It’s not “just like Amazon” – B2B vs. B2C e-commerce and Why it Matters

©2016 Ntara, Inc. All contents proprietary and confidential. 1

IT’S NOT “JUST LIKE AMAZON”

B2B VS. B2C E-COMMERCE AND WHY IT MATTERS


IN THIS WEBINAR YOU WILL LEARN HOW TO:

Optimize your B2B e-commerce deploymentAdopt proven B2C e-commerce principles on a B2B platformUnderstand B2B and B2C business modelsUse B2B e-commerce to maximize the value of your field sales force

BONUS:Service the many needs of customers in B2B2C e-commerce


WHO IS THIS GUY?

Andy DidykVP of Account Services

Ntara

B2B and B2C e-commerce SMEDigital strategist

New business and account coach


How can we enhance our brand?

How will it support other sales channels?

How can each customer experience be personalized? How can we more effectivelymarket online?

Can we better engage our customers?

How do we increase loyalty and brand preference?

How do we increase brand awareness?

Can we capitalize on our changing business environment?

How can we maximize margin?

How can we avoid channel conflict?

What is the projected ROI?

How soon can we launch?

What about internal staffing?

What about costs to build (CAPEX) and run (OPEX)?

Will selling direct to consumers (D2C) impact our sales partners?

How will the systems interface?

Are new systems required?

What about bundling and fulfillment?

What about our complex products and pricing?

How will this affect IT security?

OUR APPROACH

Management Consulting Firm

Creative Digital Agency

Technical Integrator


Technology CompaniesBrochure Sites

Lead Generation

Complex Backend

B2B e-commerce

Healthcare &

InstitutionsComplex models

Antiquated tech

Lots of change

Accessibility concerns

OUR FOCUS

Branded Manufacturer

sSell through retailers or distributors

May have e-commerce

Need help moving to retail model


Analytics / BI Tools

Fulfillment

ERP

eCommerce

Digital Asset Mgmt (DAM)

Campaign MgmtWeb

Content Mgmt

System(WCMS)

Customer Service / Retention

Customer Relationship Mgmt (CRM)

Security

Coherent Customer Database

IT

MarketingSales

WE’RE DIFFERENT


OUR CLIENTS

Mid Market with

$100M+ in Sales

Complex

Products &

Pricing

Global Perspective or Plans

Desire to Integrate

On & Offline

Seeking Rapid

Launch & ROI


OUR SERVICES

Websites Ecommerce Creative & UX

Technical Integration

sIntegrated Marketing Consulting Apps

Enterprise Ecosystems to MicrositesMultilingual / Localization

Multi-tier EnvironmentsContent Mgmt

Systems (CMS)

Product Data Mgmt

Systems Integration

B2B and B2C

BrandingInformation Architecture

(IA)User

Experience (UX)

DesignContent

strategy and creation

Custom Cross-

Platform DevelopmentArchitected Solutions

Campaign Strategy

Social MediaSearch (SEO

& SEM)Email

Marketing

RoadmappingHardware Strategy

Research and AnalyticsTraining

iOS & AndroidKiosks and

TouchscreensSales Tools


BEFORE WE BEGINQuick poll – B2B or B2C


PART I: DIFFERENCES BETWEEN B2B AND B2C E-COMMERCE


THE OBVIOUS DIFFERENCE

B2C e-commerce

B2B e-commerce


THE OBVIOUS DIFFERENCE

B2C e-commerce

B2B e-commerce

$3.2 trillion

by 2020

$6.7 trillion

by 2020


KEY DIFFERENCE #1: END USER

Buyer is the

consumer

Buyer is (typically) procurement at retailerRetailer sells to the consumer

B2C e-commerce

B2B e-commerce


“B2B buyers today not only prefer to research online, but they also prefer to buy online. Nearly 75% indicate that buying from a website is more convenient than buying from a sales representative when purchasing products or services for work.”

– Andy Hoar, B2B analyst, Forrester Inc.


KEY DIFFERENCE #2: BUSINESS GOAL

B2C e-commerce

B2B e-commerce

Customer acquisition

Customer retention


KEY DIFFERENCE #3: ECOSYSTEM ENVIRONMENT

B2C e-commerce

B2B e-commerce


KEY DIFFERENCE #3: ECOSYSTEM ENVIRONMENT

Procurement System

Supplier Solutions(Punchout Translator)

E-commerce Catalog

Order Fulfillment System

Buyer login info Cart transfers forapproval PO approved

Buyer login toe-commerce site

Buyer adds itemsto cart and submits PO transferred

PO submittedfor fulfillment

BUYER

SUPPLIER

1

2

4 5

3 6

7


KEY DIFFERENCE #4: SALE TYPE

B2C e-commerce

B2B e-commerce


KEY DIFFERENCE #5: PRODUCT ASSORTMENT

B2C e-commerce

B2B e-commerce


KEY DIFFERENCE #6: PRICING & TERMS

B2C e-commerce

B2B e-commerce

• Negotiated pricing

• Negotiated terms

• Sales reps can offer discount

• Shipping options

• Pricing options• Hardback,

softback, Kindle


KEY DIFFERENCE #7: PAYMENT OPTIONS

B2C e-commerce

B2B e-commerce• PL3 level credit

cards• Lines of credit• Direct wire transfer• ERP integrations

Add a credit or debit cardAmazon accepts all major credit cards.


