What is the corporate decision-making process in BtoB business?

■Survey on Corporate IT Procurement Processes Conducted in 11 Countries and Regions Worldwide

Last year, Dentsu Inc. collaborated with LinkedIn, the business-focused social networking service with over 400 million registered members worldwide, to conduct a joint survey targeting individuals involved in business technology solution purchasing across 11 countries and regions. The survey focused on the highly competitive "corporate IT solution purchasing" market.

In recent years, attention has grown toward B2B communication, driven by shifts in business models toward B2B by leading Japanese companies. Overseas, specialized agencies have been established to address the complex decision-making processes unique to B2B.

So, how does the B2B decision-making process differ from B2C communication? The key points are that business purchasing involves forming a purchasing committee that spans various departments and includes many members. Furthermore, the information required differs at each phase leading up to the decision, and business purchases are made through a highly complex decision-making process.

Let's take a look behind the scenes of complex business purchasing, supported by research data.

■B2B Communication: Behind the Scenes of IT Purchasing

We categorized IT into four types—"End-User Hardware" (PCs, mobile phones, printers, etc.), "End-User Software" (customer management, analytics, marketing support tools, etc.), "Data Center Hardware" (networks, storage, servers, etc.), and "Data Center Software" (security, cloud, virtualization, etc.)—and examined the differences in their respective purchasing processes.

For IT companies, acquiring new customers presents a high hurdle and requires long-term commitment.
 

Figure 1: Percentage of respondents considering new vendors

 

In corporate IT purchasing, the percentage of companies considering new IT vendors ranges from 19% to 36%, indicating a highly competitive market. The most competitive IT category is end-user hardware (PCs, mobile phones, printers, etc.). Conversely, end-user software (customer relationship management (CRM), analytics software, marketing support tools, etc.) operates in a relatively open competitive environment.

Figure 2: Time Required for Each Stage of the Procurement Process

Furthermore, the time required for consideration at each phase of the purchasing process is lengthy, and it is common for the vendor selection process to take over a year. Securing business is a long journey, requiring continuous relationship building and information sharing.

ITpurchasing decisions involve various business departments
 

Figure 3: Departments Involved in IT Procurement Decision-Making

The IT implementation decision-making process was once handled through a simple process by a single person or a specific procurement department. However, because IT is now utilized in various business contexts, decisions are made by an IT purchasing committee (IT Committee) composed of members from multiple departments across the company, not just IT-related departments. This survey revealed that departments such as Sales, Finance, and Marketing are also involved in the decision-making process. When setting communication targets, a broad approach is required.

Customer journey optimization and content preparation are necessary
 

Figure 4: Methods by which targets (IT buyers) contact IT vendors

Regarding how companies approach IT vendors, "Contacting Support/Email" tends to be high across all stages of the purchasing process. Additionally, the results show that at each stage of the purchasing process, they contact two to four sources of information.

To capture new business opportunities, it is essential to optimize inquiry/support pathways and enhance website and content (case studies, white papers, analyst reports, etc.) information.

Figure 5: Information Sources Referenced by Region

The IT vendor's website was the top source of information referenced across all regions.

By media type, technology-focused media tends to be the primary source in North America and Europe, while social media is the main source in Asia Pacific and South America.

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[Summary of "Survey on the Process of Corporate IT Purchasing Decision-Making"]

・Survey Participants: 3,828 LinkedIn members working at companies with 11+ employees across 11 countries who purchased, implemented, or operated business technology solutions within the past three months.

・Target Regions: 11 countries/regions worldwide (United States, Canada, United Kingdom, Netherlands, France, Germany, India, Australia, Singapore, Hong Kong, Brazil)

・Research Organization: LinkedIn

・Survey Method: Online survey

・Survey and Analysis Period: May–November 2015