Marketing Mistakes That Can Cost Your B2B Business Dear
Marketing a B2B product or service can be quite tricky. While it is true that business customers do not bargain as much as retail customers do (and hence the margins can be relatively higher), truth is that it also costs a lot more to reach out to business customers. In a significantly large number of B2B companies, the leads are still primarily generated through traditional marketing strategies like trade fairs and research reports. These strategies cost several thousand dollars to be executed and hence involve staggering capital costs. What this essentially means is that marketing mistakes in a B2B setup can hurt a company's bottom-line much more than they do in B2C channels.
A study conducted by WordStream showed that an average small business spends close to $1200 a month on Adwords. But as any B2B marketer will tell you, the average spending in their industry is often a hundred times or so higher. At such scale, even trivial mistakes can often blow your budget away. One of our recent clients, a large scale supplier in the Toronto real estate market lost several thousand dollars because their in-house team missed specifying 'Toronto' as their target city. Small mistake; but can cost several thousand dollars if not identified early enough.
Missing Out Inbound Queries
Inbound sales inquiries are a godsend for any business – these are customers who you have acquired passively and did not have to actively spend scouting. It is hence criminal to miss out on these calls due to negligence on your part. Think about this – do you have a phone line that will allow prospects to call your sales teams? Is this manned all the time? Does this line return as engaged when one of your colleagues is already in conversation? If yes, these are all probable instances where you may have missed an inbound query. According to AllStream, a Canadian B2B company that offers high speed internet for business clients, “big businesses don’t miss calls”, they “don’t leave you with busy signals” and not only answer the phone but also “route you to someone ready to help”. In short, they leave no stone unturned in ensuring that interested prospects are attended to.
Not Measuring Actual ROI
Most marketers do measure the spends and revenues from their various marketing campaigns. However, where they fail at is in extracting the actual ROI for every marketing activity. Read through the following instance and evaluate how your business handles this – let us assume your business attends a trade fair that helps bring along several hundreds of visitors to your website. You also manage an Adwords campaign retargeting website visitors over Google. Now if you do get a customer from one such retargeting campaign, what do you attribute the conversion to? Does it go as a return on your Adwords investment, or is it a return on your trade fair investment? How do you calculate the exact ROI on such hybrid marketing activities? Hypothetically, if you did attribute the above to only retargeting, then there could be a scenario where trade fairs are seen as unviable – this is despite being the reason for the prospect to have visited your website in the first place.
These marketing mistakes are just the tip of the iceberg. In essence, marketing needs to be a highly coordinated and monitored activity. Small mistakes that seem inconsequential at first can often snowball into a major expense. What are your thoughts?