Well-known brands are more likely to make the shortlist in B2B: A psychological and strategic perspective

When it comes to B2B decision-making, purchasing managers and executives follow structured processes, carefully evaluating potential suppliers or partners. One factor that consistently influences decision-making is brand recognition. Being a well-known brand in your industry significantly increases your chances of making it onto the shortlist during the procurement process. But why does this happen, and how can companies leverage it?

The power of brand recognition in B2B

Studies show that brand recognition plays a crucial role in B2B decision-making. According to a LinkedIn and Edelman survey , 75% of business decision-makers say they are more likely to buy from a company they know by name, even if they have not directly engaged with the it before. This emphasizes the importance of awareness: being a known entity opens doors before discussions have even begun.

Furthermore, Gartner reveals that by 2025, 80% of B2B sales interactions will happen in digital channels. A strong brand becomes even more critical in this environment, as businesses often make initial assessments without direct human interaction.

Psychological factors: Familiarity breeds trust

From a psychological perspective, humans tend to trust what is familiar. This concept, known as the mere-exposure effect describes our tendency to develop a preference for things we’ve been exposed to repeatedly, even if we haven't had direct interactions. In B2B, where the stakes of choosing the wrong partner are high, familiarity can provide a level of reassurance that unknown or less-established brands may lack.

In essence, decision-makers subconsciously perceive a well-known brand as a safer choice. This phenomenon is rooted in cognitive bias – specifically, the availability heuristic – which means people are more likely to trust and choose what comes to mind first, or what they have heard of before. Well-established brands often hold a strong position in people's minds, making them the go-to choice during decision-making.

Mitigating risk in B2B buying

B2B buying is inherently risky, especially when large budgets, long-term commitments, and complex integrations are involved. Research by Forrester indicates that 90% of B2B buyers consider reducing risk as one of their top concerns during the decision-making process. A recognized brand can mitigate perceived risks by offering the impression of reliability, market acceptance, and a proven track record.

Additionally, well-known brands typically have more case studies, testimonials, and visible success stories that act as social proof. This further reinforces their position as safe choices. Harvard Business Review highlights that B2B buyers are highly influenced by such external validations when deciding which brands to consider seriously.

The cost of being unfamiliar

The converse is also true: being an unknown brand can be a significant disadvantage. 麦肯锡 reports that 30% of B2B buyers will exclude a vendor from consideration if they are not familiar with the brand. This makes brand-building activities a necessity, not a luxury, for businesses aiming to penetrate new markets or industries.

A lack of familiarity can signal potential issues to buyers, such as lack of experience, potential operational risks, or simply a lack of presence in the market. It creates a mental hurdle that companies must overcome before they even get a chance to pitch their product or service.

Building a B2B brand: More than just Awareness

For brands aiming to secure a place on the shortlist, it’s not enough to simply be well-known. The quality of that recognition matters. Businesses need to be associated with the right values, competencies, and reliability. Here are some key strategies to increase your brand's chances of making the shortlist:

1. Content Marketing: Share thought leadership, case studies, and insights that demonstrate expertise. According to Demand Gen Report , 96% of B2B buyers want content with more input from industry thought leaders.
2. Targeted Digital Presence: Build a digital footprint in the channels your buyers frequent. This can include LinkedIn, industry forums, and specialized publications. The more your brand appears in relevant spaces, the more familiar you become.
3. Customer Advocacy and Testimonials: Use existing customers as brand ambassadors. Social proof, especially in the form of peer reviews and recommendations, is one of the most powerful tools in influencing decision-makers.
4. Networking and Events: Though digital engagement is increasing, physical events and networking still play a critical role in establishing relationships and trust. Being seen at the right events builds familiarity and shows a commitment to the industry.

Conclusion: Familiarity is key in B2B success

In the B2B arena, being a well-known brand is not just about pride or reputation—it’s a strategic advantage that positions you as a top contender from the very beginning. Psychological tendencies like the mere-exposure effect, combined with the practical need to mitigate risk, make brand recognition a powerful tool in the decision-making process.

Brands that consistently present themselves to the right audience, offer proof of their capabilities, and build trust through familiarity are far more likely to secure a place on the shortlist and ultimately win the deal.

By focusing on visibility, building familiarity, and consistently showcasing value, B2B companies can position themselves as the reliable choice that decision-makers are confident in considering.