Understanding B2B buying tactics requires a fresh perspective now. Businesses no longer depend on catalogs and cold calls to influence consumers’ purchasing decisions. Nowadays, businesses are keen to understand the intricate dynamics of buyer behavior to understand the consumer better. This knowledge empowers companies to make data-driven decisions, forge strategic partnerships, and ultimately achieve success in the ever-evolving B2B eCommerce landscape.
Recently, Borderless Access dug deep into B2B purchase behavior through a survey. This included exploring pain points for B2B buyers in office supply procurement, what they buy, the impact of brand equity, and how market factors affect their choices.
A significant trend that emerged from the survey is that in-store purchases represent a minority, with just 18% of consumers choosing this preference. This suggests a significant shift towards online shopping or adopting omnichannel strategies (combining online and offline channels).
The inherent limitations of the traditional in-store method largely drive this shift. This includes difficulty assuring quality, challenges in finding the right size and fit for specific needs, unexpected hidden costs like delivery fees, and potential payment limitations at physical stores.
The Main Attributes Influencing the Shift
Online platforms like Amazon, Target, or Walmart offer unparalleled conveniences. In today’s world, convenience reigns supreme. Online platforms let the decision-maker procure office supplies without any physical strain. There is no traffic and no physical constraint; individuals can effortlessly order anything from the comfort of their own space.
Beyond convenience, trust in quality is another reason e-commerce platforms are thriving. Many of the top e-commerce platforms have successfully gained trust when it comes to quality. Almost 28% feel that they can blindly trust Amazon for top-notch products.
Moreover, the enticing deals on innovative and wide-ranging product solutions have significantly influenced this transition. 31% stated that they chose Amazon because it offers good value for money.
Many platforms offer tailored recommendations and bulk discounts on high-quality, long-lasting products catering to business needs. The survey conducted by Borderless Access states that almost 27% prefer a brand due to this tailored recommendation.
In some cases, cultural alignment has also played a critical role in the decision-making process. Around 19% have said they feel connected with Amazon as it embraces and reflects American heritage in office products. Not only that, but on several online platforms like Target, Walmart, and Etsy, decision-makers have found a balance between traditional and modern office supply solutions.
So, one can easily understand that the shift from offline to online purchasing is an accumulation of factors encompassing convenience, value, trustworthiness, quality, professionalism, user experience, cultural alignment, and customization, all of which are hallmarks of the online shopping landscape.
The Key Factors Influencing Brand Selection
Choosing the well-known one: The brand’s reputation and recognition play a significant role. This is mainly because a known reputation reduces the risk of choosing the wrong partner. A well-established brand name can easily foster trust and confidence, making businesses more likely to select that brand over unfamiliar options.
Seamless shopping experience: Convenience and efficiency are two driving factors in the procurement process. A B2B transaction prefers user-friendly interfaces, easy navigation, and quick checkout processes to save time and enhance productivity.
Stock Availability: The timely availability of products is crucial for businesses to maintain uninterrupted operations. Brands that consistently maintain adequate stock levels and provide accurate inventory information are favored, as they help companies meet their supply needs without delays or disruptions.
Trust factor: In any B2B relationship, trust plays a significant role. Any brand prioritizing transparency, reliability, and consistency in its deals gets a bonus add-on in the eyes of the consumers. This trust is earned through delivering on promises, providing quality products, and offering responsive customer support.
Strong Market Presence: To attract and retain B2B customers, brands must be visible and accessible in the market. Effective marketing strategies, widespread distribution channels, and active engagement can create a strong market presence. It allows you to build trust, reduce risk perception, and increase your chances of being considered during the B2B buying process. This translates to attracting new customers, fostering long-term loyalty, and ultimately driving business growth.
Shared Values: Businesses often seek brands that share their values and support the causes they believe in. Brands that demonstrate a genuine commitment to social responsibility, sustainability, or community involvement have a higher chance of establishing a personal connection.
Market Factors: The market factor, comprising various elements such as promotions, affordability, availability in desired packs and variants, and visibility, is pivotal in shaping brand preference in the B2B office supplies sector. Businesses prefer brands with products readily available across different channels to ensure uninterrupted operations and timely fulfillment of their needs. Other significant factors are strategic promotions and competitive pricing. These two are essential for building long-term relationships by providing value for money.
Brand Equity and Market Share: In this section, we will be addressing two of the crucial factors while selecting a brand. Market share and brand equity (BE) are two sides of the same coin. Market share shows how much people are buying, while brand image reflects why they are buying. Now, market shares are often affected by several market factors, such as availability, distribution, and pricing. Brands with substantial brand equity and a significant market share are preferred choices for B2B buyers, as they signify reliability and success in the market.
However, we must remember that market share is all about numbers, whereas brand equity is more nuanced. It’s about consumers’ overall perception and feelings towards a particular brand.
In the above chart, we can see that Amazon has the highest market share of all the companies listed. However, brand equity is not that high. This suggests that Amazon may be selling a lot of products, but consumers may not be as loyal to the Amazon brand as they are to some of the other brands on the list. In the case of Target, we see the opposite trend.
Focusing on the BE-Market Share Gap
From the above, one can easily conclude that a multitude of factors influence purchasing decisions. However, brand equity remains the guiding light. It delves deeper than simply being recognized – it’s about understanding consumer perception, brand loyalty, and consumers’ overall feelings toward a brand. Also, by understanding the gap between brand awareness and market share, any brand can unlock a hidden wellspring of potential. Here, Borderless Access’ proprietor brand tracking solution comes into play.
Our brand equity measurement solution helps explain the disconnect between a brand’s BE score (Brand Equity or Engagement) and its market share. By understanding the “why” behind the BE-market share gap, brands can take action to improve conversion rates and close that gap. This allows businesses to see beyond market share and truly comprehend how consumers perceive their brand by providing real-time data and insights. This valuable information can be leveraged to optimize brand strategy, foster stronger customer loyalty, and drive business success.
