Business purchasing decisions are inherently risky, largely due to the involvement of numerous individuals in the process—some familiar to marketers, while many are not. Recent research conducted by LinkedIn and Bain & Company reveals how various buyers manage the anxiety of making mistakes and highlights where brand initiatives can play a role in enhancing outcomes.
The significance of buyer anxiety
Understanding buyer anxiety is crucial, as highlighted by recent findings shared at the Cannes Lions International Festival of Creativity. This anxiety is a key factor explaining why market leaders in B2B industries often maintain a significant edge over smaller competitors, reinforcing the adage that “nobody ever got fired for buying IBM.”
The research focuses on two categories of B2B buyers, although the average buying group typically consists of 23 individuals, suggesting the presence of additional stakeholders. The primary buyers are those who advocate for the solution; they are experts in their fields and are often the focus of marketing strategies aimed at the mid-funnel stage.
In contrast, there are also hidden buyers—financial, legal, or technical specialists—whose influence on purchasing decisions is vital but who operate with different priorities. For these individuals, the research indicates that brand development is even more essential in mitigating the risks associated with business purchasing decisions.
Ultimately, a significant aspect of B2B marketing involves establishing the credibility necessary for agreement.
The research details
Jamie Cleghorn, a senior partner at Bain & Company, along with Minjae Ormes, LinkedIn’s VP of marketing, brand, and consumer, presented these insights during a session on the creative impact stream at Cannes Lions. The study surveyed 515 participants from the US and Western Europe, with over half being senior leaders from predominantly enterprise-level organizations. The respondents were categorized based on whether they were target or hidden buyers.
What target buyers seek: According to Cleghorn, target buyers prioritize advanced features, transformative capabilities, and innovation.
What hidden buyers seek: This segment prefers dependable brands that offer reassurance and are endorsed by their peers, making them the safer option.
The key takeaway
Notably, well-established brands dominate the market, winning in 81% of instances; conversely, only 4% of deals are secured by brands that are familiar solely to the target buyer group.
However, familiarity with the target buyer can also be advantageous: when presented with comparable solutions at similar price points, both buyer groups tend to dismiss lesser-known brands, are willing to pay a premium for recognized solutions, and are more inclined to advocate for established brands.
However, distinctions exist:
- Hidden buyers are 1.27 times more inclined to make a purchase when they recognize a vendor from the outset.
- They are 1.31 times more likely to dismiss a vendor due to lack of recognition.
- They are 1.7 times more likely to reject a vendor that is not well-known within their group.
What this means for B2B brands
- For established brands, Cleghorn suggests a straightforward approach: "continue investing in your brand."
- In contrast, challengers must focus on creating a foundation for agreement, enhancing their brand's visibility and the perception of safety and reliability well before the purchasing decision is made.