Digital has profoundly changed how B2B businesses need to interact with their customers. B2B customers are already embracing digital to make more informed purchase and post-purchase decisions. B2B companies need to understand how to use digital to be where (and when) their customers are. Latest McKinsey insights on B2B: http://mckinseyonmarketingandsales.com/topics/b-to-b

1. B2B – Using Digital to
Unlock Growth
Webinar presentation
June 2012
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of McKinsey & Company is strictly prohibited

2. Agenda
▪ Introduction
▪ Role of digital in B2B
customer experience
▪ Success stories in
navigating specific
challenges
▪ Group discussion
▪ Wrap up
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3. Today’s discussion
 The B2B customer experience – before and after
purchase – is increasingly shaped by digital
interactions
 We have collected several examples of innovative
digital tactics that showcase best practices at
different stages of the end-to-end customer
experience
 There are several themes related to making a
digital strategy come to life that seem to work,
which we should discuss as group:
─ Figure out where digital matters most; prioritize!
─ Think about digital as part of a multi-channel
strategy
─ Be clear about what you are trying to achieve and
track impact
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4. Our conversation about best practices related to digital strategies will be
centered around the end-to-end customer experience cycle
▪ Understanding your End-to-end customer experience cycle
customer’s preferences
and behaviors at key
Evaluate
touch points across the
end-to-end cycle can be a
powerful way to think
about how to optimize
your channel strategy and
Bond
invest where it matters
the most
Buy
▪ The payoff of getting the Consider
customer experience right
is that it can lead to a Advocate Experience
“loyalty loop” of up-sell
and re-sell opportunities
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5. The B2B customer experience is increasingly influenced by digital
interactions
Online has become the In B2B, the share of
2nd most important revenues from digital
source of information for channels has almost
B2B customers (especially doubled over the last 10
social media) years
Evaluate
Bond
Digital will see Low channel
the highest Consider
Buy
costs allow
marketing Advocate Experience companies to
budget raises revolutionize
in the next their GTM
years approach and
gain new
customer groups
Digital enables
(e.g., SMBs)
systematic
management of
customer management
services
SOURCE: McKinsey McKinsey & Company | 4

6. And B2B customers are stating that they want to use electronic channels
more frequently
“I want …”
… more face-to-face
sales time and less phone or 20
Internet-based interactions" …less face-to-face sales time
48 and more phone or Internet-
32 based interactions"
Indifferent
… a sales rep to prepare and … self-service online tools to
present products/solutions and 24 design my own product/
pricing to me" 46 solution"
Indifferent 30
SOURCE: McKinsey B2B Customer Insights Survey, McKinsey 2009 McKinsey & Company | 5

7. We have collected several examples of leading B2B companies that are
using digital to drive impact with their customers (particularly in SMB)
Learn (pre-purchase)
Evaluate
Bond
Buy (purchase)
Buy
Consider
Advocate Experience B2B
Lighting
Company
Use (post-purchase)
Office
supplies
company
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8. Learn: example #1 Evaluate
Dell’s social media listening command center is its ultimate Bond
step in an effort to get insights from a global customer base Consider
Buy
Advocate Experience
Social Media Listening Center "Some companies use
▪ Opened December 2010 social media as a
▪ Tracks 22,000 Dell-related topics every day defence play or for
in eleven languages thought leadership,
▪ Listening rooms in China planned for 2011 [others] for better
customer service…
idea generation… to
Social Media University generate demand… or
▪ Set of eleven classes on social media held around the world social commerce…
▪ 5,000 out of 100,000+ total Dell employees trained so far The difference here
▪ Gives employees certification in social media at Dell is that we are
using it in every one
▪ Graduates are qualified to blog and tweet as official Dell representatives
of these functions.
Every department
Standardization through policies uses it distinctly for
▪ Employee Twitter handles are first name appended by “atdell” its part of the
▪ All accounts are registered, and terminated when employees leave business.“
▪ Facebook accounts once proliferated as product and account teams – Manish Mehta, VP
created them, but now rationalized from over 100 to under 50 Social Media
SOURCE: Dell.com, CMO.com; interviews McKinsey & Company | 7

