COMMERCE VIEWPOINT: ONLINE TRADING IN B2B

Transcription

1 COMMERCE VIEWPOINT: ONLINE TRADING IN B2B $ 1

2 INTRODUCTION For many B2B organisations, trading online is a new and challenging arena. Wherever they find themselves on the digital maturity spectrum they can all take some valuable lessons from their more digitally seasoned B2C cousins. Irrespective of channel, delivering an excellent customer experience is no longer a lofty ambition for B2B brands it s a commercial requirement. As best practice cascades from B2C to B2B, B2Bs could be forgiven for thinking that many of the fundamental differences with B2C are being diluted. In most respects that s not the case. Many key distinctions prevail. This Salmon guide serves as a valuable checkpoint on the characteristics specific to B2B - in particular the B2B customer. It also presents the main recommendations for B2B decision-makers in a digital-first world, and highlights some of the most important risks. 2

3 UNDERSTANDING B2B COMMERCE Supporting your B2B customer is fundamentally different to B2C. THE CUSTOMER IS THE KEY DIFFERENTIATOR B2B commerce is challenging. Yet many software vendors and technology delivery partners struggle to understand why. Salmon has delivered numerous global B2B platforms at scale, and highlights the distinct nature of the B2B customer as arguably the over-riding factor. Within B2B, customers: Can be individuals, companies, or both. Can negotiate bespoke price agreements. This is a potentially complex area, since customers can be very diverse, and agreements can vary according to volume, date, order history and geographic location. Are likely to want to pay using credit terms. B2Bs need a way to verify new customers before orders are placed; B2Cs rarely need to do this. May want bespoke catalogues, or access to an exclusive product range. May have to record their order in an ERP system. This means online ordering needs to be attractive enough to override any perceived inconvenience. Alternatively, B2Bs could ensure their website integrates with the ERP or the website integrates with the ERP. May want to control the spend of buyers within their procurement organisation. And this, in turn, drives the need for electronic procurement. 3

4 UNDERSTANDING B2B TECHNICAL DESIGN IMPORTANT FACTORS IN B2B TECHNICAL DESIGN Salmon has more than 25 years experience in providing robust technical design. Its solutions architecturally scale and address the needs of both businesses and end customers. Within B2B, technical design has various complexities. In our experience working across B2B and various B2C retail sectors, B2B has several distinct differences that merit deeper investigation. These include: Contract Pricing Organisations need to decide Single code base B2Bs must build functionality whether to model pricing in the front-end or to minimise differences across regions. That back-end. Typically it s the latter, which means means creating configurations that are flexible exposing price to the customer, without being giving the business maximum agility, regardless overly dependent on the back-end for availability. of whether channels are operated centrally or locally. Organisations B2Bs need to look at account management, including the people who manage Functional features Specific B2B features accounts, and the ways in which they are need to be handled, such as quote requests, structured and governed. parts lists, electronic procurement, entitlement (including payment, shipping and catalogue), Global factors Jointly, we need to assess a workflow and approvals, and spend control range of variables: single or multi-instance, local systems. management of content and catalogue, latency, data privacy, data migration and rollout. Integration Different back-end systems (including ERP) must be handled appropriately for different regions. Generally, this is achieved using a middleware tier, often leveraging an enterprise service bus layer (ESB), and possibly an operational data store (ODS). Watch our video to see how digital technologies are enhancing B2B. 4

5 IMPROVING CUSTOMER EXPERIENCE DRIVING CHANNEL SHIFT CX in B2B matters. Indeed, we re starting to see research (such as a 2016 SiriusDecisions study) that puts customer experience above price and the actual offering in B2B buying decisions. With customer expectations influenced by Amazon-type CX, moving customers from offline to online may become a commercial imperative. Yet enabling this shift can be challenging, especially if the offline process works well. To drive channel shift behaviour and migrate customers towards transacting online, you Car Manufacturer HQ Low demand Tyre report: Depots Received signals Manage demand High demand could deploy a set of sophisticated digital tools. These tools can help differentiate you from the competition. You ll also need richer capabilities to be able to market and create sales lead opportunities, and encourage more participation in any kind of B2B community. First we need to recognise the usage needs of the customer. Overleaf on the left are the most common use cases that sellers should look to capitalise on. They can do this in two ways: by leveraging existing B2B platform features, or creating customised capabilities and functionality. On the Car Manufacturer HQ Low demand Stock distributor: right are features that offer possible solutions. North depot South depot High demand Tyre sensors could relay data on tyre condition to the manufacturer to help it anticipate demand for new tyres and allocate stock accordingly. [Watch Video] 5

