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Achim’s Razor

Positioning, Messaging, and Branding for B2B tech companies. Keep it simple. Keep it real.

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Strategy

The Enduring Power of Brand in Ever-Changing B2B Tech

Discover why brand building grows B2B tech companies amid changing trends. Learn from Apple’s success and understand how to create a lasting brand reputation.
June 14, 2024
|
5 min read

TL;DR

The most valuable asset in B2B tech isn’t tech; it’s brand. Yes, AI is transforming the industry, but technology alone isn’t enough. And while product-led and sales-led strategies are important for short-term wins, they are not scaleable or sustainable on their own. B2B companies should invest more in building a brand reputation that connects with future buyers on a human level.

Key Takeaways

  • Brand trumps trends: Don’t chase tech fads like AI; build a strong brand that endures.
  • Brand = trust & reputation: Strong brands attract better customers, talent, and allow for premium pricing.
  • Long-term vs short-term: Brand building takes time but offers lasting benefits compared to quick wins of product-led and sales-led strategies.

The turmoil in the SaaS industry, highlighted in VentureBeat’s What’s Eating B2B SaaS, reminds us that flashy features and the latest tech trends, even AI, aren’t enough for long-term success.

What sets B2B tech solutions apart is brand. Yet many B2B tech companies invest next to nothing in brand building, focusing instead on short-term product-led and sales-led strategies with little regard for customer insight.

And we wonder why products keep failing.

AI is hot right now. So are Product-Led and Sales-Led Growth. But while these strategies and technologies keep changing, it’s our brand reputation that decides if our company sinks or swims. It’s about connecting with customers, building a reputation, and earning trust. Unlike techy trends, a strong brand lasts, providing a solid base even when things get tough.

Tech Moves Fast, Brands Stay Strong

Technology is always in constant flux. Today’s focus is on AI, but remember when the Cloud or Blockchain were all the rage? While AI holds promise, we must remember that technologies continuously change, but strong brands endure.

Some see AI as revolutionary, while others, like venture capitalist Deedy Das, caution against overstating its current capabilities.

“I think too many people trivialize all the things a good SWE actually has to do. AI might increase productivity, automate a bunch of tasks, but assisting [to the point of full automation] is a huge leap of faith.”

Deedy Das, Menlo Ventures

Even as we embrace AI, it’s important to remain realistic and avoid getting caught up in the hype. While the general software industry faces challenges, companies integrating AI are already seeing success. But they’re using AI as a tool, not a crutch.

However, building a strong brand is even more important for long-term success.

Brand-Led Growth: Reputation Remains Constant

Brands like Apple, which revitalized its business with its Think Different brand campaign, demonstrate the power of brand-led transformation. B2B tech companies can learn from this. Strong brands attract talent, command premium prices, and foster customer loyalty.

Facing bankruptcy in the late 1990s, Think Different was a brand-led change, driven by values and innovation, fueled internal growth and groundbreaking new products.

Think about this: Without the innovation of iTunes to combat Napster, which had nothing to do with Macs and OSX, there may never have been an iPod and subsequently an iPhone.

Think Different wasn’t a fancy marketing slogan—it was a call to action that resonated deeply inside and outside the company. It inspired the creation of innovative products that paved the way for unconventional product marketing, like 1000 Songs In Your Pocket, which ultimately led to the iPhone (Your Life In Your Pocket).

Apple's Think Different brand campaign spawned innovative products and marketing

What’s interesting is that Steve Jobs decided on “1000 songs in your pocket” some months before the name “iPod” was chosen from a list of 10 options.

Today, Apple stands as a symbol of striking the right balance between marketing and innovation.

B2B tech companies can similarly learn from Apple. Strong brand marketing sets innovation apart, attracts talent, justifies higher prices, and builds loyal customers.

Brands that resonate deeply are invaluable.

Side Note: The team that created the iPod ended up leaving Apple and starting their own company, Nest. Google bought Nest after only three years in market for over $3 Billion.

Do you think the Nest team learned a thing or two about balancing innovation and marketing from Apple?

Short-term Gains, Long-term Vision

In B2B tech, focusing solely on sales is understandable. Aggressive tactics and discounts bring quick revenue.

However, this approach has downsides:

  • Lack of differentiation: We struggle to stand out in a crowded market.
  • Price wars: Our profit margins may shrink.
  • Talent attraction: We may struggle to attract and retain top employees who want to work for a company with purpose.

Brand building, on the other hand, is about the long term, building trust, loyalty, and a strong reputation.

This takes time, but the benefits are worth it:

  • Customer attraction: We attract best-fit customers who share your values.
  • Customer advocacy: Our customers become our fans.
  • Premium pricing: We can charge more when customers trust and believe in us.

In B2B tech, trust and credibility are what get us on the shortlist. Building a brand is essential for long-term success. It sets us apart as a valued partner, not just another vendor. Investing in our brand reputation is investing in our company's future.

Final Thoughts

In the end, while B2B tech continues to evolve, the brands that endure are those that build a solid foundation and grow their reputation over time.

Questions to ponder:

  • Are we reacting to changes, or are we building a company that will last? 
  • Are we chasing fleeting trends, or are we investing in the one thing that truly sets us apart?

The choice is ours. Our brand reputation is the one constant we can rely on.

Think about your company’s brand. Are you investing in it for the long haul?

If you’re ready to prioritize brand building, here’s what you can do:

  • Define your positioning: Who is it for? What is it for? What makes you unique?
  • Craft a compelling brand story: What connects your brand to your customers?
  • Create consistent brand experiences: Everything, from your website to customer service, should reflect your brand.
  • Invest in brand marketing: Don't just rely on sales. Build brand awareness and loyalty.
  • Need help? Reach out for a free brand assessment.

Building a strong brand takes time and effort, but the rewards are worth it.

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe for ongoing insights and strategies (enter your email below).

Cheers!

