Consumer companies have traditionally and understandably put a bigger emphasis than B2B ones on the strategic value of communications, as they see a more obvious link between brand recognition and success in the marketplace. As a result, these companies have invested more in brand, marketing and communications; they have developed stronger processes to understand the value of communications and connect it to business results, and they have consequently given more relevance to communications departments.
But the landscape of B2B is changing, and the strategic importance of communications is becoming much more evident than before. Here are three reasons why this trend is becoming stronger and why companies who don’t act may lose relevance in the future:
- The impact of communications on the top line
From a purely commercial angle, purchase decisions on the B2B environment are not completely opposed to the B2C one. Processes are different, but the notion of professional buyers not caring about the brand, image and reputation of the company they buy from is not a universal truth. Recent studies that link brand and purchase behaviours among B2B companies show interesting conclusions.
When surveying existing customers, there is a very high correlation between Purchase Decisions and Brand Recommendation/Loyalty. The role of communications in here is less influential though, as those purchase decisions are also driven by previous experience. On the other side of the spectrum, when surveying people who have never bought a given brand, mere Brand Awareness does not strongly correlate to Purchase Decisions and it doesn’t statistically show an impact on business results.
But among this second group of people who have never bought a given brand, when a proper communications strategy manages to move behaviours from Awareness to Consideration, there is a correlation to Purchase Decisions and ultimately to the top line: the analysis reveals that companies who improve the score in Brand Consideration statistically generate additional revenue. This is proof that investing in the brand and positioning it properly in the market translates into top line growth.
- The growing influence of stakeholders
The notion of stakeholders is gaining importance everywhere. In this space, and contrary to the case of commercial audiences, the B2B world has been equal, if not better, than B2C. In this globalised and highly competitive economy, success does not exclusively depend on the customers’ perceptions of your brand. Success in the marketplace requires the consent of regulators, the attraction and retention of the best talent, an appealing value proposition for investors, etc… A strong brand has a positive influence beyond sales and into other KPIs such as stock price performance, employee morale, retention rates and others.
While the relevance of customers is front and center for most business people, the notion of those other audiences and the sensitivity around them is less common. A strong brand is an asset with audiences other than customers, and that is increasingly true for B2B and B2C. Communications functions are usually strong at understanding this, and can bring a different point of view to the decision-making process, one that helps improving its perception as a strategic value-adding capability.
- Brand and reputation
The third point is the increasing relevance, both in B2B and B2C, of brand AND reputation. These two concepts are not the same, but they both need attention and they need to walk hand in hand.
Brand is a customer-centric concept that focuses on the promise of a product, a service or a company. Reputation is a company-centric concept that focuses on credibility and respect among a broader set of stakeholders. The scrutiny of the public opinion is bigger than ever, and reputational threats are both more numerous and more exposed to a potentially higher visibility.
This reputation aspect, and its differentiation from branding, is another strong trend in B2B (as well as B2C), and another reason why a communications function can and must play a very strategic role in its company.
These three aspects:
- the link between a strong Brand Positioning and business results;
- the influence of non-commercial stakeholders in those results;
- and the importance of reputation to those different stakeholders
are important factors to bear in mind when understanding the current B2B landscape. A strong communications function can address these matters in a way that brings value to the Board and the decision-making bodies of any given company. Failing to secure this strategic seat at the table and falling down to a more tactical role may be convenient, but not critical, and communications professionals must aspire to be something more than “nice to have”.
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