Understanding The Industrial Buy Cycle

INDUSTRY TRENDS & RESEARCH REPORTS
FOR INDUSTRIAL MARKETERS
Understanding the Industrial Buy Cycle:

How to Align Your Marketing with Your
Customers Buying Process
INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS
Contents
Executive Summary....................................................................................................................3
What is the Buy Cycle?..............................................................................................................4
An established, four-stage process........................................................................................4
Emotion plays a role in the buy cycle....................................................................................4
The buy cycle is shaped like a funnel....................................................................................4
The buy cycle can be long and include multiple decision makers......................................5
A Buy Cycle Example..................................................................................................................7
Needs Awareness stage..........................................................................................................7
Research stage.........................................................................................................................7
Comparison & Consideration stage.......................................................................................7
Procurement stage..................................................................................................................8
Suppliers are exposed to buyers many times.......................................................................9
Implication for Marketers.......................................................................................................... 10
Online information sources are the most important.......................................................... 10
Buyers seek content to support decisions on complex sales............................................12
Get found early in the buy cycle to make a customers short list......................................13
Preventing the Last Click Marketing Mistake.......................................................................14
Recommendations for Suppliers.............................................................................................15
Understand the importance of the industrial buy cycle.....................................................15
Establish a comprehensive online program to cover the buy cycle.................................15
Develop appropriate content to address each decision maker..........................................15
Consider the GlobalSpec advantage....................................................................................15
About GlobalSpec.....................................................................................................................16
Appendix: Industrial Buy Cycle Survey Results...................................................................... 17
U N D E R S TA N D I N G T H E I N D U S T R I A L B U Y C YC L E
2 0 1 0 G LO B A L S P E C , I N C .
Executive Summary
The purchasing of industrial products and services can be a lengthy, complex
process often involving multiple decision makers. This is called the buy
cyclethe steps that industrial or other B2B sector buyers engage in when
purchasing products and services, and one that marketers must pay attention
to when planning marketing strategies and crafting messaging.
The industrial buy cycle consists of a methodical and deliberate series of
four stages: Needs Awareness, Research, Consideration & Comparison, and
Procurement. In each of these stages, buyers engage in different behaviors
and use a wide variety of information sources to locate suppliers and support
their buying decisions. Although the industrial buy cycle has been around
for as long as products have been bought and sold, the way purchasers go
through the four stages has changed. Today, online methods dominate the
four stagesfrom conducting research on the Internet, to contacting suppliers
and requesting quotes online, to comparing supplier offerings using content
found online, to submitting purchase orders.
GlobalSpec recently conducted an Industrial Buy Cycle Survey of engineering,
technical, manufacturing and industrial professionals who have influence
on their companys processes for buying products and services. The survey
included questions about the length of the buy cycle, the sources buyers use
to obtain information, the amount of content buyers review before making a
purchase decision, how various factors influence purchasing decisions, how
many suppliers are evaluated before making a purchase decision, and more.
This white paper analyzes the responses and explains specific implications
the buy cycle has for marketers. It demonstrates that buyers have significantly
reduced their reliance on traditional information sources such as printed
catalogs, trade shows, and trade magazines, in favor of search engines, supplier Web sites, online catalogs, and other online resources. Buyers also seek
online access to content that helps educate them, improves their decisionmaking capabilities, and increases their confidence level in their final purchase
decision. Marketers must also note the importance of building their presence
across multiple online channels to be found by buyers early in the buy cycle.
Marketers must also learn to avoid the last ad concept, where credit for a
conversion is given exclusively to the last ad that a prospect acts upon, which
can lead to flawed marketing decisions and an over-reliance on a limited
number of marketing programs.
Finally, this paper offers recommendations to suppliers about how to apply an
understanding of the buy cycle to their marketing efforts, with specific advice
about online marketing programs that will help you reach potential buyers at
all stages of the buy cycle, particularly the early stages where suppliers must
be visible to their target customers.
2 0 1 0 G LO B A L S P E C , I N C .
What is the Buy Cycle?

