Why 78% of Buyers Choose Familiar Brands: TrustRadius (and Yours Truly) Reveals All

Newsletter Introduction

Welcome to the newest edition of the Marketing with a Bit of Funk newsletter! Before we start, I appreciate you reading this, sending messages to support me, and sharing it. Please continue.

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Have you listened to FUNKY MARKETING podcast?

I have a brand new episode with Eric Melchor where we discussed strategies for influencer marketing, podcast monetization, measuring advertising effectiveness, and building an engaged community of podcasters. here are a few tips for you from the episode.

Key Actionable Tips:

• Leverage podcast guests to share your content with their audiences for additional reach.
• Craft targeted ads based on real customer reviews and region/use cases for maximum relevance.
• Track specific metrics like landing page views and direct/indirect traffic increases to measure campaign success.
• Provide easy-to-use assets for guests and clear guidelines on promoting your brand authentically.
• Build a community of podcasters for collaboration, support and introducing brands to new opportunities beyond ads.
• Authentically engage your target audience through fun, conversational hosting to develop loyal listeners.
• Pair with international guests to reach new markets and leverage multiple profiles/platforms for content distribution.
• Continuously promote your podcast and keep content fresh as discovery strategies like YouTube evolve.

Now you should be motivated to listen or watch the full episode and subscribe. Find it on Apple Podcasts or Spotify, or on Youtube by clicking the link below, if that's how you prefer to consume podcasts.

In case you listened (or watched it), let me know which episode is your favorite and write me a review: https://podcasts.apple.com/us/podcast/funky-marketing-bold-strategies-for-b2b-growth-and-revenue/id1501543408?uo=4

And if you need help with your B2B marketing, check out the Funky Marketing Pricing page: https://www.funkymarketing.net/pricing/

And now, off to today's topic! Sorry to keep you waiting.

Introduction

The decision-making process in B2B sales has evolved significantly. This newsletter edition is based on new research by TrustRadius (FIND IT HERE), exploring key insights from various experts, data-driven research, and actionable strategies to help you stay ahead of the competition.

They didn't pay me to write this (I wouldn't mind), but they created a great piece of content that I'm glad to promote for free.

Understanding the intricacies of buyer behavior, the importance of brand awareness, and effective marketing strategies is crucial for any company aiming to succeed in today's competitive landscape.

I went through the research, and I'm combining the results with what my knowledge and experience working with B2B companies taught me to help you improve your business results.

The Importance of Being Top of Mind

Vendors with market mindshare are securing their spot at the top of a buyer’s shortlist. The decision-making process has evolved, and B2B buyers typically create a shortlist and often select their first choice, researching to justify their decision to a larger buying group.

To make it to the shortlist from the start, your product must be top of mind before the buyer even begins the research process.

The Shortlist Breakdown:

• 63% of shortlists include two to three products; 96% include five or fewer.
• 66% of buyers lean toward established, leading products, far outranking niche (19%) or new (11%) products.
• 78% of buyers choose products they had heard of before starting their research. This number jumps to 86% for enterprise buyers.

Once a Shortlist is Created

Key Statistics:

• 71% of buyers go with their first choice.
• Only 12% choose a different option.
• 78% start their research with Google.

This highlights why brand-led growth companies with strong recognition and robust SEO are outperforming competitors in the B2B landscape. Ensuring your brand is top of mind can make all the difference in securing a place on that critical shortlist.

And this is what I've been saying all along. ?? I hope that you've been listening.

Elena Zapolyanskaya , the founder of PARTNER2B , confirmed that she sees the importance of content marketing to create trust.

Especially for products with high checks - trust means a lot. Speaking of shortlists, it's possible to get your brand on this list but at a very early stage—either through your partners, or your network. ~ Elena Zapolyanskaya

Interdepartmental Influence and Decision-Making

Investing in your brand means investing in interdepartmental influence within a buyer’s organization. For marketers aiming to multi-thread deals in today’s market, it’s essential to consider groups of two to five people.

But make sure to remember this: Influential individuals within a company who impact buying decisions may not be part of the designated buying group.

