B2B Communication Strategy in IT Services: Top 10 Mistakes to Avoid

Despite topping $1.1 trillion in 2023 and currently growing at a CAGR of 7.56%, the global IT services market is undergoing a pivotal transformation.

• Due to rising hourly rates and geopolitical tensions in Eastern and Central Europe, there is a noticeable shift towards outsourcing software engineering and maintenance tasks to Asia and Latin America
• Companies are increasingly adopting AI-driven automation, such as Gen AI coding assistants, to handle menial tasks that were traditionally outsourced. This shift allows businesses to focus on high-value, knowledge-intensive outsourcing, such as research and development (R&D), data science, and cybersecurity.
• With IT budgets being geared towards AI, cloud computing, and cybersecurity solutions, we’re witnessing a growing trend of procuring ready-made tools instead of investing in custom software engineering

These and other factors have prompted successful IT companies to rethink how they have been working for decades and completely overhaul their B2B communication strategies. What are the top ten mistakes that prevent your software development company from creating an effective B2B communication strategy that ensures a steady flow of leads, increases conversions, and helps foster long-term relationships with existing customers? In this article, Andrii Nasadchuk, Aimeice Tech CEO and Founder, weighs in on the B2B communication challenges that can make or break your business.

Top 10 Mistakes to Avoid When Developing a B2B Communication Strategy for an IT Company

A short foreword. The term "B2B communication strategy" is ambiguous and open to interpretation. Some business leaders view it through a marketing lens, emphasizing the significance of buyer personas and the careful selection of B2B communication channels. Others treat it as a sales issue, delving too deeply into cultural codes and corporate ethics.

Specialists at Aimeice Tech, a company that offers services ranging from EdTech consulting to FinTech software development, have a broader perspective on B2B communication. How can we possibly exclude things like service quality, connecting technological goals to business outcomes, or conducting thorough requirements analysis from a B2B communication strategy when they have a direct impact on client experience?

That is why our list of B2B communication issues and potential solutions may differ slightly from what you typically see in Google search results. Nonetheless, we believe this approach is more comprehensive and effective. Without further ado, here are the top ten mistakes your IT company should avoid at all costs when devising a B2B communication strategy for 2024 and beyond.

