IBM recently hosted an open round table in London to discuss the temperament and disruptors in UK B2B Commerce with a number of key industry influencers and subject matter experts.
We explored the challenges faced, but equally the opportunities
and notable success stories.
Our discussion centred on what the #1 Digital Challenge Facing B2B is today, and what opportunities this may present to the new digital seller.
We also explored the importance of the user experience and the supporting infrastructure, as well as managing organisational and cultural change in the implementation of a new digital B2B strategy.
It comes as no surprise that the dialogue of the session very quickly expanded into the role of multi–Channel campaigns, technology, people, culture, and business change.
These facets where explored in great detail and we have summarised the highlights and key insights in this report.
Hot Sexy call girls in Rk Puram 🔝 9953056974 🔝 Delhi escort Service
The Number One Digital Challenge Facing B2B Today
1. IBM Commerce | #1 Digital Challenge Facing B2B Today
#1 Digital Challenge
Facing B2B Today
IBM Commerce
2. IBM Commerce | #1 Digital Challenge Facing B2B Today
Foreword
The world of Business to Business (B2B) is making strides
to catch up with its Business to Consumer (B2C) counterpart.
And the race is definitely on; Forrester’s latest B2B eCommerce report
forecasts online sales of $780B in 2015 in the US, 12.7% growth
Year-on-Year, with a growth propensity topping $1.13 trillion by 2020.
This rate of growth is reflected in the UK, as traditional B2B organisations are increasingly
engaging with both existing and new customers through digital and online sale channels.
IBM recently hosted an open round table here in London to discuss the temperament
and disruptors in UK B2B Commerce with a number of key industry influencers and subject
matter experts. We explored the challenges faced, but equally the opportunities
and notable success stories.
Our discussion centred on what the #1 Digital Challenge Facing B2B is today, and what
opportunities this may present to the new digital seller. We also explored the importance
of the user experience and the supporting infrastructure, as well as managing organisational
and cultural change in the implementation of a new digital B2B strategy.
It comes as no surprise that the dialogue of the session very quickly expanded into
the role of multi–Channel campaigns, technology, people, culture, and business change.
These facets were explored in great detail and we have summarised the highlights
and key insights in this report.
Imran Choudhary
IBM Commerce Lead
3. IBM Commerce | #1 Digital Challenge Facing B2B Today
Mark Adams
Founding Partner of eComp
eComp is an IT strategy & eCommerce
advisory business focused on technology
strategy and business transformation,
omni-channel technology evaluation and
project audit services for B2B and B2C.
www.ecomp.co.uk
Matt Mullen
Senior Analyst, The 451 Group
A preeminent information technology
research and advisory company. With
a core focus on technology innovation
and market disruption, providing essential
insight for leaders of the digital economy.
https://451research.com
David Burnand
Director of Stein IAS
An-award winning global advertising and
B2B marketing agency. Stein IAS bring
together deep thinking, specialized
expertise, proven processes and advanced
technology to place clients at the vanguard
of global B2B marketing.
http://www.steinias.com
Steve Borges
CoFounder of Biglight
A creative ecommerce agency that helps
brands deliver excellent experiences
without compromising their ecommerce
ambitions. Biglight creates intuitive user
experiences, engaging creative and
compelling content to inspire customers
and drive sales.
http://www.biglight.co.uk
Meet the panel
Our round table comprised of the following experts:
4. IBM Commerce | #1 Digital Challenge Facing B2B Today
Digital Strategy:
Building the right platform
A lot can be learnt from the success B2C organisations having ‘gone digital’ over the past
ten years, although B2B organisations and vendors alike potentially face a more complex process.
In the knowledge of which B2C success traits are common to B2B and just as importantly those
which are not, the key is finding the right balance when starting on the digital journey.
The world of B2B is very different to the world of selling online as a B2C outfit, although this
isn’t stopping B2B brands taking B2C designed eCommerce platforms and trying to retrofit
them to adapt to the specific nature of their own B2B business model and processes. This
‘retrofit’ typically results in heavy customisation, lengthy deployment times, and inevitably,
higher cost.
When breaking down the core differences between a B2C and a B2B operating model,
there are several factors affecting this disparity; at the outset, a solely B2C focused
eCommerce platform does not align to the specific business processes of B2B.
The facets of this are outlined in the table below.