Check This Out:

• 52% of decision-makers hold VP titles or above, indicating a shift towards more experienced buyers.
• One-person buying groups have increased by 3%, while two-to-three-person groups have decreased by the same rate.
• For enterprise purchases, teams are generally larger but are downsizing from groups of more than 20.

With more senior decision-makers at the helm, it’s crucial to understand the dynamics of buying groups and tailor your marketing strategies accordingly. By strengthening your brand, you can influence key stakeholders across departments, ensuring your product remains top-of-mind throughout the buying process.

Ryan Paul Gibson chipped in here:

52% of decision-makers hold VP titles or above, indicating a shift towards more experienced buyers. ~ Ryan Paul Gibson

He said that you should take this one with a grain of salt.

In my experience, after investigating hundreds of B2B buying journeys (and working in-house), most execs just give their stamp of approval on the final choice. They often aren't the ones discovering and evaluating options, unless it's a small business or small team. I say that because MANY B2B teams have a habit of wanting to sell and market to the C-suite. In reality, they should be focused on the people who own the problems they are helping to solve. ~ Ryan Paul Gibson

Bojan Teshin adds that even if the person you talk to isn't a CXO or a VP, if the problem has a significant impact on the business and you fix it, they will track down the appropriate person quickly. Bonus points if you can make them look good in the process.

The key finding here is that when you know your stuff (vendor, tool, product, agency..) you take it with you as you change jobs and companies. ~ Nemanja Zivkovic

The Disconnect in Marketing Spend

Vendors reportedly spend less of their discretionary marketing spend on brand awareness (38%) than on demand generation (53%), yet buyers are short-listing products they’re aware of before they begin the research process.

Why the disconnect?

• Economic headwinds
• Budget cuts
• Layoffs
• Market unease

All of them have led brands to focus on bottom-of-funnel campaigns. Justifying brand awareness spend is tough when revenue goals aren’t met.?

However, insights from the research by TrustRadius and Pavilion reveal a shift among enterprise marketers.

We will double down on awareness as our lack of visibility is costing us with lost deals.” ~ Director in Marketing Leadership, 10,001+ employee company.

Damn, I didn't expect to see this! Did you?

I'm surely happy to see it!

Vendors who focus on demand generation, aka performance, believe they have an established brand presence or seek immediate gains. To translate it: they think transactionally!

Conversely, those investing in brand awareness do so as part of a strategic approach, whether:

• expanding into new markets
• rebranding
• or pursuing long-term growth.

We are already an established brand. Since we are facing a downturn in our leading market, we will be focusing on creating demand.” — Individual Contributor in Product Marketing, 10,001+ employee company.

With buyers consolidating their tech stack, avoiding new products, or seeking the confidence of proven brands, vendors must balance short-term and long-term growth strategies.

Check out the chart below to see how buying group sizes vary by company size.

p.s. dark blue is brand awareness, and light blue is demand generation

Peer Influence in B2B Decisions

Understanding who B2B buyers are talking to and who influences their decisions is crucial. These interactions often overlap. Buyers are having multiple conversations with various groups to make informed decisions.

It’s not just about what is said about your brand, but who says it.

Insights:

• 50% of buyers (62% enterprise) are seeking out former colleagues or known peers to discuss options.
• 35% talk to coworkers (32% enterprise).
• 27% use vendor-provided references (46% enterprise) as their top three choices.

Peers hold significant sway, especially in the enterprise space.?

62% of enterprise buyers are influenced by their peers! Leveraging customer advocacy and peer testimonials is crucial. Building a network of satisfied customers who can vouch for your product is more impactful than any marketing campaign.

Conversations with coworkers rank highly in terms of helpfulness.?

90% of buyers found these discussions helpful. The need for internal champions within organizations who can advocate for your product is essential!?Ensure that your product is easy to understand and communicate internally to amplify the reach within an organization.

Vendor-provided references also play a crucial role, especially for enterprise buyers (46%).?

Providing comprehensive and transparent references, case studies, and testimonials is vital. They must address common pain points and demonstrate clear, measurable outcomes.

Buyers rated conversations with coworkers highest in helpfulness!

