Price is usually seen as the make-or-break factor in business-to-business (B2B) relationships. If your company wants to compete in today's global economy, it has to bring much more to the table than low prices -- companies that compete on price alone have given up on organic growth. There is always far more business left on the table than your client team has won, and engagement builds out a client partnership more than price.
Gallup defines engagement as the emotional connection between your business-to-business customers and your client teams. When B2B customers explain why they prefer one supplier over another, Gallup routinely hears them say, "I just have a greater comfort level with them." An increasing number of the business leaders Gallup advises are placing a renewed emphasis on engagement in their B2B relationships -- and realizing significant organic growth.
Positive customer relationships can no longer be built through traditional corporate entertainment. Entertainment doesn't work anymore. It is a practice of the past, not because of tighter corporate governance, ethics or new compliances, but because B2B customers are demanding something different. They demand industry knowledge, ideas that work, advice and brilliant strategies. Perfect delivery is also not enough -- it is simply the ante to play in the new world of extreme global competition and historically tight budgets.
Emotional connections matter to your B2B customers, and they are largely responsible for improving your revenues and margins. Gallup's B2B clients -- from heavy manufacturing to banking to medical equipment companies -- have consistently found a strong link between engagement and revenue and margins. Gallup's approach emphasizes the importance of impact, meaning Gallup doesn't just help you engage your customers, we help you determine the best strategy to drive engagement.
Compared with bottom-performing workgroups, top-performing workgroups that successfully engage their B2B customers realize:
- 63% lower customer attrition
- 55% higher share of wallet
- 34% higher profitability
- 32% less days sales outstanding