1. Who is your customer? A data-driven approach to B2B customer & competitive analysis Carol Scovotti, D.P.S. Marketing Professor, Fulbright Scholar University of Wisconsin-Whitewater scovottc@uww.edu The Mysterious B2B Marketplace The public doesn’t know B2B marketing exists! Focus is typically on B2C activities B2C is provocative; sexy B2B is functional; “meat & potatoes” 60 to 65% of marketing spending is B2B Customer & Competitive Analysis Respondents asked two vital questions for relevant product categories: Who do you buy from now? Who might you buy from in the future? This provided necessary data for extended customer & competitive analysis Look what you get when you blend behavioral & demo data! B2B Marketing Challenges B2B customer data not as available as consumer data Smaller niches More specialized lines of business Few suppliers have extensive marketing analytics expertise Still need data to determine marketing strategy State of the Industry Research NueMedia surveys its 42,000 membership base bi-annually Over 5000 members responded to the 2014 online survey! (11.9% response) Nature & Scope – What businesses are members in? Sales? Years in business? Number of employees? Geographic service areas? Single or Multifaceted – Are member businesses involved in more than one business category? Media Dependence – What types of media do members use to gather company, product, & business process info? Products & Suppliers – What products do they buy to run their businesses? Who are the preferred suppliers? Which suppliers are members considering? Changes from Prior Studies – How have member businesses changed since the prior study (2012 – 2014)? Implications Model & approach revolutionizes B2B media Provides buyers with information & ideas they need to run their businesses better Provides marketers with customer intelligence never before accessible Digital Platforms Transform Marketing Opportunities FOR MEMBERS/SUBSCRIBERS … Access to up to date product, service, & process information whenever and wherever it is needed No fluff FOR MARKETERS … Reach “long tail” sectors Horizontal & vertical coverage Instantaneous updates possible Digital media rates ~10% the cost of print advertising FOR TRADE PUBLISHERS & ASSOCIATIONS … Innovate beyond what was possible with traditional media Supply vital research never before available about B2B customers Become the source for crucial business intelligence This study examines an innovative use of data collected in a “State of the Industry” report conducted NueMedia, LLC, a developer & manager of web portals for the commercial woodworking, finishing & countertop industries Ross Scovotti President & CEO NueMedia, LLC rscovotti@nuemediallc.net 20 th Century B2B Marketing Trade publishers & associations focused on industries as vertical silos Content exclusive for the silo Marketers focused on primary silos, ignored related sectors Too little market potential to warrant spending “Long tail” refers to industry sectors with relatively low sales potential compared to the primary sector TO WHOM SHOULD A COMPANY MARKET? Source: eMarketer, February 2015 noyesno B2B Structure Changed in 2000s Move from niche product/service offerings to one-stop-shop Cabinet makers added finishing services Countertop professionals started selling cabinets, etc. Diversified businesses needed content not available through traditional media Marketing to vertical silos no longer effective Horizontal approach needed to reach the growing “long tail” 21 st Century Digital B2B Media: The NueMedia Model Horizontal and vertical approach combined to harness the power of database and digital media Vertical Digital information portals DIPs Doorways to trade content Like depts in magazines Industry news Best practices “How to … “ articles Horizontal Company & product database Bridges silos to serve all industries Drivers to the Portals eNewsletters – Weekly content Email - Targeted promotions Social media – Member interaction Sample Overview Table: Members Who Buy from Laminate Companies Abet Laminati (Partial) Customer Profile