The Future of B2B Reviews in the Procurement Process

Posted on July 28, 2015, 8:22 p.m. by Andrew Kohm

Future of B2B Reviews in Procurement

Virtually every business, at some time or another, needs to procure goods or services from another business. However, identification of the right supplier of those goods and services has posed a perennial challenge for procurement professionals. Currently, this process is undergoing a fundamental change, as the proliferation of available information continues to both empower buyers as well as change the role of sellers. A 2014 study by SAP SE gives insight into the changing landscape of the procurement process.

Traditionally, one of the greatest frustrations of the procurement process has been the ability to obtain reliable information. Previously, buyers had no choice but to distribute RFQs (Requests for Quote) or RFPs (Requests for Proposal), and go through the arduous effort of parsing the information subsequently obtained from suppliers.

As a result of these frustrations, buyers are increasingly turning more and more to the wealth of information available via the internet.

  • 68% percent of buyers do more extensive research on their own
  • 80% state that they will typically determine exactly what they want to buy before establishing that first vendor contact.

Even in the last two years, the reliance on information obtained from non-traditional sources has increased significantly, and this is a trend that can only be expected to continue to grow. The most popular sources of information now are web searches (75%) and vendors’ websites (70%). 50% of buyers rely upon social media networks in their decision making process. This includes B2B peer reviews from those in a similar position who buy the same goods and services.

Where is this information coming from? Some of it comes from the customers themselves. Customers share their experiences with their peers. 88% of those who have a positive experience with a vendor have shared that information, as well as 74% of those who have had a negative experience.

The enormous amount of information available, including B2B reviews, has resulted in a population of buyers that is now so educated and informed, that the role of the vendors themselves is transforming. The wealth of information at buyers’ fingertips has raised the bar for their expectations for vendors. 90% of buyers believe that vendors can stand out by providing meaningful interactions with them through the process, including demonstration of their knowledge of their products (74%) and of the customers’ organization (54%).

New channels of information have produced an audience of buyers so highly empowered that the entire procurement process has already changed irreversibly. While vendors risk becoming irrelevant as this trend continues, those who show understanding of the needs of their customer base, and strive to enhance their purchasing experience, will be positioned well in the future landscape of B2B procurement.

Source: SAP: What’s The Future Of Sales

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