How B2B Ecommerce is Exactly NOT Like B2C

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Conversion Sciences Lab Coat Lessons Webinar Host: Brian Massey www.ConversionSciences.com

Transcript of How B2B Ecommerce is Exactly NOT Like B2C

Page 1: How B2B Ecommerce is Exactly NOT Like B2C

Conversion Sciences

Lab Coat Lessons Webinar

Host: Brian Masseywww.ConversionSciences.com

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Ask Us Questions

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Tweet at Us: @ConversionSci

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Our Guest

Jeff Philipp, CEO and eCommerce Practice General ManagerBlue Fish Development Group

[email protected]/in/jeffjphilipp

Jeff Philipp

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Serving Great Brands for 17 Years

Blue Fish Builds eCommerce Solutions• B2B Focus• eCommerce Strategy, Implementation, Customization,

ERP Integration, Migration

Preferred eCommerce Platforms• Magento• BigCommerce

Blue Fish believes you deserve to have your project done right the first time

• Too many eCommerce projects fail and our business model ensures that your’s won’t

Who is Blue Fish?

PGATOUR

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13 Ways B2B Ecommerce is Exactly Not Like B2C

The Opportunity in B2B eCommerce is worth an investment.

The Challenges Unique to B2B eCommerce websites.

How several businesses overcame them.

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Online Conversion Optimization Practices Among B2B Businesses

This is a report card of key website optimization strategies for the

inventory management and asset management marketplace.

8 Pages of graphs and recommendations.

B2B Redesign Case Study

Free Consultation Offer

conversci.com/B2BReport

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What We Found Only 24% of businesses were spending more than $5000 per month on search ads.

995 organizations sampled from the Inventory and Asset Management industry.

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What We Found

Businesses spending more than $5000 on search ads were more likely to have website optimization tools.

995 organizations sampled from the Inventory and Asset Management industry.

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What We Found 81% of websites are gathering analytics.

995 organizations sampled from the Inventory and Asset Management industry.

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What We Found Only 14% of websites had optimization tools.

995 organizations sampled from the Inventory and Asset Management industry.

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Online Conversion Optimization Practices Among B2B Businesses

This is a report card of key website optimization strategies for the

inventory management and asset management marketplace.

8 Pages of graphs and recommendations.

B2B Redesign Case Study

Free Consultation Offer

conversci.com/B2BReport

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The Opportunity in B2B eCommerce is Worth an Investment

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14Forrester Research recently published an impressive array of insights

Forrester Research recently conducted an extensive research study directly targeting B2B sellers and the world in which they live

This report has been the catalyst for a great deal of work and follow-on publications (e.g.: Internet Retailer)

I also had the opportunity to speak with the leading researcher and author, Peter Sheldon

Peter Sheldon

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15What’s driving companies to invest in B2B eCommerce?

1. Competition… they really don’t have a choice2. Need to show better ROI… their current eCommerce solution is not

cutting it3. Ever-changing buyer use cases… specifically mobile 4. Cost savings… selling online is less expensive than other sales

channels5. Globalization… the world is increasingly smaller with more sellers to

compete with and more buyers at your fingertips

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16B2B eCommerce is not industry specific

•eCommerce is a strategic emphasis across almost all B2B industries•Highest growth rates:

• Manufacturing• Wholesale• Pharma• Oil & Gas

However, in speaking with Peter Sheldon, formerly with Forrester Research, he said the problems in each industry vertical are effectively identical. As it relates to B2B eCommerce challenges, Peter said,

“There is no meaningful differentiation to be foundbetween selling, say, beer bottles vs. ceiling fans.”

Peter Sheldon

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17Recent research shows B2B is a significant opportunity

•Forrester’s recent B2B reports have some fascinating data

•In 2015, B2B eCommerce in the U.S. was over twice the size of B2C

• By 2019, B2B will be $1 Trillion!!

