Insights from Luxury Marketing applied in B2B (Part 3)
This document summarises key insights from a conversation between luxury marketing and B2B experts to explore potential connections and transferable strategies between these two sectors.
Host
Tom Gatten, Adzact CEO, was joined by three marketing experts to discuss the topic.
Guests
Jennifer Johnson, UK/I Marketing Manager at Deel. Responsible for brand building and lead generation in the region.
Kathryn Strachan, CEO and Founder of digital content marketing agency Copy House.
Sonia Hobbs, 25+ years in automotive sales and marketing, formerly with Aston Martin and other luxury brands.
Colm O’Shea, Former Strategic Advisor to luxury companies at Forrester and Boston Consulting Group.
Key themes that emerged include:
B2B digital marketing spending is rapidly increasing, requiring new skill sets for B2B marketers of the future.
Targeting niche audiences presents challenges common to both luxury and B2B marketing.
Creating personalised customer experiences, building trust, and nurturing long-term relationships are pivotal. Strategies used in luxury marketing are highly relevant for B2B in this regard.
Distinguishing passionate brand interest from actual purchasing capacity remains an issue in both sectors.
Brand advocates and influencers can help extend the reach and sway potential high-value customers.
Empathetic marketing entails deeply understanding your audience’s lifestyle and preferences outside of their purchasing behaviour. This level of insight allows B2B marketers to tailor strategies better to connect with customers.
The rapid growth of B2B digital marketing and evolving skill sets
B2B digital marketing is growing so quickly in terms of spending – $6 billion in 2019 and $14 billion in 2022 – and is expected to be at $24 billion by next year. As B2B digital marketing continues on a rapid growth trajectory, the skills that B2B marketers need are also evolving. Many B2B marketing teams consist of people with prior experience in consumer marketing. However, marketing to other businesses requires some distinct approaches that merit further exploration of strategies used in analogous sectors like luxury marketing.
"B2B digital marketing is growing so quickly in terms of spend – $6 billion in 2019, $14 billion in 2022 – and is expected to be at $24 billion by next year." Tom Gatten
Shared challenges between luxury and B2B marketing
Both luxury and B2B marketers often deal with niche audiences, finite customer pools, confusion around buyer personas, and a need to track engagement on an individual level whilst maintaining GDPR compliance. These common pain points indicate overlapping strategies between the two sectors.
"In B2B, we focus on the experiential aspect, trying to be distant from sales. We aim to provide added value to prospects or customers through relevant content, facilitating connections with peers and offering what they need even before they're ready to purchase." - Jenn Johnson.
Creating personalised customer experiences
Luxury marketers specialise in crafting personalised experiences tailored to customers' values and priorities. This cultivation of trust and emotional connection leads to lasting relationships and repeated sales over time. B2B marketers can apply similar principles of customization and relationship-building with stakeholders at client organizations. “It’s about creating an environment that was conducive to actually learning and actually taking something away. It can take three years, four years to sell a Bentley.” - Sonia Hobbs
Distinguishing interest from purchasing capacity
A major dilemma shared by both luxury and B2B brands is accurately determining the buying power behind outward enthusiasm or interaction with their products and content. Brand advocates can prove highly influential in driving interest, even if their own individual purchasing ability is limited.
"One of the things that we’ve seen luxury brands struggle with is distinguishing between passionate interest and devotion to a brand, and capacity to pay." - Colm O’Shea
Harnessing brand advocates and influencers
While mega-fans may not become top direct customers themselves, the organic reach and sway afforded by brand advocates and strategic influencers are invaluable. By authentically aligning with influencers respected by the target demographic, B2B brands can attract interest in their products and credibility by association. “They may not be your frequent purchasers, or they may not be your best customers, but they might share that content with their whole audience." - Kathryn Strachan
“They may not be your frequent purchasers, or they may not be your best customers, but they might share that content with their whole audience." - Kathryn Strachan
The role of empathetic marketing
According to Jenn Johnson empathetic marketing, focusing on customer lifestyle and preferences, enhances marketing effectiveness. Traditionally B2B marketers have not prioritized truly knowing the lifestyle, emotions, and preferences of their audience to the extent luxury brand marketers have. However, marketing strategies rooted in deep audience empathy and insights beyond job titles are growing in prominence. This heightened sensitivity to customers’ worlds allows tailored messaging to resonate, enhancing marketing efficiency.
Humanizing interactions and understanding motives outside of a transactional scope is critical for fostering genuine connections in B2B spheres. Marketers must consider the totality of their audience as multifaceted people navigating complex personal and professional environments. Bonding meaningfully through shared values and community support leads audiences to more receptive mindsets regarding purchased offerings.
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