Forrester: Generational Shifts Are Disrupting Traditional Business Buying Behaviors And Necessitate Reevaluating Go-To-Market Strategies

Rhea-AI Summary

Forrester (Nasdaq: FORR) reveals insights from its report, indicating that Millennials and Gen Z buyers now comprise 64% of business buyers, with Millennials alone exceeding half. This demographic exhibits significant dissatisfaction—90% reported issues with vendors, surpassing 71% of older buyers. The report suggests younger buyers demand more self-serve channels and rely on third-party information, reflecting their digital proficiency. Companies must adapt their strategies to meet these evolving consumer habits amidst economic uncertainties. Insightful data drives the need for businesses to rethink engagement methods for success.

Positive

• Millennials and Gen Z are increasingly influential in B2B buying, comprising 64% of buyers.
• The report highlights the importance of adapting sales and marketing strategies to meet new buyer expectations.

Negative

• 90% of younger buyers express dissatisfaction with vendors, indicating potential challenges for providers.
• The continued economic uncertainty may complicate firms' ability to engage effectively with these buyers.

Millennial and Generation Z buyers are more demanding, with 90% citing dissatisfaction with their vendors

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- According to Forrester’s (Nasdaq: FORR) Younger Buyers Have Changed The Business Buying Landscape report​, Millennials and Gen Z constitute 64% of business buyers, with Millennials making up more than half of all business buyers. These younger buyers are more demanding, engaging in more buying activities, and more willing to express their dissatisfaction with the buying process. These changing buying behaviors, combined with continued economic uncertainty and tighter budgets, necessitate that sales and marketing leaders adapt their go-to-market strategies.

The results reveal broad patterns among business buyers on a global scale across industries such as finance, high tech, manufacturing, and retail. In addition to studying generational differences in buying, the research examines how different B2B buyer personas such as tech, sales and marketing, HR, and procurement leaders interact throughout the buying cycle, their most relevant interaction types, and their preferred route to purchase. Key insights from the research include:

• Younger buyers carry new demands and expectations for B2B buying. Given their digital savviness, younger buyers are more likely to use self-serve transaction channels than their older counterparts. They are pushing vendors to a variety of self-serve transaction channels, including external marketplaces, app stores, vendor websites, and even through existing products.
• Millennials and Gen Z buyers are active information seekers. While there are many similarities in the way business buyers gather information across all ages, younger buyers go to more sources and find third-party resources more impactful than vendor resources.
• This group is quicker to express dissatisfaction with the buying experience. Younger buyers are more demanding, with 90% citing dissatisfaction with their vendor in at least one area compared to 71% of older buyers.

“Generational shifts in the workplace are turning the business buying process on its head,” said Amy Hayes, vice president and research director at Forrester. “Lack of understanding about Millennial and Gen Z buying behaviors can adversely affect providers’ ability to reach, engage, and ultimately win these buyers over. Forrester’s annual Buyers’ Journey Survey is one of the largest and most comprehensive in the world and reveals compelling insights about buying behaviors to help firms evolve their go-to-market strategy to be in lock step with their buyers’ preferences.”

Resources:

• Learn how Millennials and Gen Z buyers approach the buying process differently.
• Download Forrester’s B2B buying report, Younger Buyers Have Changed The Business Buying Landscape (client access required).
• Register to attend Forrester’s B2B Summit APAC, B2B Summit EMEA and B2B Summit North America to learn more about changing B2B buying behaviors.

About Forrester

Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, customer experience, digital, marketing, sales, and product functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; 100 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005358/en/

Shweta Agarwal

sagarwal@forrester.com

Source: Forrester

FAQ

What percentage of business buyers are Millennials and Gen Z according to Forrester's report?

Millennials and Gen Z constitute 64% of business buyers.

How satisfied are Millennials and Gen Z buyers with their vendors?

90% of Millennials and Gen Z buyers reported dissatisfaction with their vendors in at least one area.

What key demand do younger buyers have in the business buying process?

Younger buyers demand more self-serve transaction channels and rely on multiple sources for information.

What critical change is needed in marketing strategies for companies targeting younger buyers?

Companies need to adapt their go-to-market strategies to align with the expectations and behaviors of Millennials and Gen Z buyers.