In the realm of marketing and communication, Simon Sinek’s concept of the Golden Circle has revolutionized how brands connect with their audiences.
While Sinek’s examples primarily focus on business-to-consumer (B2C) interactions, the principles are equally applicable and transformative for business-to-business (B2B) communications.
Despite this, many B2B companies overlook the power of this approach, often focusing too narrowly on selling to a “business” rather than the people behind the purchasing decisions.
Understanding the Golden Circle
The Golden Circle is a framework that explains how leaders can inspire cooperation, trust, and change in human behaviour. It consists of three layers:
- Why: This is the core belief of the business. It’s why the business exists, or why anyone should care about what they do.
- How: This layer describes how the business fulfils that core belief. It’s about the actions taken to realize the “why.”
- What: This is what the company does. It’s the products they sell or the services they offer.
Most companies communicate from the outside in, starting with “what” they do. However, inspired organizations communicate from the inside out, starting with “why” they do what they do. This approach resonates more deeply with audiences because it speaks to beliefs and values, which drive decision-making.
Applying the Golden Circle to B2B
In B2B contexts, the focus often remains on the “what” and “how,” with an emphasis on product features, benefits, and processes.
However, this approach overlooks the fundamental truth that businesses are made up of people, and it is these individuals who make buying decisions.
These decisions are influenced by emotions, trust, relationships, and personal benefits, much like in B2C transactions.
Building Trust and Relationships
Trust is a cornerstone of any business relationship. By starting with “why,” B2B companies can build trust by aligning with the beliefs and values of their customers. When customers believe in the same things a company does, trust is naturally fostered. This trust forms the foundation of strong, lasting relationships.
Highlighting Personal Benefits
While B2B purchases are often justified through logical reasoning and ROI calculations, the initial decision to consider a product or service is frequently emotional.
Decision-makers are influenced by how a purchase will benefit them personally, whether through career advancement, reduced stress, or enhanced reputation.
Communicating the “why” helps tap into these personal motivations, making the value proposition more compelling.
Creating Emotional Connections
People are more likely to engage with and remain loyal to brands that resonate with them on an emotional level.
By focusing on the “why,” B2B companies can create emotional connections that differentiate them from competitors. This emotional resonance can be a powerful driver of customer loyalty and advocacy.
The Power of “Why” in B2B Communication
Despite the clear benefits, many B2B companies struggle to shift their communication strategies to emphasize the “why.”
This is often due to a focus on tangible, measurable aspects of their offerings, which are easier to quantify and present.
However, those that successfully make this shift can unlock significant advantages.
Differentiation in Crowded Markets
In crowded markets, where products and services may seem similar, a strong “why” can be a key differentiator. It provides a clear reason for customers to choose one company over another, beyond just features and price.
Inspiring Action and Loyalty
A compelling “why” inspires action. It motivates customers to engage, purchase, and remain loyal. This inspiration is rooted in a shared belief system, which fosters a sense of partnership and collaboration between businesses and their customers.
Driving Long-Term Success
Ultimately, communicating from the inside out, starting with “why,” drives long-term success. It builds a foundation of trust, emotional connection, and shared values that supports sustained growth and customer loyalty.
Conclusion
The Golden Circle offers a powerful framework for transforming B2B communication. By focusing on the “why,” companies can build trust, highlight personal benefits, and create emotional connections that resonate with decision-makers.
In doing so, they tap into the fundamental truths of human behaviour, recognizing that behind every business decision is a person driven by beliefs, emotions, and values. Embracing this approach can differentiate B2B companies in crowded markets, inspire action and loyalty, and pave the way for long-term success.