•Currently, • B2C eCommerce makes up 10% of all retail commerce• B2B eCommerce makes up 9% of B2B commerce

•Forrester predicts B2C will cap out around 15%, but…•Due of the nature of B2B, B2B has no natural ceiling – Analysts say it could become 30, 40, 50%, or more, of all transactions

780

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18Most powerful stat about the B2B opportunity (IMHO)

•Only 25% of all B2B companies sell online todaybut…

•74% of B2B buyers prefer to buy through a website, not through a sales rep

because,•93% of B2B buyers prefer to execute a buy the moment they find what they are looking for

So, if 25% of sellers get to capture 74% of buyers, what will happen to the other sellers?

“Buyers are way ahead of the sellers.” – Peter Sheldon

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The Challenges Unique to B2B eCommerce websites

– B2B has different Business Problems– B2B has different Functional Needs

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20Top B2B eCommerce business problems we hear

1. Customer satisfaction and loyalty are low due to web experience2. Website needs to provide similar level of service as sales reps3. Selling costs are too high and hurting margin4. Critical business processes don’t fit traditional eCommerce platforms5. Don’t have expertise to integrate business systems with the website6. Too much resistance from Sales Department

Does this sound right to you?

Their business is not where they want it to be because…

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21Audience Poll

Which of these problems are you seeing in your company?

Select all that apply:❏ Customer satisfaction is low❏ Website needs to provide better level of service❏ Selling costs are too high❏ Processes don’t fit traditional eCommerce platforms❏ Don’t have internal expertise

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B2B is functionally unique because…8. Customers can have multiple buyer accounts

with many locations for shipping and billing9. Differing buyer roles and authority set by

customer10. Shipping can be complex with freight and other

options11. Systems integration is critical12. Order history must include offline orders13. Complex, flexible customer account

administration

13 Factors Unique to B2B eCommerce

1. Products tend to be highly complex and often customized

2. Product availability dates are critical, as is ordering on backlog

3. Product restrictions are common4. Restricted option combinations with non-

standard pricing5. Pricing tends to be complicated6. Payments on terms and often with variable

credit limits7. Sales tax issues are complex

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23Most B2B sellers have a subset of the factors; some more than others

Case Study – Shallow Water Anchor Manufacturer✓ Product restrictions are common✓ Restricted option combinations with non-standard pricing✓ Payments on terms and often with variable credit limits✓ Sales tax issues are complex✓ Differing buyer roles and authority set by customer✓ Customers can have multiple buyer accounts

with many locations for shipping and billing✓ Shipping can be complex✓ Systems integration is critical✓ Order history must include offline orders

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A Few Specific Examples

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252. Product availability dates are critical, as is ordering on backlog

Case Study – Wine Distributor• It is critical to sell before inventory is available• Buyers need to know availability dates in order to commit• Need to collect some or all of the price before shipping• Most eCommerce platforms do not accommodate these capabilities

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265. Pricing tends to be complicated

Case Study – Eyewear Accessory Provider• Consumer prices different than practitioner prices• Discount tiers based on annual purchase volume; reset each year• Discount tiers by order size• Special product pricing for volume purchase• All these dimensions create merchandising and pricing challenges

• Complex calculations, Pricing conflict risks, Dealing with edge cases

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277. Sales tax issues are complex

In the B2C world you need to deal with...• Nexus rules• Jurisdiction identification• Managing and applying correct tax rates• Correctly paying the taxing authorities

B2B adds…• Differentiating between a retail customer and a wholesale customer

• Dealing with sales tax exemption certificates• Requesting the certificates• Storing, tracking and managing the certificates• Renewing annually

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Ping me anytime to chat about your situation:

Jeff PhilippCEO and eCommerce Practice General [email protected] x107linkedin.com/in/jeffjphilipp

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Online Conversion Optimization Practices Among B2B Businesses

This is a report card of key website optimization strategies for the

inventory management and asset management marketplace.

8 Pages of graphs and recommendations.

B2B Redesign Case Study

Free Consultation Offer

conversci.com/B2BReport

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30POLL

I would like to be contacted by:● Conversion Sciences● Blue Fish● Both● Neither

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Prepared by

Conversion Sciences

Brian Massey(512) 961-6604

ConversionSciences.com8650 Spicewood Springs Rd. #145-601

Austin, TX 78759

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