Introduction: The Emotional Dynamics of B2B Propositions
In the realm of business-to-business (B2B) transactions, there’s a prevailing myth that decisions are made more on rational grounds, focusing on technical specifications, pricing, and ultimately, return on investment.
However, this overlooks a critical element: emotion.
While business-to-consumer (B2C) transactions are widely acknowledged to be driven by emotional factors, the truth is that B2B purchase decisions are equally, if not more, influenced by emotions. The stakes are higher, the relationships more complex, and the pressure on decision-makers is immense.
In this article, we’ll will explore why B2B is often more emotional than B2C, we’ll highlight the ‘vanilla’ nature of many B2B propositions, and provide strategies for integrating emotional elements into B2B propositions to better meet customer needs and alleviate their pains.
The Emotional Dynamics of B2B Buying
Higher Stakes and Risks
B2B transactions often involve significant financial commitments and can impact the strategic direction of a company. For example, a multi-million-dollar investment in enterprise software is not just a purchase; it’s a decision that can influence productivity, operational efficiency, and even the company’s market position. The pressure on decision-makers, sometimes but not always C-suite executives, is substantial because their professional reputation and job security can be on the line. Unlike B2C purchases, which might be more transactional and less impactful on a person’s career, B2B purchases carry immense weight.
Gartner along with research highlighted in Harvard Business Review corroborate the complexities and emotional strain inherent in B2B decision-making. Gartner’s studies reveal that on average, B2B purchase decisions involve 6 – 10 stakeholders, each with their own perspectives and agendas, adding layers of complexity to the process. Moreover, Harvard Business Review’s analysis emphasises the psychological toll on decision-makers, pointing out the anxiety and pressure experienced due to significant financial and strategic implications of their choices. This underscores the massive challenge and emotional stake involved in B2B transactions for the decision makers, no wonder they often take their time over it.
Long-Term Relationships
B2B relationships also tend to be quite long-term, involving several ongoing interactions, customer support engagements, and sometimes, collaboration. When a business invests in another company’s products or services, it’s often the beginning of a relationship that could last for years. Trust and emotional investment become crucial. For instance, companies engaging in long-term service contracts or maintenance agreements need to feel confident that their partner will be reliable and supportive throughout the duration of the agreement. It’s also a key component in business lines, like ours, where the product is a service or there is a heavy ‘human’ element to the offer. The classic ‘Trust Equation’ is paramount. This need for trust introduces a significant emotional component into the decision-making process.
Research by Google and the CEB Marketing Leadership Council found that “B2B customers are significantly more emotionally connected to their vendors and service providers than consumers.” This underscores the emotional toll of B2B purchasing experiences, revealing that decision-makers often feel overwhelmed by the weight of their choices. The study highlights the intense pressure to select trustworthy partners who can deliver long-term value and support. This emotional burden is further compounded by the enduring nature of B2B relationships, where decisions can impact the trajectory of businesses for years to come.
Personal Accountability
In B2B settings, individual buyers or teams are almost always personally accountable for their decisions. Their choices can affect their colleagues, departments, and even the entire organization. This personal accountability means that emotional factors such as fear of failure, desire for recognition, and need for reassurance play a critical role. Decision-makers are not just choosing products based on features and benefits; they are making choices that reflect on their professional judgment and capabilities.
As highlighted in HBR (link above) with the B2B elements of value, ‘reputation assurance’ is one of the top factors for a buyer. Ensuring that their professional reputation is managed with bosses and peers is key to getting alignment.
Personal Values
The study by Google and CEB also found that to stand out, B2B propositions need to create excitement, there must be something in the offer that delivers more than just risk mitigation, something that provides reward. “B2B buyers are almost 50% more likely to buy a product or service when they see personal value, such as opportunity for career advancement or confidence and pride in their choice, in their business purchase decision. They are 8x more likely to pay a premium for comparable products and services when personal value is present.”
Tackling the ‘Vanilla’ Nature of Traditional B2B Propositions
Focus on Technical Properties
Traditional B2B propositions often focus heavily on the technical properties of products and services. Datasheets, technical whitepapers, and detailed product specifications dominate the narrative. While these elements are important, they lack the emotional appeal that can make a proposition truly compelling. For example, a tech company might highlight the speed, capacity, and security features of its solution but fail to address how these features translate into peace of mind and career success for the managers making the purchase.
Neutral and Objective Presentation
B2B marketing and positioning is also often neutral and objective. Corporate brochures and [very] standard presentations aim to be fact-based and devoid of emotional language, often leading with ‘we are global, we serve X million customers, our product Z has Y flip-flops’ 🎉. This ‘vanilla’ approach misses the opportunity to connect on a deeper level with the audience. When your business proposition is stripped of emotional resonance, it becomes interchangeable with all your competitors and will fail to stand out in your customers eyes.
For example, in the insurance sector it’s very easy to stand out in a sea of corporate blue with a message that’s some variation of, “Protection for a brighter future together”. In this space it’s been easy for the likes of Beazley to stand out with bright pink and a message of, “Freedom to thrive, powered by bold solutions.” It’s not hard to see why Beazley grew 13% in H1 of 2023 vs. 3.49% growth across the market for 2023 (Statista).