• 90% of buyers found conversations with coworkers helpful
• 89% rated peer conversations similarly

Generally speaking, peers are mentors, connections on social, networking communities (both online and in-person), and associations. I’d say fellow marketers we know and trust. This is very much connected to the rise of subject matter experts from companies who can also tell the company's story the right way. Peers will always recommend those people. It's interconnected with the way we buy - communities, social media, and having trustful people on speed dial.        

• 83% rated vendor references and community forums as helpful
• 81% rated online searches as helpful

Ok, that's all clear. But what are buyers actually looking to get from those conversations? Here are the top 3 things buyers seek from conversations.

1. Confirmation: the confidence to move forward (68%).
2. Transparency: answers to specific questions about their use case (54%).
3. Validation: validating their research findings (51%).

Buyers often have a product in mind as their top choice but seek additional proof before making a purchase. They're looking for affirmation that their decision is the right one, detailed insights about the product’s capabilities, and validation of the information they’ve gathered.        

Actionable insights for you:

? Encourage Peer Discussions: Facilitate spaces where potential buyers can connect with existing customers (online communities, webinars, industry events..)

? Empower Internal Champions: Provide resources and training to help current users within companies become advocates for your product

? Transparent Case Studies: Develop in-depth case studies and testimonials to address specific use cases and showcase tangible results

? Engage on Multiple Platforms: Ensure your brand is active in communities, on social media, and through search-optimized content to catch buyers at various touchpoints.

Remember, in the B2B space, relationships and trusted voices are key to influencing decisions.

My buddy Eric Melchor said something I hear from a lot of companies.

Such a disconnect here between what we think moves the needle (like being ranked high in SEO) versus what matters. ~ Eric Melchor

I want you to remember: people go to Google once they have a short list, to discover more and compare. But still, they go to Google to get educated, too, so Google matters, just in a different way.

The Role of Transparent Pricing and ROI Calculations

New research by TrustRadius highlighted areas where vendors can truly make a difference.

Buyers are Clamoring For:

• Transparent Pricing: 51% wish all vendors had clear pricing.
• Easier ROI Calculations: 47% want simpler ROI calculations to secure budget approval.
• Less Premature Contact: 44% of consumers find it annoying when vendors get in touch with them too soon.
• Peer Experiences: 42% desire easy access to peer reviews.
• Guidance on Criteria: 36% seek help with unfamiliar criteria or requirements.

For enterprise purchases, simplifying ROI calculations surged by 16%, becoming one of the top two desires! This underscores the critical need for vendors to provide clear, accessible information on how their products deliver value.

Peer reviews are essential in validating a buyer’s shortlist early in the decision-making process. You know that by now, right? But if enterprise buyers are not confident that new or niche products will solve their particular use case or provide a positive ROI, they may default back to brands with proven ROI.?

This means that emerging or lesser-known brands need to work harder to build trust.

Pay attention!?If you’re not an established, leading brand, you can still cut through the noise by supporting your marketing claims with tangible examples of ROI supported by customer proof points.?

Note: customer proof points should come from your ideal customer.?

People care about who is saying it just as much as what they say about your business. Showing real-world results from similar businesses can be the key to gaining trust and closing sales.

Surprised? I guess you aren't really.

Jonathan Francis added his experience here.

We often see leads ending up in the sales pipeline simply because they couldn't find the information they needed, so they filled out a form, hoping to get answers from the sales team. For example, if you're getting a lot of inbound leads just asking for pricing, they're not qualified leads. ~ Jonathan Francis

Jonathan elaborates further that, typically, the marketing team can address this by creating clearer messaging around pricing. However, since most teams are programmed to generate leads, they prefer to have prospects fill out their information and then pass it on to sales.

TrustRadius data is in line with the trends they see from HockeyStack , which confirms that prospects go through at least 18 website touchpoints before becoming a lead.

It raises questions:

• What additional information are they searching for on the website?
• How do we enable them to find information quickly?
• How do we re-engage them to come back for more?

This approach is very different from thinking an ad is good enough to send people to a landing page, collect their information, and let the sales team handle the rest.

Winning and Losing Deals

Time to break some hearts! Why B2B deals are lost (or won)? What do you think?

HINT: It's not because of your Demo!

Vendors believe deals are lost due to a buyer’s budget and won because of compelling demos. However, buyers rank demos lowest as the final reason for choosing a product.