PS: This article is also published and discussed on LinkedIn. Join the conversation!

Strategy

The Product-Led Growth Trap: Why B2B Tech Fails (and How to Fix It)

B2B tech product launches often fail due to prioritizing features over customer needs. Create a customer-centric product-led growth strategy that works.
June 7, 2024
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5 min read

TL;DR

B2B tech companies often prioritize sales and product features over understanding customer needs. This leads to failed product launches, copycat marketing, and missed opportunities. To succeed with product-led growth, companies need to be customer-obsessed and deliver frictionless value at every touchpoint instead of betting on the “PLG Field of Dreams.”

Key Takeaways

  • Don’t confuse product-led growth with just having a great product. Product-led growth requires a frictionless customer experience that delivers value at every touchpoint. It’s easier said than done!
  • Not every product is an ideal fit for a product-led strategy. It depends on the product, the market, the sales cycles, the pricing, etc. Do your homework.
  • Customer obsession is key regardless of the strategy. Understand your customers deeply, from their needs and pain points to their motivations and desired outcomes.
  • Focus on value, not features. Marketing and sales should communicate the unique value your product offers to solve customer problems, not just showcase features.

I remember listening to two sales calls recently: one from a vendor and one from a client, both SaaS solutions. Each rep started with pleasantries, then asked about the prospect’s biggest challenge. As soon as they got an answer, they jumped into a product demo. Feature after feature, they bored everyone.

Ironically, the vendor pitched their product to this same client, who then proceeded to slam the vendor’s approach, only to do the same thing themselves a few days later.

Why do we think demos solve everything?

When we love our products more than our customers, we fail.

David Meerman Scott quote about the danger of focusing on products

Product-led growth isn’t about pushing features, it’s about understanding and solving real problems with a seamless customer experience. We can’t solve problems we don’t understand.

We must put our customers first at every touchpoint, or product-led and sales-led strategies won’t work.

And while both strategies have their place—depending on the solution, pricing, client size, and sales cycle—neither will succeed without first starting with customer insights and maintaining a customer-centric focus.

Why Product-Led Growth Often Goes Wrong

Product-led growth (PLG) is a go-to-market strategy where the product itself drives customer acquisition and growth.

Lured by the success of Slack and Dropbox, many B2B tech companies chase PLG in the hopes of getting bought out for Bazillions. The idea seems simple: build an amazing product, let users experience its value, and watch them become paying customers.

But many companies misinterpret PLG as a cure-all. They focus only on building a great product and ignore the need for a smooth customer experience.

PLG Field of Dreams

Sales-led approaches often work better in enterprise organizations with longer sales cycles and complex solutions. Yet, both sales-led and product-led approaches fail if they don’t prioritize customer insights and keep sales and marketing customer-centric.

Haste Makes Waste

We often get caught up in our own innovation and forget to ask, “Who is this actually helping?” And when marketing is only responsible for part of the revenue, they face immense pressure from Sales and Leadership teams to generate leads, which can further distract from understanding and addressing customer needs.

Without Customer Insight PLG is Just PL

PLG companies must understand their customers deeply. Customers are at the center of everything: product, marketing, sales, and CX. Without customers, we’re just making products, not building a business.

Throughout his excellent book, Product-Led Growth, Wes Bush constantly advocates doing customer research.

Wes Bush quote about doing customer research

Many B2B tech companies gloss over this point.

Instead of communicating their differentiated value, they create free trials or freemium models without investing in the infrastructure needed to deliver a frictionless customer experience. They assume a great product will automatically lead to happy customers.

Slack Gets PLG Right

Slack is a SaaS product that focuses on solving real problems for teams by focusing on their unique value: better communication and collaboration tools. They conducted extensive research to understand their best-fit customers and designed a simple onboarding process for their intuitive app. They constantly get feedback to maintain continuous improvement. This customer-centric approach helped Slack grow organically and exponentially, with users becoming brand advocates and driving widespread adoption. Salesforce acquired Slack in 2021 for $28B. Did I mention Bazillions?

The Dangers of Short-Term Sales Pressures

The constant pressure to deliver leads in B2B tech often hurts companies. Marketing and sales teams get tunnel vision, focusing only on hitting their numbers. It isn’t scalable or sustainable. 

Pressure to Meet Quotas

  • Sales and leadership teams prioritize immediate results and closing deals over understanding customer needs.
  • Marketing teams focus on lead generation instead of building a strong brand reputation that helps Sales in the long run.
  • Companies ignore important steps like market research and defining a unique value proposition.

Overemphasis on Features and Demos

  • Sales teams push for product demos showcasing every feature, hoping to close deals faster.
  • Without foundational work, these demos fall flat because they don’t address the market, competitive alternatives, the vendor’s unique point of view, or specific needs and pain points.
‍Cisco’s failed acquisition of Flip Video
Cisco’s failed acquisition of Flip Video
Cisco, a B2B tech company, pushed the consumer-focused Flip Video without proper market research or brand strategy. The product failed and was discontinued.

Insular Thinking and Lack of Differentiation

  • Sales-driven companies focus on internal targets instead of external market trends and customer insights.
  • This results in copycat marketing and a lack of differentiation, as teams rush to match competitors’ features rather than understanding unique customer needs.

Oracle’s expensive foray into cloud services
Oracle’s expensive foray into cloud services
Oracle’s focus was on quickly migrating existing customers without fully understanding their cloud needs. This led to dissatisfaction and slow adoption, requiring the company to start over and prioritize customer research. 

The Bottom Line

Sales pressure often causes B2B tech companies to cut corners and neglect essential steps. This can lead to product failures, copycat marketing, and missed opportunities.

The Way Forward: A Customer-Obsessed Approach

To get PLG right, we need to do more than just build a great product. We need to obsess over our customers and deliver value at every touchpoint. 

“Value is always determined by prospects and customers. No matter how cool you think your technology is.”

