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A generational shift in buying behaviour is well underway. As of 2023, according to Forrester, 71% of B2B buyers are Millennials and Gen-Z (born after 1980). These younger generations, known for their digital savviness and distinct values, bring with them new expectations and behaviours that are transforming traditional B2B purchasing processes.
Understanding and adapting to the unique characteristics of Millennials and Gen-Z is no longer optional for B2B companies; it’s a necessity to stay competitive.
These groups prioritize seamless digital experiences, value-driven purchasing decisions, and collaborative processes, fundamentally altering business transactions. To meet the demands of this new generation of buyers, organizations must rethink their strategies, emphasizing personalization, transparency, and innovation in their approach.
Let’s explore how Millennials and Gen-Z are reshaping B2B buying habits and the strategic adaptations necessary for businesses to thrive in this evolving landscape.
Key changes in B2B buying behaviours and habits
Preference for a seamless experience
Millennials and Gen-Z buyers demand frictionless, integrated experiences throughout the entire purchasing journey. These digital natives expect seamless interactions, whether they are conducting research, making a purchase, or seeking post-sale support.
The rise of self-service transactions has been significant, with younger buyers increasingly utilizing online platforms and marketplaces for their B2B needs. This shift towards digital self-service is driven by their preference for convenience and efficiency, which means organizations must develop user-friendly digital interfaces that facilitate easy transactions and information access.
This isn’t to say that sales representatives will go the way of the dodo. While the role of sales reps is evolving, they are far from obsolete. Instead, their responsibilities are shifting towards more consultative and value-added interactions. Rather than acting as mere conduits for information, sales reps are now expected to provide strategic insights, personalized solutions, and exceptional customer service that digital tools alone cannot offer.
The preference for personalized and data-driven marketing cannot be overstated. Millennials and Gen-Z buyers expect marketing messages that are tailored to their specific needs and pain points. This necessitates the use of advanced analytics and AI-driven tools to gather insights and deliver targeted content. According to Salesforce’s AI Report, 63% of marketers leveraging AI say they use generative while just over half (54%) are using predictive to automate customer interactions. Companies that successfully blend digital convenience with personalized service will be well-positioned to succeed.
Value beyond mere dollars
Unlike previous generations, which primarily focused on the economic value of products and services, Millennials and Gen-Z buyers place significant importance on environmental sustainability and experiential and symbolic value. These generations are more inclined to support companies that demonstrate a commitment to social and environmental responsibility – and they are quick to sniff out performative attempts at sustainability or social responsibility.
Aligning offerings with these broader values is crucial for staying relevant in today’s market. Companies that prioritize sustainability initiatives, ethical practices, and a strong brand purpose are more likely to resonate with these younger buyers, who view their purchasing decisions as extensions of their personal values and beliefs.
A study by the World Economic Forum found that three-quarters of Gen-Z prefer to buy sustainably rather than opting for brand names. This generation’s influence extends beyond their own demographic, encouraging other age groups to adopt more sustainable purchasing behaviours as well.
In the B2B context, these values translate into higher corporate social responsibility (CSR) expectations. Younger B2B buyers seek suppliers and partners who are committed to ethical practices and sustainability. Forrester Research indicates that Millennials and Gen-Z now constitute the majority of business buyers, and their preference for sustainable, transparent business practices is reshaping the B2B landscape. Companies that fail to meet these expectations risk losing out to competitors who better align with the values of these influential buyers.
By aligning with these emerging values, businesses can attract and retain Millennial and Gen-Z buyers and drive long-term loyalty and brand advocacy.
Participatory decision-making
In addition to a frictionless, digital-first experience and a focus on shared values, Millennials and Gen-Z prefer collaborative decision-making processes, which can present challenges for vendors. These younger buyers often seek input from various stakeholders within their organizations before finalizing a purchase. In fact, an average of six to ten decision-makers can be involved in a single B2B purchase decision. Each decision-maker typically brings four to five pieces of independently gathered information, which must be reconciled within the buying group.
This participatory approach requires vendors to provide comprehensive information and support throughout the decision-making process. According to Forrester, building internal consensus can be difficult, and organizations must develop strategies to facilitate this collaboration, offering tools and resources that help buyers navigate complex decision-making environments.
What should organizations do?
Organizations need to embrace a multi-faceted approach to adapt to the evolving landscape of B2B buying behaviours influenced by Millennials and Gen-Z. This means emphasizing sustainable and ethical practices and fostering collaborative decision-making processes that reduce friction within self-guided buying decisions.
