The State of B2B Advanced Data Analytics in 2022

Back in the distant past of 2018, the Harvard Business Review published a piece on how advanced data analytics were transforming B2B selling.

In that article, it was discussed how an increasing number of B2B companies were using data and analytics to provide their customers with new services and increased levels of value along with additional sources of revenue. The piece also drew attention to the fact that, while data and analytics were big parts of the B2C business, the B2B space had been relatively slow to adopt many of its practices in this regard.

Four years later, it would seem a suitable time to take a look at the state of play when it comes to advanced data analytics in the B2B ecommerce space and see if the industry has picked up the torch and ran with it, or let it fizzle out.

Advanced Data Analytics

Thankfully, many other innovative technologies have grown in popularity and sophistication which make advanced data analytics more streamlined and accessible than ever.

Technologies such as artificial intelligence and machine learning can process vast quantities of data in a tiny proportion of the time it would take traditional statistical analysis methods to achieve.

Thanks to the increased use of social media and Google technology, data is now even easier to collect than ever before. While online data collection is not without its share of controversy, many people have gone on the record to say they are happy for companies to collect their data if it means they get a better and more personalized service as a result – and the security and privacy of that data is treated with the respect and seriousness it deserves.

Through big data analytics, B2B ecommerce brands can develop more detailed buyer personas of their customers than would have previously been possible and then use that information to personalize their experience with innovations such as improved communication and customer service, and by tailoring products, packages, and pricing specifically to them.

And, when it comes to the acquisition of new customers, data is empowering B2B ecommerce to turn lead generation into a far more structured and predictable process. This means fewer wasted sales call and more actionable leads which are more likely to result in sales and increased revenue.

And, of course, all this comes together to improves customer retention through superior service and after sales support as well.

The Numbers

McKinsey research has found in 2019, 47% of modern businesses state data and analytics have significantly transformed the nature of competition in the B2B space, suggesting that any brand that wants to remain competitive in this industry needs to be taking big data and analytics seriously.

Today, 61% of B2B companies believe they are making effective use of data, compared to just 43% at the time of the Harvard Business Review article. This indicates that organizations are becoming more confident about using data to supercharge their B2B offering and those brands which have yet to fully commit are going to find themselves up against a steep learning curve when compared to their early adopting peers.

This is reflected in growth as well. Companies with a strong analytics focus are 1.5 times more likely to be faster growers than rival brands. This is perhaps why 65% of B2B businesses expect to increase spending on data and analytics – the most of any marketing and sales capability.

However, it’s not all clear sailing for advanced B2B data analytics. B2B companies can often fall short when it comes to applying the correct resources through data driven overhauls of their commercial operations – something encroaching B2C brands such as Amazon are particularly good at.

"The problems start at the beginning of the process, when many companies struggle to identify goals for their analytics programs, such as preventing churn or increasing cross-sells," states McKinsey in its report. "As a result, while every company has significant volumes of data, many B2B companies lack the capabilities to translate data into relevant, usable insights that help them to sell more effectively by improving their understanding of their customers’ experiences, needs, and triggers."

Final Thoughts

While it’s not without its challenges, advanced data analytics is going to continue to increase in utility when it comes to promoting B2B businesses online. As B2C disruptors such as Amazon continue to encroach into the space, B2B brands need to step up their data game and make sure they are able to, not just gather and analyze this information, but effectively action it as well.

Advanced data analytics are set to be part of the conversation at B2B Online Connect 2024, taking place this June at the Rancho Bernardo Inn, San Diego, CA.

Download the agenda today for more information and insights.