Magento for B2B: Powering Enterprise E-commerce

Magento for B2B: Powering Enterprise E-commerce September 26, 2012 Accelerating Revenue Through Technology ZEON SOLUTIONS INC.

Today s Host David Hess Senior Business Development Manager ZEON SOLUTIONS INC.

Agenda Introduction B2B E-commerce Overview Essential B2B Needs Magento for B2B E-commerce B2B Company Success Story Customization, Configuration and Product Selection Super Admin Q & A

In this webinar, we will Introduce tools that help educate your customers and increase conversion Discuss the unique e-commerce challenges facing B2B companies Address the importance of efficient integration

According to Gartner - the [B2B] manufacturer has invested in e-commerce to provide a competitive differentiator, which is especially important to companies that are selling commodity products where differentiation, other than a lower price, may hinge on the customer relationship and the ease of the transaction. Source: Prepare Now For The Impact Of AmazonSupply on the B2B E-commerce Market 15 June 2012, Chris Fletcher, Gene Alvarez

B2B E-commerce Overview Rapidly Growing Key growth drivers Sales growth Operational efficiency Direct relationship Competitive advantage Competitive threat Opportunities being capitalized on: Grow Sales Explore New Markets Develop New Products Alternate channel strategies Amazon Google Shopping Feed ebay

B2B E-commerce Overview Rapidly Growing Key growth drivers Sales growth Operational efficiency Direct relationship Competitive advantage Competitive threat Manufacturers extend information from ERP: Price, Availability Order Status Invoice History Extend complex, manual custom ordering processes Re-task workforce into value added roles Get more done with fewer resources Direct impact on net income

B2B E-commerce Overview Rapidly Growing Key growth drivers Sales growth Operational efficiency Direct relationship Competitive advantage Competitive threat Leverage brand Capitalize on web traffic Develop direct relationships Make it easier to do business

B2B E-commerce Overview Rapidly Growing Key growth drivers Sales growth Operational efficiency Direct relationship Competitive advantage Competitive threat Buying preference for the web Open dialogue with customers Use B2C features customers like Increase customer loyalty, long term value

B2B E-commerce Overview Rapidly Growing Key growth drivers Sales growth Operational efficiency Direct relationship Competitive advantage Competitive threat Some view the web as way to create sustainable competitive advantage Others as means to mitigate channel threat

B2B E-commerce Overview Rapidly Evolving Key evolution drivers Features and functionality Customer self service Rich content B2C features, functionality on B2B sites no longer nice to have B2B users expect same features, functionality as B2C sites: Favorites Wish list Order history Product recommendations

B2B E-commerce Overview Rapidly Evolving Key evolution drivers Features and functionality Customer self service Rich content More and more B2B customers want to do everything online Some dealers and distributors run their businesses through B2B sites They want to manage their customers, orders, payments all online Similar to online banking

B2B E-commerce Overview Rapidly Evolving Key evolution drivers Features and functionality Customer self service Rich content B2B customers used to ordering by part number with a catalog on hand Now they expect more information online: Multiple images Detailed specs MSDS Technical data sheets Manuals Downloads Tutorials

Essential B2B Needs MARKETING CUSTOMER BASED PROMOTIONS CUSTOMER BASED PROMOTIONS Special accounts can be set up 3M (customer) set up as a special account All 3M purchasing groups/individuals can access special promotions designed for 3M

Essential B2B Needs MARKETING CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MULTICHANNEL INTEGRATION Integration of customer activity from all channels Example: Orders placed via catalog/phone and orders placed via web Can the customer visit them all online?

Essential B2B Needs MARKETING CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES MERCHANDISING Customer specific promotions and offers Ability to create custom landing pages for specific products quickly, easily Cross sell, up sell Product kits/bundles

Essential B2B Needs MARKETING MARKETING CATALOG CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED CATALOG Special customers can have their own catalogs; access a sub-set of products. 3M users only see popular items they buy frequently

Essential B2B Needs MARKETING MARKETING CATALOG CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CUSTOMER BASED PRICING Special customers get special pricing Can be different at product levels Matrix pricing; standard discount doesn t apply.

