Study: B2B buyer loyalty is limited
A study of business-to-business corporate buyers with annual budgets of more than $100,000 showed that B2B buyers have limited loyalty to suppliers.
Acquity Group, a Brand eCommerce and digital marketing company, announced the loyalty findings of its 2013 State of B2B Procurement Study, which surveyed corporate buyers with annual budgets in excess of $100,000 on their purchasing habits and preferences.
The study found that 45 percent of respondents have used AmazonSupply to make a purchase in the last year, and 25 percent of respondents who have used AmazonSupply purchase from there frequently.
“B2B suppliers must be aware of the revenue threat from the third-party B2B eCommerce websites,” said Robert Barr, senior vice president at Acquity Group. “This is particularly important since many buyers do not visit suppliers’ physical stores, but rely on catalogs and websites to research products. Unfortunately, many of supplier’s websites are outdated and lack capabilities to meet customer expectations.”
Corporate buyers have limited loyalty to suppliers. If another website or supplier sells the same product at a lower price, 85 percent of respondents stated they will buy the lower cost option instead, despite loyalty to their current supplier.
The study showed that while price is a factor, customers will abandon supplier loyalty for improved convenience. The majority of buyers (71 percent) indicated they would purchase from the website with a more convenient and efficient purchase process when price is equal, despite loyalty to their current supplier. When asked which aspect was more important for a company purchase, 32 percent of buyers ranked factors such as customer service and convenience over price.
“While AmazonSupply and other third-party websites offer goods at lower price points, they also provide added convenience and familiarity, which buyers value,” said Barr. “Corporate buyers are very concerned with process efficiency. Suppliers have an opportunity to increase revenue by offering a better shopping and research experience online.”
Nearly half of buyers (46 percent) prefer to research and purchase products independently, with support available over phone or live chat. More than half (55 percent) of buyers research before making most of their purchases, and the average buyer spends 30 minutes to two hours doing research.
“Today’s buyers rely on the Internet for research,” said Barr. “Suppliers must have a robust online presence with detailed product information. If buyers don’t find the information they need, they will go elsewhere to make a purchase.”
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