An established, four-stage process
The industrial buy cycle is a well-documented and recognized process, characterized by stages of decision
making, including:
1. Needs Awareness: when buyers first realize they need a product or service to fulfill the needs or requirements of a specific project or task.
2. Research: when buyers begin an investigation into whats available in the marketplace and which vendors potentially offer a product or service to meet their needs.
3. Consideration & Comparison: at this stage, buyers begin the weeding out, eliminating vendors who
dont meet their needs or who they dont want to do business with for one reason or another, and coming up with a short list of potential vendors.
4. Procurement: the final decision among the short list of vendors, ending with the purchase of products or
services.
Most businesses make purchase decisions methodically, moving through the distinct stages of the buy cycle
with forethought and planning.1 However, buyers do not always move in perfect sequence through the steps.
For example, during the Consideration & Comparison phase, a buyer may realize that none of the vendors
on his short list is the perfect fit, sending him back to the Research phase. Or needs might change during any
of the phases, putting the buyer back at the beginning. In these cases, buyers go back to their information
sources, looking for suppliers to meet their needs.
Emotion plays a role in the buy cycle

The purchasing of industrial products and services is a complex process, characterized by teamwork and
rational decision making. But that doesnt mean the buy cycle is an emotionless process. While industrial
buyers are generally not moved by consumer motivators such as impulse, fashion, or status, other individual
emotional motivators are at play. For example, the fear of making the wrong purchase decision, the level of
confidence in forecasted ROI, and the level of trust in the vendor are all very real emotional drivers in the
B2B world and come into play during the industrial buy cycle. 2
The buy cycle is shaped like a funnel

The business-to-consumer world uses the concept of the purchase funnel through which consumers follow a path of Awareness, Interest, Desire
and Action.3 This process can be related to the industrial buy cycle of Needs
Awareness, Research, Consideration & Comparison, and Procurement.
The industrial buy cycle is also shaped like a funnel, wide at the top to represent
the overall marketplace that can be discovered during the Needs Awareness
phase, and narrow at the bottom as an industrial buyer develops a short list of
vendors and makes a purchase decision.
B2B Buying Cycle, The Shattuck Group, http://www.theshattuckgroup.com/b2b_buying_cycle.pdf.
What Makes Business-to-Business Marketing Different?,The Proteus Group,
http://www.proteusb2b.com/b2b-marketing/difference.php.
3
Measuring ROI Beyond the Last Ad, John Chandler-Pepelnjak, Atlas Institute, May 2008.
2 0 1 0 G LO B A L S P E C , I N C .
The buy cycle can be long and include multiple decision makers
Another aspect of the buy cycle is its variable length. According to the GlobalSpec Industrial Buy Cycle
Survey, the time between identifying a need and making a purchase can be less than one month or as long
as nine months or more, with the length of time increasing as the dollar amount of the purchase increases.
Average Length of Buy Cycle

Less than a month
1-2 months
3-4 months
5-6 months
6-8 months
9 months or more
90%
81%
80%
70%
60%
50%
39%
40%
34%
30%
26%
18%
20%
13%
11%
10%
3%
0%
1%
2%
Purchases under $1,000
16%
11% 11%
5%
2%
18%
4%
4%
Purchases between $1,000 - $10,000
Purchases greater than $10,000
GlobalSpec, Inc.
81% stated the buy cycle is less than one month for purchases under $1,000, while 38% said the buy cycle
is five months or longer for purchases greater than $10,000. This longer buy cycle is expected for larger
purchases, since the investment, and therefore the risk, is greater.
2 0 1 0 G LO B A L S P E C , I N C .
In addition, more decision makers are involved in larger purchases, which adds time to the process to get
everyone in agreement. 63% of purchases under $1,000 involves just one decision maker, while only 2%
of purchases over $10,000 involves just one decision maker. 31% have three or more decision makers for
purchases between $1,000-$10,000, and that jumps to 66% for purchases over $10,000.
How Many Decision Makers for Purchases

1 (Just me)
70
3-4
5 or more
63%
60
47%
50
44%
40
30
27%
25%
24%
22%
22%
20
10%
9%
10
4%
3%
GlobalSpec, Inc.
Overall, very few purchases are decided on by one individual only, reinforcing the concept of a complex,
lengthy industrial sales cycle with multiple decision makers. Only 7% of buyers make all purchase decisions
on their own. Another 50% make less than half of purchase decisions on their own.
Percent of Purchases Decided by One Person

7%
13%
25%
0%
10%-40%
50%-60%
37%
70%-90%
100%
18%
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
A Buy Cycle Example

