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It’s not “just like Amazon” – B2B vs. B2C e-commerce and Why it Matters

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Let’s face it. Real e-commerce opportunities are emerging in the digital landscape of 2016. B2B e-commerce is currently twice the size of that of B2C, and in the U.S. alone, B2B e-commerce is expected to reach $1.3 trillion in sales by the end of 2020. B2B companies are rapidly establishing and scaling e-commerce, but increasingly, B2B buyers expect a B2C-like shopping experience.

Buyers who purchase B2B goods have already been exposed to B2C selling at home. And they prefer to buy the things needed for work in the same manner they purchase things for themselves. But what does this mean for your field sales force? View this SlideShare presentation to understand the growing trends in B2B e-commerce and how they are similar, and different, to that of B2C.

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It’s not “just like Amazon” – B2B vs. B2C e-commerce and Why it Matters

  1. 1. IT’S NOT “JUST LIKE AMAZON” B2B VS. B2C E-COMMERCE AND WHY IT MATTERS
  2. 2. ©2016 Ntara, Inc. All contents proprietary and confidential. 2 IN THIS WEBINAR YOU WILL LEARN HOW TO: Optimize your B2B e-commerce deployment Adopt proven B2C e-commerce principles on a B2B platform Understand B2B and B2C business models Use B2B e-commerce to maximize the value of your field sales force BONUS: Service the many needs of customers in B2B2C e-commerce
  3. 3. ©2016 Ntara, Inc. All contents proprietary and confidential. 3 WHO IS THIS GUY? Andy Didyk VP of Account Services Ntara B2B and B2C e-commerce SME Digital strategist New business and account coach
  4. 4. ©2016 Ntara, Inc. All contents proprietary and confidential. 4 How can we enhance our brand? How will it support other sales channels? How can each customer experience be personalized? How can we more effectively market online? Can we better engage our customers? How do we increase loyalty and brand preference? How do we increase brand awareness? Can we capitalize on our changing business environment? How can we maximize margin? How can we avoid channel conflict? What is the projected ROI? How soon can we launch? What about internal staffing? What about costs to build (CAPEX) and run (OPEX)? Will selling direct to consumers (D2C) impact our sales partners? How will the systems interface? Are new systems required? What about bundling and fulfillment? What about our complex products and pricing? How will this affect IT security? OUR APPROACH Management Consulting Firm Creative Digital Agency Technical Integrator
  5. 5. ©2016 Ntara, Inc. All contents proprietary and confidential. 5 Technology Companies Brochure Sites Lead Generation Complex Backend B2B e-commerce Healthcare & Institutions Complex models Antiquated tech Lots of change Accessibility concerns OUR FOCUS Branded Manufacturers Sell through retailers or distributors May have e-commerce Need help moving to retail model
  6. 6. ©2016 Ntara, Inc. All contents proprietary and confidential. 6 Analytics / BI Tools Fulfillment ERP eCommerce Digital Asset Mgmt (DAM) Campaign Mgmt Web Content Mgmt System (WCMS) Customer Service / Retention Customer Relationship Mgmt (CRM) Security Coherent Customer Database IT Marketing Sales WE’RE DIFFERENT
  7. 7. ©2016 Ntara, Inc. All contents proprietary and confidential. 7 OUR CLIENTS Mid Market with $100M+ in Sales Complex Products & Pricing Global Perspective or Plans Desire to Integrate On & Offline Seeking Rapid Launch & ROI