Alan Hale, Consight Marketing Group

It’s harder than it sounds, but here’s how to get started:

  • Understand Their Needs: Conduct thorough customer research to uncover insights, pain points, motivations, and desired outcomes.
  • Design for Delight: Create an intuitive, user-friendly experience that guides users seamlessly through the entire experience from sign-up, to onboarding, to everboarding.
  • Remove Friction: Eliminate obstacles that hinder users from getting started or experiencing full value, especially after signup and during onboarding.
  • Listen and Learn: Take a page out of Slack’s playbook. Gather feedback continuously and use it to iterate and improve usability and customer experience.
  • Build a Community: Foster a sense of belonging among users. Encourage them to share experiences, offer support, and become advocates.

PLG is an effective strategy, particularly for SaaS products, but it’s not a magic bullet. To succeed, we need a balanced approach that combines customer obsession, exceptional product design, and a frictionless customer experience. 

Final Thoughts

In B2B tech, it’s easy to get caught up in our own hype. Tunnel vision only leads to missed opportunities, frustrated customers, and stunted growth.

Whether you follow a sales-led or product-led approach, stay focused on your customers. Keep developing great products, but create marketing that speaks your customer’s language and sales pitches that tell your unique story and differentiated value. 

Obsessing over our customers forces us to understand their needs, learn, and improve. That’s a good thing.

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe for ongoing insights and strategies (enter your email below).

Cheers!

PS: This article is also published and discussed on LinkedIn. Join the conversation!

Insight

Customer Research: The Foundation of B2B Tech Marketing Success

Marketing that misses the mark wastes time and money. Customer research is the essential building block for B2B tech success. Here’s how to do it right.
May 31, 2024
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5 min read

TL;DR

B2B tech marketing success isn’t achieved by guesswork and chasing shortcuts. It starts with a deep understanding of your customers (aka Insight). Real-world conversations and smart data analysis can help us escape common marketing traps and build a B2B tech brand that builds trust and drives long-term growth.

Key Takeaways

  • Customer research is the bedrock of B2B tech marketing success: Without a deep understanding of our customers, even the most brilliant campaigns will fall flat. We can’t solve problems we don’t understand.
  • Conversations trump assumptions: Don’t guess what your customers want; ask them directly. Regular, honest conversations are the most valuable source of insights.
  • Data is a tool, not a magic bullet: Use data to inform your decisions but don’t let it dictate your strategy. Focus on understanding the customer journey and use web analytics and predictive analytics to track patterns.

You’ve developed a B2B tech solution you’re proud of. But are the right customers finding it?

Who are the key decision-makers?

What are their motivations and priorities?

What influences their buying decisions?

Before redesigning your website or launching another campaign, consider this: Do you truly understand your customers?

Great marketing stems from deep customer insights. The most effective way to gain these insights is through meaningful conversations with our customers, the decision-makers behind complex purchases.

Why B2B Tech Companies Struggle with Marketing

If marketing feels like a hamster wheel, you’re not alone. Many B2B tech companies struggle because they don’t treat marketing as a core business function, and they don’t ask their customers what they need on a regular basis.

B2B tech marketing in 2024 | GIFDB.com
(gotta get more leads... gotta get more leads...)

Leading to more of this:

  • Siloed Thinking: We love our product and believe everyone else will too. But rushing into flashy product ads often leads to disappointment because they don’t resonate with buyers.
  • Unrealistic Expectations: We expect instant results, but B2B buying decisions are complex and take time. Impatience leads to frustration because it can take many months, if not years, before buyers are ready to buy again.
  • Hard Sell Tactics: Desperate for quick wins, we push product demos and free trials, often repelling potential customers and tarnishing our brand reputation.
  • Ignoring the Customer: In a rush to sell, we make assumptions instead of listening to real customer needs and insights. We end up talking to ourselves and loving our products more than our customers.
  • Focusing on the Wrong Data: We obsess over short-term lead generation metrics instead of building long-term brand awareness and trust.

In the long run, we end up chasing our tail instead of gaining insights that can point us in the right direction. 

A shift in mindset can be the difference between winning and losing.

Schedule Regular Dialogue With Customers

Instead of assuming what customers want, ask them directly. Regular, honest conversations reveal what’s really happening.

  • Uncover Hidden Problems: Regular dialogue and thoughtful questions can reveal deeper challenges we have yet to consider. These insights can help us improve our products and the way we market them.
  • Understand the Buying Journey: B2B buying isn’t linear and talking to customers at different stages helps us understand their motivations, concerns, criteria, and process.
  • Build Relationships: Every conversation is an opportunity to build and maintain trust and rapport. When customers feel heard, they become loyal advocates who provide real-world testimonials and case studies.

Believe it or not, your customers will tell you what to say, how to say it, and how to make your solution the obvious choice.

When and how often you reconnect with your customers depends on the size of your customer base and the size of your team. Once a quarter is ideal but aim for at least once each year.

When to schedule customer research.

Encourage Open Conversations

  • Drop the Sales Pitch: Focus on listening, not selling. This is about understanding, not quotas.
  • Schedule Interviews: Talk to existing customers one-on-one. Be prepared and use a guide, but be flexible and open to detours. Not every interview will be the same.
  • Ask Open-Ended Questions: Encourage detailed responses and avoid yes-or-no questions. For example, “What were your biggest challenges before using our product?” Not, “Do you like our product?”
  • Listen Actively: Pay close attention to verbal and nonverbal cues that could potentially unearth insights that you didn’t know or misunderstood. Ask follow-up questions to clarify responses and understanding. 

Need Help Getting Started?

You can use the process I have followed over the past 10+ years; it has worked very well for me.

Customer research process
TIP: Prepare ahead of time and don’t boil the ocean. Focus on the ONE thing you want to accomplish with your interview. Schedule follow-ups if you have more than one topic to cover.

