B2B marketing and the Chemical industry

Just like in the case of majority of B2B businesses, COVID-19 and the ongoing political disruptions have created a host of new harsh realities for chemical companies across the world, which very few were prepared for.

Decline in the demand, especially in the automotive, oil and gas, and aerospace sectors; constant disruptions in the global as well as local supply chains; and reduced cash flows have been the most evident impacts felt by the chemical industry. Meanwhile, for the customer-facing roles (sales, marketing, and customer services), unprecedented health measures are driving many companies to rationalize headcount, re-organize on-site work, expand remote working, and rethink customer service procedures and other practices.

Companies that were early adopters of digital solutions to improve their service delivery, were better equipped to react with speed and plan proactively, both of which are essential to thrive during recovery.

A few companies have strategically implemented digitization during the on-going pandemic by increasing their budget spend on digital solutions such as Augmented and Virtual reality, Artificial Intelligence, and Machine learning to enable self-serve, remote, and contactless operations for both employees and the customers.

Although many companies recognize the need to transform, those which do not accelerate the implementation of these digital levers are at risk of being left behind by their competitors who have already taken action.

The chemical industry is a B2B sector where the business traditionally has been transacted on a person-to-person basis and sales representatives contact leads and prospects using a phone. Although the sales cycles were longer, this traditional way of doing business clicked in the pre-COVID era.

The constant threat of coronavirus infection and strict government regulations have pushed many B2B industries to pursue digital marketing strategies to remain relevant in the business. It is high time that the Chemical industry follows this trend in order to maximize its sales potential.

Below we look at three major trends that are going to define the chemical industry in the foreseeable future. Identifying them now will allow company owners to shift focus from old sales practices to investing in modern marketing initiatives that will leverage these trends for greater brand awareness and increased ROI.   

   Data as per UL Prospector, ITSMA, and DMA Response Rate report

* Attribution can be defined as the holistic measurement of elements within a marketing mix, and the subsequent impact they have as they engage with consumers across touchpoints and drive them toward conversions

References: From defense to offense: Digital B2B services in the next normal (McKinsey & Company), Reaction: New realities for the global chemicals industry (KPMG), https://www.elevationb2b.com/blog/digitalization-affecting-marketing-chemical-industry