B2C Business Model
E.g. High Street & Online
fashion retailer
B2B Business Model
E.g. Pharmaceuticals distributor
• Focus is on new customer acquisition
• Same Terms for all customers
• All customers generally treated the same
• Standard payment options
• Single unit sale
• No approval process required
• All customers have access to the same
assortment of product
• Re-Order/Repeat orders not typical
• The customer is the end-user
• Focus is on customer retention
• Pre-Negotiated contract terms
• Pre-Negotiated pricing for individual customers,
projects, and contracts
• Personal relationships (Account & Service Teams)
• Advanced and varied payment options (invoicing)
• Bulk & Pack Sales
• Approval processes & Authorisation Processes
• Multiple stakeholders, departments,
and decision makers
• Segmented product assortment based on customer,
project, department or contract
with pre-determined terms)
• Re-Orders & Repeat Orders common
• End user works in the customer enterprise
Versus
5. IBM Commerce | #1 Digital Challenge Facing B2B Today
On this basis, and with the stark difference in business models, the importance of selecting
the right base commerce platform designed to adhere to the specific nature of B2B is key
to the success and on-going scalability of a B2B online sales channel.
The biggest challenge is around
technology, most software providers
started off as frameworks focused
on retail areas rather than bespoke
provisions for the B2B marketplace
— Mark Adams - eComp
6. IBM Commerce | #1 Digital Challenge Facing B2B Today
Krannich Solar GmbH & Co. KG
Krannich Solar GmbH & Co. KG, a solar power wholesaler, realised this challenge when they
looked to transform their sales processes through using online commerce. The act of ‘going
online’ was based on the simple premise of improving the order-taking process with the added
challenge of managing not only a large catalogue of complicated products, but also managing
thousands of solar power installation companies, each with potentially different buying and
discount entitlements.
Before Krannich Solar launched their online sales channel, customers typically placed orders
via the phone. Staff then had to manually check stock levels and determine whether the
customer was eligible for any discounts before quoting or taking an order. This time-consuming
process would result in delays in providing quotes and taking orders. Furthermore, sales
found they where spending more time with administration and resolving customer problems
versus selling.
Fully cognizant of the opportunities to transform their sales processes and drive a competitive
advantage to acquire new logo business. Krannich Solar selected an online commerce
solution which was designed with B2B in mind, leveraging IBM’s B2B eCommerce Starter
Store. The end result being a platform that enables customers to see prices and stock levels
in real time, order goods around the clock on a self-service basis, and view and select from
available delivery slots - or choose to collect their purchases from a local branch - all without
sales assistance. The solution also allowed customers to track the status of their goods and
view order history. All key functionality not only critical to trading successfully online but also
aligning to the complexity of contract governance.
Business results came from a 30% increase in new customer acquisition
and shortened time from order to cash.
7. IBM Commerce | #1 Digital Challenge Facing B2B Today
Common Interests
IBM’s recent Digital Benchmark Analytics survey saw mobile conversion rates rise to 1.3%,
with 2.7% on tablets in retail transactions There is no doubting that the mobile industry
is revitalising the way that organisations function and in-hand, how buyers behave.
B2B organisations are thus acting quickly and taking advantage of the wave of responsive
design methodologies and ‘lessons learnt’ from their B2C counterparts over the last five years.
Evidently within SME environments, where large buying departments and stringent
procurement processes don’t exist on the same scale, more and more transactions
are derived from mobile devices.
Mobile has become the ‘must have’ in the retail environment, and in B2B it serves as a game
changer and major source of competitive differentiation.
Further similarities between B2C and B2B companies exist in relation to customer
experience, personalisation, mechanisms for merchandising, and general good practise
of trading a successful online platform.
To meet the needs of today’s sophisticated
customer, the user experience delivered by B2B
websites needs to be as refined as that offered
by the best B2C retailers
—Steve Borges, Biglight
In addition to the eCommerce aspect itself, organisations must also remember that the sales
process features a strong educational element; effective B2B platforms are there to educate
the customer to the point of sale, even if they don’t handle the transaction itself.
8. IBM Commerce | #1 Digital Challenge Facing B2B Today
74%
Studies have shown that 74%
of the purchase research is done online
before the buyer talks to the vendor –
organisations need to ensure they are
part of this journey
—Steve Borges, Biglight
Not all engagement with the customer via digital means should be related to a direct call
to transact. Building value through education, enriched product information and support
guides effect loyalty and return visits.
This is where a granular understanding of the buying journey is important and not every digital
interaction necessarily warrants a follow-up sales interaction – we have to remember that often,
end consumers are reticent to the perception of ‘being sold to’. An online sales platform plays
an important part here. Customers now expect and ordinarily have access to a wealth
of information before engaging in the face-to-face stage of the sales process
and potential purchase.
9. IBM Commerce | #1 Digital Challenge Facing B2B Today
One B2B organisation that has taken a B2C approach to personalising the online customer
experience is Kemofarmacija d.d., a leading wholesaler of medical and healthcare products
and devices, with a range of more than 16,000 products and chemicals some of which are
highly regulated.
