3 THINGS ABOUT B2B ECOMMERCE YOU CAN T AFFORD TO IGNORE
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1 3 THINGS ABOUT B2B ECOMMERCE YOU CAN T AFFORD TO IGNORE
2 INTRODUCTION B2B commerce is growing and changing at break-neck speed. In the past, B2B companies relied on offline resources to drive sales efforts and influence buyer behavior. Today, B2B customers are savvier, using multiple digital channels to research and purchase. As buyer demographics shift, this trend will only accelerate. B2B companies also face unique business and technology challenges that B2C brands rarely encounter. A longer, more complex buying cycle, stakeholder misalignment and fragmented technology stacks are only a few of the obstacles to integrating every digital touch point for their buyers. B2B ecommerce executives recently surveyed by Forrester Research, Inc., and Internet Retailer: 46% expect more than half of their customers to be buying online within three years 67% expect their technology budgets to increase in 2014 Source: Signs point up for B2B e-commerce, Internet Retailer, November B2B companies must evolve their internal and external processes to remain competitive and profitable. Fail to raise your ecommerce game and you ll get left behind. To stay ahead, learn the three things about B2B ecommerce you can t afford to ignore. 1
3 1 GET REAL AND REALISTIC ABOUT WHAT FRUSTRATES YOUR CUSTOMERS From web and mobile to social media and digital coupons, effective B2B ecommerce means thinking beyond the desktop. And this multi-channel approach needs to be in place from the start. Omni-channel commerce can t be an afterthought. Omni-Channel by Design B2B companies that execute omni-channel ecommerce tactics well do so by design, and it all begins in-house 1. They operate effectively across functional departments rather than in more typical silos, and deal with internal challenges quickly and directly. Effective omni-channel teams have a shared understanding of technology capabilities and the role they play in buyer acquisition and engagement. With the right internal structure in place, you can experiment with new sales channels and modify selling techniques for existing ones. Embrace Mobile The channel of the moment in ecommerce is mobile, and with tablet adoption gaining ground among buyers, it isn t just about smart phones. Forrester Research reports that while mobile currently accounts for only 3% to 5% of B2B ecommerce sales, it accounts for 7% to 10% of all B2B ecommerce website traffic 2. 1,2 The New and Emerging World of B2B Commerce, Forrester Research, Inc., February 10,
4 GET REAL... AND REALISTIC If your company hasn t invested in mobile, do it now. Your buyers expect to compare prices, research products and perform transactions at their fingertips. Don t make the common mistake of treating your mobile presence like smaller version of your website. Design disciplines like responsive web design, which delivers content to multiple device types using a single base of code and content, can be extremely effective for content-dense B2B websites. One B2B website that has effectively optimized its mobile and desktop experiences is StaplesAdvantage.com, which relies on images, dense text and drop-down navigation on its desktop site, but uses scaled-down navigation for its mobile presence. This approach recognizes the more immersive, visual experiences sought by desktop shoppers versus the on-the-go, information-centric experience enjoyed by customers who are shopping via mobile devices. Your mobile B2B shopper wants to get to the point and keep moving. In addition to evaluating new design and development options to deliver content to buyers across devices, you can explore a broad range of tactics to enhance the buyer experience in every stage of the funnel. Real-time chat features, social customer service and fast, mobile access to delivery options are just the tip of the iceberg. The key is to understand your buyers preferred channels and meet them there with the right content. 3
5 2 KEEP IT SIMPLE Streamlining technology platforms to form a hub for content and commerce will make all the difference. Internally, that means eliminating the redundancy and fragmentation of licensing, release management and hosting costs. You can also reduce time-to-market and development costs and create efficiencies for maintaining content. Externally, a simplified infrastructure can deliver the powerful, holistic digital experience that is now critical to acquiring and retaining B2B customers. Frankenstack [frank-en-stack] noun a collection or conglomeration of multiple, disparate technologies typically found in large B2B companies Kill the Frankenstack We call it Frankenstack. Business-to-business companies routinely use multiple technology solutions to address the needs of varying business units, subsidiaries and geographic regions. This approach to ecommerce can create numerous obstacles that will stand in the way of driving sales, including: High IT operations costs. Costs associated with the human capital required to maintain different solutions can be high, and adding new features and functionality to existing platforms can drive costs even higher. An incomplete picture of customer data. Purchases made through indirect channel partners can make it nearly impossible to develop targeted content or evaluate the ROI of your marketing campaigns. Limited cross-sell/up-sell opportunities. Using different systems for each channel can limit your ability to respond to your buyers channel preferences or create personalized shopping experiences. 4
