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6 min

How to use B2B due diligence surveys in your investment decisions

We go into how B2B due diligence surveys are useful in making investment decisions

Navya Lamba
Jul 15, 2022

Investment decisions supported by B2B due diligence surveys

Imagine that you own a production company in the business of air conditioning in the US. You want to expand your product portfolio in line with recent growth. You are thinking of launching a line of affordable ACs. However, you will need a different model of air compressor to do so. To get this component, you have a range of suppliers at hand. Your objective is to get the highest quality component at a reasonable price. How would you go about making this decision?

Every day, investment managers are faced with these kinds of decisions. There is a lot at stake with these business decisions. Going in the wrong direction could mean the end for your company. An investment decision is any decision in which company funds are used for a growth opportunity. Long-term investment decisions are called capital budgeting decisions. Whereas, short-term investment decisions are working capital management decisions. Capital budgeting decisions are large projects that involve significant time. On the other hand, working capital management is needed for day to day running of the business. 

B2B due diligence surveys

So, where do B2B due diligence surveys come into play? B2B due diligence surveys are vital for investment decisions. They help provide the decision makers with the information needed to choose wisely. Besides that, they give a 360 degree view of all aspects of the decision making process. But let’s understand what B2B due diligence surveys are. 

Simply put, B2B due diligence surveys are questionnaires designed to gather information about any aspect of a business. Due diligence is a process of checks carried out to evaluate the potential of a business decision. To put it in perspective, it can be best described as ‘having all your ducks in a row'. However, it is essential to note that B2B due diligence surveys are one part of the whole process. 

Who conducts B2B due diligence surveys?

Now, let’s discuss who conducts B2B due diligence surveys. These days, online B2B panel providers have become very popular. These survey panels provide a win-win for both parties: clients and contributors. For clients, it is an easy way to streamline and synthesise data in one place. They get all the information they need quickly to make a wise decision. For contributors, it is a way to make extra money from B2B due diligence surveys. They get to earn money just by sitting at home and doing surveys. 

2 cases of how and when to use B2B and B2C due diligence surveys in investment decisions respectively

Let us look into 2 situations when a B2B due diligence survey would help you make a good quality business decision.

Situation 1

For instance, consider a market entry decision. This type of B2B due diligence survey can serve as an overview of the competitor landscape or industry. To add to this, we can also do a B2C survey to know customer perceptions. Let’s go back to our example of the AC company launching a new affordable line. Say they want to launch this series for low-income customers in Norway. They would need key information such as what customers look for when buying an AC. Additionally, they would need to know what is their willingness to pay. For this purpose, they decide to partner with an online survey panel provider for a B2C due diligence survey. Side by side, they conduct a competitor intelligence B2B due diligence survey.

Results

Using the results of the surveys, they are able to make a confident investment decision. This way, B2B due diligence surveys serve as an information tool. Combining B2C surveys can further strengthen the rationale behind any investment decision. Consider what would have happened if the company hadn’t done any due diligence before investing. They could have spent thousands of dollars on a product that possibly no one would buy. However, armed with this data they know who to target, how many people to target, and when to do so. This can form the basis of their marketing strategy. Using B2B due diligence surveys they can plan budgeting i.e. how much to spend on spare parts, compressors, etc. Moreover, it is important to do commercial due diligence because there is a lot at stake. Resources, time, effort, and money can be saved by B2B due diligence surveys.

Tips

Here, be careful while choosing a B2B panel provider. Thanks to technology, online survey panel providers are hugely popular these days. With so many on the market to choose from, it can be confusing. Look out for a survey panel provider’s respondent recruiting process. In this case, as the geography is the US, consider the amount of coverage they have there. You should not only look out for the number of respondents but also their quality. Respondents should fit your target profile, in this case, low-income customers of mid-sized AC companies in the US. The best survey provider will carry out verification to check respondents' identities. This is done so that the B2B due diligence survey data is of the highest quality.

Situation 2

Imagine a case of a marketing investment decision. An investment professional is deciding how much money to spend on Instagram Ads, LinkedIn Ads, and website improvement. So, he goes to the marketing department to get more information on ad spending. We know that business websites are some of the first touch points that a consumer makes with a business. But what if the customer is directed to the website through Instagram Ads? Imagine that marketers spend the most on website improvement because they see the most traffic. That way, they end up ignoring Instagram Ads which are the most valuable source of customer leads. They will end up misusing company resources. 

Results

However, they can avoid this situation by conducting due diligence beforehand. They can run a B2C due diligence survey to track customer preferences. With a B2C due diligence survey, they can find out the customer’s most preferred social channel. This will lead to the correct allocation of company resources. 

Tips 

When the data collection of B2C surveys is over, the analysis starts. When you look for a survey provider, make sure that they go beyond the survey. Here, you would want now only which channels customers spend time on but also why they do. If they don’t give you the ‘why’ behind the data, consider looking elsewhere. Ideally, they should not just deliver data, but also explain how the data makes sense.

To conclude, B2B due diligence surveys are a powerful tool in investment decisions. If used correctly, they can lead to growth and high ROI for the company. We, at GrapeData, focus on niche populations for commercial due diligence surveys. With AI and thorough geolocation checks, we have over 300k high-quality respondents. Follow us on our socials and website to stay up to date!