B2B Omnichannel Commerce In A Machine- Driven World

Transcription

1 A Forrester Consulting Thought Leadership Paper Commissioned By Apttus April 2017 B2B Omnichannel Commerce In A Machine- Driven World How ecommerce, CRM, And Configure-Price- Quote Solutions In The Cloud Deliver High- Quality Buying Experiences For B2B Firms

2 Table Of Contents Executive Summary B2B Sellers Must Master A Full Spectrum Of Buying Preferences Virtually All B2B Sellers Struggle To Serve Customers In This New Landscape B2B Omnichannel Commerce Through Technology Amplifies Business Benefits Key Recommendations Appendix Project Director: Rudy Hernandez, Market Impact Consultant Contributing Research: Forrester s ebusiness & Channel Strategy and Application Development & Delivery research groups ABOUT FORRESTER CONSULTING Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their organizations. Ranging in scope from a short strategy session to custom projects, Forrester s Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges. For more information, visit forrester.com/ consulting. 2017, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to forrester.com. 1-11OS9IT

3 B2B omnichannel commerce: delivering a consistent and comprehensive experience across all customer engagement touchpoints through technology Executive Summary Just like consumers, business-to-business (B2B) buyers have high expectations. They expect B2B sellers to accommodate their desired purchasing preferences and deliver a superior buying experience. Most organizations, however, face numerous challenges in delivering these experiences consistently across all of the channels in which B2B buyers operate. In some cases, internal and external channel conflict inhibits a company s ability to meet customers expectations. But in nearly all cases, companies fail to deliver B2B sellers high-quality buying experiences ones that are convenient, efficient, and save time because they lack a technology ecosystem capable of delivering B2B omnichannel customer personalization, visibility, and servicing. In April 2017, Apttus commissioned Forrester Consulting to evaluate the state of B2B omnichannel buying and selling in the US. We discovered that B2B buying continues to evolve, sellers continue to struggle to keep pace, and B2B omnichannel commerce technology offers compelling new ways to bridge the gap. Indeed, B2B sellers must stay ahead of the technology curve considering the benefits to be gained from advances in artificial intelligence (AI) and machine learning to continue to remain competitive. KEY FINDINGS B2B buyers have a wide spectrum of demands. Across a variety of purchasing scenarios, B2B buyers are more likely to purchase through an equal mix of self-service (online) and human-assisted channels. And 98% of B2B sellers value the importance of delivering a high-quality experience one that is convenient, efficient, and saves time to their buyers. B2B sellers struggle with the wrong people, process, and technology. Ninety-eight percent of B2B sellers face challenges in delivering a superior buying experience. These challenges may be organizational (36% report challenges with executive buy-in), process-oriented (38% are challenged by channel conflict), or technological (38% face technical challenges with their B2B selling technology). B2B omnichannel commerce, with the right mix of tools, delivers a seamless buying experience. B2B omnichannel commerce delivering a consistent and comprehensive experience across all customer engagement touchpoints through technology has helped many organizations amplify their business goals. Those that have implemented a B2B omnichannel commerce solution consisting of ecommerce, CRM, and configure-price-quote (CPQ) technology are 31% more likely to deliver a high-quality buying experience. They are also 14% to 32% more likely to credit this B2B selling technology mix with achieving their overall B2B selling goals than those that have not deployed these technologies. These goals include improved customer acquisition, retention, and lifetime value. 1 B2B Omnichannel Commerce In A Machine-Driven World

