the rise of the b2b social buyer: results from the itsma how buyers consume information survey, 2011

Julie Schwartz

Senior Vice President

Research and

Thought Leadership

ITSMA

Abbreviated Summary

The Rise of the

B2B Social Buyer: Results from the ITSMA

How Buyers Consume

Information Survey, 2011

www.itsma.com | F020AS | 2

ITSMA Survey 2011 How B2B Buyers Consume Information

© 2011 ITSMA. All rights reserved. Reproduction or forwarding of this document to others is prohibited.

Abbreviated Summary

Where do buyers of large B2B solutions get information on solution

providers? For years, the answer was “my peers.” However,

according to ITSMA’s “How Buyers Consume Information Survey,”

peers are no longer the most influential source of information for

buyers of large B2B solutions.

ITSMA has been conducting research on how buyers

choose solution providers since 1998. In our 2011

research, we are seeing major shifts in buyer behavior.

Read this report to find out how to most effectively

reach and engage with today’s buyer.

Note: This abbreviated summary highlights some of the significant findings from

The Rise of the B2B Social Buyer: Results from the ITSMA How Buyers Consume Information

Survey, 2011. A more in-depth analysis can be found in the full report.

http://www.itsma.com/research/how-b2b-buyers-consume-information-2011/





31

30

27

24

22

21

21

20

19

18

16

13

13

13

11

Solution provider Websites

Solution provider contacts

Online communities

Trade associations

Web search

Industry analysts

Social media/networks

Management consultants

Peers/colleagues

Industry events/trade shows

Industry or trade media

Sourcing advisors

Universities, think tanks

General business media

Blogs

1st 2nd 3rd

Specifically, the report

introduces the rise of the

B2B Social Buyer,

who relies on social media and online

communities during the purchase

process. At the same time, the data

shows a decline in the mainstay of

buying process: peer influence.

Peers, while still important as a source

of referral, recommendations,

references, are no longer the best

source of information.

Source: ITSMA, How B2B Buyers Consume Information Study, 2011

What were the first three sources of information you turned to when you began your solution research? (Rank order 1st, 2nd, 3rd) % of Respondents (N=465)

Peers Are no Longer the Most Influential

Information Source







Note: Mean rating based on a 5-point scale where 1=not at all credible and 5=very credible. Dotted lines indicate “tiers” of credibility based on statistical testing. Source: ITSMA, How B2B Buyers Consume Information Study, 2011

In your opinion, how credible are these sources of information? Mean Rating (N~457)

We See an Elevation in

Solution Provider Credibility

Industry analysts

Solution provider contacts

Universities, think tanks

Solution provider Websites

Industry events/trade shows

Industry or trade media

Trade associations

Peers/colleagues

Online communities

Management consultants

Sourcing advisors

Web search

General business media

Social media/networks

Blogs

4.3

4.3

4.2

4.2

4.2

4.2

4.2

4.2

4.2

4.2

4.1

4.1

4.1

3.9

3.9

Surprisingly, the data also shows

an elevation in solution provider

credibility. Solution providers are now

providing significant value to buyers and

are being invited back into the

sales process. These changes

are resulting in a revolution

in the way B2B solution providers

market and sell to buyers.

They need to create fact-based customer intimacy,

establishing a relationship with the buyer

based on knowledge and creating a

continuous, coordinated dialogue.






The report also tells more about

who the B2B Social Buyer is—for the

most part, they are younger than 40;

they have voracious appetites for information; and when

selecting solution providers, they use

different criteria than traditional buyers.

The Defining Characteristic of the

B2B Social Buyer: Age

21

62

13

5

15

32

25

28

18-29

30-39*

40-49*

50-64*

B2B

Social

Buyer

(N=342)

Traditional

Buyer

(N=123)

Age

*Indicates a statistically significant difference. Source: ITSMA, How B2B Buyers Consume Information Study, 2011

Critical

Important

Somewhat

Important

Of Minor

Importance

Of No

Importance

56

40

4

0

0

12

50

29

5

3 B2B Social Buyer (N=342)

Traditional Buyer (N=123)

What role did the solution providers’ thought leadership content, such as the research, analysis, and advice often found in reports, white papers, Webcasts, and articles, play in determining which providers make it on to your shortlist? % of Respondents


Solution provider thought leadership

is becoming more important,

and relied upon








A Bifurcated Market has Major Implications

for the Marketing Mix

31

25

22

21

21

20

19

18

17

15

15

14

13

13

13

12

10

7

23

32

33

12

4

19

7

24

20

29

27

11

17

7

28

2

Social media*

Virtual seminars/conferences

Research reports

In person seminars

Digital magazines

Blogs*

Webinars

Mobile content *

Website copy

Email newsletters

Print journals/magazines*

Brochures/datasheets*

Video

White papers, eBooks

Direct mail (hard copy)

Sales calls/private briefings*

Podcasts

B2B Social

Buyer

(N=342)

Traditional

Buyer

(N=123)

*Indicates a statistically significant difference. Source: ITSMA, How B2B Buyers Consume Information Study, 2011

While it is important for solution

providers to focus on these B2B Social

Buyers, who are investing more

aggressively in technology, they still

need to keep strong connections with

traditional buyers who look to their

peers and even to print-based

marketing materials first.