Essential B2B Needs MARKETING CATALOG CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS CONFIGURABLE PRODUCTS; GROUP PRODUCTS Customers need to select from a group of available product options As with a catalog where products are organized in tabular formats

Essential B2B Needs MARKETING CATALOG CUSTOMER BASED PROMOTIONS MULTI-HANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS LARGE NUMBER OF SKUS B2B sites usually have thousands of SKUs An auto parts store likely to have hundreds of thousands of parts, SKUs

Essential B2B Needs MARKETING CATALOG CUSTOMER BASED PROMOTIONS MULTI-HANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS BULK AND REPEAT PRODUCT ORDERING Large-sized orders are popular with B2B Repeat and scheduled ordering common in B2B e-commerce ORDERING BULK & REPEAT PRODUCT ORDERING

Essential B2B Needs MARKETING CUSTOMER BASED PROMOTIONS MULTI-CHANNEL INTEGRATION MERCHANDISING CAPABILITIES B2B PAYMENT OPTIONS: PURCHASE ORDERS, INVOICE ME CATALOG ORDERING CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS BULK & REPEAT PRODUCT ORDERING B2B PAYMENT OPTIONS: PURCHASE ORDERS, INVOICE ME B2B has high percentage of accounts using Invoice Me and PO options Need sophisticated authentications for these options: PO limits Good credit standing

Essential B2B Needs MARKETING CATALOG CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS SCHEDULED DELIVERIES AND MULTIPLE FULFILLMENT OPTIONS B2B requires more sophisticated delivery options B2B customers use own UPS account for shipping ORDERING BULK & REPEAT PRODUCT ORDERING B2B PAYMENT OPTIONS: PURCHASE ORDERS, INVOICE ME SCHEDULED DELIVERIES & MULTIPLE FULFILLMENT OPTIONS Customers also need scheduled and special location deliveries

Essential B2B Needs MARKETING CATALOG CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS QUOTE CREATION; QUOTE TO ORDER Quotes are typical in B2B space, for approval and budget workflows ORDERING BULK & REPEAT PRODUCT ORDERING B2B PAYMENT OPTIONS: PURCHASE ORDERS, INVOICE ME SCHEDULED DELIVERIES & MULTIPLE FULFILLMENT OPTIONS QUOTE CREATION; QUOTE TO ORDER

Essential B2B Needs MARKETING CATALOG ORDERING CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS BULK & REPEAT PRODUCT ORDERING B2B PAYMENT OPTIONS: PURCHASE ORDERS, INVOICE ME SCHEDULED DELIVERIES & MULTIPLE FULFILLMENT OPTIONS QUOTE CREATION; QUOTE TO ORDER BUSINESS SYSTEM INTEGRATION Availability, order status and special pricing all key to B2B e-commerce All require sophisticated integration with business systems INTEGRATION BUSINESS SYSTEM INTEGRATION

Essential B2B Needs MARKETING CATALOG ORDERING CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS BULK & REPEAT PRODUCT ORDERING B2B PAYMENT OPTIONS: PURCHASE ORDERS, INVOICE ME SCHEDULED DELIVERIES & MULTIPLE FULFILLMENT OPTIONS QUOTE CREATION; QUOTE TO ORDER 3rd PARTY INTEGRATIONS Similar to business system integration; 3 rd party integration becoming crucial component of B2B. Examples of 3 rd party integration include: Communication with supplier systems to check for product availability Communication with logistics providers INTEGRATION BUSINESS SYSTEM INTEGRATION 3 rd PARTY INTEGRATIONS

Essential B2B Needs CUSTOMER BASED PROMOTIONS MARKETING MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG INVOICING AND REPORTING Need for invoicing, advanced reporting common in a B2B environment CATALOG ORDERING CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS BULK & REPEAT PRODUCT ORDERING B2B PAYMENT OPTIONS: PURCHASE ORDERS, INVOICE ME SCHEDULED DELIVERIES & MULTIPLE FULFILLMENT OPTIONS QUOTE CREATION; QUOTE TO ORDER Dealers and distributors use B2B e-commerce My Account section as their portal to do everything INTEGRATION BUSINESS SYSTEM INTEGRATION 3 rd PARTY INTEGRATIONS INVOICING & REPORTING

Essential B2B Needs MARKETING CATALOG ORDERING CUSTOMER BASED PROMOTIONS MULTICHANNEL INTEGRATION MERCHANDISING CAPABILITIES CUSTOMER BASED CATALOG CUSTOMER BASED PRICING CONFIGURABLE PRODUCTS; GROUP PRODUCTS LARGE NUMBER OF SKUS BULK & REPEAT PRODUCT ORDERING B2B PAYMENT OPTIONS: PURCHASE ORDERS, INVOICE ME SCHEDULED DELIVERIES & MULTIPLE FULFILLMENT OPTIONS QUOTE CREATION; QUOTE TO ORDER AUTHENTICATION, CORPORATE ACCOUNTS Managing account information centrally within business systems is another critical B2B requirement 3M has one master account and several authorized users at 3M can buy using that master account BUSINESS SYSTEM INTEGRATION INTEGRATION 3 rd PARTY INTEGRATIONS INVOICING & REPORTING AUTHENTICATION, CORPORATE ACCOUNTS