4 B2B Sellers Must Master A Full Spectrum Of Buying Preferences The digitally empowered customer is nothing new businesses everywhere have rushed to accommodate consumers armed with information at their fingertips for quite some time now. However, many B2B companies have yet to realize how much this paradigm has extended beyond the consumer market. B2B buyers are also armed with more information than ever before and have more leverage over sellers. B2B buyers now turn to newer channels such as ecommerce and are demanding value-added buying experiences. 1 Indeed, B2B customers value an experience that is efficient, convenient, and saves time; they will reward B2B sellers that streamline their ordering operations. 2 Sellers now must respond to a wide array of different buying scenarios across a variety of touchpoints and serve these B2B omnichannel buyers. Winning, serving, and retaining B2B omnichannel buyers should be of paramount importance to B2B sellers. Forrester confirms that 51% of B2B sellers said their omnichannel customers increased spending with them in the past year, with only 7% saying those customers decreased spending. 3 This study of 207 IT and business decision makers in the US confirms that to attract B2B omnichannel buyers, sellers must: Respond effectively to newly empowered B2B buyers. More B2B buyers than ever live and breathe online 68% of them prefer to research online on their own, up from 53% in It should then come as no surprise that 89% of decision makers say that their organization s B2B selling priorities are either very or extremely influenced by the expectations of these digitally connected customers (see Figure 1). Offer both self-service capabilities and human-assisted interactions. The data indicates that B2B buyers are not seeking to make every purchase via either self-service or full service. Instead, they gravitate toward a mixture of both modes across a variety of different purchasing scenarios (see Figure 2). This presents an opportunity for sellers to migrate B2B buyers online and convert them into higher value customers. 5 Figure 1 What level of influence did addressing the expectations of digitally connected customers have on your organization s decision to adopt its current set of priorities? (Showing those selecting very or extremely influential ) 89% Base: 207 IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises Source: A commissioned study conducted by Forrester Consulting on behalf of Apttus, February 2017 Recognize the need for a high-quality buying experience. Nearly all respondents (97%) find the experience itself one that is convenient, efficient, and saves time to be important for their organization (see Figure 3), and they acknowledge that this experience can be incredibly helpful in allowing them to meet their overall B2B selling priorities (see Figure 4). Acknowledge the business benefits associated with delivering a high-quality experience. Decision makers may have traditionally been focused on winning, serving, and retaining new customers, but offering a high-quality experience across touchpoints is ultimately more efficient and lucrative for the business as a whole. Indeed, 83% of respondents recognize that the experience improves the ease of doing business, and 85% recognize that it increases customer lifetime value (see Figure 4). 2 B2B Omnichannel Commerce In A Machine-Driven World

5 Figure 2 What best describes the current level of service your organization offers its B2B customers with respect to purchasing its products/services for the following situations? (Select one per row) Entirely self-service Mostly self-service, but with some human-assisted service as necessary to facilitate the sale An equal mix between self-service and humanassisted service Mostly human-assisted service, but with some self-service as necessary to facilitate the sale Entirely humanassisted service buyer engages with sales staff to complete a transaction First-time purchases 10% 19% 31% 19% 21% Repeat purchases 13% 20% 35% 22% 10% Complex products 10% 17% 34% 20% 19% Simple products 14% 20% 31% 23% 12% Bulk/volume purchases 10% 17% 33% 23% 17% High-cost purchases 14% 22% 22% 24% 18% Low-cost purchases 14% 20% 31% 24% 10% Purchases with long sales cycles 10% 16% 36% 25% 13% Purchases with short sales cycles 12% 18% 35% 23% 12% Physical products 9% 20% 34% 24% 13% Digital products 14% 25% 28% 24% 9% Subscription products 14% 19% 34% 24% 9% Services Post-sale support, parts, and/or maintenance 10% 12% 23% 20% 31% 29% 23% 25% 14% 14% Most purchasing scenarios require an equal mix of self-service and human-assisted service. Base: 207 IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises 3

6 Figure 3 How important is it for your company to be able to deliver a high-quality, consistent buying experience (branding, product content, pricing, promotions, etc.) across all sales touchpoints: self-serve ecommerce, assisted sales (field sales, inside sales, call center), and/or through channel partners? 3% Moderately, slightly or not at all important 22% Very Important 75% Extremely Important Base: 207 IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises Note: Percentages may not total 100 because of rounding. Figure 4 Please rate the level of impact that you feel delivering a high-quality, consistent buying experience across all sales touchpoints would have on the following business priorities. Sales touchpoints include: self-serve ecommerce, assisted sales, and/or through channel partners. (Showing those selecting very helpful or extremely helpful in achieving this priority ) Improving customer retention (N = 206) Increasing customer lifetime value (N = 206) Increasing overall profitability (N = 207) Acquiring new customers (N = 207) Improving ease of doing business (N = 207) Lowering cost to serve (N = 205) Increasing total account value of existing customers (N = 206) Increasing market share (N = 207) Increasing upsell/cross sell (N = 207) Increasing average contract value / value of subscriptions (N = 207) 86% 85% 84% 84% 83% 81% 80% 79% 77% 76% Base: Variable IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises 4 B2B Omnichannel Commerce In A Machine-Driven World

