The Impact of Reviews on B2B Buyers and Sellers

2018 BENCHMARK REPORT: THE IMPACT OF REVIEWS on B2B Buyers and Sellers

Part 1: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Key Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Part 2: The Power of B2B Reviews . . . . . . . . . . . . . . . . . . 4 When Buyers Look at Reviews . . . . . . . . . . . . . . . . . . . . . . . 5 How Many Reviews are Enough . . . . . . . . . . . . . . . . . . . . . . 6 Recency Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Where Buyers Find Reviews . . . . . . . . . . . . . . . . . . . . . . . .8-9 Part 3: Embrace the Negative . . . . . . . . . . . . . . . . . . . .10-11 Part 4: Putting B2B Reviews to Work . . . . . . . . . . . . .12-13 The Importance of Reviews Over Time . . . . . . . . . . . . .14-15 How Reviews are Being Used . . . . . . . . . . . . . . . . . . . . . . . 16 The Benefits of Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Part 5: Your Competitive Advantage . . . . . . . . . . . . . . . .18 Next Steps for Sales and Marketing . . . . . . . . . . . . . . . . . 19 Use Reviews to Improve Your Product . . . . . . . . . . . . . . . 20 Use Reviews Throughout Your Marketing Strategy . . . . .21 Implement a Continual Review Strategy . . . . . . . . . . . . . . 22 Don’t Silence the Negative Reviews . . . . . . . . . . . . . . . . . . 23 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2 CROWD

2 Part 1: Introduction We all know how helpful product reviews can be, especially in the B2C space . Although this system has been present for at least a decade, product reviews and star ratings in the modern B2B landscape aren’t quite as common . Until recently, selecting business solutions was hard, risky, and inherently biased . Buyers spent too much time sifting through search results, reading outdated reports, and sitting in on product demo after product demo, all to no avail . But as B2B reviews become more regular, the decision — making process has become much simpler, letting users’ voices be heard, and helping buyers make smarter, faster, and more impactful decisions . Methodology To understand and identify how today’s Are you more likely to purchase a B2B buyers give, interpret, and use product product or service if you have been reviews to make decisions, OnTarget able to read a trusted review about it? Consulting & Research, in partnership with G2 Crowd and Heinz Marketing, conducted a survey over two weeks in late September 2017 . The responses came from 548 business professionals from a range of different industries, ranging from SMB % to large enterprise . 92.4 YES 7.6% No/Not Sure 2 CROWD

3 Key Findings 1. The power of B2B reviews. 4. Embrace the negative. B2B reviews are powerful assets to Negative reviews might not be as problematic have in your corner, but just how persuasive as you think . 67% of buyers actually want are they? Well, when 90% of buyers are more to see a good mix of positive and negative likely to make a decision after reading a reviews, and 72% say that negative reviews trusted review, the importance of integrating help provide depth and insight to a product . them into your marketing mix speaks for itself . As a seller, you obviously want to showcase your best and brightest reviews, but buyers 2. The entire buyer’s journey. want to see more than that . Seeing glowing Product reviews play an important role review after glowing review creates throughout your entire buyer’s journey with skepticism — doubt that your product is 7 out of 10 buyers referencing reviews in the really as perfect as every review states . consideration phase, and half reporting they Having a few negatives in your reviews use reviews in the later stages of the buying won’t kill you . In fact, the negatives add process . B2B sales and marketing teams to your trustworthiness and credibility . who think that product reviews only have an impact in the consideration stage are missing 5. Your competitive advantage. out on valuable, multi-touch opportunities . 90% of buyers are more likely to make a purchase decision after reading a product 3. Recency and quantity matter. review . However, only 1 in 5 companies Striking a balance between recency and are even considering using reviews in their quantity of reviews is essential to maximize marketing efforts . When product reviews your impact on a prospect . 61% of buyers help establish trust, provide credibility, and would like to see 11-50 reviews, and 66% demonstrate value, the opportunities they of buyers would find those reviews more bring are ripe for the picking . valuable if they were provided in the last three months . You might have hundreds of glowing reviews to reference, but if they’re outdated, it’s time to add some new ones to the roster . So, just how useful are reviews to B2B sales and marketing teams? This report explores how today’s savvy buyers give, interpret, and use reviews to make better decisions, and what modern B2B sales and marketing teams can do to leverage the power of their product reviews for continued success in 2018 . 2 CROWD

