most B2B decision-makers are concerned about their personal and business goals. There is also a lot of fear of making a wrong choice that will put their personal reputation at risk and cause harm to others around them. Companies that can alleviate B2B buyer fear and provide trust are the ones B2B buyers typically go for – and justify their decision later with ROI calculations.

And if this is not enough for justify the role of emotions in B2B buying, Forrester Research has done extensive studies on the importance of emotions in customer experience. The most significant part of any experience is emotional - whether B2B or B2C. In the end, we are all in the human-to-human business.

3. B2B buying happens best in-person

In the last few years, we have seen two major trends emerging. One is the lightning-fast adoption of digital tools, first accelerated by COVID and then by generative AI. The second is the change in the B2B buyer profile. In 2024, 73% of B2B decision-makers consist of Millennials who are between 28-42 years old. This generation grew up with the internet and has very different expectations and behaviours compared to previous B2B buyers. Here’s what else we know about them:

• 90% turn to online channels as their primary method for identifying new suppliers.
• 30% of them would rather self-serve the entire sales journey without speaking with a sales rep.
• When they are ready to consider a purchase, they spend only 17% of that time meeting with potential suppliers.

What this means is today’s (and tomorrow’s) B2B buyers no longer see in-person meetings as the primary source of information. They educate themselves through various channels, including social media, and make informed decisions about who they want to meet with. B2B buying is still about building relationships and trust – but this happens in a blend of online and in-person interactions, where online comes first. What this means is we need to be precise with what we offer and what value the customer gets from our products and services, and this information needs to be easily accessible to customers – not only through in-person meetings but also using social media channels and third-party resources.

What is common regarding all these three misconceptions on B2B buying is that they do not correspond with customer reality and the changing customer needs. B2B customer experience and buying is still, and continues to be, about relationship and strategic partnership. But when we go into the customer journey and look at customer needs, there are lots of elements that contradict what we are often told. B2B buying can be very transactional in nature. B2B buyers base their decisions on emotions first - and logic after. B2B selling can happen online - in fact B2B buying is quickly becoming a blend of online and in-person, where online comes first. The key requirements have not changed. B2B customers look for effectiveness, easiness and trust. We need to continue listening to our customers, understand their needs and deliver value.