How B2B Brands Underestimate Branding's Role in Driving Growth
The B2B branding blind spot
In B2B, branding often takes a backseat, but without focusing on understanding its true potential to drive growth, businesses will lose out to the competition that don’t have a branding blind spot. According to the 2022 CMO Survey B2B companies invest less in brand and marketing than their B2C counterparts. Also, a quick look at any typical B2B brand and their competitors and it’s more often than not a bland sea of sameness where not standing out is the norm. But why is this critical element of growth so often overlooked in B2B and what can be done to shake things up?
Why is this so?
Internal misalignment is one of the key reasons. That’s typically between the CEO and the CMO (Chief Marketing Officer) with many CEOs sceptical about the impact of brand on business growth. There can be many reasons behind this misalignment from low levels of CEO marketing literacy, to an absence of key performance metrics that connects brand with revenue growth.
Another factor is timing. Even marketing-savvy CEOs may take a more short term view, in that the benefits of branding are too far off on the horizon to act now, preferring instead to focus on current marketing programmes to meet immediate business goals. Though, frankly that’s like driving with the brakes on if your brand’s not up to the job in the first place.
The misconception that B2B buyers don’t do emotion also explains why branding is so often put on the back burner. As B2B equates to big deals, with long sales cycles and large buying committees to reach out to, many brands declare themselves emotional-free zones, resulting in rationale and serious being their brand default. Though contrary to what many think, the opposite is true. A Google study showed many B2B buyers actually do have high emotional connections which is explained by the level of risk involved in making their purchase decisions.
Another reason highlighted in a recent Insights article puts it down to the myth that for many “B2B is more about relationship building than brand building.” As a result, brand building naturally slips down the to do list for these businesses before falling off it altogether.
What’s more, branding’s also often overlooked amidst the techno-turmoil in today’s complex world of B2B marketing. With AI flashing its dazzling lights, CMOs juggling existing MarTech tools and managing a demanding C-suite, it’s easy to understand how branding gets lost in the noise.
How strong B2B brands fuel growth
According to Michael Brenner’s Renegade blog post, strong brands have higher brand equity, a key differentiating factor from their competitors and so “making it easier for B2B buyers to select and place their trust in that particular brand” above the rest.
Strong branding for many, humanises B2B companies, which are often seen as faceless entities. Consequently such humanised brands connect with their audiences at a deeper emotional level forming more meaningful relationships with them and making it more likely that their buyers engage with them. This in turn, sets these more accessible brands apart from their competitors.
Such strong B2B brands like these, that are more effective at resonating with their target audience are also more likely to command premium pricing, adding to their bottom line. With compelling messaging and positive customer journeys these brands also have more loyal customers, increasing retention rates and of course also massively improving their bottom line as they do so. There are so many upsides of strong brands to driving growth and these are just some of them.
But with the B2B market landscape still largely commoditised in its vast sea of sameness, where many businesses offer very similar products or services, how can B2B organisations harness the power of their branding to drive growth?
How to unleash your brand’s growth power
There are four key recommendations. First, you must strive to fully understand the connection between branding and business growth. This Renegade podcast would be a great starting point. Second, having a brand a health-check, with a brand audit would highlight specific brand growth opportunities for your business. Third, if your branding does fall short, which it most likely will if you’re a typical B2B brand, creating internal alignment on these branding opportunities, especially between the triangle of trust stakeholders (the CEO, the CMO and the CFO) is critical. Finally, bring in outside expertise if required.
In the ever-evolving landscape of B2B, branding is no longer a nice-to-have, but a strategic imperative. It has the potential to elevate your organisation from being just another look-alike player in the market to a trusted partner that cuts through. So, invest in your brand, cultivate its power, and watch as it propels your B2B success to new heights.