Because the buy cycle can be complex, long, and involve multiple decision makers, buyers typically access,
use, and share varying amounts of information from multiple different sources. Suppliers who want to found
by potential buyers must establish a highly visible presence in those places where customers are looking for
information and vendors. An example of the buy cycle will clarify this concept.
Needs Awareness stage

Technical buyers, such as engineers, manufacturing plant floor management/personnel, and industrial
purchasing agents are not impulse buyers. They dont suddenly decide to buy, for instance, a motor for a
precision dispensing machine. Instead, they have a specific need, project or design requirement. In this
case, it could be a motor accurate enough for the detailed work that the machine needs to do, and that has a
similar footprint to work with the existing ball screws and slides associated with the machine.
This is the Needs Awareness phase of the buy cycle. Once the need is identified, buyers begin the Research
phase to discover what products or services will satisfy their need.
Research stage
Research typically starts with searching on the Internet. 73% of engineering, technical, manufacturing and
industrial professionals spend three or more hours per week on the Internet for work-related purposes, as
reported in the GlobalSpec 2009 Economic Outlook Survey. 62% visit six or more work-related Web sites
per week. These professionals are searching for products, services and suppliers and use a number of
information sources, including search engines, online catalogs, supplier Web sites, and GlobalSpec.com.
Additionally, 56% receive three or more work-related e-newsletters every month.
Comparison & Consideration stage

At some point in their online research, the buyer clicks on specific links of interest and, using our example,
identifies the appropriate motor needed for the job. Now in the Comparison & Consideration stage, buyers
compare suppliers and specific product specifications. They visit portal sites, supplier Web sites, GlobalSpec.
com and other online destinations, gathering data, reviewing product specifications, viewing drawings and
more. Often they save this information by bookmarking relevant pages, downloading product specs, and
printing out information to reference again and share with others involved in the decision-making process.
2 0 1 0 G LO B A L S P E C , I N C .
Procurement stage
At the Procurement stage, buyers may initiate the purchase or recommend several products to the purchasing department which makes the final purchase decision. The most common methods for making purchases
are submitting a purchase order (43%), purchasing online (22%), and placing a phone order (19%). Traditional
sales through offline channels such as purchase orders often are the result of buyers engaging in online
methods for Needs Awareness, Research, and Consideration & Comparison.
Most Commonly Used Purchase Method

5% 3%
8%
43%
Purchase order
Purchase online
Phone order
Fax order
19%
Buy in-person at store

Other
22%
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
Suppliers are exposed to buyers many times

From the beginning of the buy cycle to the end, the supplier that is eventually selected is exposed to the
buyer many times. The company may have first become visible through an Internet search, or exposure to
its online catalog, or a banner ad on an industrial site, or any number of other ways. A marketer may not
always know what specific exposure initiated the process that culminated in a sale.
For example, a buyer may type your company name into the Google search box, but it would be a mistake
to assume this specific exposure through Google initiated the buy cycle or delivered the sale. How does the
buyer even know your company name to type it into the search box? Unless your company name is a very
common and popular brand, its likely that a series of marketing placements provided broad exposure and
good content fulfilled your buyers early research needs, leading them to remember your company and take
subsequent buy cycle actions which eventually resulted in your company receiving the purchase order.
Frequency of Typing Company Name in Search Engine Box

25%
25%
20%
Percent of respondents
20%
17%
15%
15%
10%
9%
8%
6%
5%
0%
100%
80-99%
60-79%
40-59%
20-39%
1-19%
0%
Percent of time company name is typed in search engine box

GlobalSpec, Inc.
In fact, its common practice for people to type company names they know into a search box vs. typing the
URL in directly: this saves time and reduces errors. 62% of buyers type in the company name in a search box
at least 60% of the time when visiting the Web site of a company they know.
2 0 1 0 G LO B A L S P E C , I N C .
Implication for Marketers

Your customers and prospects engage in a four-stage buy cycle process and use many sources of information along the way. While the stages of the process havent changed over the years, the way buyers navigate
through the buy cycle and where they go to get information has changed dramatically.
Online information sources are the most important

Buyers have significantly reduced their reliance on traditional information sources such as printed catalogs,
trade shows, and trade magazines, in favor of online resources. The Industrial Buy Cycle Survey reported
the top three most frequently used sources for searching for products and services to purchase are search
engines, supplier Web sites, and online catalogs. Today, even using colleagues as a source of information has
an online component, with the increasing popularity of social media tools.
Sources Used When Searching for Products/Services to Purchase