4 Part 2: The Power of B2B Reviews B2B reviews play a foundational role in today’s buyer’s journey . They assist in illuminating a product’s benefits, potential problems or shortcomings, and they give a credible, unfiltered voice to your product’s user. Reviews are so impactful that 9 out of 10 of buyers are more likely to purchase a product after reading a positive review . And when only 1 in 5 companies are even considering introducing reviews to their marketing mix, there’s an opportunity to close the gap and gain your competitive advantage . But 9 out of 10 buyers 1 in 5 companies only are more likely to purchase a product are considering adding reviews after reading a positive review. to their marketing mix. 2 CROWD

5 When do B2B buyers look at reviews? Through reviews, a buyer is given a fuller picture of your company and your offerings . They allow the buyer a peek behind the curtain to understand the product as it functions in practice, helping them make more informed decisions . So when do buyers look at reviews? Well, all the time . Reviews are not funnel-stage-specific. Though they are more heavily utilized in the middle of the funnel, half of buyers read them when they begin their journey, and nearly half when they’re about to make their final decision. At what stage do B2B buyers look at reviews? 47% during awareness 71% during consideration 42% during decision 0 20 40 60 80 2 CROWD

6 Percentage of buyers who Minimum number of need to see 11–50 reviews . reviews needed to impact purchase decision . Reviews are important, yes, but it’s important to remember that one or two reviews aren’t enough to deliver value to your prospects . So just how % many reviews should you aim for? While 1 in 5 22.2 buyers are fine seeing around 10 reviews, 0–10 reviews 66% of buyers prefer to see 11–50 . Breakdown of buyers who 37.1% need to see 11 - 50 reviews 11–20 reviews 24% 21–50 reviews 53% 64.8% of coordinators of managers % or consultants 8.2 51–100 reviews 4% +100 reviews 68% 60.5% of VPs of C-Suite But quantity isn’t or directors all that matters . 2 CROWD

7 Recency matters too . Though you might have 20 reviews so far, if they’re older than three months, then it’s time to get some new ones posted . The more recent a review, the more value is delivered. 66% of buyers find product reviews from the last three months very valuable, but any older than that and a significant drop-off occurs with only 45% of buyers finding value in three to six month old reviews, and less than one quarter finding value in the six to twelve month span . 7 out of 10 of managers find reviews provided in the last three months as very valuable. Percentage of B2B buyers 45.3% who find reviews very 3 – 6 valuable based on time. months old 21% 6 – 12 months old 65.7% 11.2% 0 – 3 months old 12+ months old 2 CROWD

8 Where do B2B buyers find reviews? Searching for B2B services isn’t as easy as it is in B2C where you’re given thousands of options through department stores or other third-party online retailers, especially when you want the unbiased opinions of real users . So, where do B2B buyers go for these reviews? Over the past five years, review sites have continued to emerge and play a major role in the B2B buyer’s search for unbiased reviews, so much so that 60% of buyers use them and 82% find them to be very valuable in their research. Qualities of a valuable review website 67% 54% 44% 39% want want want want a good mix a site that is easy a site that has a a site that provides of positive and to navigate and significant amount a ranking of potential negative reviews understand of data to review companies based on the reviews 2 CROWD

9 While wanting a site that is easy to navigate and understand is no surprise, almost half of B2B buyers also want a site with a significant amount of data to review, likely to ensure Another its credibility and value . interesting quality from our findings is the buyer’s want for negative reviews . Nearly 1/2 of buyers want a review site that has a significant amount of data to review. So, are negative reviews a deal-breaker? 2 CROWD

10 Part 3: Embrace the Negative It’s normal for you to be worried when a less-than-stellar review comes around, but that doesn’t mean all hope is % lost — quite the opposite, actually. Buyers rely on product 67 of buyers prefer reviews to gain depth and insight to your product before they make the decision, and that means seeing both the to see a mix of positive positive and the negative . and negative reviews . 3 out of 4 B2B buyers say negative reviews help provide a depth of insight to make an informed decision. 2 CROWD

11 Negative reviews are not deal-breakers . However disheartening negative reviews may feel at the time, in reality, 67% of buyers actually prefer to see a mix of positive and negative reviews, with 3 out of 4 buyers saying negative reviews help provide more depth and insight to make an informed decision . How do you react when you read negative reviews? 72% 39.5% 33.4% They provide insight They build I’m less likely to help me make an credibility for to purchase informed decision the product 2 CROWD

