Sales & Marketing
Another important aspect of a market expansion is finding your customers by doing sales & marketing. In this chapter we delve into the US consumer, offering insights on cultural differences, branding differences and how to strategically use digital channels and create a compelling value proposition.
Understanding U.S. Consumer Behavior
To understand the consumer behavior of Americans, it's important to understand that the US is not a single homogeneous market. Instead, it comprises various states with distinct consumer profiles that require tailored approaches. For Benelux ventures to thrive and drive sales, understanding these complexities is essential.
One of our cultural experts in this study emphasized the distinct contrast in consumer behavior between the U.S. and the Benelux region. A key observation is that American consumers focus less on product features and more on the emotions associated with the product. To capture American consumers' attention, it's important to create a compelling vision and highlight how your product will make them feel (Feltz, 2024). This sentiment was echoed in our qualitative interviews. One respondent shared, "American consumers exhibit a heightened emotional connection in their consumption patterns, which often results in prolonged sales cycles."
One illustrative example of this emotional sentiment comes from a Benelux venture operating in the flower sector, highlighting the contrast between American and European consumer behavior with their products. This responded stated: “While in Europe, flowers are typically purchased on a weekly basis, the U.S. consumer's focus tends to be centered around special occasions such as weddings and events.” This underscores the need for Benelux ventures to adopt a patient and flexible approach when entering the U.S. market.
Another difference is Americans' domestic orientation. They often feel more secure buying from fellow Americans or products presented as American. This preference was frequently mentioned in our qualitative interviews, with one venture stating, "American consumers lean towards domestic preferences, often preferring to engage with fellow Americans." Additionally, American purchasing behavior also emphasizes the importance of direct communication and action orientation (Feltz, 2024). Americans prefer to get straight to the point, avoiding lengthy discussions of detailed statistics. They want to know immediately what benefits they will gain. This preference for straightforward communication was also highlighted by respondents, who noted that clear, direct messaging is more effective in engaging U.S. consumers.
The insights from our qualitative interviews and expert observations highlight the importance of understanding and adapting to the unique preferences of American consumers. By focusing on emotional engagement, emphasizing domestic orientation, and communicating directly.
"You have notable differences between European and American purchasing behavior, in the U.S. you have a focus on directness and competition inquiries."
Building a Local Sales & Marketing team
To better cater to the preferences of U.S. customers, Benelux ventures in this study frequently recommend establishing local presence by having a local sales and marketing team. As illustrated in the figure below, most Benelux respondents in this study (62%) have a sales/marketing team in the U.S. Among this group, 32% have a marketing/sales team solely based in the U.S. Inc, while 30% have teams in both the U.S. Inc, and the Benelux region. Conversely, 34% of respondents in this study solely have a sales/marketing team in the Benelux. Respondents in this study stated that having a sales or marketing team in the U.S. allowed them a more nuanced understanding of the market and ensured that strategies are tailored to meet the specific needs and preferences of American consumers.
Has a sales or marketing team on the U.S.
Team located in the U.S.
Team located in the Benelux
Team located in the U.S. and Benelux
This data underscores the recognition among Benelux ventures in this study of the importance of understanding and meeting the needs of U.S. customers, which can be significantly enhanced by having a local presence with a dedicated sales and marketing team. One of our industry experts added that having a local sales and marketing teams can better navigate the cultural and logistical nuances of the U.S. market. They can engage directly with clients, foster relationships, and provide immediate support and responses. This local presence is particularly important for B2B ventures, where trust and long-term relationships are critical for success. It should be noted that as highlighted in Chapter 3 of this study, 70% of respondents operate with a B2B sales model, which offers distinct advantages and challenges.
One expert emphasizes that a B2B sales model can provide higher profit margins. However, it is crucial to avoid falling into a "race to the bottom" scenario, where competition drives prices down to unsustainable levels. Given that U.S. sales are highly target-driven, it is essential to focus on selling quality over quantity. This strategy not only preserves profit margins but also builds a reputation for reliability and excellence.
Sales and Marketing Strategies
Furthermore, insights from our qualitative interviews further highlight the significance of action-based client interactions for driving commercial growth. This refers to the clear communication “what’s in it” for the customer in marketing and sales strategies from the outset. Respondents in our study recommended adapting negotiation styles to align with the more direct, target-oriented approach prevalent in the U.S., as opposed to the relationship-focused approach common in the Benelux region.
In the qualitative interviews, it was frequently stated that in the U.S., the emphasis is on immediate results and clear benefits, whereas in the Benelux, there is often a greater focus on the seller's credentials and product features. One respondent from the manufacturing industry noted significant challenges in securing and negotiating new sales due to these clear differences in marketing/sales strategies. They explained that having a presence in the U.S. is crucial and advised staying straight to the point when selling products, rather than attempting to build relationships with clients as is often required in the Benelux.
Building Brand Recognition
To effectively boost sales in the U.S., respondents in this study advised to establish a strong brand presence that resonates with American consumers. As highlighted in the qualitative interviews by one respondent: “Simply presenting oneself as a European-based business may not garner strong traction in the U.S. market.” Instead, Benelux ventures in this study emphasized the importance of dedicating resources to brand building and targeted marketing initiatives. By utilizing appropriate marketing tools and channels, this can enhance brand awareness and recognition among U.S. consumers.
“The 'Made in Europe' label doesn't resonate with American consumers.”
Furthermore, ventures across various sectors in the qualitative interviews underscored the significance of starting small with marketing efforts in the U.S. market. Rather than launching large campaigns from the outset, they advised focusing on more localized strategies. This includes participating in local trade shows. These targeted efforts allow ventures to identify their focus group effectively and foster meaningful relationships with initial customers, laying a solid foundation for further growth. This suggests that tailoring marketing strategies to local preferences and focusing on smaller, regional trade shows can yield better results than traditional approaches such as large social media campaigns and cold calling.
Finding the Right Distribution Channels
Finally, finding the right distribution channels was frequently mentioned as a crucial factor in this study. Respondents emphasized that establishing a strong distribution network is key to successful market entry, as it enables businesses to effectively promote and sell their products. Respondents recommended that ventures should explore various distribution channels, including resellers, agents, or partners, to identify the most suitable options for their needs. By leveraging multiple distribution channels, companies can increase their reach and flexibility, allowing them to adapt to different market conditions and customer preferences.
“It is recommended to explore alternative distribution channels, identifying competitive advantages, and understanding the unique challenges of selling in the U.S. market.”
One respondent in the qualitative interviews shared its unique challenges of selling on platforms like Amazon in the U.S. market. They stated that they initially gained traction in the U.S. market through Amazon, but faced difficulties when competitors copied their product and undercut prices, leading to a decline in sales. They also added that with selling products through Amazon in different states you need to be cautious about complying with regulations in each state. Selling on Amazon offers significant advantages, including access to a vast customer base, robust logistics support, and powerful marketing tools. However, it also presents challenges such as intense competition, strict performance metrics, and potential issues with counterfeit products.
Additionally, as stated by one of our industry experts in this study, understanding regional market differences within the U.S. can significantly enhance distribution strategies. The U.S. is a vast and diverse market, and what works in one region may not be as effective in another. For example, consumer preferences in the Northeast might differ significantly from those in the Southwest.
Finally, respondents in this study also highlighted the importance of building relationships with local distributors and retailers. Establishing trust and reliable partnerships can facilitate smoother operations and better market access. Engaging with local trade shows and industry events can be a valuable strategy to connect with potential distribution partners and gain insights into regional market dynamics.
