Blog Category: Business-to-Business (B2B)

All B2B markets are not created equal. How well do you understand yours?

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The term “B2B” is useful, because business customers can be so different than end-consumers. But it’s a blunt and imprecise term, and we can do better. Check out the “B2B Index” developed by The AIM Institute. The higher your market’s B2B Index, the greater you can engage customers… in both early-stage and late stage marketing. (This is a free service.)

Calculate your B2B Index at www.b2bmarketview.com

Closing the “Customer Insight Gap” gives B2B suppliers a competitive edge. Not so much for B2C.

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B2C employees (e.g. Apple engineers) are consumers themselves, so they have high typical customer insight… but low potential insight, since consumers can’t easily predict what will entertain them. The gap between typical and potential insight when serving knowledgeable B2B customers is much larger. This is your competitive edge if you close the gap before competitors.

More in white paper, Catch the Innovation Wave (page 13).

Most B2B firms can make one simple change that will revolutionize their innovation results.

176 Market Satisfaction Gap

This can super-charge your organic growth: Don’t let your R&D conduct any product development work without unbiased, unfiltered data on what customers do and do not want. Market Satisfaction Gaps—based on importance and satisfaction scores for customer outcomes—provide this. You’ll free up enormous resources by working on only what matters.

More in white paper, Catch the Innovation Wave (page 13).

Starting NPD without customer insight is like starting a shoving match with a sumo wrestler.

173 Sumo Wrestler

In either case you should ask, “What was I thinking of when I started this?” Especially if you are a B2B supplier with knowledgeable, interested, rational customers, who want you to know their needs. And a science already exists for completely understanding these needs. Maybe it’s time to stop throwing salt and begin learning a better approach?

Learn more in our e-book, Reinventing VOC for B2B

Should you take a Do-It-Yourself approach to customer insight?

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B2B producers often take a DIY approach, while B2C marketers hire research firms. Why? For one thing, consumer products often have bigger annual revenues: Think of all the small B2B parts in a big-ticket item like a smart phone. For B2C it’s all about that launch. But B2B companies often “turn the crank” on many smaller new products… so its economical to develop in-house expertise.

More in article, You Already Answered 4 Questions, but… Correctly?

I’m still looking for a B2B industry that does not suffer from supplier-centric innovation.

165 Supplier centric

It would seem obvious that new product development should be focused on those who will pay for these products: customers. It would seem. Yet B2B suppliers routinely pursue their own ideas, concepts and hypotheses, paying too little attention too late to market needs. True customer-centric innovation is a completely different mindset.

More in article, Is Your Innovation Supplier-Centric… or Customer-Centric?

When it comes to B2B customer needs, uncertainty exists in suppliers’ minds, not customers’.

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Many ventures try to create new products or services under conditions of market uncertainty. This is a huge challenge for B2C. But uncertainty does not exist in the minds of most B2B customers… who have great knowledge, interest, objectivity and foresight. If you know how to access this, your supplier uncertainty will plummet.

More in white paper, Lean Startup for B2B (page 12).

B2B customers can tell you exactly what they want… but you must know how to ask.

140 Architect

Imagine you’re planning to build a new home: Your architect sees you for half an hour, spends the first 15 minutes talking about sports, and then shows you pictures of other houses he designed. Later, when the house fails to please you, he dismisses it saying, “Well that buyer just didn’t know what he wanted.” Ever treat customers this way?

More in article, What is New Product Blueprinting?

Suppliers want differentiated products, but most fail to understand what this requires.

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You want differentiated new products that will induce enthusiastic customers to open their wallets wider. Differentiated products must be… different. But different from what, in what ways, and to what extent? 100% of this information can be learned from B2B customers… but only if you engage them in specific discussions. Very few suppliers do this correctly.

More in article, Four Steps Needed for New Product Differentiation (Originally published in B2B Organic Growth newsletter).

“Here today, gone tomorrow.” This is the innovation failure mode that is seldom recognized.

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Picture this: You develop a great new product, price it well, and profits begin flowing. This does not go unobserved by competitors who introduce a knock-off, causing prices to drop. Everyone noticed the initial success, but few noticed the failure: Aggressive patent homework might have kept those profits flowing for years. Depressing… if you noticed.

More in New Product Blueprinting article, Are You Maximizing Your Profits?

The best way to hear (the customer) is often to see.

113 Projecting Interview Notes

One of our best innovations started as an experiment. In 2004 I projected my notes during a customer interview. The customer loved it, the meeting went far longer than expected, and we haven’t looked back since. Sure, customers can correct your notes this way, but our biggest discovery was that customers own what they create and can see.

Read more in the article, The Best Customer Interviews Use a Digital Projector (Originally published in B2B Organic Growth newsletter).

Expect more out of your interview with a hydraulic hose buyer than with a garden hose buyer.

90 Hydraulic Hose

You can have an intelligent, peer-to-peer conversation about pressure ratings, fluid specifications, etc. You can expect greater B2B interest vs. B2C, since your innovations can help the hydraulics engineer become a hero with his next new product. Without innovative suppliers like you, his path to recognition is a difficult one.

Read this article, B2B Customer Interviews: Are They Different?  to learn why you are severely under-optimizing if you are a B2B supplier using one-size-fits all VOC… that others use for consumer goods.