B2C IS NOT A MODEL FOR B2B DIGITAL TRANSFORMATION SUCCESS
It’s a myth that what works in B2C will work in B2B when it comes to successfully leading digital transformation.
As digital technology continues to advance and transform entire industries, B2B companies are finding it increasingly difficult to drive sustainable and profitable growth.
The sector has been accused of being digital laggards.[1] However, the reality is that leaders of B2B firms are well aware of the need to transform but are desperately in need of direction as to how to change and even where change is required. The majority of digital strategies being put forward are taken straight from the B2C handbook and fail to address market dynamics and customer-behaviors unique to the B2B sector.[2]
Recognize B2B and B2C differences
It’s time to dispel the myth that what works in B2C will work in B2B when it comes to successfully leading digital transformation. A myopia afflicts those who don’t appreciate the profound differences between growing a B2B company and growing a consumer business. B2B businesses cannot be Uber or Tesla because they cannot rely on bypassing existing sales and communication channels to reach a single key decision-making consumer.
Success in B2B relies on navigating complex value chains and addressing the disparate needs of multiple commercial decision makers and decision influencers. Leaders who do not appreciate the differences between B2C and B2B have spearheaded B2C look-alike digital investments that have generated false starts and dissatisfaction.[3] Myopia has thus set back the development of digital marketing in B2B by making many B2B growth leaders skeptical of the whole concept of digital customer engagement. They realized that B2C copycats were unlikely to succeed, but they could not see other, more B2B-suitable, ways to engage their customers digitally.
Put People First and Last
Digital transformations succeed by putting people first—and last. Every transformation project must begin by understanding customers’ needs, and no transformation project can be completed until the challenges of employee learning, development, and motivation as well as talent management, governance, and measurement are addressed.[4] Collecting and helping employees use technology to deploy customer data effectively— are crucial to this endeavor. When seen through the lens of customers, employees, and data, digital transformation is a continuous, multistep process. Success lies in achieving ever-increasing levels of customer-centricity, in which employees learn from customers every step of the way, and customers recognize that the company is increasingly attentive to their needs.
[1] “Why B@B Sales Still Has a Crucial Digital Gap: and How to Fix It”, Crank Wheel, March 1, 2018, https://crankwheel.com/why-b2b-sales-still-has-a-crucial-digital-gap-and-how-to-fix-it/
[2] Alessandro Di Fiore and Simon Schneider, “Stop Treating B2B Customers like Digital Novices,” hbr.org, May 10, 2016, https://hbr.org/2016/05/stop-treating-b2b-customers-like-digital-novices.
[3] Kestutis Reklaitis and Lina Pileliene, “Principle Differences between B2B and B2C Marketing Communication Processes,” Management of Organizations: Systematic Research 81, no. 1 (October 30, 2019): 73–86; Severina Iankova et al., “A Comparison of Social Media Marketing between B2B, B2C and Mixed Business Models,” Industrial Marketing Management 81 (August 2019):169–179.
[4] Thomas Abrell et al., “The Role of Users and Customers in Digital Innovation: Insights from B2B Manufacturing Firms,” Information & Management 53, no. 3 (April 2016): 324–335; Michael Brown, “How Boosting People Skills Helps in Digital Transformation: A Case Study,” Strategic HR Review 18, no. 6 (November 11, 2019): 254–257.
