Is it possible for B2B brands to achieve lifetime loyalty from their customers? What kind of brand or marketing infrastructure should a B2B brand seek to put into place to attempt to make lifetime loyalty a reality? Or is this an unattainable aspiration? If not, why not? And what are the obstacles to achieving it?

Well, it has been a while since my last blog, which (a) is completely against the spirit of blogging and (b) completely against the advice we publish within B2B Marketing, that is, if you are going to blog keep it up, otherwise lose momentum. Well, I have scored a double own goal.

 

So where have I been? … on holiday, getting over being on holiday, planning in 2009 (already!) and spending a great deal of energy avoiding our cousins the National Press. Doom-and-gloom. Day-in, day-out. They really have been gunning for a recession and now it seems likely they will get what they wanted! Talk about own goals.

 

So what does it mean for us in the B2B sector? Well, first off (I have been reliably informed) that the good news is that recessions hit B2B later with a lag to consumer markets; and the dip is never as severe. Secondly, and the bad news, B2B firms are more susceptible to cutting marketing spend first. I am sure none of this is new to you.

 

The debate then is, is cutting spend logical when markets go a little south? Well, on the surface yes! Sorry. Well of course it makes sense, cutting marketing spend is an easy cost saving. However, on a deeper, far more strategic note it is certainly not that clear. I had thought it a bit of a myth, but firms, which continue to spend on marketing throughout a recession, come out winners. Paul Cash, makes the ‘researched’ argument for this, within the September issue of B2B Marketing. In the 90s Motorola, Marriott and GE actually increased spend during the last recession and saw B2B profit soar! Research by Roland Vaile and Buchen Advertising showed imperial evidence that throughout all recessions between 1927 (if anybody can remember that far back) and the 1990s showed that all firms who increased marketing spend showed an average growth of 132%. Conclusive, maybe not, but it tells a very different story.

 

What about you though? Has spend already been cut? What then? The fact is that reducing marketing spend will reduce sales even further. However, if demand has evaporated, it will not matter how much marketing you do spend – your business is doomed anyway. However, business is never that cut-and-dry, and demand never truly dries up – it moves and morphs, seeking more tailored solutions.

 

The key message to the market is that product and positioning need to change, in line with market conditions, not marketing spend. In fact, spend should at least remain the same, if not grow, as a company informs the market on repositioned products, offers and developments. Those that do, will give their businesses the best chance to stay on top of a difficult market.

 

So, my initial own goal now seems rather small compared to companies looking to save pounds in short-term marketing budget cuts, just to lose greater sales in the mid/long run.

 

Good luck anyway, I do not think it will be that bad at the end anyway… Gordon said so!

 

One of the defining characteristics of the B2B world is the extent to which it is segmented or sectorised. Brands that are world-beaters in one sector are virtually unknown elsewhere. In the B2C sector, meanwhile, big brands still can and do bludgeon their way to universal awareness – for example, even though I don’t have kids, I still know that Huggies sell nappies.

But there are exceptions to this rule – B2B brands whose fame spreads far beyond their customer base or audience. I was reminded of a classic example this week on a trip down the M1 from Leeds to London: Eddie Stobart. This freight transport company has become a household name over recent years, known to people from all walks of life with no interest or involvement in haulage etc. All this has been achieved with very little marketing in the conventional sense (ie. direct mail or advertising). Its main vehicle has been just that: its vehicles, which are immaculately turned out and considerately driven – something that is all too rare on the M1 on a Monday night.

Eddie Stobart’s pristine green juggernauts present a stark contrast to other commercial road users – both large and small. For example, I love the simplicity of Maersk’s logo and the particular tone of blue for its livery, but its trucks (at least those I saw) are shabby by comparison, and therefore (I can’t help assuming) so is its service.

So what lessons can we learn from lorries on the M1? Firstly, that excellence in everything your organisation does will ultimately pay dividends in terms of its public perception. Eddie Stobart clearly has such an ethos – many of its rivals apparently do not.

Secondly that your public facia IS your brand, and ultimately the most meaningful yardstick by which you will be judged.

Last, but certainly not least, that good marketing isn’t just about doing the cleverest, most innovative and most up-to-date things – you also have to remember the fundamentals, and keep getting them right.

PS: What was the reason for the trip down the M1? B2B Marketing’s publisher (James Farmer) and I were returning from the coast-to-coast cycle ride to raise money for Cancer Research. We completed the gruelling 135-mile trip in three days in some of the worst weather imaginable. If you would like to sponsor us, please go to www.justgiving.com/joelharrison. All contributions will be gratefully received.  

Is it possible for a company to adopt a CRM (customer relationship management) approach to its marketing without implementing expensive and complex technology? What factors should they consider?