future-proof: your boardroom

#01: Your Boardroom Commentary and analysis from: Carolyn Heller Baird, IBM Institute for Business Value Michael Parrish DuDell, Keynote Speaker & Bestselling Author Presented by: Reena Jana, Global Program Lead, Editor, THINK Leaders

Carolyn Heller Baird IBM Institute for Business Value

To buy or not to buy? How Millennials are reshaping B2B marketing

www.ibm.biz/millennialsb2b "

©2015 IBM Corporation 3 ©2015 IBM Corporation 3

As more Millennials move into decision making roles at work, their influence over B2B purchasing will grow

50% USA workforce

!

75% Global workforce

!

2020 2030

Just as consumer marketing is changing to appeal to Millennials, B2B vendors and marketers also need to revamp their strategies to connect with this new generation of decision makers.

Note: 1 Meister, Jeanne. “Three Reasons You Need To Adopt A Millennial Mindset Regardless of Your Age.” Forbes. October 5, 2012.

©2015 IBM Corporation 4

My input is often considered on purchases US

$10,000 or more

Roughly 1/3 of our Millennial study respondents (704) influence purchasing decisions for their business

Millennials aged 21 – 34*

born 1980 - 1993

Gen X aged 35 – 49*

born 1965 - 1979

Baby Boomers aged 50 – 60*

born 1954 - 1964

6%

26%

68%

4% 32%

64%

6%

26%

67%

Have little or no influence on

purchases US$10,000 or more

I am the final decision maker on purchases US

$10,000 or more

*Age of respondents at time of survey – Summer 2014

Source: IBV Millennial survey. (Total survey n=1784, B2B subset n=704 (Millennials n=447, Gen X n=154, Baby Boomers n=103)


The B2B research phase – personal contact is the differentiator for Millennials; digital is table stakes

Preferred resources respondents turn to when researching B2B products or services

Millennials

Gen X

Baby Boomers

Source: IBV Millennial survey. What sources are you most likely to turn to when researching a vendor’s products and services? Select your top 3. (Millennials n=447, Gen X n=154, Baby Boomers n=103)

Family or friends outside my organization

1

1

2

2

1

4

4

4 7

8

9

Colleagues in my organization Articles, papers or blogs from trade or

industry experts or analysts Vendor’s customers

Vendor’s social media, mobile or website content Third-party websites or mobile

apps for reviews and comparisons

Tradeshows and conferences Vendor’s representatives

Recommendations from my social network

7

3

3

8

3

6

8

5

3

3

5 8

7

8

1

2 4

4

4 7

8

9 8

6

3

8

3

3

7

8

7

5

3

3

8

5


If price is off the table, Millennials look for convenience, Gen X wants quality, Baby Boomers want speed

Source: IBV Millennial Survey. When selecting a vendor for your organization, what attributes – in addition to price – are most important to you? Rank your top 3. (Millennials n=447, Gen X n=154, Baby Boomers n=103)

Key attributes respondents look for when selecting a vendor


The B2B sales cycle - Millennials meet with vendors today, but they would much rather engage virtually

Millennials’ current and preferred methods of engaging with B2B vendors during the sales cycle

Source: IBV Millennial Survey. How does your organization engage with vendors during the sales cycle currently, and how would you prefer to engage with vendors? Select your top 3. (Millennials n=447, Gen X n=154, Baby Boomers n=103)

E-mail

Phone calls

Face-to-face meetings Current methods | Preferred methods

Text messages/SMS/WhatsApp/WeChat

Live chats/Video chats

Social media (Facebook, Twitter, LinkedIn, etc.)

24%

24%

21%

19% 62% 22%

69%

18%

20%

21%

69% 37%


When it’s time to pull the trigger and buy, Millennials turn to data and advice from family and friends

Top three influences on respondents when deciding whether their enterprise should purchase an individual product costing US$10,000 or more

Note: * Influences selected as a top three priority by only one generation Source: IBV Millennial Survey. When determining if your organization should purchase and individual product or service costing US$10,000 or more, which sources influence you the most? Select your top 3. (Millennials n=447, Gen X n=154, Baby Boomers n=103)


Millennials will post positive comments about vendors, but are very reluctant to share anything negative

Percentage of respondents who said they were likely or very likely to post a comment

Source: IBV Millennial Survey. How likely are you to use the internet/social media to comment on a work-related product or service that your organization purchased? Percentage of respondents who are likely or very likely (selected 4 or 5 on a 5-point scale) Millennials n=447, Gen X n=154, Baby Boomers n=101.


Recommendations

Create client experiences that matter

Influence the influencers

Deliver data—anytime, anywhere

Make it easy

Share the love



Key Implications A new era for B2B purchasers, vendors and marketers

Ø  Empower decision makers and teams with social collaboration tools and easy access to meaningful data insights

Businesses

Millennials

B2B Vendors and Marketers

Ø Have high expectations for the workplace and B2B engagement based on their experience as consumers: convenient, data rich, relevant, personalized, authentic, seamless

Ø  Provide easy processes, tools and policies designed for clients’ convenience and speed - delight decision makers of all generations, not just Millennials

Michael Parrish DuDell Keynote Speaker, Bestselling Author

The Millennial Leader

www.mpdhq.com "

Millennials: An Evolving POV

•  Still relatively undefined

•  Largest generation in history

•  Becoming the largest segment of the workforce

How to manage

Millennials

How Millennials manage

A new conversation has emerged:

Millennials

WANT to be leaders.

Generational or Situational?

•  Are Millennials all that different from

other generations?

•  Is it too soon to define Millennials?

•  Are they really redefining leadership?

1. Ability to communicate 2. Decisiveness 3. Strong vision

“Legacy” leadership skills still matter.

1. Emphasis on empowerment 2. Flexible work environment 3. Sense of purpose 4. Project-based career path 5. Focus on collaboration

But Millennials have their own values, too.

@IBMThinkLeaders #FutureProof #IBMillennial