(mean score on scale 17, 1 = Rarely use, 7 = Always use)
1
5.5
Supplier Web sites

4.9
Online catalogs
4.3
Colleagues
4.1
Printed catalogs
3.2
Printed trade publications
3.1
Printed directories/buyer's guides

3
Online industry portal sites

2.8
Tradeshows/conferences
2.5
E-newsletters
2.3
White papers
2.2
Online communities
2.1
Other B2B vertical search engines

2
Webcasts/Webinars
Blogs
5.6
Search engines
Social media (Twitter, Facebook, LinkedIn)
1.4
1.2
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
10
Depending on the stage of the buy cycle, buyers use different information sources. In the Needs Awareness
and Research stages, buyers use a broad array of sources, including social media, Webinars, e-newsletters,
search engines and GlobalSpec. By the time buyers reach the Procurement stage, supplier Web sites and
catalogs are the most important information sources.
Information Sources at Various Buy Cycle Stages

Needs Awareness & Research
0%
20%
Supplier Web sites
29%
Printed catalogs
31%
Online catalogs
Colleagues
Consideration & Comparison

40%
37%
42%
23%
22%
21%
41%
17%
42%
43%
15%
43%
44%
47%
13%
12%
41%
55%
10%
38%
35%
50%
10%
42%
Webcasts/Webinars
62%
Online communities
55%
Blogs
27%
41%
52%
29%
41%
White papers
E-newsletters
33%
42%
38%
GlobalSpec
100%
41%
General search engines (Google, Yahoo! etc...)
80%
40%
35%
60%
38%
32%
Procurement
69%
60%
8%
5%
33%
40%
5%
26%
37%
5%
3%
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
11
Buyers seek content to support decisions on complex sales

Marketers should also note that during the buy cycle, buyers want access to content that helps educate
them, improves their decision-making capabilities, and increases their confidence level in their final purchase
decision. The more expensive the purchase, the more content buyers review before making their decision.
For example, 83% of buyers review only three or fewer pieces of content before making a decision on
purchases under $1,000, while 70% of buyers review four or more pieces of content on purchases greater
than $10,000. This data suggests that if your company has small average order sizes you may be best served
with a few targeted pieces of content to deliver relevant information to buyers. If you typically have larger
average order sizes, you may need a broader library of in-depth content including brochures, specification
sheets, Webinars, e-newsletters, white papers, application notes and more to help make your case. Providing
good content to prospective buyers helps you gain an advantage over competitors.
Number of Pieces of Content Reviewed Before Purchasing

Purchases between $1,000-$10,000
40%
38%
36%
35%
32%
31%
30%
25%
25%
20%
21%
20%
17%
15%
12%
10%
10%
5%
0%
16%
15%
4%
3%
2%
1
7%
6%
5%
>5
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
12
Get found early in the buy cycle to make a customers short list
You can also gain an advantage by making sure you are found by potential buyers in the early stages of the
buy cycle. During the initial Research phase, 42% of buyers evaluate four or more suppliers, but as buyers
move closer to Procurement, only 26% get quotes from four or more suppliers. Those that drop off the list
are often those who did not provide the right level of information to buyers or did not meet some other
perceived or real need in the buyer.
Number of Suppliers Reviewed and Contacted for Quotes

1-2 Suppliers
When you are involved in
purchasing equipment,
components or services how
many suppliers do you typically
evaluate/review in the initial
research phase?
receive quotes from before
making a purchase decision?
0%
10%
20%
8%
40%
30%
50%
11%
GlobalSpec, Inc.
3 Suppliers
63%
50%
4-5 Suppliers
60%
70%
6+ Suppliers
80%
90%
33%
100%
9%
22%
4%
20%
But to even get onto the review list, a supplier must be found by potential customers. Because the information sources that buyers use vary, marketers should build their presence across multiple online channels to
make sure they are visible to buyers in the early stages of the buy cycle, and offer useful, relevant content in
order to reach and influence buyers at each stage of the buy cycle.
2 0 1 0 G LO B A L S P E C , I N C .
13
Preventing the Last Click Marketing Mistake

