How The B2G Sector Is Changing The Way Businesses Approach Government Buyers
by Kevin Ruef, co-founder of 10-8 Systems
Much like the technology used to support them, today’s modern businesses need to be highly adaptable. This is especially the case when marketing products and services designed for the public sector and when engaging government organizations.
Government entities are required to operate within a specific framework constructed around regulations not always required in traditional B2B settings. This requires a unique strategy for any businesses looking to secure more government contracts.
However, this success often hinges on understanding the new B2G landscape while adjusting their tactics when approaching government buyers.
Highly Experienced Procurement Professionals
Over the years, government procurement teams have become much more informed and educated about the solutions available to them. While this is great for buyers, it can present a challenge to SaaS teams since businesses need to take more steps to distinguish themselves in a crowded market.
Gone are the days when flashy marketing or relentless cold calling was all that was necessary to help seal a deal. Today’s buyers need more from the businesses engaging with them, and they often need a much more personalized proposal of services.
Data Privacy Concerns
Data privacy is critical for everyone today – and for very good reason. Government entities especially face immense pressure to protect their citizen’s best interests, and this extends to their digital privacy.
As more governments embrace the need to pursue digital transformations, their public records become increasingly digitized, which can make them a prime target for cybercriminals.
With this constant threat in place, it’s critical for government organizations to only partner with vendors that prioritize cybersecurity efforts. Businesses that can offer solutions to help governments enhance their data protection initiatives will typically find a much more receptive audience than those who view security as a secondary focus.
Preference Toward Subject Matter Experts
Much like any business, governments want to partner with innovators, but they also want to ensure that they have the assurance of working with other businesses that have deep industry knowledge.
When a business is recognized as a subject matter expert (SME), it helps it stand out from other organizations that may offer similar products or services. It adds an additional layer of trust and credibility that makes it easier to open new doors.
However, achieving the status of an SME takes much more than just impressive marketing tactics or posting the occasional blog post. Establishing yourself as a trusted authority requires proactive engagement. This could include being featured in a reputable industry publication or regularly contributing to associations that government buyers frequent.
Public-Private Partnership Trends
The B2G sector is starting to see a spike in public-private partnerships (PPPs). These collaborative arrangements helped to bring government agencies and private companies together to deliver vital infrastructure projects like local parks, transportation networks, and emergency response systems.
With this new trend starting to climb, the need for businesses to adopt a more collaborative mindset from the outset is becoming critical. When a newly proposed solution demonstrates a willingness to partner effectively with government agencies, it will likely bring in more attention from buying teams.
Increased Focus on Sustainability
Unlike many private enterprises, government entities are highly accountable to the public. This extends to their financial decisions and choice of partners.
Because of this expectation, governments actively seek partnerships with businesses that demonstrate a commitment to causes like sustainability and environmental awareness.
Businesses that prioritize their objectives surrounding these values will often stand a better chance of being shortlisted for government projects.
New Industry Disruptions Driven By GovTech
GovTech startups are now disrupting the traditional B2G procurement process. These innovative companies focus on bringing cutting-edge technology solutions to organizations, giving them access to new data, streamlining processes, and broadening their supplier base.
To succeed in a changing market, businesses should stay informed about disruptive technologies and explore how they can integrate them into their own offerings. This adaptability is key to remaining competitive and showcasing a forward-thinking approach to potential government partners.
The Search for More Citizen-Centric Services
Governments are becoming more committed to delivering user-friendly and accessible services to citizens. Businesses aligning with this need can gain a significant advantage in the procurement process.
Adopting a customer- or citizen-centric approach to both marketing and product design demonstrates a focus on providing real value. Highlighting how your solutions seamlessly integrate with existing systems can also strengthen your proposition, proving that you understand the government’s commitment to bettering the citizen experience and supporting this goal in multiple ways.
Providing More Transparency
Citizens hold government organizations to high standards of transparency, not only in their financial dealings but also in their choice of partners.
Partnering with a company known for unethical practices can severely damage a government’s reputation. Likewise, a lack of transparency and trust in a vendor will often lead to skepticism and can potentially undermine the entire relationship.
Successful B2G partnerships are built on open communication and realistic expectations. Establishing clear communication channels and setting achievable service levels helps build trust. This approach not only increases the chances of contract renewals but also strengthens the brand’s reputation.
Start Creating Lasting B2G Relationships
Building lasting partnerships with government procurement teams requires a clear understanding of the shifting B2G sector.
Adapting your approach to meet their evolving needs will help to improve your standing as a potential partner and help you to create long-term term, successful B2G relationships.
Kevin Ruef co-founded 10-8 Systems after exceeding multiple companies’ sales records (both domestically and internationally). With more than a decade in sales, his experience ranges from B2B, B2G, and B2C. Since the company’s start in 2019, Kevin has been responsible for business development, strategic partnerships, and business operations.