Avanade, a global provider of Microsoft technology solutions and managed services, has released the results of its global survey of business and IT leaders on the topic of B2B. The survey responses show that business customers, too, are increasingly exhibiting purchasing behavior similar to that of consumers.
The study confirms findings from Avanade’s “Work Redesigned” approach: Leading companies are changing their business processes to reflect the evolving work environment shaped by mobile devices, collaboration tools, and social networks. A key finding: “The Consumerization of Sales”—the consumer-like behavior of business customers, shaped by the use of mobile devices and technologies as well as the viral effects of social networks—is already having a significant impact on the design of sales structures at many companies. Furthermore, business decision-makers report being willing to spend up to 30 percent more if they can expect an above-average customer experience—that is, an excellent overall experience—in return. Already, more than half of the study participants (56 percent) confirm that they have consciously spent more on a product in the last six months because it promised a better overall experience than the lower-priced alternatives. Another finding: Seven out of ten executives believe that cutting-edge technology will replace human interaction with customers within the next decade.
The key findings of the study:
1. Business customers are adopting the purchasing behavior of individual consumers
2. Companies are responding to technology-driven changes by adapting their sales structures and increasing their investments in technology
3. Price is no longer the main factor in deciding whether to purchase a product or service—instead, companies can turn the customer experience into hard cash
4. Companies that embrace this change stand out clearly from their competitors
5. Sales-customer relationships are no longer viewed as a mere series of business transactions, but are developed into a positive overall experience
«The consumerization of IT—that is, customer behavior influenced by mobile technologies, devices, and online stores—is driving dramatic changes in traditional sales channels. Already today, corporate decision-makers shop in much the same way as private consumers. They expect user interfaces and tools that are just as simple as those they are accustomed to in their personal lives,« says Robert Gögele, General Manager at Avanade in Germany, Austria, and Switzerland, summarizing the trends revealed in the study.
«Companies are struggling to manage their sales processes, as B2B and B2C models are merging into a »B2Everyone' model. Those companies that understand this trend and respond to it with agility will be able to build and maintain stable and lucrative customer relationships over the long term."
The Global Study in Detail
Avanade's global study was conducted in October 2013 by Wakefield Research in 19 countries (Australia, Belgium, Brazil, Denmark, Germany, Finland, France, the United Kingdom, Italy, Canada, Malaysia, the Netherlands, Norway, Singapore, Spain, Sweden, Switzerland, South Africa, and the United States). More than 1,000 C-level executives, division heads, and IT managers from 12 industries answered questions about their companies‘ purchasing behavior.
1. Business customers are adopting the purchasing behavior of individual consumers
Today, buyer-seller relationships in the B2B sector extend far beyond the sphere of influence of sales teams—and are increasingly slipping out of their control. Nearly two-thirds (61 percent) of the business decision-makers surveyed state that, before making a purchase decision, researching information on third-party websites and receiving feedback from business partners, industry peers, or social media is more important to them than speaking with the seller’s sales representatives. Viral effects cannot be controlled by the company’s sales department.
2. Companies are responding to technology-driven changes by adapting their sales structures and increasing their investments in technology
Forty percent of the decision-makers surveyed believe that IT makes a significant contribution to their company’s strategic direction. Nearly half (45 percent) of those surveyed also state that IT plays a much greater role in the overall customer experience than it did in the past.
More than 80 percent of respondents have changed at least one business process in the past three years in order to better interact with customers. In doing so, they have invested—and continue to invest—primarily in
Customer Sales and Supporting Technology (44 percent),
the number of employees who have contact with customers (40 percent),
the automation of sales processes (32 percent).
3. Price is no longer the main factor in deciding whether to purchase a product or service—instead, companies can turn the customer experience into hard cash
Even today, the decision-makers surveyed are willing to accept additional costs of up to 30 percent if they can expect an above-average customer experience—that is, an excellent overall experience—in return. More than half of the study participants (56 percent) also confirm that they have deliberately spent more on a product in the last six months because it promised a better overall experience than the lower-priced alternatives.
4. Companies that embrace this change stand out clearly from their competitors
As an appropriate response to this change, customer service, call centers, and the IT and marketing departments now play a much more significant role in the customer experience than they did three years ago. Decision-makers whose companies have already responded to this shift and implemented new, technology-enabled business processes for interacting with customers report the following:
increased customer loyalty (61 percent),
increased revenue (60 percent) as well as
growing customer base (60 percent).
5. Sales-customer relationships are no longer viewed as a mere series of business transactions, but are developed into a positive overall experience