Some marketers mistakenly think Google is all they need because a buyer might type their company name
into the search box. But how a buyer got your name in the first place is through the work of earlier exposures
to your online marketing presence. Allocating online marketing in a broader and deeper fashion across
multiple programs not only helps you connect with more potential buyers throughout the buy cycle, it helps
prevent a key mistake that some marketers make: relying only on the last click to determine which marketing programs are effective in bringing buyers to your company.
Known as the last ad reporting standard, this model gives 100% credit for a conversion to the ad most
recently seen and acted upon by a prospect.4 While the last ad, or last online click, is important and the one
that generates a sales lead for your company, it may not occuror a lot fewer of them will occurif you
dont have a comprehensive online marketing program which exposes potential buyers to your brand in
multiple ways over a longer period of time. Multiple brand exposures can help your company become a
preferred brand, and preferred brands are likely to be contacted first because the market is already aware of
them, they already have credibility.5 That contact could be in the form of a click and registration on a landing
page, a phone call, an e-mail or another way.
The last ad standard misses the all-important concept of the buying cycle and funnel, in which all stages
contribute to the final purchase decision. It leads marketers to rely too heavily on a specific and limited set
of tactics, and also to place too much emphasis on the click as measurement of successful online advertising. 84% of Internet users never click on advertisements online; however, exposure to display advertising
influences what sites people visit as well as branded search (searching for trademark names as a result
of exposure to online advertising).6 According to comScore, Even with no clicks or minimal clicks, online
display ads can generate substantial lift in site visitation, trademark search queries, and lift in both online and
offline sales.7
Measuring ROI Beyond the Last Ad, John Chandler-Pepelnjak, Atlas Institute, May 2008.
Understand the B2B Buy Cycle, Randy Shattuck, Professional Services Journal,
http://www.internetviz-newsletters.com/PSJ/e_article001037852.cfm.
6
The Click Remains Irrelevant: Natural Born Clickers Return, Gian Fulgoni, comScore, presented at iMedia Summit, September 2009,
http://www.comscore.com/Press_Events/Presentations_Whitepapers/2009/The_Click_Remains_Irrelevant.
7
The Click Remains Irrelevant: Natural Born Clickers Return.
2 0 1 0 G LO B A L S P E C , I N C .
14
Recommendations for Suppliers

Understand the importance of the industrial buy cycle
Understand the importance of the industrial buy cycle and decision funnel, and how your customers engage
in this methodical process to locate suppliers who meet their needs and make purchase decisions. You
will be able to shape stronger and more effective marketing strategies if you know how your customers
behave in each stage of the buy cycleNeeds Awareness, Research, Consideration & Comparison, and
Procurementand the sources of information they rely on to make their decisions.
Establish a comprehensive online program to cover the buy cycle

Put into place a comprehensive online program that covers the industrial buy cycle from the early stages all
the way to the last ad click. Your customers are using a variety of information sourcesfrom search engines
and GlobalSpec.com to e-newsletters, Webinars and social media. Dont become fixated on the last ad
concept, which can lead to limited marketing exposure and a lack of visibility in the early stages of the buy
cycle when customers are conducting research and identifying suppliers who can meet their needs.
Develop appropriate content to address each decision maker

With multiple decision makers being involved in purchase decisions, its important to have content that
addresses the unique needs and concerns of each individual. Consider the multiple cross-functional team
members that make purchasing decisions in your industry, and ensure that your collateral, data sheets, white
papers and other marketing materials are hitting on the issues important to these decision makers.
Consider the GlobalSpec advantage

Unlike many other online programs, GlobalSpec offers you the opportunity to reach your prospective customers throughout the entire buy cycle. Suppliers can implement a turnkey program that includes a highly
visible supplier hub, searchable online catalogs, keyword and banner ads, e-newsletter advertisements, and
online events that reach buyers in the critical early stages when branding and lead generation are so important; and also take advantage of features such as RFQ submission and PartFinder to help you compete at the
final decision stages.
Industrial Buying Cycle

