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INNOVATION




       Do your B2B customers



       promote your business?



























































       More than great engineering       David Michels and Andreas Dullweber,   accelerate growth and create sustainable
                                         Bain and Company
                                                                            competitive advantage. But earning loyalty
       or product features,                                                 in B2B markets poses unique challenges
                                                                            involving complicated channel structures,
       competitive advantage                        arning  customers’  loyalty:   concentrated buyer communities or large
                                                    Isn’t that for companies in
                                                                            accounts with many people influencing
       in B2B markets flows                         consumer  markets?  Many   the relationship. Defining who the custo-
                                                                            mers really are and how to best engage
                                                    business-to-business (B2B)
       from the strong loyalty          E customers act rationally and      them requires tailored solutions and a hi-
                                                    executives figure that their
                                                                            gher level of sophistication.
       of your customers                 base decisions mostly on price—loyalty
                                         doesn’t enter into the equation.   For example, when Tata Steel Wire Divi-
                                                                            sion (TSWD) in India needs to understand
                                         Increasingly, however, B2B executives in   how farmers are using its barbed-wire
                                         industries ranging from industrial goods to   fences so that it can develop targeted
                                         financial services to healthcare find loyalty   new products, it has to work through its
                                         to be a powerful lever for them. It can both   distributors. When financial software firm



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