Guest Speaker: Michelle Beeson. Analyst Forrester Research

Transcription

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2 Guest Speaker: Michelle Beeson Analyst Forrester Research

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4 What It Takes To Be A Leader in B2B ecommerce Michelle Beeson, Analyst October, 2018

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6 But many more are embracing the cool side of B2B 6

7 Developing your digital prowess takes time and effort 7

8 Learning best practices by yourself is frustrating 8

9 Magento commissioned a custom research study from Forrester 9

10 How have digital technologies reshaped B2B selling? What have leaders done differently to pull away from the pack? 10

11 Selling processes buying processes 11

12 Forrester calls today s market dynamic the Age of the Customer 12

13 And B2B is no different Source: Forrester Report, Take L2RM To The Next Level With A Pivot From The Funnel To Your Customer 13

14 B2B businesses start to come of (digital) age Manual Processes Process Automation Digital Catalogs Digital Selling 14

15 More than twothirds of sales tech decision makers say addressing rising customer expectations is a high priority Which of the following initiatives are likely to be your top business priorities over the next 12 months? (Improve the customer experience) 25% 5% 2% 68% High Priority Medium Priority Low Priority Don't Know Source: Forrester's Global Business Technographics Priorities And Journey Survey, 2017 (n=779) 2017 FORRESTER. REPRODUCTION PROHIBITED. 15

16 B2B firms top priorities are improving the customer experience and generating revenue To what extent is your organization prioritizing the following initiatives over the next 12 months with regards to products/services sold to B2B buyers, both online and in-branch? (Showing those selecting High or Critical priority.) Increasing overall revenue 85% Improving customer retention 84% Improving overall customer satisfaction 80% Increasing sales productivity 76% Improving competitive positioning 75% Establishing a relationship with end consumers/users of product 73% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

17 B2B firms top online priorities are improving the customer experience and generating revenue Which of these priorities are you looking to address through your organization s B2B online/ecommerce efforts, specifically? (Select all that apply.) Improving customer retention 51% Improving overall customer satisfaction 49% Increasing overall revenue 48% Increasing sales productivity 44% Improving competitive positioning 40% Lowering the cost of sale 35% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

18 Investments in technology are aimed at delivering convenient, effective, and tailored digital experiences Which of the following were the most important criteria when your organization initially selected its current B2B ecommerce tool/technology set? (Rank up to three, with 1 being the most important.) Ranked 1st Ranked 2nd Ranked 3rd Had high site performance and reliability 13% 10% 10% 33% Total cost of ownership 11% 9% 9% 29% Integrated easily with existing business systems 9% 7% 10% 26% The quality and availability of partners to implement the solution 7% 6% 8% 21% Ease of customization to meet my needs 9% 4% 8% 21% Completeness of solution 7% 6% 8% 21% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

19 Addressing the digital mandate brings with it new challenges How challenging were the following in adopting your current set of B2B ecommerce tools/technologies? (Showing those selecting Very or Extremely challenging ) Integration with existing and legacy technologies 43% Finding the right third-party partners 41% Finding an appropriate development/ implementation partner 38% Onboarding/training staff on use of the tools/technologies 35% Developing decision criteria 34% Calculating the cost of implementing and running each solution, and/or proving ROI 33% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

20 B2B maturity aligns to the merging of support and leadership dedicated to moving forward B2B commerce goals How would you describe the state of the following in regards to your organization s overall B2B commerce efforts? Showing those stating the practice is Currently in place, and fully established Maturity levels There is a dedicated ecommerce team or department There is a dedicated technology team supporting your commerce efforts 49% 47% 25% 20% Novices (No established best practices in place) There is a dedicated ecommerce leader There is a dedicated P&L for ecommerce sales 47% 41% Explorers (1 to 3 best practices in place) There is cross-functional alignment/agreement on the company's ecommerce strategy 39% 55% Masters (4 or 5 best practices in place) Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

21 B2B ecommerce leaders solve the toughest challenges first: organization and alignment How would you describe the state of the following in regards to your organization s overall B2B commerce efforts? (Showing those selecting Currently in place, and fully established.) There is a dedicated ecommerce team or department 0% 45% 95% There is a dedicated technology team supporting your commerce efforts 0% 44% 92% There is a dedicated P&L for ecommerce sales 0% 32% 92% There is a dedicated ecommerce leader 0% 44% 90% Masters (n=63) Q14 - There is cross-functional alignment/agreement on the company's ecommerce strategy 0% 32% 86% Explorers (n=171) Novices (n=79) Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