9. Learn: example #2 Evaluate
Bond
To create an interactive, sticky experience with prospective
and current customers, Dräger uses online games and Consider
Buy
webinars to let customers experience products in real-life Advocate Experience
situations
Description
▪ Game with 10 "missions" in
which people must be
rescued and fire source
need to be cleared
▪ Multiple webinars to
showcase customer
“champions” and their
experience with Dräger
products
SOURCE: Dräger.us McKinsey & Company | 8

10. Buy: example #1 Evaluate
To create a scalable way to customize the buying experience Bond
for smaller customers, Celeste’s web site allows customers to Consider
Buy
configure solutions with pre-defined building blocks Advocate Experience
CELESTE has an extensive products offering… … that customers can choose from a simple “ a la carte’” or
bundled
▪ Large range of ICT products package ▪ Customers express their specific ICT needs
– Internet/connectivity: DSL technologies, optical fiber, 3G
– Private VPN, international VPN, back-up VPN
– Telephony: high definition
– Security
– Web and data housing/hosting services
▪ CELESTE also proposes "All in one" package:
"CELESTE work"
– High-definition telephony set
– Secured Internet set (access, firewall, secured mailbox)
– On-site private VPN connection and traveler access
"We address mainly enterprises between 10 and
100/150 employees with high bandwidth, high reliability,
high-quality solution needs. Our whole go-to-market
model is exclusively based on call centers with dedicated
sales reps.“ - CELESTE CEO
SOURCE: Company website, press, interviews McKinsey & Company | 9

11. Buy: example #2 Evaluate
B2B To give customers the opportunity to self-segment based on Bond
Lighting buying preference and create stickiness, this company used Consider
Buy
Company online as a portal for an array of buying options Advocate Experience
SOURCE: XACT Web site McKinsey & Company | 10

12. Evaluate
Use: example #1
Bond
For IBM, using digital to proactively monitor service and Buy
Consider
identify problems before they happen is an example of post Advocate Experience
sales support moving towards end-to-end automation
Once Product Warranties are registered, Customers can sign up for Electronic Service Agent
My Search using inventory data is
a facility that uses the standard IBM
comprehensive search augmented
by information from your server as
provided by the Service Agent
My Monitoring – get error
messages any time, day or night,
better system availability identify
problems and insure that they are
ironed out in advance.
automatically receive high priority
program fix messages
“My Systems” – let’s you see the
software and hardware inventory on
your system. You see what IBM
Support Community can see
SOURCE: Web search McKinsey & Company | 11

13. Use: example #2
Evaluate
Office Personalized offers using this algorithm generated
Bond
Supply significant incremental lift across online
Buy
company Consider
Advocate Experience
Targeted product selection can have
as much impact in driving customer
purchases as aggressive offers
Used to drive both volume and margin
Enhanced by “test and learn”
Not limited to the web!
Targeted offers can be
driven by direct mail,
call center or field
sales teams
SOURCE: Disguised client data; team analysis McKinsey & Company | 12

14. Discussion questions / Q&A
▪ What are the challenges that you / your team are facing related to your digital
strategy? For example:
– Lack of clear ownership
– Systems can’t support the vision
– Lack of fact-base to justify investment
– Mindset that non digital channels are always more effective
▪ Has anyone been able to overcome these challenges? What actions have you taken?
▪ Are there short term, no regret moves that you could start addressing today?
▪ ….
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15. Presenter contact information
Jenny Cermak
Associate Principal, Atlanta
(404) 358-0503
jenny_cermak@mckinsey.com
Juan Bueno
Principal, Atlanta
(404) 335-3742 Chief Marketing & Sales
juan_bueno@mckinsey.com Officers Forum:
cmsoforum.mckinsey.com
Darren Pleasance
Partner, Silicon Valley
Follow us on Twitter:
(650) 245-2405
@McK_CMSOForum
darren_pleasance@mckinsey.com
@DarrenPleasance
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