Why B2B Should Shift to Customer-Centric Propositions
People-Centric Sales
In reality, businesses don’t make decisions, people do. Each B2B transaction involves several individuals with personal motivations, fears, and desires. When a buyer chooses you, they’re being influenced by their need for job security, the fear of making a poor decision, and the desire for recognition from their peers and superiors as well as achieving the benefits you claim your proposition delivers.
A customer-centric proposition recognises these human elements and addresses them directly. For example, HP leant right into the fears around data and cyber security with the HP Wolf Security business including a high budget video campaign featuring Christian Slater. “The results included a lift in purchase intent that more than doubled the initial target – and a spike in printer sales that was over three times ahead of the company’s original goal”, WARC.
Understanding Diverse Needs and Fears
Different people have different threats, demands, and wishes. By clustering potential customers into various target groups and creating detailed buyer profiles, businesses can tailor their propositions to address specific emotional needs. For instance, a well-researched profile, backed by primary insight, might reveal that mid and senior-level managers in tech companies are particularly concerned with career advancement and recognition. A proposition that highlights how a product can streamline processes, leading to improved performance reviews, might resonate more deeply with this group.
Strategies to Infuse Emotion into B2B Propositions
Deeply Understand Your Customer’s Needs
No not just the buyers needs for your product or service, go a level higher and abstract out from the specific solution. What are they really trying to do? We often talk about ‘Jobs To Be Done’, popularised by Clayton Christiansen, and use the classic example of buyers of hammers and nails not really wanting a hammer or a nail, but a way to put a picture up. You can abstract further still to the emotional need for happiness a person has when they see their treasured family photo on the wall (or see friends reaction when they visit maybe).
There isn’t a need to abstract too much but a real example from a past client of ours was the need for payment terminals and point-of-sale technology that a garden centre chain had. A quote from the CTO (a tech person by trade) “Ultimately, I don’t care if it’s got Bluetooth or it’s powered by f@#&ing windmills. I want it to help me deliver the experiences my customers expect to have with us.” Now, if you can build your proposition around that, you’re really on to something.
Hubspot have been able to do this well over time, delivering a truly customer centric offer by listening to their customers and the community and guiding product development based on what they said they needed most rather than what competitors were doing or what looked the ‘sexiest’.
Identify and Address Pain Points
Understanding and addressing pain points customers have when trying to achieve the above needs is also crucial. Engaging directly with your customers through interviews and personal interactions can uncover these specific challenges and concerns they face. For example, if customers express frustration with complex integration processes, a company can work on improving that aspect of their proposition or, if sorted, emphasise their seamless integration and dedicated support team. In this instance, do be wary of short-term immediate pains vs. long term recurring pains. It might make sense to focus on the former, but the latter can be more powerful in many cases.
In the financial services sector, Square provides accessible payment tools (and other financial services) to small businesses and entrepreneurs, promoting the idea that anyone can succeed with the right tools. While the integration of a new POS terminal for a small chain of cafes might be a real pain, they know that the daily pain of taking, making and reconciling payments is far worse over the long term. They lean into this, often highlighting stories of small business success with their system, building an emotional connection empowering small business to, “Sell anywhere easily, quickly and seamlessly.” … they say…
Use AB Testing to Refine the Proposition
AB testing can help determine which emotional appeals are most effective. By testing different versions of your proposition’s lead messaging with customers, you can identify which emotional triggers resonate most with your audience. For example, one version of a proposition message might focus on the security and reliability of a product, while another might emphasise the peace of mind that security brings. The results can guide the development of a proposition that combines technical strengths with emotional appeal.
Enhance Customer Experience
A fundamental question that every B2B company should consider is: How can we align our customer’s experience with our proposition and make it as engaging as possible? Improving the customer experience involves both big and small changes but the key is to make sure you align it with the emotions you’re seeking to deliver through your proposition. If your core proposition is all about providing confidence and peace of mind, a super quick checkout experience might not make sense. I remember my first Uber experience, many years ago, and how disconcerted I was that I wasn’t able to approve the payment, it was just sent, regardless of the cost.
In almost every case though, regarding B2B, seeking to provide exceptional customer service, before, during and after sale shows the customer, who likely has staked a lot on you, that you care and that it wasn’t a mistake. Easy access to support and proactive communication can build emotional connections with you and the people in your organisation.
For instance, a software company might offer personalised onboarding sessions and regular check-ins to ensure that customers feel supported and valued throughout their journey.
Conclusion
The B2B landscape is always evolving, and seeing the emotional dynamics at play is crucial for success. While traditional B2B propositions often focus on technical properties and neutral presentations, to be safe and to ensure the largest possible market for the message, there’s a significant opportunity to shift towards customer-centric propositions that tap into the emotional needs and fears of decision-makers.
By understanding the human elements involved, addressing pain points, refining messaging through AB testing, and enhancing the overall customer experience, businesses can create propositions that resonate on a deeper level. This approach not only differentiates them in a competitive market but also builds stronger, more loyal customer relationships.
In a world where B2B is more emotional than B2C, those who embrace this reality will gain a significant competitive advantage.
