Customer data is the new gold, they say. Unfortunately, that's just partly true. Not all information is worth its weight in gold.
Quality over quantity - that's our motto.
In this guide, we explain which data B2B companies can use for their customer relationship management (CRM) to create a buyer persona and improve customer loyalty.
USING CUSTOMER DATA CORRECTLY
In the B2B sector, where large sums of money and high expectations are the norm, it's essential not only to have a competitive product but also to market it effectively.
A good product alone does not guarantee success. It is important to think strategically: how can you win new customers and retain them in the long term?
In order to meet or even exceed customer expectations, you need to know what they want and how YOU can help them. To do this, you need customer data.
Unlike in B2C, it doesn't matter whether purchasing manager X sails or plays golf in his spare time - even if this can make communication easier. It's more important:
- What does his company need?
- How much of it can your company cover?
- How much effort is worthwhile for you?
Studies repeatedly show that companies are not yet using B2B customer data as much as they could be.
Customer data is the basis for strategic decisions.
The more you know about the goals of your business customers, the better you can adjust your B2B sales strategy. Therefore, focus on behavioral data and include your buyer personas in your analysis.
CUSTOMER DATA - THE BEST SOURCE OF KNOWLEDGE IN B2B
Most orders cannot be processed without any information about the customer.
After all, you need to know to whom and where the product is to be delivered and who will receive the invoice. Names, telephone numbers, emails, and addresses are the first step. This customer data is also recognized as necessary by the General Data Protection Regulation (GDPR).
However, the prerequisite for long-term commercial success is in-depth knowledge of the customer's needs. Only then can you market your offer accordingly.
WHAT KIND OF CUSTOMER DATA CAN YOU COLLECT? THE BENEFIT FOR B2B DISTRIBUTORS
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Socio-demographic data: This includes age, gender, marital status, region, and income. Even if information such as private interests is more relevant for the B2C sector, it can also be used in B2B marketing. After all, business is ultimately still done between people.
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Behavioral data: This includes customers' previous interactions with your company during the customer journey, for example, visits to websites or apps as well as the type and scope of transactions already made with each other. Complaints or customer service inquiries are also included. This data is usually easy to obtain and analyze.
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Psychographic data: This refers to values, attitudes, and membership of a social group. This is only of limited relevance for B2B, but should not be completely disregarded in order to find the right approach.
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Technographics: Technical data provides information about which software, tools, and resources a person or company uses.
WHAT CUSTOMER DATA DO I NEED IN B2B?
Models and scores from B2C cannot simply be adopted to create buyer personas and align marketing accordingly - for understandable reasons.
The purchasing decision in a company is different and you should consider that for your B2B sales strategy. Several people and departments are involved who have different interests. The technician wants the best device for the needs he sees. The controlling department asks whether it really has to be that expensive and what the result will be.
Hence, you should have this data in your CRM:
- Personal data: Name, e-mail, and telephone number as well as position in the company. You should have this data for everyone involved in the decision-making process.
- Company data: Name, company size, and industry, plus sales potential if applicable.
- Relevant interests: What industry topics is your client interested in?
- Activities: What stage of the customer journey are they in? Which pages of your company does he visit?
HOW SHOULD CUSTOMER DATA BE STORED?
This customer data must be accessible to all relevant people in a good system - a CRM system, for example. Because it is so important, once again:
The data must be accessible and up-to-date for all employees involved.
The potential for mishaps due to outdated or inaccessible data is enormous. It starts with customer service employees standing in front of the wrong address and does not end with internal misunderstandings about agreements that some of the staff do not know and therefore confuse the customer with new inquiries.
Customers can quickly get the impression that internal communication is inadequate - and this is often the case. Data silos massively slow down progress toward modern, personalized customer service.
CUSTOMER DATA & GDPR
If you collect customer data for your CRM, you should always keep the GDPR (General Data Protection Regulation) in mind. This law restricts what data you are allowed to collect about your (potential) customers.
If you collect data for marketing purposes, for example, to create a buyer persona and get a better impression of your customer, this is classified as "not mandatory". This means that the customer must consent to the data processing.
The advantage of B2B: you are dealing with professionals who are ultimately faced with the same question. And you don't want their private data, you want the company's data.
REACHING THE RIGHT CONCLUSIONS WITH THE RIGHT DATA
Of course, every customer has the right to good customer service. However, to run a business economically, the effort must be in proportion to the benefit, so the Pareto principle can also be applied here.
You need to find out which customers are the 20 percent with whom 80 percent of the result is achieved.
As a rule, the department of a larger medium-sized company buys for more money than a three-man graphic design office. However, the share of the wallet must be taken into account: A small company that buys almost everything from one supplier may still be more important to that supplier than the large company that only occasionally buys on special offer.
In other words: In order to know which customer is really worthwhile, you need data. And in order to gain the right insights, you need to know how to use the data. This is where you as a professional come in:
- How can you better target the customers that are worthwhile?
- What additions to the portfolio would help them?
- How do you keep them so that they don't drop out?
- What market trends can you identify that you shouldn't miss?
- How much influence might upcoming political decisions have on your client's business development?
Today, AI is increasingly being used to evaluate data and derive maximum benefit from it.
CONCLUSION: CUSTOMER DATA IS THE KEY TO SUCCESS IN CRM
Data analysis is crucial for an effective B2B sales strategy, but the human aspect of business relationships remains just as important. In the end, business is done between people.
Nevertheless, customer data can help you to identify the right leads and create buyer personas that you can use to strengthen your customer loyalty in the long term!