7 Virtually All B2B Sellers Struggle To Serve Customers In This New Landscape Although B2B sellers acknowledge the new normal where buyers purchase through different channels but still demand a consistent, high-quality buying experience they are coming up short. Challenges ranging from channel conflict and technical issues to the lack of executive sponsorship have prevented companies from being able to fully support the needs of B2B buyers across the full spectrum of purchasing behaviors. This study highlights many of the challenges that B2B sellers face in delivering to the new normal, with decision makers stating that they: Fail to deliver a high-quality buying experience across all touchpoints. Only 2% of B2B sellers indicate that they are not facing challenges in delivering a high-quality experience. Everyone else faces an average of five distinct challenges (see Figure 5). Face challenges primarily from the technical and channel side. Those in this study face a wide array of challenges, with technical issues (38%) and channel conflict (38%) both rising to the top (see Figure 5). Struggle with their B2B selling technology. B2B sellers are challenged not only by their overall sales process but by the technology that powers it. Again, nearly all sellers (98%) face challenges with their technology experiencing an average of four distinct challenges (see Figure 6). Haven t mastered complex technology implementations. Thirtynine percent of B2B sellers indicate that complex technology implementations and ongoing maintenance challenge them this is the No. 1 challenge they face (see Figure 6). 5

8 Figure 5 Which of the following challenges, if any, have you faced in delivering a high-quality, consistent buying experience across all sales touchpoints: self-serve ecommerce, assisted sales, and/or through channel partners generally? (Select all that apply) Technical issues Channel conflict Lack of executive commitment/sponsor High implementation and maintenance costs 38% 38% 36% 35% Marketplace competition 34% In-house knowledge/expertise 33% Low ROI Lack of business case to support investment Long length of time to implement Lack of customer or buyer demand Long length of time to achieve results Competing internal priorities Not that important to our business Lack of technical resources Complex implementation and maintenance We do not face any significant challenges 33% 32% 30% 30% 29% 27% 26% 25% 23% 2% Base: 207 IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises 6

9 Figure 6 Which of the following challenges have you faced specifically with the [B2B selling] technology you are using? (Select all that apply) Complex implementation and maintenance Lack of technical resources Technical issues 39% 36% 33% In-house knowledge/expertise 31% Lack of executive commitment/sponsor Competing internal priorities Marketplace competition Lack of business case to support investment Long length of time to implement Long length of time to achieve results High implementation and maintenance costs Not that important to our business Channel conflict Low ROI Lack of customer or buyer demand We do not face any significant challenges 31% 31% 29% 29% 28% 26% 26% 25% 25% 24% 22% 2% Base: 207 IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises 7

10 B2B Omnichannel Commerce Through Technology Amplifies Business Benefits Forrester believes that B2B sellers must implement a flexible and scalable commerce infrastructure that can offer a full spectrum of options, including pure self-serve websites, full service delivered by sales staff, and hybrid selling models. 6 So considering the technical challenges B2B sellers face, seeking to solve the technology piece of the puzzle represents an important step. Technology is an essential element in the B2B omnichannel experience, and no B2B commerce strategy can produce revenue without the proper technology infrastructure in place. 7 Supporting the B2B omnichannel commerce continuum requires, at minimum, an ecommerce platform; a CRM system to create a complete picture of the B2B buyer, their organization, and their preferences; and a CPQ system to expedite full-service sales and to augment an ecommerce platform s ability support complex products and variation in product lines. Cloud offerings are particularly attractive to those just beginning to build out their solution offerings. 8 This study finds that B2B organizations that have adopted ecommerce platforms, CRM systems, and CPQ in the cloud (see Figure 7) are indeed more likely to consistently deliver a high-quality B2B buying experience. Additionally, this technology framework is more likely to provide the benefits derived from delivering a high-quality, omnichannel selling experience. Results indicate that adopting ecommerce, CRM, and CPQ solutions in the cloud: Is 31% more likely to deliver a high-quality experience across channels. By adopting these solutions in the cloud, companies are able to facilitate the transaction of everything from the simplest to the most complex orders in their buyers preferred channel. Eighty-five percent of those adopting ecommerce, CRM, and CPQ in the cloud strongly agree that their organization is capable of delivering a high-quality experience (see Figure 8). Figure 7 What best describes your organization's adoption of technology that aids your commerce, sales, and business efforts / What describes your overall technology deployment strategy and/or preference for your commerce, sales, and business technology systems?" 78% All others 22% Predominatly deploy and/or prefer cloud-based systems, and have adopted CRM, CPQ, and ecommerce platforms Base: 207 IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises Source: A commissioned study conducted by Forrester Consulting on behalf of Apttus, February 2017 Figure 8 How much do you agree or disagree that your organization is fully capable of delivering a high-quality, consistent buying experience across all sales touchpoints: self-serve ecommerce, assisted sales, and/or through channel partners? (Showing those selecting strongly agree ) 85% Adopted ecom, CRM, and CPQ and prefer cloud (N = 46) 65% All others (N = 161) Base: IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises 8 B2B Omnichannel Commerce In A Machine-Driven World

