Does B2B branding matter?

This is one of the most common questions I’ve received throughout my career. Generally, it’s clear to companies with B2C audiences that they need to invest in their brand image and reputation. But many B2B companies feel like their money would be better spent elsewhere.

Are clients right to assume that branding doesn’t matter for B2B companies? The simple answer is no!

Of course B2B branding matters! It matters significantly. Your corporate brand is vital to your success, and here’s why.

Decisionmakers are human.

Once you get past the AI filters that businesses leverage for efficiency’s sake, you are still communicating with humans — regardless of whether you are targeting consumers or businesses. And humans are emotional beings that can’t help but react to what’s being shown or said to them. If your branding is unrefined or doesn’t meet the sophistication of your offering, an individual can’t help but see it as a poor reflection of your services. It’s important to remember that you will be judged on all aspects of your brand.

Differentiation is key.

Business partners need to know why they should choose your organization. Data and financials aren’t always enough (although CFOs may disagree). In crowded industries like tech and healthcare, being able to explain clearly and succinctly why your business is better than your competitors’ is vital. A well-thought-out brand position will help set the tone for your unique value propositions, making it easier for potential clients to choose your company.

Perceived value IS A POWERFUL TOOL.

Strong branding will enhance the perceived value of your company’s products or services. More often than not, clients and customers have shown a willingness to pay a premium for brands they perceive as higher quality and more trustworthy. Great branding makes clients less sensitive to higher price points because clients associate the brand with quality, reliability, and superior service. That trust pays off exponentially over time, as it leads to brand loyalty and results in long-term engagements.

RELATIONSHIPS ARE NOT ENOUGH.

In certain spaces (financial, legal, etc.), I’ve heard companies argue that their leads and revenue exist primarily on the strength of their business relationships. While it may be true today, that is a dangerous model to uphold. Relying only on existing relationships and word-of-mouth referrals prevents organic growth and assumes that the future will always mirror the present. You never know when a “new kid on the block” will come along and try to drive a wedge into those relationships. Instead of relying solely on existing relationships to power business, you should leverage those wonderful long-term stories to further enhance your brand’s image.

Don’t believe me? Look at what the big players are doing.

The world’s biggest B2B business spend substantially on marketing and branding efforts.

According to their Annual Report, Microsoft spent over $22 billion on branding and marketing efforts in 2023 — up 4% from 2022.

Accenture spent $6.5 billion in branding and marketing in 2023 — up $1.3 billion from 2021.

And Oracle spent almost $9 billion on branding and marketing in 2023 — their largest operating expense (18%).

It’s not a coincidence that these companies are investing heavily in their marketing and branding efforts. They know that — despite their massive successes — they need to continue to bolstering their brand image.

In conclusion, B2B branding is essential for building a trustworthy and resonant presence in the market. An investment in strategic branding can influence everything from perception to client loyalty to talent acquisition.

If you or your organization is in need of branding support, GRAY GIANT would love to help.