Three Trends You Can t Ignore

Transcription

1 Three Trends You Can t Ignore Results from the ITSMA How Buyers Consume Information Survey, 2012 Abbreviated Summary December 2012 Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Dianne Kim Research Associate ITSMA

2 Abbreviated Summary Note: This abbreviated summary highlights some of the significant findings from Three Trends You Can t Ignore: Results from the ITSMA How Buyers Consume Information Survey, A more in-depth analysis can be found in the full report. Last year s ITSMA buyer research uncovered shocking revelations about changes in buyer behavior, most notably the decline of traditional peer influence and the rise of the B2B social buyer. This year s data confirms these two trends and introduces a new one. Here are the three trends you can t ignore: 1) 1 Solution providers are a credible and influential source of information, even more so than peers. 2) B2B social buyers and traditional buyers do consume information differently. 3) Contrary to popular belief, buyers rely on sales at all stages of the buying process. 3 In our 2012 buyer research, ITSMA is seeing major shifts in buyer behavior and preference in information consumption. More than ever, buyers are looking to many different sources to inform their decisions. Read this report to find out how to most effectively reach and engage with today s buyer. F022AS 2

3 Last year s study introduced the rise of the B2B social buyer, who uses on social media and online communities during the purchase process. This year s data provides more insight on the profile of the B2B social buyer. They are young senior executives with clout; for the most part they are under 40, are decision-makers, and belong to the IT organization. They spend more time consuming content than their traditional counterparts and are less likely to delegate research during the early stage of the buying process. We are dealing with a new type of buyer: proactive and empowered. The B2B Social Buyer is a young executive with clout Age* Job Role* Job Title* 14 IT Business 31 Manager Director/Assistant VP VP/Senior VP/Head C-level, GM, President B2B Social Buyer (N=139) Traditional Buyer (N=160) * Indicates a statistically significant difference. There were no significant differences found by size of company, industry, or gender F022AS 3

4 The research results validate that solution provider websites are now the primary and source of information for buyers during the early stages of the buying process. Many buyers turn first to solution provider resources before they seek counsel from their peers. Peers, while still important as a source of referral, recommendations, and references, are no longer the best source of information. Buyers turn to solution provider information sources first What were the first three sources of information you turned to when you began your solution research? (Rank order 1 st, 2 nd, 3 rd ) % of Respondents (N=299) Technology or solution provider websites Technology or solution provider subject matter experts Web search Technology or solution provider sales people Peers/colleagues Industry analysts Management consultants Industry events/trade shows Focused online communities/social networks Focused industry or trade media General business media Sourcing advisors Universities, research institutes, think tanks Local or national professional trade associations Social media/networks Blogs 6 1st 2nd 3rd Note: Respondents were asked to rank order top three. F022AS 4

5 At the same time the data shows the decline in conventional peer influence, we also see a rise in solution provider credibility. Buyers endorse solution provider subject matter experts (SMEs) as the most credible source of information during the purchase process. Solution provider websites, and even sales people, are also high on the list. Traditional buyers are twice as likely to rank peers as a credible source of information than are the B2B social buyers. But even the traditional buyer find the solution provider resources to be trustworthy! We see an elevation in solution provider credibility Which of the following sources of information are most credible? % of Respondents Rank in Top Three Technology or solution provider subject matter experts Technology or solution provider websites Industry analysts Management consultants Technology or solution provider sales people Peers/colleagues* Web search Focused industry/professional online communities Industry events/trade shows,focused industry or trade media Sourcing advisors General business media Universities, research institutes, think tanks Local or national professional trade associations Social media/networks* Blogs B2B Social Buyer (N=139) Traditional Buyer (N=160) Note: Up to three responses allowed; respondents were asked to rank order top three sources. *Indicates a statistically significant difference F022AS 5

6 Although both types of buyers are hungry for fact-based content and thought leadership, they differ when it comes to preferred delivery channels or formats. Addressing the needs of both B2B social and traditional buyers means marketers must re-balance the marketing mix and do a bit of everything to meet the information demands and preferences of a bifurcated market. Marketers jobs are complex, they must rebalance the marketing mix Which information delivery channels or formats do you typically prefer? % of Respondents Research reports Social media* newsletters* In-person seminars/conferences/tradeshows* Print journals/magazines Virtual seminars/conferences/tradeshows* Webinars Sales calls or private briefings Digital magazines Videos Website copy Blogs* White papers Brochures (hard copy)/datasheets ebooks Direct mail RSS Feed or other newsfeeds Podcasts B2B Social Buyer (N=139) Note: Respondents were asked to rank order top three channels. *Indicates a statistically significant difference Traditional Buyer (N=160) F022AS 6

