Whether it’s in the blogosphere, at conferences, or on social media, we’re hearing a lot this year about the growth of B2B e-commerce. B2B sales are moving online, and that has profound implications for both the B2B industry and the e-commerce solutions industry.
To facilitate discussion and education of professionals in our industry, we interviewed nine experts on the emerging trends in B2B e-commerce. We asked some pointed questions, and we got an array of intelligent, informative answers.
The comments from five of those experts are presented here in Part 1 of this blog; comments from the other four will appear in Part 2 on Thursday, Aug. 25.
Here are the questions we asked:
- How might an e-commerce model streamline the world of B2B sales?
- What types of innovation would you like to see in B2B e-commerce functionality?
- Where does a professional sales staff fit into a B2B e-commerce business plan?
- How can B2B e-commerce managers encourage their customer base to transition from phone orders to web orders?
(A version of this article first appeared on the 216digital blog as B2B Ecommerce Trends.)
Bill Osteraas – Vice President, Channel Development, Four51
1. How might an e-commerce model streamline the world of B2B sales?
There are huge benefits when it comes to an e-commerce solution—one of them being automation. By integrating your e-commerce solution with your ERP, CRM, analytics, and other current software applications, you are streamlining your processes and removing the manual steps that used to take place. This cuts down on costs, reduces order errors, and frees up your personnel to work on larger issues. In fact, we’ve seen companies like Turtle Wax go from a 6% order error rate to less than 1% after implementing a B2B e-commerce solution. Additionally, you remove the 9-5 barrier by allowing customers to order 24x7x365.
2. What types of innovation would you like to see in B2B e-commerce functionality?
We face this topic with a different approach: flexibility over features. Many e-commerce software applications are rigid and companies must have a “you get what you get and you don’t have a fit” mindset. With an API-first platform, you open up the possibilities for your users immensely. Not only can they utilize the features already available, but they can customize them completely to their business. Integrations become easier than ever, allowing businesses to personalize their platform to their specific processes.
3. Where does a professional sales staff fit into a B2B e-commerce business plan?
Many people have proclaimed that B2B e-commerce will replaces sales reps. However, e-commerce will free up employees from monotonous, administrative tasks and allow them to have a greater impact on the company with consultative selling or working closer with customers. It’s important to have at least one employee dedicated to your e-commerce solution, especially as e-commerce becomes the main go-to-market strategy for many businesses. Adding or upgrading your online channel requires a company-wide digital transformation, which includes all employees.
4. How can B2B e-commerce managers encourage their customer base to transition from phone orders to web orders?
Luckily, many customers will naturally transition to web orders, as they have grown accustomed to it in their own personal lives. Many are already using their web devices to search for products—according to Forrester Research Inc., 74% of B2B buyers are researching at least half of their business purchases online. For those who don’t naturally transition, set the right expectations. Tell them why it’s good for them—for example, faster fulfillment time, automatic delivery updates, and the ability to order anytime, anywhere and from any device.
ABOUT THE AUTHOR
Bill Osteraas is the Vice President of Channel Development at Four51. Four51 offers OrderCloud, a customizable, flexible B2B e-commerce platform that’s entirely cloud-based. Bill has 20 years of experience helping customers with complex e-commerce solutions. Find Four51 online, on Facebook, or on Twitter.
Marcel Nanning – Founder, B2BMarketeers
How might an e-commerce model streamline the world of B2B sales?
E-commerce is a serious channel in B2B sales these days, and it’s still growing. I have seen customers generating 10% extra revenue the first year a B2B shop opened. That is 10% extra business they would not have had without the shop. It is exciting to see how it is used in different applications. You see some companies selling complex products online, while other companies choose just to sell parts or maintenance products with their website. There is also a difference in how customers and potential customers are served. Some companies use a B2B e-commerce channel just to take in new orders from existing customers. Others try to sell products to the whole world. B2B e-commerce is a way to increase sales, find new markets, and serve customers fast and easy. It is also a field to be further explored. Every case is different—there is no e-commerce template that fits all B2B companies.
What types of innovation would you like to see in B2B e-commerce functionality?
All the B2C innovations will be useful for B2B shops. I think we will see lots of innovations with big data and connectivity. Lots of new possibilities emerge if data is connected to the shop. If a B2B machine company uses sensors to measure the lifetime of certain parts, it could give the owner of the machine a signal if it needs to be replaced. The company could also set up the order in a shop, with some complementary products or services like a mechanic to install the product. The customer just has to approve the order and wait for the product and mechanic to arrive. Everybody wins. That’s just one example of the range of innovations that is going to take place.
Also important: We will see more shops in professional services markets. Services, like consultancy, will be productized and sold through online shops as well.
Where does a professional sales staff fit into a B2B e-commerce business plan?
Sales provides all the input for the e-commerce activities. And good B2B sales with deep knowledge of products and markets will always be important in sales and marketing. Call it sales, call it marketing; it is about adding value, making the connection, and being of importance to the customer.
How can B2B e-commerce managers encourage their customer base to transition from phone orders to web orders?
By helping them experience the fun and ease of it. And by giving them an essential role in the process. Most importantly, include them in the B2B e-commerce projects from the start.
ABOUT THE AUTHOR
Marcel Nanning is founder and editor of the digital magazine b2bmarketeers.nl, one of the biggest b2b marketing blogs in the Netherlands. He is also Campaign Manager at GAC Business Solutions, a Microsoft partner in The Netherlands. GAC Business Solutions serves customers all over the world with smart Business Software solutions for ERP, CRM, Office 365 and B2C/B2B e-commerce. You can connect with Marcel on LinkedIn.
