Millennials are the biggest segment of B2B decision-makers and Gen Z isn't far behind. Here's how to focus your marketing strategy on them using tools like UX.
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I'm a Gen X'er so I know how to tolerate, for hours and hours, a not-so-perfect user experience… Gen X’ers also love ellipses. Perhaps because our user journeys had so many gaps!
For example, the original CC, carbon copy. We dealt with a less-than-optimal credit card purchasing experience mired in carbon copy paper woes. For those who've never experienced that process, it went like this...
You got excited to sell or purchase something, but of course, the carbon copy paper needed restocking, so you waited not for a page to simply reload but for someone to physically retrieve the heavy paper from a stockroom. Once that was settled, the slider got stuck and tore the paper. But that was okay because, after you dealt with that, you still had to manually look up and add in tax! Gen X consumers, like me, just accepted that, or maybe we pursued a career in experience strategy!
Current business-to-business (B2B) buyers won't do that because they hold user experience to a much higher standard.
Today, Millennials represent the biggest segment of B2B decision-makers and Gen Z isn't far behind. With B2B sales continuing to grow to $19 trillion this year alone, your marketing strategy simply can't afford to turn away from their preferences (and their tolerance levels).
Let's get into details about these generations and the strategic choices you can make to be more competitive with these groups.
The B2B landscape
B2B marketplaces are on the upswing. In fact, the total number is slated to rise by 50% by 2025.
Besides Millennials, the current B2B buyer makeup is 32% Gen X (declining) and 2% Gen Z (rising) and the average B2B decision maker's details look something like this:
As of 2023, there were 15,246,000 total decision-makers in the B2B space and their demographics looked like this:
Adults between the ages of 25-64
65% male, 35% female
Currently either living with a partner, married, or divorced, possibly with children
College graduates with an average household income of $75,000+
Most commonly Caucasian or Asian
Who are Millennials?
For the sake of this article, we are focusing on Millennial buyers as they are completing the most purchases right now.
As of 2023, there were 6,776,000 Millennial decision-makers in the B2B space. That number translated to 60% of B2B buyers as of 2023. These are their demos:
Adults between the ages of 25-44
63% male, 37% female
Currently either living with a partner, married, possibly with children
College graduates with an average household income of $75,000+
Most commonly Caucasian or Asian
As you can see from the data above, Millennial buyers mirror the average B2B decision-maker data almost 1:1. Beyond demographic metrics, here are some psychographics to describe them:
Career-driven
Workplace leaders
Enjoy daily routines
Tend to recommend products/services they like to others
Enjoy learning about fresh products/services that are available to them
Prefer purchasing products/services online as opposed to in-person
The Millennial and Gen Z buying journey
Both Millennials and Gen Z choose to do research and complete purchases online. While online, they enjoy using social media platforms. YouTube and Facebook are the top two that drive purchases from these generations.
This isn't surprising as YouTube provides educational content and Facebook boasts experiences that allow for not only interaction with others to crowdsource reviews, but also more space than some other micro-copy platforms that discourage in-depth research and are more focused on fun, fast serotonin hits.
What will work
So beyond putting your products and services on social platforms, like Facebook and YouTube, what will help you convert Millennial and Gen Z buyers?
Creating a seamless buying experience
At Imarc, we are always promoting the power of strong UX and unfortunately, buyers feel there's a lot that could be improved in their purchasing experience. A whopping 38% think that sellers could improve their online sites when it comes to functionality.
Using the right channels
As noted above, right now YouTube and Facebook are two of the top ways to reach Millennial and Gen Z buyers. But while that is the case right now, new networks are always popping up, so it's important to keep vigilant as they change.
Getting recommendations
Referrals matter to Millennial buyers as proven by the previously presented psychographics and hard data from the GWI - Basis X GWI Custom Study: Finance, Education, Jobs/Recruiting & B2B 2023.
"36% of business professionals at a company with over 1,000 employees will look at recommendations from friends, colleagues, or experts in their network as well as user reviews." –GWI - Basis X GWI Custom Study: Finance, Education, Jobs/Recruiting & B2B 2023
Considering B2C to increase B2B
As B2B buyers are also B2C buyers, they crave the same perks in the B2B space. Some include:
Faster delivery
Augmented reality (AR) functionality
Purchasing like a B2C customer
Easier and faster check-out
Rewards and incentive programs
More convenient delivery and product choices
Strong ratings and reviews
Easier returns
Brands that run discounts during periods like Black Friday
These items boil down to one thing: B2B buyers want retailification.
Making the process easier
Adding more videos and product or service-centric images alongside transparent details describing exactly what you're selling will lead to a simpler process as it dispels confusion and allows for more informed decision-making.
Improving operations
Among the top pain points of the modern B2B buyer are slow delivery and lead times, limited payment choices, and out-of-stock items. If you improve in these areas, you will earn more of their business!
Improving the buying experience in the B2C space isn't simple, but it is certainly easier than doing it in the B2B space where you must contend with longer sales cycles and added layers for approvals and budgeting for larger processes. Mapping it out early is vital because your learnings will help you reduce friction.
Offering quality customer service
While current B2B buyers do the bulk of their purchasing digitally, they enjoy having the option to interface with an experienced representative who can guide them if they have questions or concerns. Creating the perfect mix of helpful technology and human service is a recipe for success.
Innovation
Digital innovation is a big differentiator for current B2B buyers. 69% say they are more likely to buy from an innovative supplier. To do so, consider:
Mobile apps
Tablet websites
Blockchain technology
Tablet apps
Cashless purchases, in-store
Augmented reality/virtual reality
Cryptocurrency
Voice
Queue-less checkout
The Metaverse
Desktop or laptop websites
Mobile contactless payments
Biometric payments
Mobile sites
Mirroring the market share winners' strategies
If you want to win more market share, do what's working for the companies that are already winning it. To date, the top-tier businesses that are dominating are using these tactics:
Advanced sales tool usage
Highly personalized marketing
Hybrid sales teams and capabilities
Tailored strategies on third-party marketplaces
Ensuring competitive pricing
While price isn't everything, savvy B2B purchasers do make supplier switches when presented with improved contract terms or better pricing, a price uptick, or to access a greater variety of products.
Being sustainable
People in general care about sustainability. B2C customers are actively choosing brands that care about the planet's future over traditional ones without those values, so it shouldn't be a shock that B2B decision-makers have the same outlook.
"69% of B2B buyers say that they wish they understood the carbon footprint impact of the B2B products and services they order." –Wunderman Thompson: The B2B Future Shopper Report 2023
Increasing your overall advertising spend and choosing digital
B2B advertising spending will top $37 billion this year. Many B2B CMOs were already decreasing traditional advertising to increase their digital advertising spending in 2023. Our world is more digital than ever, make the switch this year or you might get left behind.
Exploring influencer marketing
Influence marketing is continuing to gain traction in all kinds of markets. B2B buyers are game to listen to these professionals, so adding in a partnership with one or two could help your brand drastically.
"Of those using influencers for B2B marketing, 77% are working with industry experts, followed by internal executives, and niche experts. Many B2B marketers think influencers can communicate more effectively with potential customers compared to brands." –Statista: Fleet Management Weekly, WARC: TopRank Marketing, B2B Influencer Marketing Research Report 2023
Pivoting your marketing strategy to align with B2B Millennial and Gen Z buyer wants and needs is a win for your company. If you want some help developing a battle plan from a team that spans the generations, let's talk.
*Any data that hasn't been specifically cited within this article was sourced from the Basis® Technologies B2B Vertical Knowledge Briefing December 2023 proprietary report. Basis® Technologies is Imarc's DSP and market intelligence partner.