You can also customize your own process by using the following resources:

Reliable Data Drives Reliable Results

I’m not a data scientist, but after 20+ years in B2B tech marketing, I’ve seen one mistake made repeatedly: neglecting to invest in proper measurement.

Data is abundant, but it’s easy to get overwhelmed or misled. Guesswork is not the answer; it only perpetuates outdated stereotypes.

Guessing perpetuates stereotypes.
Guessing perpetuates stereotypes

Start with the Basics

  • Use free tools like Google Analytics and Search Console to track organic website and social traffic.
  • Try tools like SEMRush, Ahrefs, and Hotjar (free or paid) for SEO and website performance optimization.
  • Mine your CRM for customer insights hidden within historical sales and customer success data.
  • Talk to your Sales, CX, and product teams.

Go Deeper with Predictive Analytics

B2B tech buying journeys are complex and lengthy. To be effective, we need to understand the entire customer journey.

As we build our brand reputation as a trusted source, customers will begin interacting with us through multiple touchpoints. That can take many months or even years before a decision is made. We want to make sure we show up on their radar when they are ready. 

How can we unravel these multi-touch journeys? How can we identify the marketing efforts that truly impact our bottom line?

Predictive analytics and multi-touch attribution models offer potential solutions. However, approach vendors’ claims cautiously, as some overpromise and repackage legacy tech as new tech.

Recommendations

  1. Choose a model aligned with your growth objectives and invest in the appropriate analytics tools.
  2. Use data to inform your marketing decisions and achieve better outcomes.
  3. Interpret data with critical thinking because results are not foolproof.
  4. For objective advice and proven methodologies, follow domain experts like:

“What you see determines what you understand, and that, in turn, drives your decisions.”

Mark Stouse, CEO, Proof Analytics

Escape the Hamster Wheel

You’ve done your research: talked to customers, analyzed data, and identified the pitfalls and opportunities. Now what?

Principles and Questions to Ponder

  • Customer obsession:  Your customers are your most valuable resource. Work to understand their needs, challenges, and how they make decisions. What do they value most? What frustrates them? How can your solution make a real difference in their work lives?
  • Data-informed decisions:  Use data to guide your strategy, but remember it’s a tool, not a rulebook. Don’t get bogged down in analysis paralysis or pursuing perfect data because human behavior can be random and irrational. What metrics truly matter to your business goals? How can you collect and analyze data efficiently?
  • Value over features:  Focus on how your solution solves real problems and delivers unique value. What specific pain points do you address? How do you save customers time or money? What sets you apart from the competition?
  • Trust and credibility:  Building a reputable brand requires consistently sharing valuable insights and thought leadership to position your brand as a trusted source. How can you demonstrate your expertise? What kind of content resonates with your target audience?
  • Experiment and adapt:  Marketing is an ongoing function of any business. Test different approaches, measure results, and iterate. What channels work best for your audience? What messaging gets the most engagement? Try new things like B2C approaches and learn from your mistakes.
  • Patience and persistence:  Stay focused on consistent effort and continuous improvement. What are your long-term goals? How will you measure your progress and reputation over time?

Vanessa DiMauro explains why understanding customers creates long-term growth

Final Thoughts

Customer research is the starting point for achieving market success. The most successful B2B tech companies are the ones that deeply understand their customers.

Talk to your customers regularly. Find out what they really need; what’s changed. Use that insight to help them get what they need.

Don’t guess or chase shortcuts. Markets change slowly and buyers take their time. Focus on consistent effort and adding value at every touchpoint.

Use data to track and validate what’s working and what’s not. But don’t just measure, understand. Why are some things working better than others? What patterns do you see?

Try new things like brand storytelling. It works wonders in both B2C and B2B. Just don’t expect instant B2C results. B2B marketing is still a marathon.

Need help making sense of it all? Let’s talk.

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe for ongoing insights and strategies (submit your email below).

Cheers!

PS: This article is also published and discussed on LinkedIn. Join the conversation. I would love to hear from you.

Strategy

B2B Brand Marketing: The Long-Term Play for Sustainable Growth

Move beyond short-term B2B marketing tactics. Learn how brand marketing creates sustainable growth in the tech industry. Includes Monday.com case study.
May 24, 2024
|
5 min read

TL;DR

B2B tech marketing requires a long-term perspective. Instead of chasing leads, prioritize building a strong brand that fosters trust and credibility. You’ll have a better chance at capturing and maintaining the attention of future buyers and getting on their shortlist.

Key Takeaways

  • B2B buyers take their time: Most B2B tech buyers are not actively looking for a new solution at any given time.
  • Brand marketing is key: Invest in building a strong brand to stay top-of-mind and capture attention when buyers are ready.
  • Ditch the funnel: The linear funnel model is flawed. Focus on providing valuable content at every stage of the buyer’s journey.
  • Balance sales activation with brand marketing: Combine short-term lead generation efforts with long-term brand building for optimal results.
  • Think long-term: B2B marketing success takes time, patience, and consistency.

We’re all guilty of cutting corners and searching for the elusive “secret.” The reality is that achieving B2B market success rarely happens overnight. 

And while B2B and B2C marketing have more in common now than they did a decade ago, expecting B2C results in B2B is unrealistic. B2B marketing is still a marathon, not a sprint. There are no shortcuts or magic pills, no matter what the sales-led or product-led hype wants us to believe.

Jack Welsh quote about facing reality as it is.

Jack Welch’s message? Stop the wishful thinking.

Important: Before continuing, if you only care about pumping up your tech product so you can dump the company on the highest bidder in the shortest time, stop reading. This is not for you. Good luck with whatever you do. 

But if you’re genuinely interested in building a lasting tech solution like Slack, Hubspot, or Salesforce, put your expectations, opinions, and assumptions aside for a few minutes. 

The Fallacy of Instant Results: B2B Buyers Take Their Time

Many B2B tech companies, especially startups, think their products are so good they’ll sell themselves and attract loads of new leads. The reality is that the majority of B2B tech buyers simply aren’t ready to buy no matter how many times they look at our website. The solution they currently use is good enough (for now). 

