Why B2B companies can’t afford not to build their brand in 2023
As we return to our desks to the smoke of the 2023 starting pistol, we reflect on the biggest myth of 2022: that brand building is not important for B2B brands.
The Ehrenberg-Bass Institute for Marketing Science released a cracking stat in 2022.
“Only 5% of B2B buyers are in market, right now”.
As a business leader, this intuitively feels like a no brainer, but not something we’ve been able to put a firm number on.
Well, now we have one.
As a B2B company – what does this mean for attracting customers?
Think of it in two game plays:
a) Chase the 5% (alongside every other competitor in your marketplace). Heck if you’ve got the coin, by all means keep your eye on that prize (but also be prepared for an expensive race to the bottom).
Or;
b) Prime the remaining 95% (consistently, 365 days a year) so that when the time is right, your brand comes to mind (for all the right reasons, of course).
So, what do you do?
Here's the thing. The performance marketing battlefield (i.e. search, ads etc) is mostly won based on budget size (in terms of media spend but also manpower to execute on that spend).
Even though option b (priming the purse strings when they’re not reaching for the zip), isn’t simple or even cheaper than option a, the dividends over time are likely to compound beyond one quick sale or promo entry.
That’s not to say you shouldn’t try and capture some of the 5%, it’s simply reaffirming the criticality of both plays in tandem to win longer term.
When digital environments enabled us to measure marketing performance, many brands moved away from long-term, slow burn, brand building tactics in lust of the short-term hit that they got from the daily performance slot.
Instinctively most marketers knew (but couldn't prove) that not everything that counts, can be counted (and everything that can be counted, doesn't always count).
Now with the talk of econometrics (that is, a longer term view of media effectiveness) replacing traditional attribution models in future (Meta and Google), the tides are turning. What was once deemed an effective marketing tactic, may soon come into question, with the balance being restored in favour of brands that combine the long ('brand building') and the short ('sales activation').
The crux of this story (and evidence) is that brand building is basic business hygiene, particularly if you're forecasting growth (and yep, even B2B brands).
With brands currently at the mercy of macro factors impacting everyday life and looking down the barrel of an imminent recession, moving 'brand building' to tomorrow's agenda, is too late.
So if you’re contemplating where to take your brand in 2023, and by that we don’t mean whether you should transition your logo from forest green to duck egg blue, you’ve got a few options:
Do nothing.
Change the visual representation of your brand. Hint: this will not change the trajectory or equity of your brand – but seems to be the default response by many an ‘expert’ *coughs* BS *coughs*.
Build your brand strategy. Bolster it with research. Uncover your brand's mojo and message. Make a plan and execute (using the right formula). More than a coffee table book or 50-page document (done by a big-4 consultant) that nobody in your organisation understands or can act upon (oomph… hindsight hurts).
When you build memory structures around your brand in context of a category need or differentiated value proposition, you have a much greater chance of claiming the top spot in the minds of your target (which is no mean feat when you understand that adults make roughly 37,000 decisions in a day... eh eh X-brand, who?).
Your brand doesn't have to be the best. The cheapest. Or even the smartest. But, to win, it has to be known; and to satisfy a particular need; and be easy to buy from, BETTER than the alternatives in front of your target customer (right now).
And while you might think it’s all fluff and feelings (and easy to do - trust us, it's not...), Kantar continues to prove how brand building 'can help drive market share, command a price premium and set businesses up for future growth'.
Worth it don’t you think?
If you're wondering what it takes to brand your business for growth, take a look at our white paper here.
Or, if you don’t have the manpower (or internal skillset) to define, prioritise and execute a winning plan for your brand, and would like to lean on the experience of our Brand Campaigners who’ve built infamous brands like Virgin, Compare the Market and Michael Hill Jeweller International; as well as local powerhouses experiencing growth and claiming their seat at the table (newsflash: this is our kryptonite!), then get in touch.
We’ll take your business from bland to brand.
About the Author:
Mandy Hall has built some of Australia’s most infamous brands, SMEs and startups, to propel business growth, enhance customer experiences and build long-term brand affinity. Having started her career at Virgin Blue (now Virgin Australia) and finishing her corporate employment as Head of Brand at Compare the Market (responsible for two talking meerkats considered as loveable as the infamous m&m characters in just 4 years of existence), Mandy knows a thing or two about how to use your brand to rally hearts, minds and wallets.