Helpful Facts on B2B Customer Engagement

Loyalty – How To Win Devotion From Your Customers

  • We researchers measure satisfaction on scales and, on a scale from 1 to 10, most companies achieve a score of around 8. This is right in the middle of what we call a “corridor of average satisfaction” which spans from 7 to 9.  In other words, 8 out of 10 might sound good, but it is only OK.  If you want your customers to stay loyal, you have to have scores of 9 out of 10 on the things that really matter.
  • In a post by Bill Bleuel, Professor of Decision Sciences at Pepperdine University, he makes the point that the most profitable firms enjoy customer retention rates of around 95% and that the average firm has a customer retention rate a good deal less than that at around 80%. He also makes the claim that defecting customers will tell 8 to 10 people about their negative experiences.
  • 40% to 50% of companies have not introduced any new suppliers of a product in the last five years.

B2B Customer Engagement

B2B Customers Have Feelings Too

  • Fully engaged customers deliver a 23% premium over average customers in share of wallet, profitability, revenue, and relationship growth, while actively disengaged customers represent a 13% discount on the same measures, according to Gallup research.
  • Because professional reputations and careers can be made or broken by B2B purchases, B2B customer engagement may be even more fraught with emotion than B2C relationships.
  • In a study of thousands of business-to-business (B2B) relationships [Gallup uncovered that] 22% of B2B customers are engaged, and only 13% are fully engaged.
  • Consider the following example from a professional services firm that Gallup studied. Customer engagement scores were tracked across 75 of the company’s top accounts in Year Zero, then compared to account growth in Year One. Of the accounts with engagement scores at or above 4 out of a possible top score of 5, 21% of the accounts grew by 20% or more the following year, while 34% declined by 20% or more. Of the accounts with scores of less than 4 out of 5, 15% grew by 20% or more — but 60% of these accounts declined by 20% or more, making lower engagement a prime indicator of future revenue decline.
  • In a manufacturing company, Gallup found a 37 percentage point difference between the fully engaged and actively disengaged groups.
  • In a meat packing business, fully engaged customers’ share of business topped that of actively disengaged customers by 29 percentage points, and one cargo carrier received 24 percentage points more share of business from its fully engaged customers than from its actively disengaged ones.
Customer-Engagement-ideas-How-to-engage-b2b-partners(v2)

How to Create a High-Performing Sales Culture

  • Only 55% of companies have a formal sales training process.
  • Research from Harvard Business Review (HBR) indicates “high-performing sales cultures are characterized by an ability to align (gain clarity on vision, strategy, and shared employee behaviors), execute (move in the agreed-upon direction with minimal friction), and renew (continuously improve at a pace that exceeds competitors)”. Collectively, these factors encompass ‘organizational culture’.
  • Sales reps spend about 50 full days away from core selling activities each year (Domo)
  • Sales productivity is the #1 challenge for 65 percent of B2B organizations (The Bridge Group)
  • 2/3 of sales reps fail to hit quota (Aberdeen)
  • A majority of B2B organizations struggle with sales performance:
  • Continuous training can yield up to 50% higher net sales per rep.
  • According to Salesforce, 71 percent of companies that implemented gamification saw an 11 to 50 percent increase in sales performance, and 9 out of 10 companies reported that their gamification initiatives were successful.
  • Research from Aberdeen revealed that 31% more first-year reps achieve quota when supported with game mechanics. If implemented correctly, gamification educates, influences, and rewards the behavior of a sales organization.
  • Companies that follow a defined workflow are 33 percent more likely to be high performers.
  • According to Gallup, 70 percent of sales people feel disengaged from their work.

S. Smartphone Use in 2015

  • Today nearly two-thirds of Americans own a smartphone, and 19% of Americans rely to some degree on a smartphone for accessing online services and information and for staying connected to the world around them.
  • 10% of Americans own a smartphone but do not have broadband at home, and 15% own a smartphone but say that they have a limited number of options for going online other than their cell phone.
  • 64% of American adults now own a smartphone of some kind, up from 35% in the spring of 2011.

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