Product Marketing For B2B Hardware vs Software Buyers

Even without considering the differences between purchasing hardware and software, the B2B purchasing journey is somewhat complicated and methodical, and so should the product marketing approach.

As a product marketer who has successfully managed the lifecycle — from launch to exit of products from the hardware and software pedestal, I find a distinction between the two verticals — mainly on the construct of their buyer journeys.

86% of enterprise employees impact the technology purchasing process as end-users or decision-makers — according to a LinkedIn survey of over 5,200 global professionals responsible for purchasing hardware and software.

Source: LinkedIn

Today’s B2B buyers are enlightened. Interpolate that with the fact that most of them are millennials — more than half of whom are younger than 36 according to ThinkwithGoogle, it makes the buying process even more interesting to study.

These digital natives have the ability to recommend and select new vendors through a process fueled by their natural comfort with gathering information on their own — thereby providing an opportunity for the B2B product marketer to capture a share of their mind at those touchpoints.

Another factor that fuels the meticulous approach adopted by B2B buyers is due to the high failure rate of IT projects; buyers are under enormous pressure to produce results from their investments. According to a LinkedIn report, IT project failure rates can reach 76%, with nearly 20% classified as “utter failures.”

As product marketers, arguably, our single most important task is to — on one hand — strategically feed the customer’s expectation as input to shape the product, and on the other hand, communicate the product capabilities back to the customers in a compelling story.

That is why, the intersection(channel) where this information transaction happens, and the information that the buyers expect to see — to help them make a good purchase decision — become the basis of differentiation between hardware and software sales.

When Do B2B Hardware Buyers Engage Vendors?

To understand how B2B buyers consume the information we ideally put out as product marketers, we need to first investigate when they actually engage with vendors — directly or indirectly.

As complex as the B2B buying process has proven to be, B2B buyers clearly have their work cut out for them, and are well prepared to meet the challenge. In terms of hardware, buyers are most likely to engage with vendors;

• During the needs assessment phase of purchasing
• When obtaining product specifications and funding details
• When implementing a new solution after a purchase.

Source: LinkedIn

Hardware buying vs software buying

LinkedIn’s survey covered twelve categories of IT hardware, ranging from computers to printers/copiers to power and cooling systems. According to the findings, all technology investments tend to focus on critical business needs and infrastructure.

When purchasing new hardware, operations departments play a significant role in the decision. This is especially true for data centre equipment. The IT and engineering departments have the most sway over hardware purchases.

This gives the product marketer a sense of what kind of enablement assets to create for that technical buyer, influencer and the end-user.

Where Do B2B Buyers Research Vendors?

The survey included nine resources used by B2B buyers when researching new technology solutions, and it’s interesting to see how these sources differ (or do not differ) for hardware versus software purchases. Some highlights include:

• Roughly 50% of hardware and software buyers rely on vendor websites/mobile apps as a top resource. This was true for both end-user and data centre purchases.
• Product review websites were a key resource for B2B hardware buyers, with 43% of respondents listing review sites as a resource when buying hardware versus 33% for software buyers.
• Blogs, forums, and discussion boards are another key resource for hardware buyers, coming in third with 35% of respondents indicating they use blogs/forums to research hardware.

The table below illustrates the different information resources that B2B buyers use when researching new solutions.

It includes comparisons between hardware and software purchases intended for end users versus data centres, highlighting which resources are used the most, based on the purchase category.

Darker cells indicate that a particular resource is more likely to be used for the technology type listed in the top row of the table.

Source: LinkedIn

The report also shows that B2B buyers prioritise hardware purchases over software purchases when considering a new purchase. The following table shows that there are different priorities for end-user hardware versus data centre hardware within the hardware category.

This is what it means in a nutshell; for end-user hardware, the following qualities will help your organization make the shortlist:

• Reputation-Reviews-Recognition
• Quality
• Needs-Requirements-Solutions/Understanding of Business

For data centre hardware, here’s what you should focus on:

• Reputation-Reviews-Recognition
• Needs-Requirements-Solutions/Understanding of Business
• Informative/Information

If you’re a software vendor, making the shortlist of vendors requires a slightly different focus.

End-user software vendors should prioritize meeting the needs of their buyers, followed by having a reputable brand and strong product features. For data centre software, buyers prioritize reputation and reviews, followed by communication responsiveness and availability, and finally, support.

A summary of how the hardware buying journey looks roughly like this:

• Needs assessment: Buyers start out with a needs assessment that includes critical decision makers about 38% of the time and results in engagement with potential vendors nearly 80% of the time.
• Specs and funding: LinkedIn reports that hardware buyers work with cross-functional partners for about 3.5 months when scoping out the viability of new solutions. During this process, they engage with decision-makers about 30% of the time.
• Vendor/product selection: The next step in the buying process is vendor selection, with decisions being made after reviewing/receiving feedback from multiple resources including internal stakeholders, product review websites, blogs, etc. The selection phase takes another 3.5 months, with about 25% of decision-makers involved in the process, and just under 40% of the buying committee engaging directly with a vendor during this time.
• Implementation: Once a new hardware solution is purchased, it takes about 4 months (on average) to implement. Just under 26% of decision-makers are involved in implementation, with 45% of the buying committee engaging directly with a vendor during this process.
• Adoption and Management: One of the final steps of the buying journey is adoption/management, which takes another 4 months to roll out. Vendor support is critical during this phase. About 21% of decision-makers and 31% of the buying committee are involved in adopting new hardware technology.
• Renewal: When hardware buyers have a positive experience with a vendor, they’re more likely to turn to them for future purchases. This phase typically involves 25.5% of decision makers with 40% of the buying committee engaging with the vendor.

In all of these stages and processes, the PMM is presented with ample opportunities to engage and arm the stakeholders with assets that would position the vendor top of the list for consideration.

In summary

While the basic construct of product marketing (competitor intelligence, GTM plans, messaging and positioning, enablement assets) does not change whether you are selling software or hardware, the opportunities and points of intersection for the different personas present a new basis for engagement.

B2B product marketers and tech manufacturers who understand the variations in the buying cycle for hardware versus software will have a greater advantage in reaching buying teams at each stage of the process.

To achieve this, it is essential to comprehend the priorities of B2B buyers, the methods they use to gather information, and the specific details of how they progress through the buying cycle.

By having this knowledge, product marketers can develop enablement assets and launch strategies that cater to the specific needs of this distinct group of complicated buyers.