Magento for B2B E-commerce Feature Magento Remarks Web Catalog Manager Web Content Management Customer Based Promotions Multichannel Integration Customer Based Catalog Customer Based Pricing Configurable Products; Group Products Large Number Categories & SKUs Bulk & Repeat Product Ordering B2B Payment Options: POs, Invoice Me Scheduled Deliveries & Multiple Fulfillment Options Quote Creation; Quote to Order Business System Integration (Orders, Customers, Products) Available in Enterprise Edition. Available in Enterprise Edition. Available in Enterprise Edition. Available in Enterprise Edition. Available in Enterprise Edition. Available in Enterprise Edition. Available in Enterprise Edition. Available in Enterprise Edition. Available in Enterprise Edition. Available with Zeon s Local Extensions. Available with Zeon s Local Extensions. Available with Zeon s Local Extensions. Available in Enterprise Edition. 3 rd Party Integrations Framework available in Enterprise Edition. Customization required. Invoicing & Reporting Partially available. Features Key Available Available with Third Party Extension Or Easy Customization Coming Soon from Zeon Not Available Authentication, Corporate Accounts (One Account/Multiple Users) Available with Zeon s Local Extensions.

According to Gartner - Customer experience refinements can be lucrative; search technology and recommendation technologies can drive increased purchase size and develop better margins. Source: Best Practices in Strategically Combining Search, Content Analytics and E-Commerce 25 May 2012, Whit Andrews, Gene Alvarez

Success story: Large B2B Magento Site Magento B2B Site Information Company Name Vertical Overview Emedco No. of SKUs 225,000+ Average Monthly Traffic 150,000+ Industrial Manufacturer Leading manufacturer of signs and identification products. Covers every facet of the sign industry including workplace safety, spill control, building and grounds signage.

Quick Order Custom Product Center Bill Me Later

Success Story Emedco: B2B Feature Highlights Large Number Categories and SKUs Custom Product Ordering Configurable Products; Group Products B2B Payment Options: POs, Invoice Me Scheduled Deliveries and Multiple Fulfillment Options Business System Integration (Orders, Customers, Products Pricing and Availability) 3 rd Party Integrations

Easy navigation supports 225,000+ products

Group Product

Configurable Product

Website accepts popular B2B payment options - Pay Later Purchase Order

Delivery Options Scheduled Deliveries Define Delivery Point

Success Story SAP Integration INTEGRATION/TOUCH POINT Product Content Product Pricing Customer/Account Information Order Creation Order Status Tax Rates Shipping Charges METHOD BATCH ONLINE ONLINE & BATCH ONLINE & BATCH ONLINE ONLINE ONLINE

DYNAMIC PREVIEW (WYSIWYG) DESIGN/BUILD YOUR OWN http://www.emedco.com/custom-no-header-traffic-and-parking-signs-emts.html?hid=emts-noheader

Customization and Configuration Conversion through customization: Monogrammed collectibles to 5-figure furniture, all require customization Customers want virtual proofs, instant gratification, free processes

Workflow Example

Product Selection Wizard

Benefits of Customization, Product Selection Reduce order-to-cash cycle Save production time Photography and image management Increase conversion Fewer abandoned carts Infinite possibilities to enhance product offerings Engaging customer experience!

How to Begin Select a highly experienced partner Identify viable product lines Determine how backend production, delivery process support a configuration tool A major step -- creating vignettes Use high resolution imagery photography/design Leverage Magento tools

Coming Soon! Super Admin Advanced wish list for individual projects Distributor Contractor 1 Contractor 2 Contractor 3 Contractor 4 A B C A B C A B C A B C

Magento Gold Solution Partner Enterprise e-commerce, software application development, search engine marketing B2B and B2C e-commerce, enterprise apps and integration experience Broad range of Magento services Development, design Customization, support Ten years in business 300+ employees Global footprint

Our Footprint SEATTLE, WA MILWAUKEE, WI ANN ARBOR, MI PUNE NAGPUR CHICAGO, IL ANN ARBOR, MI 300+ worldwide employees Global delivery model -- 24/7 development and support

Questions for us? David Hess Senior Business Development Manager Zeon Solutions, Inc. 414.847.1150 david.hess@zeonsolutions.com