Susina--The Rise of B2B eCommerce

The Rise of B2B eCommerce How Marketing Automation and the Consumerization of B2B Change Marketing

April 14, 2015

Steve Susina Marketing Director @ssusina LYONSCG

Digital Is Driving The New World Of B2B Commerce “Tradi4onal B2B companies will lose share in 2015 to online-‐only and brand manufacturer sites that are offering beDer pricing, product availability, and customer experiences. “To win, B2B companies must rethink conven4onal channel strategies and look at targe4ng en4rely new customer segments.” Source: Forrester Research, “Predic4ons 2015: US B2C And B2B eCommerce Players Will Struggle To Keep Up With Customers” November 2014

eCommerce Market Size Comparison

0 200 400 600 800

1,000 1,200

B2B B2C

Revenue 19% Annual Growth Rate, according to DeloiDe, vs. 17%

for B2C

Growing to $6.7 Trillion by 2020, according to Frost &

Sullivan

Marketplaces are much more prevalent, enable many-‐to-‐

many rela4onships

And Yet, B2B eCommerce In Early Stages

B2B

B2C

Marke4ng Automa4on eCommerce

Rela4ve U4liza4on -‐  Personaliza4on

-‐  Triggered Campaigns -‐  Increased Content

Which Is Why Marketing Automation and eCommerce Are Coming Together •  February announcement

integra4ng Marketo with the SAP hybris Marke4ng pla`orm

•  Hybris is Titanium Sponsor

•  Other major eCommerce players are buying into the space

•  IBM + Silverpop •  Oracle + Eloqua

The previously independent worlds of #ecommerce and #marke4ngautoma4on are merging

Agenda •  Six Drivers of Consumeriza4on B2B eCommerce

1.  Buying Cycle 2.  Payment Op4ons 3.  Employee Familiarity 4.  Drive for Cost Savings 5.  Personaliza4on 6.  Mobile Workforces

•  Examples of B2B eCommerce Businesses •  Opportuni4es for Marke4ng Automa4on in B2B eCommerce

Six Factors Driving Consumerization of B2B

1.  The Changing Business Buying Cycle 2.  The Changing Payment landscape

3.  Employee Comfort With eCommerce 4.  Drive for Cost Savings

5.  Personaliza4on

6.  Increased Use of Mobile Technology

1. The Changing Business Cycle . . .

Obligatory Chart #1

Source: Scott Brinker

Obligatory Chart #2

•  57%, 60%, 80%, or 90% of the buying process takes place before the first interac4on with the seller

Source: CEB

B2C Lives & Dies by Conversion Rate ...

…While B2B Generates Leads Now, Sells Later

Managing the B2B Selling Cycle

AMA says up to 70% of leads not followed up by Sales

Buying Cycle à Takes Time à Fric4on

•  SEO •  Paid Search •  Adver4sing •  Trade Shows •  Events •  Direct Mail •  Email •  Lead Nurturing •  Video •  Content Marke4ng

Managing the B2B Selling Cycle

B2B eCommerce reduces fric4on, provides direct link from lead gen to accep4ng the order

•  SEO •  Paid Search •  Adver4sing •  Trade Shows •  Events •  Direct Mail •  Email •  Lead Nurturing •  Video •  Content Marke4ng

eCommerce reduces fric0on

2. The Changing Payment Landscape •  Small Business leading the way to business, commercial and purchasing (P-‐Card use)

•  Goal: cost savings from reduc4on in use of centralized purchasing departments, purchase orders and other high-‐labor approaches

•  37% of small businesses used credit cards to meet capital needs

Sources: Philadelphia Fed “Small Business Use of Credit Cards in the US Market” NSBA “Access to Capital Survey

3. Your Employees Are Comfortable Buying Online •  Consumers have widely accepted eCommerce, have a ton of experience, and

•  B2B must meet expecta4ons set by the more established B2C eCommerce user experience

Source: SLI Systems

4. The Drive For Cost Savings

•  Headcount: of 4.5 million B2B salespeople, “we believe one million will be displaced by 2020” -‐-‐Andy Hoar at 2015 Forrester Sales Enablement Forum

•  Reduc4on in use of print in the Buyer’s Journey •  Sales Collateral •  Trade Publica4ons / Adver4sing •  Printed Catalogs

Here Are Those P-Cards Again . . .

Source and Photo Credit: VantageB2b

•  Corporate spending via P-‐Cards to hit $290 Billion in 2016

•  84% of organiza4ons will have adopted some form of P-‐Card program

•  $53 average savings on administra4ve costs for P-‐Card transac4on versus processing paper invoices

5. Personalization

•  60% of business customers expect personalized experiences from their suppliers •  Marketo RTP can deliver personalized experiences

•  Auto-‐engage segmented prospects with contextually relevant data

By 2018, 70% of business-‐to-‐business eCommerce sites will offer personalized features for customers -‐-‐Gartner

6. Increased Use Of Mobile Technology

Source: Forrester Research

Agenda

•  Six Drivers of Consumeriza4on B2B eCommerce 1.  Buying Cycle 2.  Payment Op4ons 3.  Employee Familiarity 4.  Drive for Cost Savings 5.  Personaliza4on 6.  Mobile Workforces

•  Examples of B2B eCommerce Businesses •  Opportuni4es for Marke4ng Automa4on in B2B eCommerce

B2B eCommerce Business Models

•  B2C-‐like Retail: Grainger, Staples •  B2B/B2C: Support Channel + Sell Direct •  Configured Products: Business Compu4ng, Steel •  Informa4on Distribu4on

•  Professional Services

B2B eCommerce Examples

Grainger: Using Consumer Features

Recommenda0ons

Featured Promo0ons

Cart

Menu

Search

B2C-like: WinCraft

B2C design looks like a site with consumer orienta4on, although this is exclusively for B2B sales Login required to see pricing

