Insights from Luxury Marketing Applied in B2B (Part 1)
This document is a summary of insights shared during a conversation between experts in B2B marketing and professionals in the luxury brand industry. The conversation highlighted remarkable similarities between the two industries in terms of the importance of establishing trust and emotional connections with customers over an extended period. Luxury brands have a track record of creating compelling brand stories and delivering personalized, high-touch experiences across multiple customer touchpoints. On the other hand, B2B marketers have traditionally been more focused on product features and transactions, but are increasingly adopting storytelling and relationship-building techniques to enhance customer loyalty and lifetime value.
Host
Tom Gatten, Adzact CEO, was joined by three marketing experts to discuss the topic.
Guests
Shelagh McManus, Senior Director, Marketing - International at Brightcove
Claire Pitman-Massie, VP of Marketing and Demand Generation at ForgeRock
Ben Bulpett, Senior Director Global Field and Partner Marketing at Algolia
Chris Willman, Marketing Director at Commvault
Charles Stephenson, Insurance Partner at Burgess
Chris Davies, EMEA Growth Director at Wunderman Thompson
Alex Blakeway, Managing Partner at Venezia Capital
Sonia Hobbs, Director and Founder at Hobbs Marketing
Key themes that emerged include:
Long-Term Relationship Building: Emphasizing the importance of nurturing enduring relationships over pursuing immediate sales transactions in both B2B and luxury sectors.
Emotional Engagement: Recognizing the role of emotions in decision-making, impacting both B2B and luxury brand interactions and client choices.
Brand Promise and Experience Consistency: The necessity for aligning the brand's promise with its customer experience across all touchpoints to maintain trust and credibility.
Dynamics of Relationship Building: Contrasting approaches to relationship building in luxury and B2B sectors, focusing on brand loyalty versus individual salesperson connections.
Sales Cycle Management: Addressing the complexities of navigating long sales cycles, particularly in the luxury sector, emphasizing patience and trust-building.
Strategic Engagement with Decision-Makers: Highlighting the importance of identifying and engaging key decision-makers and influencers early in the sales process.
Emphasizing Long-Term Relationships Over Transactions
The experts emphasized the importance of nurturing relationships in the long run rather than focusing solely on immediate sales.
Chris Davies highlights that longer sales cycles offer more customer touchpoints and data collection opportunities, which luxury brands utilize effectively for personalized experiences and an integrated customer strategy.
Ben Bulpett also advocated for ungating B2B content to build trust and engagement: "Let them have it. Make ourselves live the values of our brand, which is, that we're easy to do business with. We want to engage."
Luxury brands, often family-owned with a long-term view, enjoy a unique position in the market. An example given involves a client whose initial yacht charter evolved into a significant purchase over decades, showcasing the power of cultivated trust.
"For over 20 years, we grew the connection with a family that rented a £20,000 yacht ...last year they bought a boat for 200 million." Charles Stephenson
Emotional Resonance in Decision-Making
Like luxury, B2B brands recognise the significance of emotional factors in decision-making. Charles Stephenson shared insights into luxury clients' emotional decisions, such as rejecting a yacht based on colour preferences, underscoring the need to meet expectations at every stage to maintain client interest.
"In Luxury, you're building the relationship with the brand, with the organisation. In B2B, we seem to think it's about the relationship with the salesperson, and it shouldn't be about that." - Shelagh McManus
The Promise and Delivery of Brand Experience
Chris Davies reiterated the need for brand consistency, stating that the brand sets expectations which the experience must fulfill. This consistency is vital in both luxury and B2B sectors, given the complexity of their sales cycles.
Shelagh McManus pointed out a key difference in relationship building between the Luxury and B2B sectors, with B2B often mistakenly focusing on salesperson relationships rather than brand loyalty. Alex Blakeway shared an example of a hospitality client who built long-term value and loyalty through training programs, resulting in sustained revenue.
Ben Bulpett discussed the potential of generative AI in creating hyper-personalized content, facilitating a comprehensive understanding of the customer without relying on cookies or personal data. AI can facilitate that elusive "360 degree view" of the customer so important in luxury and B2B settings while avoiding common data pitfalls
Identifying Key Decision-Makers in Sales
Alex Blakeway stressed the importance of recognizing key decision-makers early in the sales process. He pointed out common failures in addressing the right opportunities and people. Claire Pitman-Massey added that identifying the small percentage of viable prospects is crucial, as the majority of the market may not be ready to buy at any given time.
"The brand makes the promise and the experience delivers on that promise...you need every experience and customer touchpoint to be living up to the expectation that's set." - Chris Davies
In conclusion, B2B sectors can learn from luxury brands about building emotional connections, trust, and long-term personalization. While relationships have always been key in high-ticket B2B sales, focusing too heavily on short-term transactions can weaken these crucial connections.
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