Today we're going to delve into a topic that's essential to the success of any B2B marketer - understanding organizational buying behavior. If you're looking to sell your product or service to other businesses, then you need to know what makes them tick. After all, you can't just approach a company and hope they'll buy from you. You need to know what motivates them, what their decision-making process looks like, and what factors influence their buying behavior. So let's get started!
First off, let's define what we mean by "organizational buying behavior." Simply put, this refers to the process that businesses go through when making purchasing decisions. Unlike individual consumers, businesses have complex decision-making processes that involve multiple stakeholders, complex buying criteria, and a significant investment of time and resources.
So what are the key factors that influence organizational buying behavior? Let's take a look.
Need Recognition
The first stage of the buying process is need recognition. This is when a business realizes that it has a problem that needs to be solved, and that the solution may involve purchasing a product or service. For example, if a company is experiencing a high rate of employee turnover, they may recognize the need to invest in better employee engagement programs.
Information Search
Once the need has been recognized, the next stage is information search. This involves gathering information about potential solutions to the problem. Businesses will typically use a variety of sources to gather information, including online research, trade shows, word-of-mouth recommendations, and supplier websites.
Evaluation of Alternatives
After gathering information, businesses will then evaluate the various alternatives available to them. This involves comparing the features and benefits of different products or services, as well as assessing the reputation and credibility of potential suppliers.
Purchase Decision
Once the evaluation process is complete, the next stage is the purchase decision. This involves selecting a supplier and negotiating the terms of the purchase. It's worth noting that the purchase decision may involve multiple stakeholders within the business, and that the final decision may be influenced by a variety of factors, such as price, quality, and service levels.
Post-Purchase Evaluation
Finally, after the purchase has been made, businesses will evaluate their decision and assess the effectiveness of the product or service. This can influence future purchasing decisions, as well as the reputation of the supplier.
So now that we understand the basics of organizational buying behavior, let's take a closer look at some of the factors that influence this process.
Organizational Culture
Every business has its own unique culture and values, which can influence its buying behavior. For example, a company that values innovation and creativity may be more willing to take risks when purchasing new products or services, while a more conservative company may be more cautious.
Buying Roles
As we mentioned earlier, the purchase decision may involve multiple stakeholders within the business. Each of these stakeholders will have their own roles and responsibilities when it comes to the buying process. For example, the finance department may be responsible for assessing the financial viability of a purchase, while the IT department may be responsible for evaluating the technical aspects of a product.
Decision-Making Criteria
Businesses will typically use a set of criteria to evaluate potential suppliers and products. These criteria may include factors such as price, quality, reliability, and customer service. Understanding the decision-making criteria of your target audience can help you tailor your marketing message to better resonate with their needs.
Relationship Building
Finally, building strong relationships with your target audience can have a significant impact on their buying behavior. Businesses are more likely to purchase from suppliers that they trust and have a good relationship with. This is why it's important to invest in relationship building activities such as networking events, personalized communications, and providing excellent customer service.
One example of a company that has excelled at relationship building is Salesforce. They have a strong reputation for providing exceptional customer service and building long-term relationships with their clients. They offer a range of services and support options to help businesses get the most out of their products, and their customer success platform is designed to help businesses achieve their goals.
Another example of a company that has focused on relationship building is HubSpot. They offer a range of marketing, sales, and customer service software products that are designed to help businesses grow. They have a strong reputation for providing excellent customer support and building long-term relationships with their clients.
In addition to building strong relationships, it's also important to understand the specific needs and pain points of your target audience. This requires a deep understanding of the industry and the challenges that businesses in that industry are facing. For example, if you're selling software to the healthcare industry, you need to understand the specific regulatory requirements and security concerns that are unique to that industry.
One example of a company that has excelled at understanding the needs of their target audience is Epic Systems. They provide software solutions for the healthcare industry and have a deep understanding of the unique challenges and requirements of this industry. They have invested heavily in research and development to ensure that their products meet the specific needs of healthcare providers.
Finally, it's worth noting that organizational buying behavior can vary significantly depending on the industry and the specific needs of the business. For example, the buying process for a manufacturing company may be very different from the buying process for a healthcare provider. This is why it's important to conduct thorough research into the buying behavior of your target audience before developing your marketing strategy.
In conclusion, understanding organizational buying behavior is essential for B2B marketers. By understanding the key factors that influence this process, such as organizational culture, buying roles, decision-making criteria, and relationship building, you can develop a marketing strategy that resonates with your target audience and drives sales. Remember to invest in relationship building, understand the unique needs of your target audience, and conduct thorough research before developing your marketing strategy. Good luck!