All of this makes B2B marketers’ jobs

more complex than ever. Dealing with

both social and traditional buyers

means marketers must rebalance the marketing mix, and reevaluate budgets and

priorities.

Which information delivery channels or formats do you typically prefer? % of Respondents






This report shows

marketers the best ways to reach the social buyers,

as well as the traditional

buyers, so they can

develop an integrated

customer engagement

program that is tied to

the business strategy.

Intimacy

Higher

Lower

Implement an integrated customer engagement

program, coordinated across BUs, and tied to your

business strategy

Inner Circle of Trusted Advisors

Goal:

Co-create

Promoters

Goal: Advocate

and Influence

Customer Community

Goal: Network

with Peers

Extended Community

Goal: Learn

Public Website

YouTube

LinkedIn

Twitter

Professional Associations

User Groups

Conferences

Customer events

Private Communities

Reference programs

Executive sponsorship

Advisory Boards

Councils

ABM Accounts








Study

Methodology In Fall 2011, ITSMA surveyed, via the Web, 465

business and IT executives from companies that

purchase business or technology solutions for

individual contracts over $500,000. These respondents

represented larger enterprises, with 60% having

$1 billion or more in annual revenue from seven

different countries: US, UK, France, Germany,

Australia, Brazil, and India. Respondents were

interviewed in the following vertical markets:

Manufacturing (Consumer/Industrial,

process/discrete)

Financial Services (Banking, Insurance

(except healthcare), and investments)

Communications (Telecom, media, entertainment)

Energy/Utilities/Oil/Mining/Gas

Government/Public Sector (Federal/State;

no local or education)

Healthcare (Payer, provider, and benefits)

Countries Represented % of Respondents (N=465)

United

States

45%

France

11%

Germany

11%

United

Kingdom

11%

Australia

9%

India

7%

Brazil

6%


What is your company’s primary business? % of Respondents (N=465)

28

18

16

14

12

12 Healthcare (Payer, provider, and benefits)

Government/Public Sector (Federal/State)

Energy/Utilities/Oil/Mining/Gas

Communications (Telecom, media, entertainment)

Financial Services

Manufacturing






Decision maker:

I have

budget

and/or final

sign-off

authority

88%

Evaluator:

I research

potential providers

for inclusion on

the shortlist/I

evaluate the

providers

8%

Influencer:

I provide input to

help the

evaluators and

decision makers

4%


Respondent

Characteristics Purchase Involvement

Which of the following best describes your involvement with your organization’s purchase of major technology solutions for contracts over $500,000? % of Respondents (N=465)

Job Role

Are you a business, IT, or procurement/ finance professional? % of Respondents (N=465)

Job Title

Which of the following most closely describes your job title? % of Respondents (N=465)



IT

55% Business

31%

Procure-

ment/

Finance

14%

13

21

14

51

Manager Director VP/ Assistant

VP/ Head

C-level, GM,

President










19

54

16

11

18–29 30–39 40–49 50–64

Annual Revenue of Organizations

Represented

Approximately, what is your company’s annual revenue? % of Respondents (N=465)


What is your gender?

% of Respondents

(N=465)

What is your age? % of Respondents

(N=465)

Male

71%

Female

29%

8

15

17

19 20

13

8

$100–

249M

$250–

499M

$500–

999M

$1–

4.9B

$5–

9.9B

$10–

20B

Over

$20B









Want to learn more? Here’s what’s included in the full study

Table of Contents for The Rise of the B2B Social Buyer: Results from the ITSMA How Buyers Consume Information Survey, 2011

For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Email: [email protected] Phone: +1-781-862-8500, Ext. 112

Slide

Executive Summary 3

Detailed Findings 30

Respondent Demographics 30

Current Environment: Challenges, Budgets, and Priorities

38

Buyer Behavior 43

Epiphany: Keeping Up with the Industry 43

Awareness: Researching Alternative Solutions 47

Interest and Confidence: Evaluating Providers on the Shortlist and Making the Final Decision

53

Marketing Vehicles 61

Crosstab Analysis: 67

By Social Media Use 67

By Country 101

By Age 149

By Job Role 186

By Size of Company 223

By Industry 261







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the rise of the b2b social buyer: results from the itsma how buyers consume information survey, 2011

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