7 Contrary to conventional wisdom, buyers are no longer waiting longer and longer to engage with sales. The pendulum is swinging yet again and sales is being invited to join the conversation, at all stages of the buying process. But there s a catch! Sales people are expected to educate and provide new and provocative perspectives on the market and technology solutions. Marketing must enable sales to do thought leadership selling and act as the frontline subjectmatter experts. Sales is being brought back to the conversation 70% Stage 1. Epiphany Keeping up with industry/ technology news and events 70% of B2B technology solutions buyers want to engage with sales reps before they identify their shortlist. -ITSMA Stage 2. Awareness Learning more about potential solutions and solution providers Stage 3. Interest Identifying a shortlist of solution providers 16 Stage 4. Confidence Evaluating and selecting a solution provider/ Making the final decision 14 Stage 5. Loyalty Building ongoing relationship with solution provider postpurchase F022AS 7

8 Buyer behavior is changing at an accelerated pace and marketers need to be at least one step ahead of them, not constantly trying to catch up. Marketers must leverage solution provider credibility and give buyers what they want: Easy-to-find quality information, access to SMEs, and strong thought leadership, via both marketing campaigns and sales interactions, that educates buyers and bolsters their company s reputation as an industry leader. Buyers want easy to find information and access to solution provider SMEs Technology or solution provider subject matter experts Technology or solution provider websites Industry analysts Technology or solution provider sales people Peers/colleagues Note: Respondents were asked to rank order top three st 2nd 3rd 34 F022AS 8

9 Study Methodology In Fall 2012, ITSMA surveyed, via the Web, 299 business and IT executives from companies that purchase business or technology solutions for individual contracts over $500,000. These respondents represented larger enterprises, with 47% having $1 billion or more in annual revenue from four different countries: US, UK, France, and Germany,. Respondents were interviewed in the following vertical markets: Manufacturing (Consumer/Industrial, Process/discrete) Financial Services (Banking, Insurance (except healthcare), and investments) Public sector/healthcare Communications (Telecom, media, entertainment) Other (Retail/wholesale, transportation, energy/utilities/oil/mining/gas, business services, travel and hospitality, aerospace/defense) Countries Represented % of Respondents (N=299) France 15% Germany 13% UK 15% What is your company s primary business? % of Respondents (N=299) Other US 57% Communications (telecom, media, entertainment) Public sector/healthcare Financial Services (banking, insurance, and investments) Manufacturing (consumer/industrial, process/discrete) Note: Other includes, retail/wholesale, transportation, energy/utilities/oil/mining/gas, business services, travel and hospitality, aerospace/defense F022AS 9

10 Respondent Characteristics Purchase Involvement Job Role Are you a business or IT professional? % of Respondents (N=299) Business 39% Which of the following best describes your involvement with your organization s purchase of major technology solutions for individual contracts over $500,000? % of Respondents (N=299) Influencer: I provide input to help the evaluators and decision makers Evaluator: I research potential providers for inclusion on the shortlist/i evaluate the providers on the shortlist and select the best solution Decision maker: I have budget and/or final sign-off authority Job Title Which of the following most closely describes your job title? % of Respondents (N=299) 25 Manager 18 Director/ Assistant VP 23 VP/Senior VP/Head 33 C-level, GM, President IT 61% F022AS 10

11 Annual Revenue of Organizations Represented Approximately, what is your company s annual revenue? (or operating budget if government) % of Respondents (N=299) What is your gender? % of Respondents (N=299) Female 24% Male 76% What is your age? % of Respondents (N=299) $ M $ M $ M $1 4.9B $5 9.9B $10 20B Over $20B F022AS 11

12 Table of Contents for Three Trends You Can t Ignore: Results from the ITSMA How Buyers Consume Information Survey, 2012 Want to learn more? Here s what s included in the full study Slide Executive Summary 3 Detailed Findings 36 Respondent Demographics 36 Current Environment: Challenges, Budgets, and Priorities Buyer Behavior 50 Sources of Information 54 Solution Provider Websites 60 Social Media 65 Value of Sales 71 Solution Provider Selection Criteria 77 Crosstabs: 80 By Social Media Use 80 By Country 122 By Age 160 By Job Role 8 By Job Title 235 By Size of Company 273 By Industry For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA jschwartz@itsma.com Phone: , Ext F022AS 12