11 Enables B2B sellers to improve their reach and impact in the market. Organizations adopting ecommerce, CRM, and CPQ in the cloud are anywhere from 10% to 77% more likely to report benefits associated with delivering a high-quality experience ranging from better access for their customers to greater reach and presence in the market (see Figure 9). Figure 9 What benefits have you either received or would you anticipate receiving from delivering a high-quality, consistent buying experience across all sales touchpoints: self-serve ecommerce, assisted sales, and/or through channel partners? (Select all that apply) Adopted ecom, CRM, and CPQ and prefer cloud (N = 46) All others (N = 161) %Difference Faster product development cycles/faster time-to-market Increased access for customers Increased geographical reach Increased product feedback Increased number of customers 46% 26% 48% 32% 48% 37% 35% 26% 44% 36% +20% +16% +11% +9% +8% Increased average order size 37% 29% +8% Increased market presence Improved company image Faster customer response time Decreased sales cycle time 37% 29% 54% 47% 41% 35% 30% 24% +8% +7% +6% +6% Base: IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises 9 B2B Omnichannel Commerce In A Machine-Driven World

12 Helps B2B sellers reach B2B omnichannel buyers and achieve their priorities. Tactical benefits such as increasing the access to (48%) and number of (44%) customers, speeding up customer response times (41%), and reducing time spent in the sales cycle (30%) all compound to help B2B sellers achieve their overall strategic goals. Decision makers in this study with this technology mix are anywhere from 14% to 32% more likely to credit their B2B selling technology with achieving their overall B2B selling goals over those without this mix. These goals include improved customer acquisition, retention, and lifetime value, as well as increased market share and overall profitability (see Figure 10). Figure 10 Please rate the impact the commerce, sales, and business technology systems you have currently adopted have on your organization s B2B selling priorities. (Showing those selecting very or extremely helpful in achieving this priority) Adopted ecom, CRM, and CPQ and prefer cloud (N = 46) All others (N = 161) %Difference Increasing customer lifetime value Increasing market share Improving customer retention Increasing average contract value/value of subscriptions Increasing upsell/cross-sell Improving ease of doing business Acquiring new customers Increasing total account value of existing customers Lowering cost to serve Increasing overall profitability 96% 73% 89% 70% 94% 76% 87% 71% 85% 70% 89% 76% 87% 75% 84% 72% 82% 70% 89% 78% +23% +19% +18% +16% +15% +13% +12% +12% +12% +11% Base: IT and business decision makers with responsibility for cloud platforms and ecommerce at US enterprises 10 B2B Omnichannel Commerce In A Machine-Driven World