Most vendors will say this (and they really believe it):

1. Deals are lost mostly because of a buyer’s budget (59%).
2. Deals are won mostly because their demo is compelling (64%).

But you know what? Let's dig deeper and find the disconnect. As for the reasons deals are won, this is a clear mismatch with what buyers are saying. Buyers rank demos lowest as the final reason for choosing a product, while vendors think buyers rank the highest.

Sure, having a demo is very important to buyers during the research phase, but it’s clearly not the deciding factor. Your freaking Demo is not a deciding factor for buying!

In reality, the number one reason buyers select a product is because it “met our needs for the best price” (66%; 58% for enterprise).        

What the hell is there for me? Remember that question? People are very practical. Take a look at this:

Reasons Buyers Selected the Product They Ultimately Purchased:

• It met our needs for the best price: 66% (58% for enterprise purchase prices).
• It was the safest, most trusted option: 39% (51% for enterprise purchase prices).
• We already had a relationship with the vendor: 29% (39% for enterprise purchase prices).
• The existing customers gave us confidence: 16% (18% for enterprise purchase prices).
• The demo blew us away: 13% (14% for enterprise purchase prices).

And people these days say that relationships don't matter! ??

Though buyers were not asked why they did not make a purchase, we can deduce from the reasons they did that what vendors think sways buyers and what actually sways them is not lining up.

There also needs to be some thought put into why deals are stalling out. Is the ability to gain collective confidence at a standstill? Is there a fear of making a mistake in the choice or a fear of missing out?

Based on the high stakes of a risk-averse, fast-paced economy, it’s likely a bit of “all of the above."

Let's bridge this gap and align our strategies better with buyer expectations. Feel free to pretend that you knew all this in public, but save this post and start adjusting your strategy accordingly outside of public eyes.

Elena Zapolyanskaya added her experience.

Transparency is often a challenge in both direct and indirect sales. I’ve seen it several times while building partnerships: potential partners refused to proceed because a vendor wasn’t clear on pricing. ~ Elena Zapolyanskaya

She’s right, it is always a challenge, keeping in mind that most companies look at the sales process as transactional, and don't think about the trust element as crucial in B2B sales.

Rhonda Glynn thinks many brands are missing the whole reason why they're in business—to satisfy the customer better than the competition. So now there's a 100m dash to the bottom. And the numbers don't care about their feelings.

GTM Primary Challenges

Buyers create a shortlist and usually go with their first choice. So having your product at the top of your mind before the research process begins is imperative to have the best chance at being chosen.

When you spend less on brand awareness than demand generation, it’s no surprise that on top of your GTM challenges are sales and marketing effectiveness (24%)!

Though demand generation is still integral, sales and marketing should shift their attention to increasing brand awareness, which ties into the second biggest challenge—compelling positioning and messaging (16%)        

This is also marketing, in case you didn't know. If your grasp of what the target market is looking for is not spot on, your target market will move to the next option.

The compelling positioning and messaging may challenge teams because they're not speaking to the brand, but the product.

And make sure you differentiate. I'm not always a fan of being different just visually but..

What the hell is up with all these challenger brands using blue colours in their brand visuals and on their websites? You know that all your efforts and all the buyers you engage with will go and buy from the bigger brands because they won't remember you (as they are blue, too)? You know that, right? RIGHT? ~ Nemanja Zivkovic

I'm here to help you keep it funky.

Key Takeaways and Final Thoughts

In the B2B space, relationships, and trusted voices are key to influencing decisions. Ensuring your product is easy to understand and communicate internally, providing comprehensive and transparent references, and leveraging customer advocacy are crucial strategies to stay ahead.

Key Takeaways:

• If you're not a leading brand, stand out by backing your marketing claims with solid ROI examples from ideal customers.
• People trust the messenger as much as the message itself.
• Make sure your success stories are relatable and relevant to your target audience.

Customer experience is the biggest differentiator in tech. Share your thoughts, repost this to spread the word, and keep it funky. ??

Damn, if you don't see value in this newsletter, don't share it. But if you do, and you don't share, I'm gonna find you. Trust me. ;)