“A lot of companies haven’t fully realized yet that most people are not in the market for any product at any given time. You need to target them with a long-term lens.”

- Jann Martin Schwarz, LinkedIn B2B Institute

Studies like the 95-5 rule show that only 5% of B2B buyers are actively in-market looking for a new solution. Yet our wishful thinking still makes us believe otherwise.

“Our surveys show that 95% of B2B marketers expect to see significant sales within the first two weeks of a campaign.”

Professor John Dawes, Ehrenberg-Bass Institute

Most B2B tech buyers, Professor Dawes points out, are on a much longer decision-making journey than we want to admit. 

Chart showing how infrequently buyers make purchases

Here’s a real-world dose of reality (there’s that word again) from a recent interview with a procurement leader, courtesy of Mark Stouse over at Proof:

“Risk has always been the biggest part of any B2B deal. Since 2022, that has increased exponentially. It’s why we have so many ‘no decision’ decisions. The vendors fail the test more than half the time.”

Decision-makers are risk-averse for good reason. Buying tech is harder than selling it. Choose the wrong solution and we end up with egg on our face, an expensive mistake, or worse, shown the door. 

The safest decision? No decision. 

Go Long: Brand Marketing As Your Game Plan

Brands aren’t born great. Market success in any business is a long-term investment. Ask any established tech brand, from Apple to Salesforce, to kill their brand and replace it with a sales-led or product-led approach, and they will tell you where to go. Brand equity trumps all. 

“B2B marketers shouldn’t be spending time and money convincing out-of-market buyers to consider a purchase but instead invest in making every buyer remember their brand next time they need its product.”

Peter Weinberg & Jon Lombardo

That sums up the problem with B2B marketing as we know it today. It’s flawed because it focuses only on short-term linear “funnel” outputs and metrics, sales-led and product-led thinking, leads and quotas, blah, blah, blah. You get the point. 

Think of brand building as farming. The seeds we sow today are not harvested in the same season or even in the same year. It takes time to generate demand, earn trust, establish authority, and create loyal fans. 

Warren Buffet quote on brand equity

The Funnel Fallacy: Why Linear Thinking Hurts B2B Marketing Strategy

B2B tech buying is not a neat, linear path—it’s not a funnel! Yet we still expect linear and immediate results.

Illustration showing how lead and demand generation scale
Credit: Vladimir Blagojevic

The majority of B2B tech companies think in terms of lead generation and pass off brand marketing (demand generation activities) as wasted effort that takes too long and is too hard to measure. 

It’s why B2B marketing is measured in linear stages (leads, sales, etc.). It’s also why B2B marketing teams scramble to justify their turf with linear metrics. 

We end up with the wrong results because we set the wrong expectations, create the wrong outcomes, and look at the wrong data.

B2B Marketing expectations don't match reality
Credit: Olena Bomko

Short-term thinking can also lead to schizophrenic stop-start marketing tactics that confuse the market, dilute our value, and kill any potential momentum that brand marketing produces. 

It’s better to provide helpful and current content at every stage at any given time because the reality is that we don’t know when someone is ready to buy, upgrade, or switch.

Supporting your sales activation (lead generation) activities with brand marketing (demand generation) gives you the best chance to stay top-of-mind and capture the attention of your future best-fit customers when they embark on their search. 

Monday.com: A Case Study in Long-Term B2B Market Success

Monday.com launched in 2014 to compete with the likes of Asana, Trello, and Wrike. Three years later (not three months), the project management SaaS solution began an explosive 6-year run. 

Line graph showing Monday.com's growth over 6 years

In 2023, Monday.com’s annual revenue was estimated at $702 million to $717 million but made over $729 million, an increase of 41% year-over-year. Forecasts for 2024 are expected to be between $926 million and $932 million. 

That’s impressive growth for a B2B tech brand that’s only 10 years old!

Monday.com has invested heavily in brand building with a tongue-in-cheek style that’s not typical for B2B. Their most recent Work Without Limits campaign (below) aired during the 2022 Super Bowl. Their previous Manage Your Team campaign ran for over three years with regionally targeted ads.

Final Thoughts

Take a page out of Monday.com’s playbook. Invest in a B2B marketing strategy that balances sales activation with brand marketing. That will lay the foundation for long-term growth, building trust with your audience. The rewards are well worth the effort.

“So follow the 95-5 Rule to grow: invest in lead-generation efforts targeting the 5% of people who are “in-market” today, but don’t forget to invest far more heavily in reaching the entire category with brand advertising that resonates with future buyers, and thus generates future cash flows.”

Ty Heath, LinkedIn B2B Institute

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe to this blog for ongoing insights and strategies (link below).

This article is also published on LinkedIn. Please chime in with any feedback. I would love to hear from you.

Cheers!

Strategy

B2B & B2C Marketing Trends: How They’re Converging (and Still Different)

B2B and B2C marketing have more in common than ever yet still retain key differences. Learn the trends and strategies that are reshaping both domains.
May 17, 2024
|
5 min read

TL;DR

Digital marketing has changed B2B over the past decade, making it more like B2C in some ways. However, there are still important differences—B2B buying decisions remain harder to make, and take longer. B2C companies aim for quick sales to move inventory and use marketing to support those sales. B2B companies, on the other hand, build partnerships with clients over time. More B2B brands are also balancing brand marketing with sales activation instead of prioritizing one over the other.

Key Takeaways

  • Digital transformation is driving convergence between B2B and B2C marketing strategies.
  • Shared trends include brand building, data-driven personalization, storytelling, and seamless customer experiences.
  • B2B prioritizes long-term relationships and balances brand marketing with sales activation.
  • B2C focuses on quick wins and sales activation, with brand marketing playing a supporting role.