6 CUSTOMER USE CASES HOW B2B ORGANISATIONS COULD RESPOND A customer wants to buy direct from the website having used browser tools to find suitable items Implement browser tools like a part finder, integrated browser search or a browser toolbar A customer wants to buy direct from the website having browsed the online sales catalogue Implement dynamic sales categories and enrich the onsite search capabilities for merchandising A customer wants to buy from the website via a means of electronic procurement Implement integration with the customer s internal procurement system such as a roundtrip catalogue. This would allow buyers to search inventory for available items, and build shopping carts that connect to their own internal systems for approval and order creation. Alternatively, send customers custom product catalogues electronically via FTP or expose a set of web services using APIs to give access to your offering. A customer wants to buy from the website using spend control capabilities Implement a budget and workflow approval system with buyer organisation controls A customer wants to buy from the website using a pre-determined list of items that they have prepared Implement a quick order form feature or the ability for customers to upload a list of products A customer wants to view and manage their organisation, account and invoicing through self-service tools on the website Implement self-service capabilities for handling organisation management, quote management, requisition lists, saved orders and invoicing 6

7 MANAGING THE RISK CREATING HOLISTIC CHANGE While customer experience is a vital component in successful channel shift, there are internal challenges that need to be overcome too. If you re aiming for your customers to go digital by default, you need your staff to do the same. Inevitably, some people will embrace a move to online more readily than others. There needs to be an acknowledgement and management of risks and resistance, and a focus both strategically and at an individual level. Managing Morale During Disruption A shift towards online can leave some sales teams feeling like their efforts are no longer as critical as they once were. Indeed, in some cases, people feel digital transformation pushes them firmly into second place. Channel shift is just one component of transformation, but it can bring those concerns to the fore for the first time. This cultural resistance to change is not unique to B2B, but is part of a wider operational perception that the status quo is the safer option. This can hinder or derail even the most well-planned channel shift initiative. 7

8 Salmon believes that organisational change is vital too, and here s why: During a move to online, there may be a perceived negative impact of digital on legacy processes. Recognising this is the first step to addressing the internal, ingrained cultural barriers to success. In fact, digital provides an opportunity to address these previously prohibitive legacy issues, and to enable change. Re-purposing roles is crucial. Channel shift must be seen as a benefit to individuals, not just the wider business, and individuals need a renewed role that validates those concerns. A recognition of skills diversity is key. Many people, particularly in sales, will feel threatened by the advance of digital over a role they previously owned themselves. Users on the ground may feel they lack the necessary skills, or may feel that digital is making their contribution less important. If training is unaddressed, this can create a cultural shockwave. Salmon believes that channel shift can only be achieved with a dual focus on organisational change. Otherwise, fragmented transformation can present a considerable challenge. HOW CAN SALMON HELP? Salmon has delivered high-impact B2B ecommerce strategies and solutions including global platforms for companies such as Avnet, Premier Farnell, Celesio, DFS, Domestic & General and Audi UK. By applying winning experiences from our consumer clients, Salmon empowers B2B customers to create standout experiences. Contact Salmon to discuss how we can do this for you. Click for more Salmon B2B resources. 8

9 ABOUT SALMON Salmon is a global digital commerce consultancy the largest in WPP s network of companies. We define and deliver market-changing solutions and customer journeys for the world s leading brands. Established in 1989, with operations in London, New York, Melbourne and Beijing, Salmon clients include Argos, Audi UK, DFS, Halfords, Lloyds Pharmacy, Premier Farnell, Sainsbury s and Selfridges. For more information, info@salmon.com or visit: Salmon Ltd. All rights reserved. All company and product names, brands and symbols mentioned herein are brand names and/or registered trademarks of their respective owners. 9