Build a Customer-Focused Digital Strategy

Transcription

1 Build a Customer-Focused Digital Strategy Featuring: Mike Rowland, Director of Digital Strategy, West Monroe Partners Brian Strojny, Co-Founder, Executive VP, Insite Moderated by: Thomas P. Gale, Publisher, Modern Distribution Management Sponsored by: November 19, 2015

2 Agenda Introduction Thomas P. Gale Presentation Mike Rowland & Brian Strojny Q&A All

3 Webinar: Build a Customer-Focused Digital Strategy November 19, 2015 PRESENTERS HOSTED BY Mike Rowland Director, Digital Strategy West Monroe Partners Brian Strojny Co-Founder InsiteCommerce 3

4 Presenters Mike Rowland, Director, Digital Strategy, West Monroe Partners Mike Rowland leads West Monroe s Digital practice in Chicago. He is responsible for helping clients build and execute strategies that bring measurable value and learning to their organizations. Specializing in digital engagement, Mike brings over 15 years experience in helping clients with their transformation to digital organizations in marketing, sales, and customer support. He has lead strategy projects ranging from digital channel management to social strategy to market research to loyalty program development, all with a strong focus on using interactive approaches and data to build stronger customer relationships. Brian Strojny, Co-Founder, Executive VP, Insite Software Brian co-founded Insite in 2004, and has provided strong strategic and sales leadership for the organization in both its commerce and ship solutions. Brian is well-versed in the needs of Insite's manufacturing and distribution clients as a result of his strong ERP consulting background plus his experience and knowledge surrounding b2b ecommerce. Brian s background includes seven years in new product marketing at 3M, working with large retailers including Wal-Mart, Target, Office Depot, and Staples. He brings a unique understanding of the challenges facing retailers--and how Insite Software can help revolutionize their business models. Brian holds a B.A. in business and marketing from Hamline University and an M.B.A. from the University of St. Thomas School of Business. 4

5 Why Digital Now? 5

6 A few numbers to consider 50% The percentage of B2B purchasers younger than 35 years old 12 The number of search queries, on average, a B2B buyer makes before engaging with a specific supplier s site 57% The amount of the purchase process that is completed before a supplier is ever engaged $6.7T 44% 34% The estimated global B2B ecommerce market for More than 2X B2C. The percentage of buyers who researched products for their company using mobile 24% purchased using mobile The percentage of sales manufacturers expect from DTC in the next 2 years (vs. wholesale 30%) Sources: Practical Ecommerce: B2B Ecommerce Growing; Becoming More Like B2C (04/09/2015), Frost & Sullivan, Accenture, 2014 State of B2B Procurement Study, Forrester: Be Direct: Why A Direct-To- Consumer Online Channel Is Right For Your Business, May 2014, Google: The Changing Face of B2B Marketing (2015), Google: B2B s Digital Evolution (2013), Google: Digital Tipping Points for

7 The Risk of Missing the Digital Opportunity There is risk in waiting it out or dabbling in Digital without a clear strategy Lost Sales: Customers will order from whoever provides the easiest experience in whatever channel chosen by the customer. If the customer is looking for stock status or price, and they cannot see without having an account, they may go elsewhere The disrupters get more data on your customers and build relationships with them Inefficient operation: B2B digital presence integrated with other business systems reduces both errors related to human interactions and the time required for manual processing. A B2B Digital Program can extend the existing sales force by allowing them to concentrate on larger and/or more strategic accounts Higher Employee Turnover: Your customers and business partners are demanding digital offerings, and your employees want to be associated with organizations that embrace digital technologies, especially the younger workforce 7

8 The opportunity is real and customers are waiting for your firm to support them Having a B2B digital program is NOT a differentiator, with over two-thirds of B2B buyers spending procurement budgets online, online ordering and information transparency are table stakes in B2B The global B2B digital selling market is massive at least 2x the B2C market ($6.7T in B2B vs. $3.2T in B2C by 2020*) Demand is building as more corporate buyers transition to digital purchasing (and there are fewer generational differences in buyers than one would assume) There is significant opportunity to increase B2B digital revenue by Meeting customer expectations for B2C-like experiences (better than the competition!) Tailoring strategy and experiences to customer segment needs Reaching independent customers who cannot afford more expensive systems like EDI (treat traditional trade/independent operators with personal attention) Continuously collaborating with your customer allow them to evolve the experience 8

9 What exactly does customer focused look like?... 9

10 Customer Focused Most customers only know a great customer experience after it happens 10

11 Customer Experience Example 11

12 Digital Transformation is Complicated Expensive Changing 12

13 What happens if you don t?... 13

14 The Digital Disruption Has Already Happened Worlds largest taxi company owns no taxis (Uber) Largest accommodation provider owns no real estate (Airbnb) Largest phone companies own no telco infra (Skype, WeChat) Worlds most valuable retailer has no inventory (Alibaba) Most popular media owner creates no content (Facebook) Fastest growing banks have no actual money (SocietyOne) Worlds largest movie house owns no cinemas (Netflix) Largest software vendors don t write the apps (Apple & Google) 14