Tim Peter – Founder, Tim Peter & Associates
How might an e-commerce model streamline the world of B2B sales?
It really depends on your product or service. If you’re offering a subscription-based SaaS tool that customers can configure on their own or aftermarket parts for your products, you can easily lower your costs and streamline your customer’s purchase journey by offering self-service purchasing.
I’ve seen Fortune 100 companies sell components and, in some cases, complete systems online, generating hundreds of millions of dollars in annual revenue by focusing more clearly on understanding that customer journey and where e-commerce activities actually improve the process.
I recommend B2B marketers look at their process in terms of “tracks,” helping customers follow the most appropriate track for their particular purchase path: “fast track” (i.e., heavily e-commerce-focused) for self-service or simpler purchases; a “standard” track, featuring some hybrid of person-to-person, for the typical purchase path; and a bespoke or advanced track for more complex, customized solutions, perhaps using a product configurator or something similar to start the conversation and show what’s possible—and to generate leads.
Where does a professional sales staff fit into a B2B e-commerce business plan?
It’s really important to remember that B2B sales often are much more complex than B2C transactions for a variety of reasons. First, unless you’re selling to SMB (and even then…) you’re likely dealing with multiple stakeholders within the organization. B2B offerings often feature complex and customized implementations. And, they’re often at least one step removed from the actual end-user of the product.
If these cases apply to your business, your sales staff plays a key role in addressing objections among those stakeholders, walking prospects through each step in the process, and helping stakeholders realize the benefits their customers will see from your product or service.
In these situations, it’s really about finding the right place in the customer journey to hand off to a sales professional who can close the deal and assist prospects with—or, where appropriate, upsell prospects to—your more customized services.
ABOUT THE AUTHOR
Tim Peter is the founder of Tim Peter & Associates, LLC, an internet marketing, e-commerce, and consulting firm. Before launching his own company in 2011, Tim worked in the luxury hotel and resort industry, where he helped companies achieve more than $2 billion in online revenue. He has written extensively in the digital marketing industry, and his blog, Tim Peter Thinks, has a large monthly readership. Connect with Tim on Facebook, Twitter, and LinkedIn.
Melissa Buening – Director of Marketing, Apruve Inc.
How might an e-commerce model streamline the world of B2B sales?
An e-commerce model can streamline the world of B2B sales by reducing the total cost to serve and sell to customers. It can help with reducing the time it takes to find products, improving order accuracy, reducing payment friction, and reducing customer service questions. E-commerce also allows customers to order products on their own schedule, make repeat purchases, and go paperless.
What types of innovation would you like to see in B2B e-commerce functionality?
We would like to see B2B e-commerce sites better enable buyers to apply for credit and pay on terms in an online way. Much of this process is still being handled offline with a phone, a fax machine, and a traditional A/R process, which is inefficient and costly.
Where does a professional sales staff fit into a B2B e-commerce business plan?
A professional sales staff can fit into a B2B e-commerce business plan through new customer acquisition, customer retention, answering specific product questions, and ongoing customer support. B2B sellers can continue to commission a sales rep for orders no matter how they come in. Salespeople can spend more time selling and less time processing transactions, which should lead to an increase in sales attributed to each sales person.
How can B2B e-commerce managers encourage their customer base to transition from phone orders to web orders?
B2B e-commerce managers can simply outline the benefits to their customers. Most people say they want to order online (75% according to Forrester Research), so it shouldn’t be overly difficult for most companies to convince their customers. Another option would be to build incentives for their customers to move online, such as better payment terms, discounts, or online-only product specials.
ABOUT THE AUTHOR
Melissa Buening is the Director of Marketing at Apruve, Inc. Apruve allows B2B e-commerce businesses to stop acting like a bank toward their customers. Invoices created in Apruve are paid within 24 hours, and the company also offers credit approval, financing, and account setup. You can connect with Apruve on Twitter.
Chris Guerra – Chief Marketing Officer, Blue Acorn
How might an e-commerce model streamline the world of B2B sales?
The B2B sales process is extremely antiquated. In many cases buyers are still using paper and fax machines. E-commerce provides a 24/7 mechanism for buyers to learn, build purchase orders and easily reorder items. No longer does a buyer need to wait for a sales rep to get back to them. Buyers have an “on-demand” experience.
What types of innovation would you like to see in B2B e-commerce functionality?
Once companies take the first step to establish a B2B presence online they will quickly learn how valuable the analytics beyond purchase data are. From understanding what categories, product and content buyers are interacting with it helps build a deeper profile and understanding of buyer interests. This data can empower sales reps or be used to personalize the buying experience.
Where does a professional sales staff fit into a B2B e-commerce business plan?
E-commerce will never replace “relationships.” However, it can help build them. Sales staff can use the e-commerce site during various stages of the buying process, whether it is to build look books, bookmark items, or propose purchase orders. Again, the analytics allow for a smarter sales rep making calls more targeted and productive.
How can B2B e-commerce managers encourage their customer base to transition from phone orders to web orders?
B2B e-commerce managers should explore features like loyalty points, promotional pricing, exclusive content. Building strong “My Account” functionality and treating it like a repository for orders, communication and contact information can turn what is typically a boring portion of a website into the highest trafficked destination.
ABOUT THE AUTHOR
Chris Guerra, chief marketing officer, joined Blue Acorn in 2012. Chris has over 10 years of experience working with IR500 merchants. Extensive knowledge in replatforming, digital marketing, e-commerce operations, and financial planning has lead Chris to hold several leadership positions throughout his career. Connect with Chris on Twitter.
Part 2 of this blog will appear later this week on B2BeCommerceWorld.com and in the Thursday, Aug. 25, issue of B2BecNews.
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