In B2B, the positioning of a company or brand has become increasingly important in the sales process in recent years. Buyers primarily research online, meaning companies have already survived a selection round before the first meeting is scheduled. A strong brand with clear positioning is therefore essential nowadays, but what makes a strong brand? Many companies claim they know exactly what the market demands, but recent research shows they are far off! We discuss the 8 points that determine how a B2B buyer evaluates your positioning and brand.
The sales or management of many B2B companies are often proud of their market knowledge and experience, claiming to know the market ‘inside out’. But when McKinsey consultants compare the messages of 90 leading B2B companies with what 700 buyers say makes a brand strong, a very different picture emerges. The researchers state:
“a marked apparent divergence between the core messages companies communicate about their brands and the characteristics their customers value most.”
Companies emphasize things like; we are a role model for CSR, we promote sustainability, we are an international player, and we drive innovation. All very general themes with a high degree of ‘socially desirable behavior’. This is underlined by the research, as all these themes are part of the ‘core’ for at least 70% of the companies studied. Remarkably, only 1 theme from the top 5 themes matches for both groups – and then only for ⅓! So what points do B2B buyers actually find important?
17% – Values honest and open dialogue with customers and society
16% – Acts responsibly across the entire supply chain
15% – Has a high level of specialized expertise (mentioned by both)
11% – Fits well with my own values and beliefs
10% – Is a leader in its specific field
8% – Offers a broad product range
7% – Is a driver of innovation
Where 20% of companies still identify with the statement ‘maintains low prices’, this is the only topic that buyers even rate negatively (-4%).
This research shows how important it is for companies to use a distinctive message in communication with their customers. But this is only one of the requirements; it’s not just about what you say, but also how you say it. Some tips:
1. Develop a positioning unique to your company (How?)
2. Ask your organization what customers truly think of and value about you
3. Be consistent and clear in all communication
4. Be more honest, clearer, or more concrete than your competition; create a distinctive story that no one else tells or can tell
Read the full McKinsey article here.