How B2G Relationships Are Changing and What That Means for Businesses

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Over the years, many B2B sales and marketing tactics have been introduced to organizations to help them acquire more leads and convert new business. However, while many of these methods continue to be useful in certain industries, B2G (business-to-government) selling operates completely differently.

Private sector organizations have different rules and guidelines for choosing the vendors they work with. This, along with shifting trends in how government procurement officers manage their relationships, means businesses need to shift how they approach this unique market.

The Rise of the Informed Government Buyer

Buyers and procurement specialists are often given important responsibilities in their organization. Not only are they responsible for managing high purchasing budgets on behalf of their employers, but they are also accountable for making sure their spending yields a high return on investment. 

If this were 10-15 years ago, businesses would be easily able to get a percentage of this budget by simply putting together some eye-catching marketing materials and developing a disciplined cold-calling routine. However, today’s buyers, especially those positioned in government sectors, are much more informed and particular about the vendors they work with.

Because of this fact, businesses need to move past using generic B2B sales tactics and develop more personalized strategies for engaging with and nurturing government purchasing leads.

High Priorities on Data Security and Privacy

Government sectors are under a lot of scrutiny from citizens when it comes to the efforts they take to protect their digital data privacy. This has placed a considerable amount of weight on procurement specialists to only be investing in essential services or public safety solutions they know they can trust.

There has been a growing effort for government entities to continuously adopt more modern and digitized methods of communication and data storage. However, this movement also opens up the doors for increasing their attack surfaces and exposing themselves to new cyber threats.

This ongoing threat risk has made data security and privacy a top consideration for buyers when sourcing new technology solutions. As a business looking to gain the attention and interest of government procurement officers, it’s essential to place a high priority on building sustainable products and services with a security-first design process.

Importance of Subject Matter Experts (SMEs)

When buyers are researching new tools or solutions for their organization, it’s important to be able to find brands that prove they know about the industries they service. While producing helpful content on their website can help in this regard, often, this isn’t enough to stand out from companies that offer similar products or services.

Today’s government buyers are looking to partner with subject matter experts (SMEs) who show themselves to be industry leaders. To position their brands as these types of experts, highlighting their experience by being listed in respected publications or associations is important.

By providing unique insights and expert guidance related to your niche, you can help buyers develop a deeper interest in exploring potential solutions you’ve created to solve certain challenges they’re looking to address.

Public-Private Partnerships (PPPs) Gaining Traction

Another trend that has been emerging in B2G sectors is the use of Public-Private Partnerships (PPPs). These are highly collaborative agreements put in place to help government agencies get immediate access to adequate funding and construction support for local parks, public transportation networks, and the development of Next Generation 911 initiatives.

PPPs are becoming a more commonly used format to help move along important infrastructure projects and will continue to be relied on over the next several years as more urban areas are developed and populations grow.

Sustainable and Socially Responsible Procurement Efforts

Unlike commercial businesses, government entities are under regular watch by citizens when it comes to the decisions they make and the causes they support. This also extends to the high standards citizens have on their governments to place a high priority on sustainable and socially responsible practices.

Because of this, governments place a high value on partnering with other organizations that demonstrate certain commitments to be environmentally conscious and plan sustainability agendas. 

Businesses can stand out from other vendors by aligning their company objectives with those of the organizations they’re looking to engage with. Not only does this increase the likelihood of establishing new partnerships, but it also helps to keep the business accountable to its own sustainability obligations.

Disrupting Traditional Procurement Methods

Over the years, there has been a gradual increase in GovTech startups that have evolved the way traditional procurement methods are being handled by modern B2G procurement teams.

These new, progressive companies are providing access to more cutting-edge technologies, specifically focused on providing access to new technologies, data, and suppliers that can help B2G procurement teams improve their efficiency while reducing their costs.

In order for businesses to continuously compete with these new B2G companies, it’s important to follow the developments of new disruptive technologies and look for ways to incorporate them into their own offerings. 

Renewed Importance of In-Person Relationship Building

Following the COVID-19 outbreak years ago, there was a monumental shift in how businesses approach and engage with buying teams. While industry conferences and tradeshows were often a great place to network and acquire new leads, the inability to meet in person caused a major shift to virtual meeting formats.

However, with global lockdowns now a thing of the past, there has been a renewed importance placed on connecting with buyers in person to establish effective business relationships. This too, applies to the B2G sector, which regularly hosts industry-specific conferences and tradeshows designed to connect potential vendors with government procurement groups.

As a business operating in the B2G space, it’s important to budget attendance at these events as they can be a great source of new leads and can help when looking for new RFP (Request For Proposal) opportunities to take part in.

Account-Based Marketing (ABM) Initiatives

When selling products or services to government agencies, they often need their own marketing approach. Simply relying on a “cookie-cutter” format when engaging with buyers and guiding them to a lead funnel doesn’t work when dealing with government buyers.

Applying an account-based marketing (ABM) strategy can be a much better approach to effectively working with B2G buyers. Establishing an AMB strategy involves identifying an organization’s key decision-makers and designing content and outreach efforts that speak directly to their needs.

In the context of government agencies, ABM initiatives can be particularly effective due to the unique nature of their processes and procurement regulations.

Providing Citizen-Centric Services

There has been an important need established with government entities to continuously provide citizens with a more accessible and user-friendly experience with the digital services or solutions they provide.

Applying a more customer-centric design to your business offerings can help government buyers fulfill this need. Your marketing approach should highlight how your services can be easily integrated into their existing systems and processes while allowing them to add more unique features that improve the experiences of the citizens they support.

Building Trust Through Increased Transparency and Accountability

Government organizations are expected to maintain transparency with their citizens and value it in the partnerships they establish.

There are many liabilities associated with teaming up with an organization that isn’t transparent and accountable. A lack of transparency can lead to mistrust, which can damage the relationship between the two organizations. Additionally, a lack of accountability can make it difficult to resolve disputes and hold each other accountable for their actions.

When approaching a potential B2G relationship, it’s important to create clear lines of communication and set the right expectations regarding the levels of services promised and delivered. This will increase the likelihood of extending contracts as they come to a close while building a strong reputation in the B2G sector.

Navigate Your B2G Relationships Successfully

Establishing long-term relationships with government procurement teams requires careful consideration of the unique nature of these partnerships. 

By recognizing how buyers are shifting their focus and ensuring your business closely aligns with their needs, you can better position yourself as a preferred vendor option during RFP evaluations.