1. Choosing the wrong customer segments. Many IT service providers target large enterprises or companies in specific industries despite lacking the necessary experience and domain expertise. No matter how appealing a piece of the $663 billion healthcare technology market may appear, you should be realistic about your knowledge of healthcare software development, market specifics, and regulations. Do your developers have practical experience integrating custom healthcare applications with EHR systems? Have you ever created a HIPAA-compliant application? By realistically assessing your capabilities rather than blindly following trends, you will be able to develop a B2B communication strategy that will appeal to a specific audience while also highlighting your company's strengths.
2. Ignoring business problems. Consider artificial intelligence (AI), the poster child for IT companies. Approximately 80% of all AI projects fail, which is twice the rate of unsuccessful software engineering projects. One of the key reasons for such lackluster results is the inability to replicate the outcomes achieved during an AI proof of concept outside of controlled lab settings. In other words, the solution you designed for your customer may work flawlessly when presented with distilled data or applied to a very specific task, but fail miserably when used in real-world scenarios. Your clients don’t care about the false-positive-false-negative ratio or the mechanisms that push newly written and tested code into production. All they want is to limit access to school grounds, reduce claim processing time by 30%, and keep their shopping app from lagging on Black Friday (underline the necessary). Speak their language and demonstrate that you understand the business objectives behind technology problems; this is the key to a successful B2B communication strategy.
3. Compromising on quality. IT service companies, particularly those led by former software engineers, dismiss any B2B issues unrelated to coding. Quality is one such issue. While your team can produce software with few to no bugs, the "quality first" philosophy should apply to all aspects of your business, including delivery, support, and sales. From following Agile methodologies, establishing a robust QA process, and soliciting and acting on customer feedback to focusing on value-based selling, there are many ways to make quality the leitmotif of your business—and the cornerstone of your B2B communication strategy.
4. Misunderstanding project requirements. IT projects—especially large-scale enterprise initiatives—frequently go off the right track due to unclear or frequently changing requirements and a lack of alignment between stakeholders. Inadequate communication further exacerbates the problem, contributing to 29% of all IT project failures. As a company seeking to create a successful B2B communication strategy, you should prioritize thorough requirements elicitation and stakeholder engagement. This can be accomplished by providing discovery and proof-of-concept services, delving deeply into your clients' businesses, acquiring unique expertise in specific domains, and collaborating with industry consultants.
5. Lacking specialized knowledge. During the IT outsourcing heydays, most companies that offered custom software engineering services functioned as body shops, selling skilled personnel rather than solutions to business problems. Today, despite the intensifying competition, the body shop approach still suffices for firms exploring the cost leadership model. However, if you want to increase your check averages, you must gain deep domain expertise and narrow your focus to specific niches and solution types, such as LMS development or custom eLearning solutions. In times of uncertainty and constant cost optimization, it is impossible to develop a B2B communication strategy that sells everything to everyone.
6. Choosing the wrong B2B communication channels. What is B2B communication, in a nutshell? In the IT industry, the term refers to a set of techniques and media that allow software engineering firms to engage with potential customers, generate leads, and convert them into opportunities and sales. Aside from a strong, clear value proposition and consistent relationship building, B2B communication requires a well-informed selection and diversification of channels for client interactions. One of the most common mistakes that IT companies make is putting all of their eggs in one basket. In practice, this entails devoting excessive effort and resources to road shows, outbound activities, content marketing, or paid advertising on Google and Bing while completely ignoring other strategies. To create a win-win B2B communication strategy, divide your efforts evenly across channels, define KPIs, track ROI, and constantly improve your marketing mix and messaging.
7. Neglecting service personalization. Service personalization increases customer satisfaction, builds trust, and propels your business forward. However, many IT companies, particularly smaller ones, lack the resources and funding to personalize B2B communications. As a result, they end up spending too much money attracting new customers rather than developing long-term, mutually beneficial relationships with current clients. There are several ways to break the vicious cycle. First and foremost, purchase a reliable CRM solution, ensuring that your chosen plan includes everything your marketing and sales teams require to collect, analyze, and leverage customer data. Second, use the BCG Growth Share Matrix or another framework to segment your audience and focus on the most promising accounts, personalizing manager-client interactions, and providing added value. You should also conduct surveys on a regular basis to gauge client sentiment and proactively adjust your B2B communication strategy.
8. Underestimating the importance of long-term relationships. To elaborate on the previous statement, it is worth noting that attracting a new client costs businesses four to five times more than keeping an existing one. Meanwhile, increasing customer retention by just 5% can boost your company’s profits by a whopping 95%. Stronger B2B communication skills, coupled with stellar customer service and impeccable code quality, will help your organization increase repeat sales, create a safety cushion, boost resilience, and tap into risk-free innovation.
9. Lacking flexibility. Successful B2B communication strategies are inherently adaptable. If potential clients are looking into staff augmentation options, do not push for a dedicated team. If a specific customer requires a consultation rather than software engineering, develop a compelling offering; one day, this one-time collaboration could turn into a full-fledged project. When dealing with emerging technologies, make sure to offer rapid prototyping and MVP development services in order to demonstrate value quickly. And, if your client needs a virtual CTO to guide their in-house team, never sell your developers as an add-on.
10. Displaying a negative attitude. Confidence and respect are crucial in B2B communication. Clients will avoid vendors who are disrespectful, appear unconfident or overconfident, or act superior. That is why it is critical to strive for balanced, respectful interactions while avoiding manipulative strategies. Offering guarantees can be reassuring, but only promise what you can deliver. To better understand your customers' needs and tailor your B2B communication strategy, consider studying Geert Hofstede's Cultural Dimensions theory, with a focus on power distance (PDI) and uncertainty avoidance (UAI) indexes. Edward T. Hall's theory of high and low context cultures can also be useful.

Understanding and meeting the real needs of B2B customers is critical for establishing long-term relationships in the IT industry. By avoiding these B2B communication mistakes and focusing on providing real value, you can ensure that your company thrives even during times of crisis.

If you require assistance with software engineering or IT consulting, please contact Aimeice! Our company is open to collaborating with other technology professionals. You can also follow Andrii Nasadchuk on LinkedIn for additional advice and thought leadership