6 KEEP IT SIMPLE Don t allow Frankenstack to stand in the way of new customer acquisition and better customer experiences. When the time comes to reevaluate your ecommerce infrastructure, keep it simple. Here s How The argument for taking a more streamlined approach to ecommerce is clear, but a business needs to have the right solutions in place. No enterprise can completely scrap what it has, but as you work to streamline your technology infrastructure, there are key best practices to consider: 1. Understand the nuts and bolts. Understanding the components of WCM and ecommerce solutions isn t just the domain of the IT department. Marketing and IT should both understand how the buyer experience is created, how out-of-the-box functionality is used (if applicable) and how integrations will occur. 2. Get marketing and IT aligned. In addition to understanding the technology, both teams need to collaborate on developing the goals, business case and requirements, software and services partner selection. 3. Look beyond features and function. Product offerings are compelling to a point, but if you compare most enterprise ecommerce and digital experience platforms you ll see a lot of commonality. What really matters is how a platform will stand up to your unique business needs. Choosing the right solution doesn t need to be painful. Clearly defining your strategy, understanding the technology and prioritizing stakeholder needs at the outset can make the process much easier. 5
7 3 GET PERSONAL No ecommerce discussion is complete without addressing targeting and personalization, and it s no longer the sole domain of B2C brands. As B2B ecommerce experiences draw increasing comparisons to B2C, companies that fail to tailor content to existing and potential buyers risk avoidable damage to their bottom lines. PERSONALIZATION ADOPTION According to Gartner, by B2B companies that effectively use 70% personalization on their ecommerce sites will outsell their of business-to-business competitors by ecommerce sites will offer personalized features 30% for customers Source: Personalized web content will be crucial for B2B sales, analyst says, Internet Retailer, January 21, Adopt a B2C Mindset An effective personalization strategy in B2B will help you accomplish two goals: 1) sell more and 2) provide better service. From location-based push messaging to intuitive product recommendations, retailers keep upping the ante in the race to deliver best-in-class customer experiences. They use predictive analytics to automate marketing and drive sales. While marketing automation tools can track buyer behavior across inbound and outbound channels, integrating predictive analytics can give you insight into what your buyers are going to do next. 6
8 GET PERSONAL If you ve ever seen product or video recommendations from brands like Netflix, Amazon or Target based on your previous purchases, you ve seen this marriage of predictive analytics and marketing automation at work. And it s very effective. Thirty percent of Amazon s revenue is produced by its recommendation engine, and NFLShop.com used predictive analytics to ramp up efforts to market to female buyers, increasing year-over-year online sales by 25%. But where does this leave you? In the B2B space the stakes are higher, and so are the boundaries. Your buyers want fast, simple access to product information and targeted content, but may have a heightened sensitivity to privacy over consumers shopping for videos and football jerseys. The Staples Advantage website highlights targeted offers and prominently displays customers recent purchases at-a-glance for seamless reordering. Construction machinery company Caterpillar makes access to Catproduct information accessible across devices, enabling customers to locate Cat Rental locations in real time using location technology. While these features are relatively simple compared to popular B2C tactics, their value in helping customers locate and purchase items quickly, easily and noninvasively is undeniable. The Human Factor In spite of the name, business-to-business is about selling to people. As you begin to incorporate targeting and personalization into your ecommerce experience, you have to consider the people behind your customer data their behaviors, the channels they use, the problems they are trying to solve and how they interact with each digital touch point. 7