There was a time when the “B” in B2B stood for “boring,” a stark contrast to the exciting world of B2C. I covered these differences in 2012 when there were about 350 martech solutions and B2B was still averse to social media. Digital transformation has blurred those lines and now there are boatloads more martech solutions competing for attention. 

Marketers from both camps are borrowing from each other by embracing brand, storytelling, emotion, entertainment, and humor to captivate their audience.

Converging Trends in B2B and B2C Marketing

The rise of digital platforms has driven a demand for personalized, engaging, and story-driven content in both B2B and B2C marketing. This is clear from the explosion of MarTech solutions, which went from a handful a decade ago to thousands today, as illustrated by Scott Brinker at ChiefMarTec

Shared Trends

  • Data Rules: using data and analytics to understand customer behavior, personalize messages, and track results.
  • Seamless Customer Experience: implementing a smooth customer journey across all channels (website, social media, email).
  • Content Still Reigns: creating educational, entertaining, and informative content to attract leads, build trust, and establish expertise.
  • Targeted Communication: tailoring messages and promotions to individual preferences through segmentation and targeted campaigns.

B2B Borrowing from B2C

  • Storytelling and Emotional Connection. Traditionally B2B marketing focused on product features and rational decision-making. However, B2C’s emphasis on brand-focused emotional connections and storytelling has inspired B2B marketers to create more engaging content that resonates with the human side of making buying decisions.
  • Social Media Engagement. Social media platforms were once seen as primarily B2C tools. Now, B2B marketers are actively leveraging social media for thought leadership, brand building, and lead generation. And as crazy as it sounds, in 2013, Maersk Line (yes, the container shipping company) was the first major B2B brand to pioneer B2B social media marketing

B2C Learning from B2B

  • Account-Based Marketing (ABM). The B2B practice of targeting high-value accounts with personalized outreach has influenced B2C marketers who are starting to segment their audiences and tailor messages to specific customer groups within key accounts.
  • Long-Term Customer Relationships. While B2C marketing often focuses on short-term sales, the B2B emphasis on building long-term relationships with customers has inspired B2C brands to prioritize customer retention strategies.

How B2B and B2C Marketing Remain Distinctly Different

While digital transformation has brought B2B and B2C marketing closer, fundamental differences persist. These differences stem from the distinct nature of their target audiences, decision-making processes, and sales cycles.

Decision-Making

B2B B2C
Complexity Complex, often involving multiple stakeholders with varying priorities and requiring consensus. Less complex, typically made by an individual or a small group (e.g., family).
Timeframe Longer, with a focus on building relationships and trust before a purchase decision is made. Shorter and often driven by immediate needs like inventory optimization.
Information Needs Requires in-depth, technical information, case studies, and demonstrations to address specific pain points and justify the investment. Relies on emotional appeals, brand reputation, social proof, and convenience.


Sales Cycles

B2B B2C
Length Longer, involving multiple touchpoints, negotiations, and approvals that can take months or years. Shorter, often completed in a single transaction or within a short period.
Key Activities Brand awareness, demand generation, lead nurturing, relationship building, proposal development, demos, contract negotiation. Brand awareness, advertising, promotions, impulse buying triggers, customer reviews.
Focus Building long-term relationships, providing ongoing support, and maximizing customer lifetime value. Driving immediate purchases, repeat business, and brand loyalty through personalized offers and engagement.


Different Approaches


While both B2B and B2C marketers aim to build brand awareness, trust, and loyalty, their approaches differ significantly.

B2B Marketing is still a marathon balancing brand marketing with sales activation:

1. Brand Marketing 2. Sales Activation
Creates lasting value and influences future buying decisions. Capitalizes on existing demand to reach potential in-market customers.
Generates organic demand through relevant and timely content marketing and social media. Creates quick wins through paid media and ABM.
Fuels sales through awareness and credibility. Drives short-term growth by boosting leads and sales.
Compounds results and strengthens over time. Requires brand marketing for long-term success.


B2C Marketing is still a sprint
often favoring sales activation for immediate results:

1. Sales Activation 2. Brand Marketing
Generates immediate sales through promotions and discounts. Builds strong emotional connection with consumers.
Captures impulse buys and seasonal demand. Drives brand awareness and loyalty through storytelling and engaging content.
Increases brand visibility and reach. Tailors messaging and experiences to deliver relevant and timely offers.
Drives short-term revenue growth. Creates community with user-generated content, influencers, and reviews.

Brand Marketing Tip: If traffic to your business is driven by local search, optimize your business listings on Google Maps and Apple Maps so they are always up to date and aligned with your brand touch points. This works for B2B and B2C.

B2B and B2C Brand Marketing: Two Examples That Use the Same Approach for Different Outcomes


B2B Marketing Example:

Brand monday.com
Campaign “Work Without Limits”
Why it works Showcases their ability to blend B2B and B2C marketing tactics effectively. They utilize storytelling, humor, and emotional appeals to connect with their audience, highlighting the challenges and frustrations of traditional work processes. Their ads often feature relatable characters and scenarios, making their project management software feel more approachable and user-friendly. By focusing on the human element of work, monday.com creates a sense of community and excitement around their product, resonating with both individuals and teams. Is it any wonder monday.com grew their ARR from $7M to $700M in six years?

B2C Marketing Example:

Brand Glossier
Campaign “Skin first. Makeup second.”
Why it works A philosophy and community-driven approach. Glossier has successfully cultivated a devoted online community that actively champions the brand. By prioritizing user-generated content, social media engagement, influencer marketing, and a focus on inclusivity, Glossier has created a loyal following that feels deeply connected to the brand. This has resulted in significant organic growth and an effective word-of-mouth marketing engine.

Final Thoughts

Digital transformation has created a more level playing field, where brand, data, and omnichannel strategies play key roles. But the B2B and B2C marketing games remain inherently different. Think ice hockey vs. field hockey, or tennis vs. pickleball. 