22 A janitorial products distributor began their journey building out a well-aligned digital org 22

23 Decision makers must find solutions that easily integrate into current infrastructure while maintaining flexibility to support various channels and customer types Which of the challenges you faced in adopting your current set of B2B commerce tools/technologies were the most important to overcome? (Rank the top three challenges that you prioritized overcoming to adopt the technology you were seeking.) Ranked 1st Ranked 2nd Ranked 3rd Integration with existing and legacy technologies 14% 14% 12% 40% Onboarding/training staff on use of the tools/technologies 10% 9% 12% 31% Lack of flexibility to support different customer types 12% 12% 7% 31% Finding the right third-party partners 11% 12% 7% 30% Gaining executive support 19% 4% 6% 29% Lack of flexibility to support various sales channels 10% 10% 7% 27% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

24 An electronics firm leverages a flexible architecture to integrate ERPs from recent acquisitions 24

25 Top performing businesses personalize the buying experience What would best describe your organization s plans to adopt the following online purchasing capabilities specifically for B2B selling digital/online capabilities? (Showing those who have piloted, or fully established the following capabilities.) Novices (N=63) Explorers (N=171) Masters (N=79) Quick order forms (e.g. enter/upload SKUs, simple reorder flows, etc.) 47% 76% 86% Online purchase approval workflows (i.e., order routed to supervisor for approval before order is submitted) 35% 74% 91% Online product configuration 39% 79% 83% Online request for quote process 52% 78% 98% Quick payments options (e.g. one-click purchasing) 50% 80% 86% Support for subscription orders (e.g., replenishment, etc.) 30% 70% 79% Custom price lists and catalogs assigned to customers 50% 81% 90% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

26 ... And self-service capabilities Thinking of your organization s B2B selling digital/online self-service capabilities, can your B2B customers do any of the following on their own? Novices (N=63) Explorers (N=171) Masters (N=79) Track loyalty program points/status 30% 72% 81% Track spending vs. discounting tiers/targets 38% 68% 80% Set up buyers within their own organization and assign roles, permissions, and buying thresholds 49% 67% 76% Create pre-approved product lists for other buyers 38% 68% 76% Manage company credit 52% 71% 80% Ability to run reports on purchasing history 50% 80% 85% Initiate and manage returns 54% 78% 90% Online chat/im with a customer service representative 46% 68% 85% View and pay invoices 51% 81% 95% Track open orders, quotes, shipments, and purchasing history 56% 88% 94% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

27 But B2B personalization looks different than B2C AI / ML Flexible buying options Product configuration End-user account management Account defined lists and quick ordering Degree of personalization Product catalogs and pricing B2B Digital Maturity 27

28 An international wine and spirits distributor supports unique experiences for all buyers 28

29 Effective digital strategies account for both the buyer AND seller What would best describe your organization s plans to adopt the following mobile capabilities specifically for B2B selling digitally/online? Novices (N=63) Explorers (N=171) Masters (N=79) Native mobile applications for buyers 35% 65% 76% Responsive designed site(s) 38% 66% 76% Native mobile applications for sales/support teams 35% 71% 77% Progressive web applications 41% 71% 76% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September,

30 But your B2B buyers are omnichannel creatures Digital-first Online-centric buyers Omnichannel-centric Digitally Offline-centric enabled sellers 30

31 A leading footwear brand uses their commerce platform to create channel-less experiences 31

32 Digital leaders in B2B reap all the benefits How helpful has your current set of B2B ecommerce tools/technologies been in achieving your overall B2B selling priorities? (Showing those selecting Very or extremely helpful.) Improving customer retentio 38% 63% Increasing higher average order value 39% 62% Establishing a relationship with end consumers/users of product 50% 70% Improving competitive positioning 46% 65% Increasing sales productivity 47% 69% Improving overall customer satisfaction 35% 66% Lowering the cost of sale 38% 58% Base: 313 IT, ecommerce, sales, and LOB decision-makers at firms in Germany and UK Source: A commissioned study conducted by Forrester Consulting on behalf of Magento, September, % 79% 77% 76% 76% 74% 72% Masters Explorers Novices 32

33 Measure your digital prowess and become a leader in B2B ecommerce 1. Keep an eye out for a complimentary copy of the research study 2. Evaluate your maturity against your peer group 3. Identify any gaps in your organization, processes, or tech stack 4. Follow the path paved by B2B ecommerce leaders 33

34 Michelle Beeson Analyst Thank you FORRESTER.COM

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