13 Key Recommendations Your technology investments have a demonstrably vital role to play in the way your organization sells to other businesses. The key is to ensure that your B2B selling technology works in tandem with the other components of your organization s selling process to achieve the results you re seeking. When B2B companies have both a digitally enabled sales force and self-serve ecommerce experience in place effectively delivering B2B omnichannel commerce they can leverage AI and machine learning to enhance assisted selling scenarios with prescriptive guidance. Indeed, AI is uniquely suited to help B2B sellers optimize customer interactions across touchpoints and channels, especially by processing massive amounts of data and informing action in real time. And machine learning is particularly useful in predicting customer churn, calculating customer lifetime value, identifying behavior-based customer segments, and discovering cross-sell opportunities. 9 Harnessing these advances will become vital as B2B buyers continue to evolve and demand more from sellers. Based on this study of B2B sellers about the role of technology in B2B selling and Forrester s existing research on how AI and machine learning can help empower B2B sellers and drive business results, B2B sellers should: Prepare to be able to deliver a true omnichannel buying experience. B2B firms must understand that all their customers are now omnichannel and work to ensure they can accommodate them. This requires that they remain receptive to customers preferences, track cross-channel buyer activity, have their salespeople work together with technology to facilitate transactions, and train up inside sales and customer service representatives to pick up from self-serve transactions. Have a flexible, scalable commerce infrastructure to support an integrated selling platform. B2B buyers expect more than a series of patchwork experiences. Commerce cannot sit independent from traditional direct and indirect channel sellers. All the back-end data around products, pricing, contracts, rebates, and promotions must be unified, and the various front-end touchpoints need to be geared toward the needs of that channel. Firms must start from the back end and work their way to the front to provide consistency and clarity in the process, while providing differentiated experiences depending on the user persona. 11 B2B Omnichannel Commerce In A Machine-Driven World

14 Get your data house in order to maximize the impact of machine learning and AI investments. Data is the lifeblood of all machine learning and AI applications. Without it you can waste time, money, and resources. But with it, you can get closer to your customers and gain an advantage over your competitors. Clean data in vast quantities is quickly becoming the hottest commodity. Firms that clean their data and augment it with both firmographic and demographic information will be able to better capitalize on machine learning and AI investments than their peers. Focus the business case for artificial intelligence around discrete tasks. Although AI in various forms has been around for decades, it is just starting to break its way into B2B sales. Firms looking to leverage AI should keep a narrow aperture on their AI projects. Do not try to boil the ocean. Instead, start with use cases that leverage high-quality data, such as the products you ve sold, the prices you ve realized, and the customers to whom you sold. By avoiding the intangibles like individual interactions, quality of seller, and buyer sentiment, you re able to focus and refine the algorithms around tangible outcomes. Seek out vendors that have embedded predictive analytics and machine-learning capabilities in their tools. A firm s first foray into machine learning can be challenging, costly, and time consuming. It can also require a specialized skillset that firms may not have. Instead of assembling a team to build this functionality from scratch, look for established software vendors to drive innovation in these areas. Ask each vendor you engage with about its experience in machine learning. Choose a vendor with a proven track record to be your strategic partner. Like machine learning itself, use that experience to mature and further refine how you apply these technologies to your other business challenges and other vendor relationships. 12 B2B Omnichannel Commerce In A Machine-Driven World

15 Appendix A: Methodology In this study, Forrester conducted an online survey of 207 organizations in the US to evaluate B2B selling priorities, challenges, and technology usage. Survey participants included decision makers in both IT and lineof-business roles with responsibility over their organization s B2B selling technology. Questions provided to the participants asked about B2B selling priorities, challenges, and experiences. The study began in January 2017 and was completed in February Appendix B: Supplemental Material RELATED FORRESTER RESEARCH Digital Is Busy Transforming B2B Commerce, Forrester Research, Inc., August 4, 2015 The Case For Omnichannel B2B, Forrester Research, Inc., October 3, 2016 Prescriptive Advice: The Salesperson s Crystal Ball, Forrester Research, Inc., March 7, 2017 Appendix C: Endnotes 1 Source: Digital Is Busy Transforming B2B Commerce, Forrester Research, Inc., August 4, Source: The Death Of A (B2B) Salesman: Two Years Later, Forrester Research, Inc., March 29, Source: The Case For Omnichannel B2B, Forrester Research, Inc., October 3, Source: The Death Of A (B2B) Salesman: Two Years Later, Forrester Research, Inc., March 29, Source: The Case For Omnichannel B2B, Forrester Research, Inc., October 3, Source: The Case For Omnichannel B2B, Forrester Research, Inc., October 3, Source: Create A B2B ecommerce Plan That Wins Over Customers, Partners, And Colleagues, Forrester Research, Inc., July 26, Source: Create A B2B ecommerce Plan That Wins Over Customers, Partners, And Colleagues, Forrester Research, Inc., July 26, Source: TechRadar : Artificial Intelligence Technologies And Solutions, Q1 2017, Forrester Research, Inc., January 18, B2B Omnichannel Commerce In A Machine-Driven World