Searchable Online Catalog
E-Newsletter Advertising
Events
PartFinder
Industrial Ad Network/Banners
Needs
Awareness
RFQ
Research
Consideration
& Comparison
Procurement
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
15
About GlobalSpec
GlobalSpec.com is used regularly by engineering, technical, manufacturing and industrial professionals
worldwide to search for components, products, technical information and services. GlobalSpec users benefit
from domain-expert search engines, a broad range of proprietary and aggregated Web-based content and
60+ e-newsletters - helping them search for and locate products and services, learn about suppliers and
access comprehensive technical content. SpecSearch, GlobalSpecs trademarked search technology, allows
users to search by specification more than 185 million parts in 2,300,000 product families from more than
24,000 supplier catalogs.
For manufacturers, distributors and service providers, GlobalSpec offers tailored marketing solutions that
put you in control and expert online marketing advice to help you find new customers. We provide highly
filtered sales leads and marketing opportunities, qualified Web traffic to your site, product promotion and
brand advertising platforms, and a wide range of e-media advertising and marketing solutions including
keyword ads, e-mail marketing, banner ad networks, online events and industry-leading e-newsletter advertisements - allowing you to choose the options that fit your unique business needs.
The ability to find customers to tap into new markets or new regions that are actively seeking your
products to understand what prospects are looking for to gain an integrated marketing program and
a wealth of practical advice about online marketing - this is the GlobalSpec approach. And its why many
manufacturers and suppliers choose GlobalSpec to help their businesses grow.
For more information on GlobalSpecs comprehensive marketing solutions please call 800.261.2052 or visit
http://www.globalSpec.com/advertising.
2 0 1 0 G LO B A L S P E C , I N C .
16
Appendix: Industrial Buy Cycle Survey Results

The GlobalSpec Industrial Buy Cycle Survey was completed by engineering, technical, manufacturing and
industrial professionals working in the United States and Canada, with company sizes ranging from under
45 employees to over 5,000 employees. All of the survey respondents are involved in the purchasing of
products, components or services. 46% influence more than $100,000 in spending each year, with 21%
influencing more than $500,000.
Below are the survey results. You can this information to better understand the industrial buy cycle, to identify the sources your customers use for locating information and suppliers, and to formulate more effective
marketing strategies to reach your target customers throughout the stages of the buy cycle.
Which of the following best describes your level of involvement in the purchasing of
components or services?
Level of Involvement in Purchasing

Approve requisitions
4%
Make purchases directly

40%
Evaluate or recommend
products/services to be
purchased
27%
All survey respondents

are involved in purchasing
components or services, with
40% making purchases directly.
Specify products/services to be
purchased
29%
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
17
What level of purchasing authority do you have that does not require sign-off or approval?
Level of Purchasing Authority
The majority (55%) have

individual purchasing
authority limits of $2,500
28%
or less, reinforcing the
22%
>$10,000
point that larger purchases

typically involve multiple
$10,000
decision makers.
$5,000
$2,500
12%
8%
$1,000
$250
10%
11%
$0
9%
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
18
What is the average time between when you first identify a need and purchase a product
or service?
Average Length of a Buy Cycle

Less than a month
1-2 months
3-4 months
5-6 months
6-8 months
9 months or more
100%
81%
80%
60%
39%
40%
34%
26%
20%
18%
13%
11%
3%
6%
2% 1% 2%
18%
16%
11% 11%
4% 4%
0%
GlobalSpec, Inc.
81% stated the buy cycle is less than one month for purchases under $1,000, while 38% said the buy cycle is five months or
longer for purchases greater than $10,000. This longer buy cycle is expected for larger purchases, since the investment, and
therefore the risk, is greater.
2 0 1 0 G LO B A L S P E C , I N C .
19
Which information sources do you typically use for work-related purchases?
Information Sources for Work-Related Purposes

0%
10%
20%
30%
40%
50%
60%
70%
80%
78%
Search engines
76%
Supplier Web sites
72%
Online catalogs
58%
Printed catalogs
46%
Colleagues
37%
34%
30%
26%

19%
E-newsletters
Online communities
17%
White papers
17%
The top three sources of information used for workrelated purposes are all online sources.
14%
Webcasts/Webinars
Social media (twitter, facebook, linkedin)
3%
Blogs
3%
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
20
How many pieces of information/content do you typically review before making a

purchase decision?
Number of Pieces of Content Reviewed Before Purchasing

Purchases between $1,00$10,000

40%
38%
36%
35%
32%
31%
30%
25%
25%
20%
21%
20%
17%
15%
15%
12%
10%
10%
5%
6%
5%
2%
16%
3%
7%
4%
0%
GlobalSpec, Inc.
83% of buyers review only three or fewer pieces of content before making a decision on purchases under $1,000, while 70%
of buyers review four or more pieces of content on purchases greater than $10,000. The higher your average order size, the
more in-depth content you need to support sales efforts.
2 0 1 0 G LO B A L S P E C , I N C .
21
When searching for products and services, how frequently do you use the following
sources?
Sources Used When Searching for Products/Services to Purchase
(mean score on scale 17, 1 = Rarely use, 7 = Always use)
1
5.5
Supplier Web sites