9 GET PERSONAL MEET JOHN BUYER Age: 45 Gender: Male Education: Master s degree Title: Manager Interests: Continuous improvement Six Sigma Materials Management Process Improvement Manufacturing Contract Negotiation Groups and Affiliations: Operations Managers of America Operations Managers Alive Service Management 2.0 A multi-billion dollar laboratory equipment company engaged Siteworx to rescue the redevelopment of its mobile and desktop sites. The company wanted to minimize time-to-market, attract new customers, and deliver new and welcoming features to existing visitors and clients. Using agile design, Siteworx worked to define detailed user stories representing the client s product features, providing critical insights into how users interacted with the company s digital properties and identifying critical gaps. Without search facets, users were unable to view products, site content and multimedia, which increased overall search time. Product details, site content, and multimedia displayed differently in the search results, creating an inconsistent user experience. As a solution, Siteworx upgraded the company s search tool and made several enhancements to improve the overall search experience. By focusing on the habits and needs of the individual visitors to the site, Siteworx was able to enhance the mobile and desktop user experience and improve the site s search capabilities to facilitate faster, more engaged purchase behavior. 8
10 ACT NOW If you haven t started thinking strategically and holistically about your ecommerce strategy, it isn t too late. But companies that ignore the changing B2B ecommerce landscape risk lost revenue, dissatisfied customers and stagnant growth. 3 KEY CONSIDERATIONS 1 Get Real and Realistic About What Frustrates Your Customers define and integrate your commerce solutions across the full buyer s journey for a seamless, all-inclusive experience. 2 Keep It Simple a streamlined technology stack will save you time and money, and facilitate better experiences for your buyers. 3 Get Personal delivering targeted content to existing and potential buyers is critical to staying competitive and driving revenue. This list is just the beginning, but the most forward-thinking B2B companies are well-versed in these key points and are leading the charge for the future of B2B ecommerce. With the right solutions, the right strategy and the right resources in place, your business can join the ranks of the B2B companies that are providing a best-in-class ecommerce experience for their buyers. 9
11 ACT NOW LEARN MORE ABOUT SITEWORX ECOMMERCE CONSULTING CAPABILITIES If you are currently performing research on B2B ecommerce, chances are you will eventually need to identify the right partner to help you formalize and execute your ecommerce strategy. If you re looking for a partner that understand the complexity of digital commerce and the unique obstacles confronting B2B companies, you should talk to us. Siteworx recently boosted our robust ecommerce capabilities by entering into a strategic partnership with Intershop, the largest independent technology vendor for omni-channel commerce solutions. By partnering with best-in-class technologies and putting your customers needs first, Siteworx provides new capabilities and processes to achieve your business objectives and create a unified and seamless buying experience for your customers. SERVICE METHODOLOGY Omni-channel Strategy Design of Full Experience Full Experience Marketing Design Discovery Deploy Channel 1 Plan Preliminary Design Develop Deliver This strategy defines the full approach, the order in which we will create and deploy each channel, and how this will benefit buyers and businesses alike. With a full picture, Siteworx can prioritize, design, develop and measure all channels in line with buyer need and business direction. Marketing of the full experience (all channels) will be flexible enough to add future channels to the mix. 10
12 ABOUT SITEWORX Siteworx is an award-winning digital experience agency with deep roots in experience design, web content management (WCM), ecommerce, digital asset management (DAM) and systems integration. For more than a decade, our uncommon blend of technology and design know-how has helped digital leaders such as Time Warner Cable, Citrix Online and Mandarin Oriental Hotel Group discover, create and deploy best-in-class omni-channel experiences and connect with their customers and prospects in more engaging, more profitable ways. In 2014, Siteworx was named Adobe s 2013 North American Regional Partner of the Year. OFFICE LOCATIONS Reston, VA San Francisco, CA Los Angeles, CA Atlanta, GA Cary, NC Chicago, IL New York, NY Rochester, NY Vizag, India P: F: E: info@siteworx.com Copyright Siteworx, LLC. All Rights Reseved Commerce Park Drive, Third Floor, Reston, VA Siteworx is a registered trademark of Siteworx, LLC. All other trademarks mentioned herein are the property of their respective owners.
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