Great insight will always be the cornerstone of all great marketing, no matter the discipline. Knowing your best-fit customers, the nuances of their buying decisions, and showing up when they are ready to buy is critical for long-term growth. 

Which B2B or B2C marketing trend do you think will have the biggest impact in the next year or two?

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe to this blog for ongoing insights and strategies (link below).

This article is also published on LinkedIn. Please chime in with any feedback. I would love to hear from you.

Cheers!

Insight

What B2B Marketing & Product Teams Can Learn From Peter Drucker

Don't fall for the “build it and they will come” trap. Learn from Peter Drucker’s timeless wisdom on marketing & innovation for B2B tech success.
May 10, 2024
|
5 min read

TL;DR

Marketing and innovation are the cornerstones of B2B tech success. Don’t prioritize one over the other. Conduct customer research, integrate marketing early, craft a clear value proposition, and build long-term brand affinity. As Peter Drucker once said, marketing is a basic function of your entire business, so don’t treat it like a department, a tactic, or even a mere piece of revenue.

Key Takeaways

  • Don’t fall for the “build it and they will come” trap. Understand your market needs before innovating.
  • Marketing and innovation are partners, not rivals. Marketing fuels innovation by informing product development and vice versa.
  • Invest in marketing for long-term success. Marketing that is holistically focused on the entire business generates brand awareness, quality leads, and loyal customers.

We pour our hearts into our products. They’re our labour of love. Just like parents adore their children, we believe in our products wholeheartedly.

How many times have we heard, our product is so good it will sell itself?

But that’s like expecting a plant to grow without water or sunlight, or worse, expecting a child to raise itself. It’s unrealistic and irresponsible. It also sounds like Hollywood.

Hang on a sec... didn’t Peter Drucker say that? No. Not exactly. We’ll address this misinterpretation later.

Speaking of Drucker, he challenged such notions back in the 1950s.

Peter Drucker Marketing and Innovation quote

In 2008, I read Drucker’s book, The Practice of Management. Thinking I was behind the times (it was written in 1954), I was surprised by the number of business leaders who were unaware of Drucker’s immense contributions to modern management. Even those who knew of him hadn’t necessarily read his work, let alone understood his view on marketing. 

You can learn more about Peter Drucker at The Drucker Institute.

Innovation and Marketing: A Powerful Partnership

Drucker exposes a critical truth often overlooked in B2B tech: marketing and innovation aren’t rivals, but rather forces that propel business success together.

  • Marketing Fuels Innovation: Great marketing goes beyond promoting existing products. It actively informs future innovation. Through deep customer research and market trend analysis, companies can uncover new opportunities and develop products that address unmet needs and solve problems.
  • Innovation Needs a Launchpad: The most groundbreaking innovation is useless if no one knows about it. Marketing provides the platform to showcase the value proposition of innovative products, generate excitement, and attract potential customers. Without effective marketing, even the most revolutionary technology can vanish into obscurity.

The “Marketing is a Cost Center” Myth

Many B2B tech companies treat marketing as a cost, not an investment, blaming it for wasted resources.

They’re not wrong if their marketing lacks strategy, is only focused on pipeline, and appeases leadership by overpromising and underdelivering on generating leads.

That kind of marketing is NOT what Drucker was talking about.

That kind of marketing is what Dilbert was poking fun at (sadly still a common worldview).

Dilbert markting cartoon

Ironically, with all the new and better martech, digital tools, and analytics to track spending and results (far better than in Drucker’s time), we’re still having this conversation 70 years on.

I would wager Marketing is far more broken today. And that has nothing to do with the tools themselves. It has everything to do with mindset.

Business and Innovation paths are not straight lines. Expecting Marketing to be makes no sense.

Example: “Just create demand. Just get leads.”

To champion the change for this shift in thinking, Marketing needs to take responsibility.

Of all the things that need fixing in B2B tech marketing, I fundamentally believe that the most important first step is in changing the belief that marketing success is judged in terms of how much pipeline or revenue it contributes.

Liam Moroney, Storybook Marketing

The marketing mindset must change because ignoring marketing’s ability to impact long-term business growth is a mistake.

Drucker on Marketing’s Distinctive Role

Marketing is what sets your company and product apart from the competition. It’s the voice that connects your business and its offerings with your target audience, builds trust, and ultimately drives customer loyalty.

Drucker reinforces this concept by stating, “Marketing is the distinguishing, unique function of the business.” 

I highlighted business because that’s the piece everyone misses. It’s not just pipeline, or revenue, or pretty ads.

It’s how your best-fit customers experience your business in its entirety: the brand, the products and services, the people, the support, etc.

Brand marketing as an investment in long-term customer acquisition and retention.

The key here is “long-term” because markets react to marketing on their own time, not ours. It’s a marathon, not a sprint.

B2B Tech’s Innovation Trap: Why Marketing Matters More Than Ever

Innovation can be a seductive siren song for B2B tech companies. It’s easy to push marketing to the sidelines when we’re caught up in chasing our shiny new object.

Without doing our homework (customer and market research), we can, just as easily, end up developing the latest and greatest technology without knowing whether the market even needs it.

This blind faith leads to dismissing marketing early and then scrambling to get the word out, a decision with potentially disastrous consequences.

Build it and They Will NOT Come

We often misquote Peter Drucker, assuming a great product will sell itself. This thinking is dangerously wrong.

A fantastic product in a vacuum is just another engineering marvel no one knows about.

Countless B2B tech products fell victim to the “build it and they will come” mentality. Google+, Amazon Fire Phone, FaceBook Home, and even the Metaverse (cringe) are cautionary tales.

And although it’s a B2C example, who can forget Bic For Her? (the video is hysterical)

The Pitfalls of Limits & Neglect

The consequences of limiting and neglecting marketing go deeper than missed sales.