WinCraft: Require Customer Registration

Once logged in, the eCommerce pla`orm provides customer segmenta4on or individual customer pricing

WinCraft: B2C-Like Menu Navigation

Mega menu naviga4on follows persona of customers who typically shop by sport, then by team Secondary op4on in mega menu to “Shop by” with collec4ons curated or categorized by the merchandizing team

WinCraft: B2C Menus

B2C best prac4ces for filtered naviga4on based on aDributes, with addi4onal B2B focus “Refine by” includes shipping point (a B2B specific func4on), product type, or any other aDribute that WinCrap chooses to use in the filter

WinCraft: Product Detail Product Detail Pages (PDP) leverage best prac4ces from consumer sites •  Clear, strong product image •  Alt images available with product in context

•  Romance copy and addi4onal informa4on/details available if needed, such as shipping, quan4ty, packaging detail

•  Related Products/Cross Sell

Branded manufacturer with B2C eCommerce, company stores & B2B ecommerce with 100+ independent retailers Single eCommerce pla`orm: •  B2C consumer sites •  B2B for independent & third party dealer ordering

•  POS to enhance & extend the experience and inventory of branded company stores

B2B/B2C Dual Purpose: Blu Dot

Blu Dot: Dual Use Website, B2B Functions Protected By Login

Blu Dot: Product Presentation Menu & naviga4on same as B2C Shop naviga4on is the same on B2B and B2C sites Dealers viewing the site are viewing through the same lens as their customers

Order history with addi4onal account specific informa4on: •  YTD & LY purchases •  Available credit without backorders

•  Available credit with backorders

•  Payment terms

Blu Dot: Dashboard for B2B Customers

•  Addi4onal payment op4ons are available to dealers •  Pre-‐pay with check •  Pre-‐pay with wire transfer

Blu Dot: Payment Options

Simms: Avoid Conflict, Support Channel W/Referrals B2C Provides three op4ons to customer, two driving the retail channel, and thereby suppor4ng their own B2B business Separate “Pro” site for guides, brand ambassadors

Simms: Sell to Dealers via Portal •  Long-‐form quick order for many size/color combina4ons

• Uses visual queues of color to note stock availability

•  Add many items to the order, and then one click to add to cart

•  All using the same infrastructure, providing one view of product data across mul4ple channels

•  Provides content download for dealers •  Enables scale with a limited set of internal resources at the helm

Genentech: Information Delivery Product informa4on delivered via B2C interface •  Select brochures, data sheets by brand or illness

•  Alt images available with product in context

•  Familiar Shopping Cart interface

•  Place items in card •  Adjust quan44es •  Checkout

Genentech: Selection & Shopping Cart Interface

Genentech: Restricted Delivery Pre-‐checkout indicates availability to healthcare providers •  Delivery via direct ship or in-‐person via representa4ve

•  Delivery 4me no4ce provides opportunity for contact if faster delivery is required

•  Checkout includes contact and qualifying informa4on

EMC: Product Configuration

• Generate leads from new customers

•  Ease of research, purchase •  Familiar via simula4on of consumer eCommerce

EMC: Product Configuration Options

EMC: Order Still Includes SE In Process to Complete Sale • Uses eCommerce technology to reduce buyer fric4on

•  B2B eCommerce works … even without a direct purchase

• No need to fear high cost items ($100,000+)

•  Familiar via simula4on of consumer eCommerce

Agenda

•  Six Drivers of Consumeriza4on B2B eCommerce 1.  Buying Cycle 2.  Payment Op4ons 3.  Employee Familiarity 4.  Drive for Cost Savings 5.  Personaliza4on 6.  Mobile Workforces

•  Examples of B2B eCommerce businesses •  Leverage Marke4ng Automa4on in B2B eCommerce

eCommerce + Marketing Automation

•  Leverage the Customer Acquisi4on Strategy •  Lead Capture •  Lead Nurture •  Work the 53%/90% (depending on which numbers you accept)

•  Employ Real-‐4me Personaliza4on

•  Use Shopping Cart & Purchase Ac4vity to Trigger Campaigns

Welcome / New Customer Series

Ac4on: Request Campaign: Welcome Email Series 1.  Call-‐to-‐ac4on: Welcome, New Customer! Add us to your Connec4ons 2.  Call-‐to-‐ac4on: Come to our Website for Video content 3.  Call-‐to-‐ac4on: Suggested sell for a Complementary Product 4.  Call-‐to-‐ac4on: Send a LeDer to the Editor, CEO, Write a Review

Personalized Emails & Landing Pages

Customer Browses Bridal

Category

Triggered “Bridal” Email Campaign

Bridal Landing Page

How to Use

Styles Overview

Book Appointment

Recommended Gowns

Wedding Tips

Book Appointment

Triggered Re-engage|Latent Non-customers

Triggered Browse & Cart Abandonment

Long Cycle Lead Nurturing

Conclusions B2B market is larger than B2C With fewer companies leveraging ecommerce pla`orms Some B2B companies need ecommerce to profitably sell to smaller customers

Engage more profitably with exis4ng customers Engage profitably with smaller customers, opening up markets

Technologies ShiGing to B2C-‐Like Experience Product data consolida4on across mul4ple channels of B2C and B2B drives brand engagement In some industries, a B2C-‐like experience can become THE differen4ator Drive for Mobile Experience B2B transac4ons are moving from computers to smartphones and tablets Inability to deliver mobile op4mized experiences will result in customer abandonment Complex IA and overall order handling with produc4on schedules requires though`ul designs

Thank You!

Susina--The Rise of B2B eCommerce

Business

Transcript of Susina--The Rise of B2B eCommerce