4.9
Online catalogs
4.3
Colleagues
4.1
Printed catalogs
3.2
3.1

3

2.8
2.5
E-newsletters
2.3
White papers
2.2
Online communities
2.1

2
Webcasts/Webinars
Blogs
5.6
Search engines
1.4
The top three most frequently used sources

for searching for products and services to
purchase are search engines, supplier Web
sites, and online catalogs. Today, even using
colleagues as a source of information has
an online component, with the increasing
popularity of social media.
1.2
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
22
Which of the following information sources do you typically use for various stages of the
purchasing cycle?
Information Sources at Various Buy Cycle Stages

Needs Awareness & Research
0%
20%
Supplier Web sites
29%
Printed catalogs
31%
Online catalogs
Colleagues
Consideration & Comparison

40%
29%
27%
23%
22%
41%
38%
42%
41%
21%
41%
17%
42%
43%
15%
43%
44%
47%
13%
12%
41%
White papers
52%
55%
10%
38%
35%
50%
62%
Online communities
55%
69%
10%
42%
Webcasts/Webinars
Blogs
33%
42%
General search engines (Google, Yahoo! etc...)
E-newsletters
100%
41%
37%
GlobalSpec
80%
40%
35%
60%
38%
32%
Procurement
60%
8%
5%
33%
40%
5%
26%
37%
5%
3%
GlobalSpec, Inc.
In the Needs Awareness and Research stages of the buy cycle, buyers use a broad array of information sources, including
social media, Webinars, e-newsletters, search engines and GlobalSpec. By the time buyers reach the Procurement stage,
supplier Web sites are the most important information source.
2 0 1 0 G LO B A L S P E C , I N C .
23
How important are the following in the purchasing decision?

Importance of Factors in Purchasing Decision
(1 = least important 7 = most important)
0
Availability
6.0
Price
5.9
Delivery
5.7
Customer Service support
5.7
Compatibility with existing products/systems
5.5
Technical service support
5.4
5.3
Carries stocking inventory

Already approved vendor
4.8
Ability to order small quantities
4.8
4.6
Breadth of products/services
4.5
Previously purchased from company
4.4
Recognized company name

Systems integration support
4.1
Sales person
4.1
Design assistance
4.0
Location
3.4
3.2
E-commerce capability
Ability to service multiple delivery locations
2.9
GlobalSpec, Inc.
Price isnt the only factor important to buyers when making purchase decisions. Service elements such as availability, customer
support and deliver also rate high in buyers minds.
2 0 1 0 G LO B A L S P E C , I N C .
24
When you are involved in purchasing equipment, components or services, how many
suppliers do you typically evaluate/review in the initial research phase? How many
suppliers do you typically receive quotes from before making a decision?
Number of Suppliers Reviewed and Contacted for Quotes
1-2 Suppliers
evaluate/review in the initial
research phase?
0%

receive quotes from before
making a purchase decision?
10%
20%
8%
3 Suppliers
40%
30%
50%
4-5 Suppliers
60%
50%
11%
70%
6+ Suppliers
80%
33%
63%
GlobalSpec, Inc.
90%
100%
9%
22%
4%
20%
During the initial Research phase, 42% of buyers evaluate four or more suppliers, but as buyers move closer to Procurement,
only 26% get quotes from four or more suppliers
In 2010, do you expect to be evaluating more, the same or fewer suppliers?
Number of Suppliers Evaluating in 2010

The majority of buyers will
5%
evaluate the same number

of suppliers in 2010, although
24% will evaluate more,
24%
Fewer suppliers
About the same
which may lead to additional

opportunity for suppliers
with a strong presence in the
More suppliers
market.
71%
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
25
How many decision makers are typically involved in the purchases you make?
How Many Decision Makers for Purchases
1 (Just me)
70
3-4
5 or more
63%
60
47%
50
44%
40
30
27%
25%
24%
22%
22%
20
10%
9%
10
4%
3%
GlobalSpec, Inc.
63% are the sole decision maker for purchases under $1,000, but as the value goes up so does the complexity of the decision
making process. 31% have three or more decision makers for purchases between $1,000-$10,000, and that jumps to 65% for
purchases over $10,000.
Percent of Purchases Decided by One Person