KEY DIFFERENCE #8: APPROVAL PROCESS

B2C e-commerce

B2B e-commerce• End user or

manager• Management

approval• Procurement /

Finance• Accounts Payable• Potential Audit Trail


KEY DIFFERENCE #9: ORG. OWNERSHIP

B2C e-commerce

B2B e-commerceOperations and IT, with some support from Marketing

Marketing, with some support from IT and Operations

IT

Operations

Marketing

IT

Operations

Marketing


PART II: WHY DEPLOY E-COMMERCE?


1. B2B BUYERS PREFER E-COMMERCE “B2B buyers today not only prefer to research online, but they also prefer to buy online. Nearly 75% indicate that buying from a website is more convenient than buying from a sales representative when purchasing products or services for work.– Andy Hoar, B2B analyst, Forrester Inc.IN 2015, ALMOST 60% OF B2B BUYERS MADE ONE-HALF OR MORE OF THEIR WORK PURCHASES ONLINE.

“The data is very clear that B2B buyers now favor do-it-yourself options for researching products and services. By a factor of three to one, B2B buyers want to self-educate versus talk to sales representatives to learn about products and services. They say that gathering information online on their own is superior to interacting with a sales representative by a margin of 53% to 17%.”– Andy Hoar, B2B analyst, Forrester Inc.


2. BUYERS’ EXPECTATIONS ARE CHANGING

“93% of B2B buyers say that they prefer to buy online rather than from a

salesperson when they've decided what to buy and just need to make the

purchase.”– Forrester Inc.

Challenge:B2B Buyers want simple, fast, and convenient purchasing channels. Opportunity: Remove routine tasks from the sales force and create true consultants.


3. GAIN HUGE SALES CHANNEL EFFICIENCIES Migrate customers from offline to online channels to increase customer acquisition and maintenance cost savings.

Reduce costs for low-frequency, low-volume purchasers

Retain the customer

Deploy cross- and up-sell engines to better meet customer needs.

Source: Forrester Research, 2015. Build A World-Class B2B e-commerce

Optimizing Channel Balance


MORE TRAFFIC AND BRAND EXPOSUREB2B businesses with e-commerce report a 20% YOY increase in website traffic.

4. ENJOY PROVEN, TANGIBLE RESULTS

INCREASED REVENUE AND LOWERED COSTS52% lower order costs and 19% average sales growth. Customers spend more after migration than before.

Source: Forrester Research, 2015. The Case For Channel-Shifting Offline Customers Online

Source: Forrester Research, 2015. Digital Is Busy Transforming B2B Commerce

INCREASED LOYALTYOmnichannel customers are more loyal than single-channel customers.


PART III: BEST IN CLASS EXAMPLES OF E-COMMERCE


GRAINGER

Source: E-commerce & B2B- “Review of the Best B2B E-Commerce Websites”


GRAINGER


FERGUSON



PART IV: BEST IN CLASS B2B2C EXAMPLE


B2B2C: IT’S WHAT CONSUMERS WANT

According to Forrester, more than a third of US online consumers surveyed expressed a preference for buying directly from manufacturers.

52 percent of online shoppers in the U.S. visit a website with the intention of buying. These buyers are driven by a greater assortment of products and their loyalty to the brand.

Source: PwC, 2016. 2016 Total Retail Report

34%


HUNTER FAN


SUMMARY

• B2C and B2B are very, very different. • Most manufacturers and brands need both• B2B2C strategy is complex and needs to be

considered• Successful deployments must align Sales,

Marketing, IT, and Operations• Where to begin? Ask for help from experts.


Andy DidykVP of Account Services

Ntara

[email protected] x8613

https://www.linkedin.com/in/andy-didyk-8826212

Ntara.com

LET’S GET IN TOUCH

mailto:[email protected]

http://www.ntara.com/


THANK YOU

Optional Client Logo

It’s not “just like Amazon” – B2B vs. B2C e-commerce and Why it Matters

Marketing

Transcript of It’s not “just like Amazon” – B2B vs. B2C e-commerce and Why it Matters