Kemofarmacija d.d realised they could drive more profitable sales through precision marketing
by gaining insights in to their customers online browsing, habits, and purchase behaviour.
Through integrating their content management and ERP systems they could ‘connect the dots’
with the insights they had collected on the customer, therefore personalising promotions and
recommended products based on really knowing the customer and performing the best next
action making every promotion and personalised experience – relevant vs. generic.
Major revenue benefits to Kemofarmacija d.d, increasing sale order lines by 30%
and diverting close to 90% of all sale orders through the web.
10. IBM Commerce | #1 Digital Challenge Facing B2B Today
Sale Channel Alignment
Whilst the online channel in B2B in most cases does not replace personal selling and account
management, it offers customers the control and flexibility to browse and purchase at their own
convenience, and enables B2B sellers to focus on building stronger customer relationships
and new customer acquisition.
With advances in technology,
delivering highly effective, cost-efficient
multichannel campaigns that achieve
outstanding results is crucial
—David Burnand – Stein IAS
11. IBM Commerce | #1 Digital Challenge Facing B2B Today
The evolution of the digital buyer has fostered a shift in focus from a traditional sales
approach to an increasingly customer-centric paradigm. The insight given, for instance,
at lead handover point can provide more transparency of where digital interactions fit into
the buyer cycle. Sales professionals can detect buyer pain points if this content is mapped
correctly to the buyer cycle and provide a new perspective on what was traditionally classified
as a ‘lead’. Again, this may lead to cultural change as sales leads become more qualitative
and the focus lies in 20 qualified opportunities as opposed to 100 more standard alternatives.
The cycle continues as sales professionals, now more informed about their buyers, can work
to foster an experience of a higher quality and the role of marketing is to enable that process.
“It is about equipping sales people
with genuine insight so they can
approach every relationship and
potential sale with all the
information they need. Most
systems now are able to give
a lot of insight and analytics.
They are able to offer a whole new
perspective. Able to give sales
teams a further role in marketing
resulting in a high quality customer
experience coming from the sales
teams”
—David Hogg, IBM
12. IBM Commerce | #1 Digital Challenge Facing B2B Today
Bringing all sales channels together and transforming the B2B organisation to be truly
multichannel is where significant business value can be gleaned. Over the past two years
Nucleus Research have analysed organisations which have leveraged IBM Commerce
as the core to building their multi-channel strategy and operations.
What is even more interesting is how this ROI has increased by 23% from previous studies
conducted by Nucleus for their 2013 report. This reiterates the continued growth in demands
of the B2B buyer, and equally the competitive advantage B2B organisations can take if they
take a lead and start to implement their multichannel capabilities ahead of their competition.
The return on investment is higher than any CRM or analytics investment,
with an average return of $14.79 to every dollar spent.
13. IBM Commerce | #1 Digital Challenge Facing B2B Today
Final Remarks
Complete alignment across the business from the sales force to the leadership on the B2B
eCommerce strategy and vision is key. The prospect of implementing business change
can be daunting, but works best as a business philosophy driven from the board level.
The need for all teams and departments to understand that the customer’s path to purchase
is across multiple channels and not just dependent on one is critical to the business building
a multi-channel ethic into its core DNA of selling, operating, and managing the customer.
When the entire organisation takes ownership for the customer journey, this stretches beyond
the typical sales and marketing departments. IT involvement is therefore crucial and their value
must be communicated in helping the organisation become a digital leader.
Implementing such a change can seem large-scale and present stumbling blocks, cost and lengthy
timescales, but the most effective way of starting a new platform is to start with a particular territory
or to roll out the software platform around a specific campaign or product launch. From there it is
more practical to shape out the wider strategy, before reverse-engineering to define the ‘starter’
phases which are easier to consume and test return. The challenge is that most B2B organisations
are trying to start the journey with having everything on day one of launch. Start small but have
the bigger picture always in mind; selecting the right foundations and commerce platform is critical
to ensuring online channel and marketing can start small but accelerate quickly to cope with larger
demands and volumes as the business starts to pick up pace and maturity.
B2B Research Assets
B2B Commerce Effectiveness: 5 Key Components of Successful B2B Commerce
https://ibm.biz/B2BSuccessTraits
IBM B2B Commerce
http://www-03.ibm.com/software/products/en/category/b2b-commerce
Krannich Solar B2B Commerce Case Reference
http://www-03.ibm.com/software/businesscasestudies/us/en/corp?synkey=T135685C33453N68
Kramp B2B Commerce Video Reference
https://www.youtube.com/watch?v=yM1ey-DbQxo