Business-to-Government (B2G) marketing targets government entities, from central government to local councils and everything in between. It requires a specialised approach because there’s a lot of red tape, strict regulations, multiple decision-makers, and budgetary constraints.
Our two-part series on developing B2G marketing strategies looks at what makes public sector marketing different and provides tips on how to win over your target audience and position your business for success.
B2G Marketing vs. Other Business Models
B2G marketing differs from B2B (Business-to-Business) and B2C (Business-to-Consumer) marketing in four key areas.
| Area | B2G | B2B | B2C |
| Target | Government agencies, bodies, and institutions. | Other private companies. | Individual consumers |
| Sales Cycle | Long. Multiple decision-makers and stakeholders. | Longer than B2C. Shorter than B2G. | Short and direct. Can be immediate or a few days, depending on the item. |
| Content | Focuses on compliance, value, and sustainability. | Focuses on technical details and ROI. | Focuses on emotions, desires, and personal needs. |
| Relationship | Long-term, based on trust, transparency, and innovation. | Mid- to long-term, depending on the nature of the business and the type of transaction. | Brand loyalty, brand evangelist, and customer retention. |
As the post goes on, we’ll delve deeper into business-to-government marketing, from its unique characteristics and recommended marketing channels to common pitfalls. We also provide a step-by-step guide to get you started.
It comes in pretty handy, considering the government’s increased focus and investment – £300 bn+ reserved for procurement spend. Who wouldn’t want a piece of that pie?
What Makes Public Sector Marketing Unique?
B2G marketers are bound within certain limits that other marketers don’t need to consider. Granted, some of these characteristics apply to all three forms of marketing, but B2G marketers have no option but to work within these strict limits. The other two have more flexibility.
Accountability
Government bodies are accountable to the general public because they are tax-funded.
Regulated processes
Public sector procurement is bound by strict rules and regulations with which suppliers must also comply. The intention, in part, is to ensure supplier selection is fair, transparent, and ethical.
Transparency
Each step in the public sector procurement process must be visible to the general public. This helps ensure government contracts are awarded fairly without discrimination or undue favour. It also identifies mishandling of funds through fraud or corruption.
Value for Money
Overall value trumps price in supplier selection for awarding government contracts. This is mandated in the Procurement Act 2023, which stipulates that contract decisions must be based on MAT – Most Advantageous Tender. This includes social value and added value beyond the contract’s requirements.
Ethical Supply Chain
Public sector buyers must be absolutely sure that every link in the supply chain is ethical. That they have nothing to do with modern slavery, for instance, or toxic waste material.
Contract Cycle
The public sector contract cycle is notoriously long. We’re talking one to two years just for a contract to be awarded. The Procurement Act has simplified the process, cutting the cycle to a few months.
The use of Framework Agreements and DPS (Dynamic Purchasing Systems) for straightforward and long-running contracts also shortens the cycle, in some cases to a few weeks.
Step-by-Step Framework for Building a B2G Marketing Strategy
We’ve divided building a B2G marketing strategy into four steps.
1. Define Your Public Sector Value Proposition
It sounds obvious, but do you know exactly how your product or service works? If necessary, could you adapt it to suit a contract’s specific needs?
You must know your product or service inside out and backwards so you can tailor your solution to meet different conditions.
It’s only when you fully understand your business offering that you can tailor your marketing message, creating content to focus on the solution and the value your solution provides.
2. Identify Ideal Government Buyer Personas
The public sector’s buyer persona is very different to that of B2B and B2C. It’s as if B2G’s persona has multiple personality disorder because marketers must consider:
- The department (e.g., health) with overarching aims, values, and regulations.
- The local council (health) with narrower aims and more specific values and regulations.
- The overarching contracting body or entity (NHS) with industry-specific aims, values, and regulations.
- The actual contracting entity (e.g., Manchester Royal Infirmary) with its own very specific aims, values, and regulations.
That’s just the government entities. Marketers must also consider the human element, including direct and indirect decision-makers, for example, procurement officers, contract managers, and whoever holds the purse strings
3. Map the Government Buying Journey
According to GovNet, there are five stages in the government sector’s buying journey. It includes time estimates so you can set a rough schedule for your B2G marketing strategy.
Stage 1: Government Awareness and Initial Engagement (1-3 months)
Public sector buyers are investigating the market, identifying the most likely candidates before they take further action. This is when marketers must establish the supplier’s reputation as an industry leader.
This involves publishing whitepapers, case studies, and any content that marks them as innovative thought leaders with solutions that address buyers’ pain points. It’s also when suppliers must attend specialist events to network and build relationships with key decision-makers.
Stage 2: Consideration and Solution Exploration (3-6 months)
Investigation ramps up. Buyers research the candidates they’ve identified to get more information about their business, products/services, and values.
At this stage, marketers must arrange demos so government agencies can see suppliers’ solutions in action and determine if they align with their organisation’s needs. It’s about measurable outcomes, regulatory compliance, and in-depth information.
Stage 3: Public Sector Tendering and Evaluation (6-12 months)
Procurement starts. Short-listed suppliers respond to ITTs (Invitations to Tender) or RFPs (Requests for Proposals).
Tender responses, proposals, or bid submissions must contain detailed information about their unique selling points (USPs), measurable social value, and supporting documentation and certifications (compliance docs, financial statements).
It’s about providing as much detailed info as possible while demonstrating compliance and meeting transparency requirements.
Stage 4: Contract Negotiation and Final Approval (12-18 months)
A supplier is selected, but the approval process isn’t over. There are pricing negotiations, as well as legal reviews, compliance checks, and a bit more due diligence to ensure suppliers truly are ethical, compliant, and certified as required.
Suppliers must be ready to provide additional details and documentation and answer clarification questions. They must also be prepared to make adjustments to the contract terms, according to the government agencies’ needs. It’s about transparency, communication, and smooth negotiations.
Stage 5: Implementation and Realising (18-36 months)
Government contracts are awarded, and solutions are implemented. Suppliers must double down and work hard to assure the government department that it made the right choice.
It’s about onboarding, training, performance, and transparent reports.
4. Set B2G Marketing Campaign Goals and Metrics
It’s important to set goals to help you measure the effectiveness of your campaigns and use the results to adapt your strategy and optimise your success.
Here are five of the most important metrics for government sector marketing campaigns.
1) Leads
How many leads were generated, and how many converted into qualified leads?
Cost-per-lead is another important lead-related metric. High cost-per-lead indicates an ineffective and inefficient marketing campaign.
2) Engagement
This includes the government buyers’ response to marketing content, like source of website traffic, time on site, bounce rate, navigation, etc.
3) Customer Lifetime Value (CLV)
This is customer value for the duration of government contracts and throughout buyer/supplier relationships. It’s important for ongoing strategic planning.
4) Stakeholder Satisfaction
This is an extremely important metric. Dissatisfied customers can sink companies, and given the relative power of government agencies, dissatisfaction can hinder future contract opportunities.
Surveys, interviews, and feedback questionnaires all provide valuable data that you can use to improve the effectiveness of current and future public sector marketing campaigns.
Customers often look kindly on companies that want to improve, so feedback can also increase goodwill – something you can never get enough of.
5) Bid-to-Win Ratio
The number of government contracts won vs the number of tender submissions. A lot of submissions but a low win rate indicates that something is wrong. It could be that you need to reduce the number of government contracts you bid on and focus more on the quality of your tender responses.
The higher the award number, the better.
It’s Not Goodbye
This brings us to the end of Part 1 of our series on building marketing strategies. Please join us for the second in the series, which will be published soon.