12 Part 4: Putting B2B Reviews to Work Are you using reviews effectively in your B2B sales and marketing outreach? Reviews can do far more than educate your prospects — you can also use them to improve your messaging, your content, your products, and your company’s credibility as a whole . The C-Suite on B2B Reviews Does your company currently utilize B2B reviews as part of its marketing mix? 43.2% YES 3 in 4 find value in reviews % but 55 don’t use reviews in their marketing mix 56.8% No or Don’t Know 2 CROWD

13 The value of B2B reviews . Utilizing reviews can give you a valuable advantage over the competition, but only 2 in 5 companies currently use them in their marketing mix . This means that nearly 60% of companies don’t currently use reviews . How would you rate the current effectiveness and value of reviews to your marketing mix on a 1–7 scale? (7 is very valuable) 68.6% 70 5-7 value 60 50 40 30 22.3% 20 3-4 value 10 3.4% 0 1-2 value 2 CROWD

14 The importance of reviews over time . A review strategy takes time to get up and running . Of the companies that are currently utilizing reviews, nearly half of them have been doing so for at least two years, and across the board they reported an increase in their importance to marketing strategy . % 90 of companies currently using reviews said the importance of them has increased or stayed the same in the past one to two years. 2 CROWD

15 In total, 70% of sellers said the importance of using reviews in their marketing has increased in the last two years, with an additional 19% saying the importance has stayed the same . Broken down further, over 75% of companies with more than 5 years of experience and 80% of those with less than one year of experience reported an increase as well . % The companies with more experience understand the 70 importance of reviews after refining their strategies, while the less-experienced companies are likely seeing of all sellers currently positive results from their newly implemented tactics . utilizing reviews said the importance of them has How long has your company utilized increased . and/or monitored reviews as part of its marketing mix? 75% 17.7% 0 - 1 year of sellers who have used reviews for more than five years reported an increase in importance . 27.4% 1 - 2 years 80% of sellers who have used 27% 2 - 5 years reviews for one year reported an increase in importance . 15.6% with more than five years of experience 2 CROWD

16 How are reviews being used? You’d be mistaken to think reviews have a singular use in your marketing mix . In fact, reviews have a variety of uses, each of which provides its own value to your organization . How do B2B sales and marketing teams use reviews? 52% 52% to establish or for testimonials improve credibility and case studies and trust 51% 49% to increase to monitor brand awareness customer feedback 49% 43% for lead to establish and generation demonstrate market presence 2 CROWD

17 The benefits of B2B reviews. What benefits have companies seen from actually using these reviews? Across the board, sellers responded that they’ve seen improvements in: Monitoring customer feedback 1 in 2 C-Suite Gathering testimonials and respondents case studies saw improvement in testimonials/case studies. Increasing brand awareness Generating leads Building and establishing credibility Providing product validation 1 in 3 managers found improvement in Establishing market presence monitoring customer feedback. Analyzing their competition 1 in 3 consultants/ coordinators saw improvement across all areas. 2 CROWD

18 Part 5: Your Competitive Advantage This entire time we’ve explored the ways in which B2B reviews are used by buyers to help them make smarter decisions, and we saw that 9 out of 10 buyers are more likely to make that decision after reading a trusted review . That, along with all the ways reviews add value to your company, makes introducing reviews to your marketing strategy seem like a no-brainer . However, of the B2B companies who don’t currently utilize reviews, only 1 in 5 are even considering them. What does this mean? It means that you have the valuable opportunity to get ahead of the curve and position reviews as your competitive advantage . Only 1 in 5 companies not already using them are considering adding reviews to their marketing mix. 2 CROWD

19 Next Steps Here are four areas to help you make the most for Sales of your reviews . and Marketing How can B2B sales and Use reviews to marketing teams leverage 1 improve your reviews in their own efforts to product . accelerate their pipeline and close more deals? Use reviews to 2 create content for every stage of the sales funnel . Implement 3 a consistent strategy to continually seek out new reviews . Don’t silence the 4 negative reviews . 2 CROWD