  • Wasted Resources: R&D and product development become a black hole if the target audience doesn’t understand the product’s value.
  • Brand Confusion: Without clear positioning and consistent messaging, B2B tech companies struggle to stand out and build brand recognition.
  • Blind Spots: Neglecting market research and audience analysis prevents companies from seeing customer needs and adapting their offerings.
  • Stalled Growth: Start & Stop marketing kills momentum and impacts the credibility of the conversations between the sales team and prospects.
  • Wrong Metrics: When marketing plays second fiddle to innovation and the entire business strategy, wrong expectations create wrong outcomes and that results in looking at the wrong data.

Marketing Is The Voice of the Customer

Drucker never said, “Make the product so good it’ll sell itself.” But he did stress understanding the customer:

The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.

Peter Drucker


That’s the quote that is often misquoted. Without marketing context, it misleads us into thinking all we have to do is build our Field of Dreams (did I mention Hollywood?).

In full context, however, it perfectly captures how and why marketing connects innovative solutions with our best-fit customers.

Prioritizing customer research, differentiated value, and long-term brand marketing ensures our innovative solutions don’t vanish into thin air.

Brand marketing becomes the bridge, connecting real-world problems with innovative solutions and the people behind them at every touch point of the business.

Think of Marketing as your customer’s champion, advocating for their needs. Innovation is your solution’s voice, the response to those needs.

Marketing and Innovation go hand in hand.

Two B2B Tech Brands Leading the Way

The good news is there are numerous B2B tech companies that excel at balancing innovation and marketing. Take Apple’s Think Different campaign, or Salesforce’s No Software campaign. Both are masters at combining these two forces and building lasting brand recognition.

But let’s look at two B2B tech examples:

Hubspot-logo

HubSpot, a leader in B2B marketing, sales, and customer service SaaS solutions, perfectly blends innovation and marketing.

  • Customer-Centric Innovation: HubSpot prioritizes understanding customer needs. Their blog, free marketing tools, and educational resources attract a massive user base. This goldmine of customer insights fuels their product development, ensuring their paid solutions directly solve B2B marketing teams’ problems.
  • Marketing Mastery: HubSpot isn’t just about software; they’re content marketing gurus. Their blog, brimming with insightful articles and guides on B2B marketing best practices, hooks potential customers and establishes them as industry thought leaders. They also rock social media, fostering a thriving brand community.

Hubspot brand marketing

Siemens Insights Hub (formerly MindSphere), an IIoT (Industrial Internet of Things) platform, proves that innovation and marketing can flourish in the industrial tech space.

  • Industry-Specific Solutions: Insights Hub goes beyond just offering an IIoT platform; they cater to specific industry needs. They’ve developed solutions tailored to manufacturing, transportation, and utilities, ensuring their platform tackles the unique challenges of each sector.
  • Targeted Marketing for ROI-Focused Buyers: Siemens Insights Hub understands the complex buying process in industrial tech companies. Their marketing materials showcase real-world use cases and quantifiable results achieved by their customers. This targeted approach resonates with industrial decision-makers who prioritize a strong return on investment (ROI).

Siemens Insights Hub brand marketing

These are just a few examples; there are countless others.

The key? Understanding customer needs, developing solutions that address them, and creating brand marketing that consistently beats the drum to reach the target audience.

5 Ways to Implement Drucker’s Principles in B2B Tech

Peter Drucker’s wisdom on marketing and innovation remains relevant. B2B tech companies can achieve the perfect balance between these two crucial functions.

  1. Adopt a Companywide Marketing and Innovation Mindset: Make marketing and innovation everyone’s responsibility at every customer touch point. Invest in both equally and make both a priority. Set realistic business growth goals for both functions.
  2. Be Customer Obsessed
    Conduct in-depth customer research to truly grasp their needs, pain points, motivations, and decision criteria. Use interviews, surveys, and user testing to gather valuable insights that your product and marketing teams can use to build their strategies.
  3. Integrate Marketing Early and Often
    Involve marketing from the very beginning. Their expertise in understanding customer needs and market trends can ensure you develop innovative products that are not only technically sound but also address market demand.
  4. Craft a Clear Value Proposition
    Articulate what makes your B2B tech solution unique and how it directly benefits your target audience. This will be the foundation of your marketing messaging and will help you differentiate yourself from the competition.
  5. Leverage Branded Content to Educate and Inform
    Create valuable, informative, and branded content, such as blog posts, white papers, and case studies, to educate your target audience about industry trends, address their challenges, and showcase your expertise. Publish regularly and consistently. Ensure your sales tools, like pitch decks, sales slicks, and spec sheets speak your brand language consistently.

Embrace the Shift: Brand Marketing as a Long-Term Investment

Moving forward, remember that marketing isn’t a cost centre or a pipeline checkbox; it’s a long-term investment no different than innovation. By allocating resources towards brand marketing strategies that complement your entire business operations, everything gets better.

Marketing impacts the entire effectiveness and efficiency of the sales and marketing and customer success effort. More brand awareness in the market means everything gets better. Better perceptions of your product means everything gets better.

Liam Moroney, Storybook Marketing

Final Thoughts

Don’t be lured by innovation alone. Limiting and neglecting marketing is a recipe for disaster.

Similar to Apple and Salesforce, B2B tech companies like Hubspot and Siemens excel because they understand customer needs and craft compelling marketing messages, on top of their innovative products. Remember that Apple was virtually bankrupt when it launched Think Different in 1996 and Salesforce took on Siebel in an all-out David vs Goliath battle in 1999.

Focus on building the brand through customer research and integrated marketing across the entire organization, not just a piece of the pipeline. This ensures you create a lasting and memorable impression for your innovative solutions. Brand marketing bridges the gap between groundbreaking technology and real-world customer problems.

And listen to experts like Peter Drucker: marketing and innovation are the cornerstones of business success. A balanced approach is key to achieving long-term growth.

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe to this blog for ongoing insights and strategies (link below).

This article is also published on LinkedIn. Please chime in with any feedback. I would love to hear from you.

Cheers!