The growth-at-all-costs mindset has led to a difficult and complex operations landscape for B2B businesses, where 95% of their target audience is not ready to buy the product they sell.
Of the 5% of businesses that are ready to make a purchase, it is statistically unlikely that they are on the initial day-one list that B2B buyers have in mind when seeking out vendors. 90% of B2B purchases are made off that initial list, where companies land as a result of marketing, strategic influential partnerships, and a robust content marketing plan.
Challenges for Small and Mid-Sized B2B Organizations
For larger B2B organisations, the cost of doing business, while exponentially higher, can be readily absorbed by ongoing business. Larger B2B organisations are in a better position to play the long game, providing more opportunity to take their time to reach marketing leads, and pivoting when planned returns do not materialise. Smaller B2B organisations, in their initial start-up phase, do not have the luxury of pivoting or big-spend marketing, so the client acquisition decisions are removed from operations until they reach a point where leads start to dwindle.
The problems arise when those smaller businesses do grow into a mid-sized entity. To move from a mid-sized business to a larger one requires more business, and to escalate to more business, more clients are needed — however the statistics of new client acquisition are far from ideal.
Smaller and mid-sized entities, with less of a marketing budget, and facing a marketing landscape that is outright difficult to break into, can thus decide that the cost of professional marketing is too high, and attempt to advertise the business themselves. While it’s an effort worth trying for smaller businesses that have some room to grow, mid-sized entities will not see the greatest benefits of marketing with DIY efforts.
The Importance of Content Marketing and Brand
To quantify the value of marketing, it’s prudent to identify the value of a good brand and a good content marketing plan.
- Companies that excel in personalisation generate 40% more revenue from those with little or no personalisation.
- 89% of B2B buyers engage with content before talking to a sales rep.
- 49% of B2B spending happens online.
- There is a 55% increase of buyers relying on content to research and make purchasing decisions.
Content marketing and brand are increasingly serving as differentiators in a crowded and noisy B2B marketing landscape. They function in similar ways to B2C marketing, primarily because the variations between B2C and B2B marketing are narrowing as a new cohort of B2B buyers – millennials and Gen Z – take over decision-making roles.
B2B buyers are online, overwhelmed, and looking for easier decisions to make. Marketing and a strong brand have become a non-negotiable aspect of B2B.
DIY Marketing: a consideration of price
The reality is that, while B2B brand and content marketing is a non-negotiable aspect, smaller brands can be priced out of the conversation or have to rely on DIY marketing just to get by. This will work until the next growth stage is reached, at which point professional marketing becomes a necessity to continue meeting business demand and scale outside of existing clients.
While DIY marketing can definitely have a short-term benefit of growth, there are some things that hamstring its efficacy in the long-run for larger businesses.
1. Time spent on marketing.
On average, B2B marketers at medium-and-large enterprises spend 82% of their work hours on creating content, including social media posts, newsletters, and blog posts. In addition, they send a significant amount of their time on content strategy creation, managing existing campaigns, and posting content.
Social media and blogs alone take, on average, 3.4 and 4.7 hours respectively; ebooks, whitepapers, videos, and webinars all average nearly 5 hours. This is a significant amount of time to take out of a packed work day to create content. The hours also do not average out when taking into account that it takes upwards of seven interactions with a brand before purchasing.
2. Lack of expertise across marketing disciplines.
Effective marketing requires expertise across disciplines, and an eye on current research, trends, and consumer shifts. For an untrained professional to specialise in one aspect of marketing, such as SEO or Google Ads, is possible, but the efficacy of those campaigns can be limited. As the discipline becomes more complex, the reality is that it will be harder for DIY marketing to reach the same level of benefit as professional marketing.
3. Fundamental misalignment.
A misalignment between sales and marketing can be difficult to overcome, primarily because it might be considerably harder for a non-professional to identify which of their marketing efforts is producing the misalignment. Regardless of understanding the root cause, a misalignment between sales and marketing can lead to a 10% revenue decline, as discovered by Hubspot.
It is also one of the most common issues for B2B organisations, with 92% of companies admitting to weak alignment between sales and marketing to Forrester Research, and 52.2% of sales professionals citing lost sales and revenue as a direct cause of misalignment.
4. Inconsistency in marketing efforts
The B2B buying cycle is fundamentally a personal one, and consistency is key to attracting high-quality leads and triggering the purchase process. Businesses that prioritise lead nurturing and engagement can generate up to 50% more sales-ready leads that they can continue to grow as a result.
Furthermore, brand consistency is another key metric that DIY marketing can struggle with, with consistent brands seeing 10-20% more revenue but more than 47% of brands admitting that they publish off-brand content a few times per year.
5. Lack of strategic approach.
92% of B2B marketing budgets are spent on short-term, bottom funnel objectives such as lead generation, which has little effect on future buyers, and does not take into account future developments for your business. By targeting engagements that focus only on bringing short-term opportunities through the door, it is likely that the B2B marketing cycle will eventually stop producing leads and new clients, which can be difficult for a smaller business to overcome. A strategic approach ensures that clients trickle in at a steady, manageable pace that allows for the business to scale reasonably.
6. Cost-effectiveness in the long run.
With an understanding of the right tools to use, the right metrics to monitor, and the time taken to ensure that campaigns are continuously maintained to deliver high results, professional marketing is cost-effective, a promise that is far harder to achieve with DIY marketing. On average, professional marketing will base any marketing on information generated through business operations, allowing them to tailor marketing tactics to generate the greatest possible opportunity for sales. DIY marketing may have access to the same information but without the necessary skills to adapt marketing tactics to serve that information, therefore leading to lost costs.
Misconceptions about marketing for DIY marketers
While 67% of companies outsource their marketing needs as a matter of course, the ones that prefer to DIY their marketing have specific considerations for why they opt to keep control of their marketing.
The top two reasons appear to be based on misconceptions.
- Lack of control over brand.
- Lack of discretionary budget to conform to agency fees.
These matters are considerable worries, however they can be easily amended by finding the right agency to partner with. Effective marketing partnerships can allow a growing business control over the fundamental aspects of their identity, and merely strategise and build communication around what already exists.
Budgetary concerns, on the other hand, are a little harder to overcome. For businesses that are still in the primary start-up stage, it can be effective to retain all marketing efforts and keep them in-house – but as the business does start to grow, marketing in-house will lead to a lot of missed opportunities.
The opportunity to outsource
Over half of B2B marketing teams outsource at least one aspect of content marketing. What this provides the company is the flexibility to prioritise their in-house operations while simultaneously benefitting from the expertise of a fractional agency. Outsourcing marketing activities allows for a better opportunity to generate content that drives leads, and leave the internal team free to continue with the work of running the business. It takes the pressure of the intensive, day-to-day monitoring and content creation away from upper management and puts it into the hands of experts who can focus solely on your content.
For B2B organisations to thrive within shrinking market share, there needs to be an adjustment made for the state of the industry at the moment. The B2B buying cycle is long and complex, and communicating at the right time and with the right idea will make a significant difference to the business — but that path is time-consuming, and complex in itself.
Outsourcing your marketing will at least enable you to both prioritise your business and your marketing, without one sacrificed for the other. It’s the most sustainable, economical way forward, particularly for businesses who want to pay for proven results.
And all it takes to start with this path is the right partner. Get in touch to see how we can help you create lasting growth and success through strategic, results-driven marketing.
