B2B Buying is Changing

Something strange is happening in B2B buying. Deals are being won and lost even before sales calls take place. This isn’t happening because of features or pricing; it stems from a factor that many B2B companies overlook.

Dentsu's extensive 2024 B2B buyer study, which included over 14,000 interviews, reveals a shift that is fundamentally changing how enterprise software is purchased. Most companies are unprepared for this change.

The shift? Brand marketing now contributes more to revenue than most companies realize. The ROI is measurable, predictable, and significant. According to TrustRadius's 2024 B2B Buying Disconnect Report, B2B buyers typically evaluate only 2 to 5 vendors. After creating this shortlist, there is a 71% chance that buyers will stick with their initial favorite. In fact, the whole "evaluation process" often merely affirms a choice they've already made.

Here’s another crucial statistic: TrustRadius found that 78% of buyers select products they are already familiar with before starting their research. Forrester’s Business Trust survey showed that 77% of purchase influencers view a vendor’s brand awareness as a key factor in determining their trust in that organization. What’s the revenue impact? Forrester discovered that 83% of B2B influencers who trust a supplier intend to continue doing business with them. This isn’t just about win rates; it's about lifetime value.

Research from the LinkedIn B2B Institute and Ipsos confirms the power of branding: buyers have stated they are willing to pay a premium for trusted brands because this reduces risk in complex B2B deals. Brand marketing doesn’t just win deals; it also secures them at higher prices and ensures better retention. Brand marketing should not be seen as a cost center; it is a revenue multiplier. When 78% of buyers choose from brands they already recognize, it’s clear that awareness directly contributes to the sales pipeline.

Yet, only about 30% of B2B marketing budgets are allocated to brand initiatives. We are investing in the wrong areas. In the meantime, 68% of buyers report that all vendors sound identical (Dentsu). Additionally, research from BCG states that every dollar cut from brand investment costs $1.85 to rebuild.

Smart companies meticulously track brand perception. They understand which buying situations trigger brand recognition and measure whether their messaging truly changes perception. However, 79% of CFOs do not see clear metrics linking brand initiatives to revenue. Most companies tend to rely on guesses rather than measurable data. At a minimum, brand tracking should be conducted once a year.