A deeper understanding of branding’s role is necessary if B2B companies want to build value and drive growth.
Many business leaders still think of branding as consumer-facing and underestimate the power and value of B2B branding.
A McKinsey & Company study revealed that strong B2B brands increasingly outperform weak ones by as much as 20%. The same study found that brand plays an important role in business buyers’ purchase decisions.
Whilst price, product and/or service are still the most highly ranked factors when engaging a supplier, decision-makers still consider the brand to be a primary rather than a marginal consideration when evaluating a supplier’s proposition.
In our experience, B2B companies tend to shy away from branding for two reasons. The first is the misconception that branding has no serious purpose or value for B2B companies. The second is more complicated and relates to varied audiences and often complex buying cycles. However, effective B2B brand strategies can help brands stand out from the competition, which can significantly enhance a brand’s impact and drive growth and value.
B2B branding has a unique set of challenges
Purchases are primarily driven by logic and reason, with multiple stakeholders, each with their own agenda. Decisions are made based on facts, statistics and numbers. They are highly value-driven, controlled by budgets, consultative relationships and long-term investments.
Marty Neumeier created a useful diagram that explains the critical differences between types of companies in branding—from the most visible (B2Cs selling products) to the most elusive (B2Bs selling services).
Visible branding:
- brand collateral
- advertising
- websites and apps
- point-of-sale
- photography
Invisible branding:
- CEO vision
- employee value proposition
- customer relationships
- pricing strategy
- public relations
Trust plays a significant role
Ultimately, the degree to which a customer trusts a company or its staff determines whether they engage with the company or a competitor. B2B brands must win the hearts and minds of their employees and customers. Think of B2B branding as a ‘promise delivered’ both internally and externally. An authentic inside-out brand is built on a shared vision and brought to life with your organisation’s greatest asset—its people.
The importance of brand purpose
Brands need a purpose to survive. Purpose-driven brands bring clarity and help organisations drive actionable growth. A brand purpose provides a compass for all stakeholders, helping them move in the same direction and work together to turn the vision into action.
A strong and well-articulated brand purpose energises and inspires your employees. It resonates with them on a deeper level, something they can grasp intuitively and bring to life without the need for guidelines and explanations. Empowering your staff this way turns them into your greatest brand ambassadors and helps them deliver on your brand promise.
Brand leadership plays a critical role as the visionary behind a B2B brand. Brand leaders must define and embody the brand and provide direction and motivation to employees. Visionary leaders are aspirational; they stretch their imagination and look to the future.
Employee engagement is fundamental to creating a successful B2B brand. Your brand is the sum total of everything your employees do and say; they walk and talk it, nurturing strong customer relationships and creating unforgettable customer experiences. Rather than seeing employees as audiences, treat them as participants in your brand from the very beginning. Help them understand and believe in your purpose beyond profit.
B2B companies have been slow to appreciate the untapped value of branding. As more evidence shows that B2B branding works, the window to use it as a competitive advantage may be closing. The sooner your business takes advantage, the better.