20 1 Use reviews to improve your product . Reviews are a great way to gauge users’ overall satisfaction and discover underlying issues, challenges they’re facing, and opportunities to streamline actions and usability . Utilize your reviews to continually improve your offering, and show users (and prospects) that you listen to their feedback and actively work to make your product better . BEST PRACTICES: Monitor customer feedback and respond to issues and challenges. Personally reach out and reply to those providing feedback — both positive and negative. When a problem is resolved, reach out to the customer and politely ask if they would update their review. Encourage long-term relationships with your customers to request reviews. 2 CROWD

21 2 Use reviews throughout your marketing strategy . As we saw, reviews are not restricted to a single phase of the B2B buyer’s journey; therefore you should utilize reviews throughout your marketing strategy at every stage of the funnel . A good review strategy helps foster trust and credibility, build your brand, establish market presence, and reinforce a prospect’s decision to buy . BEST PRACTICES: Develop testimonials from Use reviews to identify reviews at various stages of potential references for the buyer’s journey. customers who have similar use-case scenarios. Utilize reviews as call-outs in early-stage content like Link to your company’s eBooks and whitepapers as profile on a review site. well as later-stage materials Refer prospects to these like testimonials and case reviews for an unbiased, third studies. party testimonial to close sales. Draw on your reviews to Utilize products and data uncover the solutions your offered by review sites to product addresses and build display testimonials and new messaging from them for competitive insights. early-stage communications. Work with your customer support team to identify users and reviews that can be featured in sales and marketing collateral. 2 CROWD

22 3 Implement a continual review strategy . 20 reviews is good, but 20 more that are recent is great . Ensure your reviews don’t grow stale by consistently prompting users to write a review about your product through a variety of channels . You can then use these reviews to aid in your messaging and positioning for future marketing campaigns . BEST PRACTICES: Conduct periodic review Seek out reviews through a campaigns to ensure variety of channels, including users’ voices are heard. email, phone calls, events, email signatures, and your website. Don’t be afraid to ask old reviewers to update their reviews. Once new users have been onboarded, encourage reviews from the get-go. 2 CROWD

23 4 Don’t silence the negative reviews . Remember, nobody’s perfect . There will be times when a user is unhappy enough to write a negative review . Don’t let this distract you . Take this opportunity to follow-up with that user and better understand their problems . Addressing the issue head-on could also cause that user to update their review and share the positive experience they just had, which further demonstrates your commitment to your customers and your value to prospects . BEST PRACTICES: Do not try to hide negative Alternatively, share any reviews. Instead, acknowledge upcoming product updates the pain point and respond to and their timeline. Demonstrate all negative reviews with poise you are listening, appreciate the and honesty. Then do your best feedback and implement changes to fix the situation. based on it when possible. Thank the customer. Negative Embrace the negative reviews reviews give you focus group because it gives an honest view insights at no charge. Reply of your product — a product that to negative reviews within 48 looks too perfect on paper is too hours if possible. good to be true. Follow up with the customer Share negative reviews with to make sure their issue has your product and customer been addressed. success teams for continual improvement. When possible, share recent product updates that may reverse the negative review. Show you are dedicated to making the product better and more user friendly for everyone. 2 CROWD

24 Conclusion Reviews offer an enormous opportunity for your organization, not only to help you get recognized, but to help you grow . Reviews aren’t just dust in the wind — they possess tremendous value to you and your company to help you continually improve and thrive in the modern B2B landscape . Where will your reviews take you? 2 CROWD

25 About the Authors G2 Crowd Heinz Marketing G2 Crowd’s mission is to provide the insights Everyday at Heinz Marketing brings a new business professionals need to gain confidence adventure in the world of B2B sales and in their buying decisions and become more marketing . We are innovators at heart, and successful in their jobs . Our model brings not afraid to challenge convention in order transparency to B2B buying — changing the to deliver the results our customers need . way decisions are made . We are passionate about what we do and We provide B2B Marketers with powerful data strive to promote outcomes rather than just and insights by leveraging over 250,000 verified focus on activities . user reviews read by nearly read by 1 million Visit Heinz Marketing on the web at buyers buyers each month . Our marketing www.heinzmarketing.com and follow solutions give you effective tools to improve us on Twitter @HeinzMarketing awareness, build trustworthiness and get a true understanding of your product’s effectiveness . G2 Crowd products include widgets, research data, reports and upgraded profiles, and give you competitive analysis, content, quality leads, testimonials, and a connection with your actual, verified customers. Visit G2 Crowd on the web at www.g2crowd.com and follow us on Twitter @G2Crowd 2 CROWD