15 Uncovering Your Advantage 15

16 Identifying Your Digital Opportunity Digital: The use of technology to radically improve performance or reach of enterprises, in light of evolving customer expectations and technology advances Digitization Engagement Disruption Digitizing processes to improve employee productivity, supplier interaction, and customer satisfaction. Enabling digital interactions with customers in a more engaging, seamless way to drive revenue, retention, and efficiency. Transforming business through innovative business & product models that don t exist in the market today or to accelerate past the competition. EXAMPLE: ecommerce Platform, Sales Team Mobile Selling App, Customer Self-Service Omnichannel EXAMPLE: Digital Marketing, Strategic CRM, Customer Analytics to refine relationship model EXAMPLE: DTC Fulfillment Model, Uberization of Independent Carrier-Broker Model, Digital Marketplace Model 16

17 Your advantage over the disrupters is your knowledge of the customer Five ways to build your advantage by improving the customer experience: 1. Build deeper understanding of your customers by building journey maps around their experience with your firm 2. Create a stronger digitally-based plan to nurture existing customers and attract new customers to try your firm 3. Understand the friction points of working with your firm and remove or reduce them 4. Capture and analyze customer knowledge from your salesforce in addition to transactional data 5. Provide digital tools to help customers work with your firm on their schedule 17

18 Customer-Focused Examples 18

19 Case Study Our focus is not reduction in sales force, but enabling the force to better differentiate our product and increase sales, and for CSRs to better manage the relationship and improve satisfaction. While it s still too early to have hard numbers, the early results from sales reps and customers are enormously positive and we fully expect the eventual ROI numbers to reflect that we re extremely happy. Andrew Steiner, VP of Marketing and Operations, AmeriPride Services 19

20 Case Study Challenges: World s largest non-profit life sciences bio-material organization, regulated by Federal government Wanted to move from site that was just a catalog with fax/phone orders to an ecommerce solution Stringent requirements Over 1M active skus! Solution: InsiteCommerce allowed for strong user experience and key B2B functionality: Multi-currency and specialty pricing B2B Personalization Unique checkout process 20

21 Case Study ROI was obvious from the start. Along with speed to market, the solution provides automation of manual processes and a selfservice model for our customers, which has helped us improve the customer experience, reduce costs and optimize our operations. Larry Sibelia, Head of Global Technology, Merial Corporation 21

22 Case Study The Preseason Booking Tool and Thule Connect are great, or any other word you want to substitute for great. I wish I could share this with some other vendors. Thanks for making our work easy. In Gear Sales Agency We received incredible feedback from our customers about the new site. Many feel that [the site] is one of the best B2B sites they have used. Annie Scopel, Director of N. American Customer Service, Thule 22

23 Getting Started 23

24 Understand the Customer s Experience Web Enters Request into approval system Searches Web for product pricing Orders Social Reviews Company Contact Center Mobile Receives form requesting item Approval Notice Sent Order Confirmation sent Calls to verify delivery Contact Center Answers Questions 24

25 Find and remove areas of friction Web Social Enters Request into approval system Search strategy Searches Web for product pricing Reviews Company ecommerce strategy Orders Self Service strategy Contact Center Mobile Receives form requesting item Approval Notice Sent Order Confirmation sent Calls to verify delivery Contact Center Answers Questions CRM Database Data & Analytics strategy 25

26 Your guiding principles are focused on the customer Be the company that is easiest to do business with Support existing customers [channel shift] with a convenient transaction channel, access to rich information Increase wallet share by showcasing products and advanced merchandising Attract new customers through digital marketing best practices and social outreach Achieve efficiency gains in sales, fulfillment, and service Improve the customers business by increasing efficiency, reliability, repeatability in their processes The differentiator will be in implementation: how the company defines the customer experience and extends its brand promise. 26

27 What s Next? Becoming more customer centric is an organizational imperative to remain relevant and grow in an evolving market, no matter what products you offer. Start small: Assemble the right team to develop your Objectives, Goals, Strategy, & Tactics (OGST) Focus on mapping your customers journey around key points of interaction (Purchase, onboarding, support) Use the journey map to identify opportunities around awareness, friction points, and growth (Cross-sell, upsell) Go for the quick win rather than the large complex project Identify and evaluate technology that can accelerate your customer focused strategy Measure your results and iterate quickly to deepen your customer relationships and build success 27

28 QUESTIONS? Please submit your questions in the chat box. 28

29 Build a Customer-Focused Digital Strategy Questions? Sponsored by: November 19, 2015