7%
Only 7% of purchases are
13%
decided by one person,

which reinforces the
25%
0%
10%-40%
complexity and length of

the buy cycle with multiple
decision makers involved.
50%-60%
37%
70%-90%
100%
18%
GlobalSpec, Inc.
2 0 1 0 G LO B A L S P E C , I N C .
26
Which of the following methods do you use to purchase products and services for work?
(check all that apply)
Methods Used to Make Purchases
0%
10%
20%
30%
40%
50%
60%
70%
80%
68%
Purchase online
63%
Phone order
62%
Purchase order
45%

Fax order
37%
4%
Other
GlobalSpec, Inc.
Which of the following do you typically use to purchase products and services for work?
(choose only one)
Most Commonly Used Purchase Method

5% 3%
8%
43%
Purchase order
Purchase online
Phone order
Fax order
19%

Other
22%
GlobalSpec, Inc.
Buyers use a variety of ways to make purchases but the most frequent method used is a company purchase order. Customers
may find you on the Web and visit your site, but when its time to purchase, the majority will submit a purchase order through
their purchasing department.
2 0 1 0 G LO B A L S P E C , I N C .
27
When visiting a Web site that you know, how often do you enter the name of the
company in the general search engine box versus typing the url in the browser?
Frequency of Typing Company Name in Search Engine Box
25%
25%
20%
Percent of respondents
20%
17%
15%
15%
10%
9%
8%
6%
5%
0%
100%
80-99%
60-79%
40-59%
20-39%
1-19%
0%
Percent of time company name is typed in search engine box

GlobalSpec, Inc.
Even when potential customers know your company, 62% of them type your company name into the search box at least 60%
of the time, rather than typing out your company url in the address bar. So when a purchase comes from a Google referral, for
example, the buyer more often than not simply used the search box as a conduit to get to your Web site.
2006-2010 GlobalSpec, Inc. All rights reserved. GlobalSpec, the GlobalSpec logo, and SpecSearch are registered trademarks of
GlobalSpec, Inc.
You are free to copy, distribute and display and create derivative works from this paper provided that you give GlobalSpec, Inc.
proper credit as the source.
2 0 1 0 G LO B A L S P E C , I N C .
28

Understanding The Industrial Buy Cycle

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INDUSTRY TRENDS & RESEARCH REPORTS

FOR INDUSTRIAL MARKETERS

Understanding the Industrial Buy Cycle:

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

What is the Buy Cycle?

Emotion plays a role in the buy cycle

The buy cycle is shaped like a funnel

B2B Buying Cycle, The Shattuck Group, http://www.theshattuckgroup.com/b2b_buying_cycle.pdf.

What Makes Business-to-Business Marketing Different?,The Proteus Group,

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

Average Length of Buy Cycle

Purchases under $1,000

Purchases between $1,000 - $10,000

Purchases greater than $10,000

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

How Many Decision Makers for Purchases

Purchases between $1,000 - $10,000

Purchases under $1,000

Purchases greater than $10,000

Percent of Purchases Decided by One Person

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

A Buy Cycle Example

Needs Awareness stage

Comparison & Consideration stage

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

Most Commonly Used Purchase Method

Buy in-person at store

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

Suppliers are exposed to buyers many times

Frequency of Typing Company Name in Search Engine Box

Percent of time company name is typed in search engine box

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

Implication for Marketers

Online information sources are the most important

Sources Used When Searching for Products/Services to Purchase

Supplier Web sites

Printed trade publications

Printed directories/buyer's guides

Online industry portal sites

Other B2B vertical search engines

Social media (Twitter, Facebook, LinkedIn)

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

Information Sources at Various Buy Cycle Stages

Supplier Web sites

Consideration & Comparison

Online industry portal sites

Other B2B vertical search engines

Social media (Twitter, Facebook, LinkedIn)

General search engines (Google, Yahoo! etc...)

Printed trade publications

Printed directories/buyer's guides

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

Buyers seek content to support decisions on complex sales

Number of Pieces of Content Reviewed Before Purchasing

Purchases between $1,000-$10,000

Purchases greater than $10,000

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

Number of Suppliers Reviewed and Contacted for Quotes

INDUSTRY TRENDS AND RESEARCH REPORTS FOR INDUSTRIAL MARKETERS

Preventing the Last Click Marketing Mistake

The Click Remains Irrelevant: Natural Born Clickers Return.