How do B2G, Business-to-Government, companies succeed with MarCom in a market where sales rhetoric does not work, and may even damage sales?
By Søren Grinsted, CEO Public
The public-sector market in Denmark is enormous and represents the largest single sector in the Danish economy. And it is developing rapidly. Digitalisation, efficiency improvements and political requirements create a constant need for new solutions. And yes, public-sector organisations are willing to buy. They are active and often looking for strong suppliers.
But there is one significant difference from the private market: they do not want to be sold to.
For many suppliers, this becomes a decisive challenge. How do you create demand in a market where classic sales-led and push communication is not only ineffective, but can be directly counterproductive?
The answer lies in a markedly different approach to marketing and communication.
Trust through documentation
Public-sector decision-makers operate in a framework-driven environment, where requirements for transparency, documentation and accountability matter. Public-sector buyers are also obliged to choose the most competitive product. Although public-sector buyers are people too, purchasing is driven to a far greater extent by documentation, and to a lesser extent by emotions and relationships. That said, relationships and awareness are always an advantage. In this context, indirect awareness is often far more valuable than direct contact. For example, public-sector buyers listen closely to one another. Joint purchasing is also common.
Public procurement is regulated, and decisions are often made based on:
Let others tell the good story
Classic marketing is in decline in most markets. In the public sector, it has effectively been a no-go for a long time. The line about being “the best, cheapest and fastest” belongs to the past. And yet, not entirely. It has absolutely no effect if we say it ourselves. But if another municipality, agency, researcher or independent adviser says it, or if it appears in external impact measurements, that is a different matter. Then the public-sector buyer listens.
Understand the public sector’s challenges and conditions
Fundamentally, it is about understanding the problems and challenges of public-sector customers, and not least the very particular conditions that apply to regulated organisations. For a public-sector customer, it is crucial that the supplier:
From campaigns to relevance
As a rule, campaigns are not effective in B2G-oriented marketing. Many organisations still try to “target” the public-sector market with campaigns, events and outbound activities. The problem is that public-sector customers do not actively want to be influenced. They search for knowledge themselves.
That is why B2G companies need to be ready to receive visits across all channels. Cases involving other public-sector customers are often pervasive, but getting public-sector customers to participate can be challenging. As a rule, they do not want to take part in any form of marketing or endorsement of a supplier’s products or services. But they are happy to talk about their experiences and share knowledge with other public-sector customers.
Traditional lead generation is difficult. But if you are visible where public-sector customers meet, preferably through interesting and relevant professional presentations, you create demand. Product marketing must be replaced by a conversation about new ways to solve familiar problems. Here, effect and value play a decisive role.
Situation-based marketing
Because the public-sector market is politically governed, it is important to keep up with the Finance Act, city council minutes and, not least, new legislation. You need to be present when new needs arise, and act as a professional sparring partner who can help make sense of and respond to a new reality or situation.
It is not enough to be interesting. First and foremost, you must be relevant.
Be prepared for long decision-making and procurement processes
Finally, you need a great deal of patience and must work consistently and long term if you want to enter the public-sector market. For larger assignments, the final sale happens through a tender. A central misunderstanding when working with public-sector customers is when the buying process begins. In practice, it starts:
In other words, long before a tender is formulated. If you only become active once a tender has been published, you are almost exclusively competing on price. And that is not enough. But if you have been present during the earlier clarification phase, you have already influenced:
Why B2G communication is business-critical
Want to know more?
Call Søren on +45 40 15 72 32 and have a talk about Thought Leadership in practice, and what we can do for you.