  8. 8. ©2016 Ntara, Inc. All contents proprietary and confidential. 8 OUR SERVICES Websites Ecommerce Creative & UX Technical Integrations Integrated Marketing Consulting Apps Enterprise Ecosystems to Microsites Multilingual / Localization Multi-tier Environments Content Mgmt Systems (CMS) Product Data Mgmt Systems Integration B2B and B2C Branding Information Architecture (IA) User Experience (UX) Design Content strategy and creation Custom Cross- Platform Development Architected Solutions Campaign Strategy Social Media Search (SEO & SEM) Email Marketing Roadmapping Hardware Strategy Research and Analytics Training iOS & Android Kiosks and Touchscreens Sales Tools
  9. 9. BEFORE WE BEGIN Quick poll – B2B or B2C
  10. 10. PART I: DIFFERENCES BETWEEN B2B AND B2C E-COMMERCE
  11. 11. ©2016 Ntara, Inc. All contents proprietary and confidential. 11 THE OBVIOUS DIFFERENCE B2C e-commerce B2B e-commerce
  12. 12. ©2016 Ntara, Inc. All contents proprietary and confidential. 12 THE OBVIOUS DIFFERENCE B2C e-commerce B2B e-commerce $3.2 trillion by 2020 $6.7 trillion by 2020
  13. 13. ©2016 Ntara, Inc. All contents proprietary and confidential. 13 KEY DIFFERENCE #1: END USER Buyer is the consumer Buyer is (typically) procurement at retailer Retailer sells to the consumer B2C e-commerce B2B e-commerce
  14. 14. “B2B buyers today not only prefer to research online, but they also prefer to buy online. Nearly 75% indicate that buying from a website is more convenient than buying from a sales representative when purchasing products or services for work.” – Andy Hoar, B2B analyst, Forrester Inc.
  15. 15. ©2016 Ntara, Inc. All contents proprietary and confidential. 15 KEY DIFFERENCE #2: BUSINESS GOAL B2C e-commerce B2B e-commerce Customer acquisition Customer retention
  16. 16. ©2016 Ntara, Inc. All contents proprietary and confidential. 16 KEY DIFFERENCE #3: ECOSYSTEM ENVIRONMENT B2C e-commerce B2B e-commerce
  17. 17. ©2016 Ntara, Inc. All contents proprietary and confidential. 17
  18. 18. ©2016 Ntara, Inc. All contents proprietary and confidential. 18 KEY DIFFERENCE #3: ECOSYSTEM ENVIRONMENT Procurement System Supplier Solutions (Punchout Translator) E-commerce Catalog Order Fulfillment System Buyer login info Cart transfers for approval PO approved Buyer login to e-commerce site Buyer adds items to cart and submits PO transferred PO submitted for fulfillment BUYER SUPPLIER 1 2 4 5 3 6 7
  19. 19. ©2016 Ntara, Inc. All contents proprietary and confidential. 19 KEY DIFFERENCE #4: SALE TYPE B2C e-commerce B2B e-commerce
  20. 20. ©2016 Ntara, Inc. All contents proprietary and confidential. 20 KEY DIFFERENCE #5: PRODUCT ASSORTMENT B2C e-commerce B2B e-commerce
  21. 21. ©2016 Ntara, Inc. All contents proprietary and confidential. 21 KEY DIFFERENCE #6: PRICING & TERMS B2C e-commerce B2B e-commerce • Negotiated pricing • Negotiated terms • Sales reps can offer discount • Shipping options • Pricing options • Hardback, softback, Kindle
  22. 22. ©2016 Ntara, Inc. All contents proprietary and confidential. 22 KEY DIFFERENCE #7: PAYMENT OPTIONS B2C e-commerce B2B e-commerce • PL3 level credit cards • Lines of credit • Direct wire transfer • ERP integrations Add a credit or debit card Amazon accepts all major credit cards.
  23. 23. ©2016 Ntara, Inc. All contents proprietary and confidential. 23 KEY DIFFERENCE #8: APPROVAL PROCESS B2C e-commerce B2B e-commerce • End user or manager • Management approval • Procurement / Finance • Accounts Payable • Potential Audit Trail
  24. 24. ©2016 Ntara, Inc. All contents proprietary and confidential. 24 KEY DIFFERENCE #9: ORG. OWNERSHIP B2C e-commerce B2B e-commerce Operations and IT, with some support from Marketing Marketing, with some support from IT and Operations IT Operations Marketing IT Operations Marketing
  25. 25. PART II: WHY DEPLOY E-COMMERCE?
  26. 26. ©2016 Ntara, Inc. All contents proprietary and confidential. 26 1. B2B BUYERS PREFER E-COMMERCE “B2B buyers today not only prefer to research online, but they also prefer to buy online. Nearly 75% indicate that buying from a website is more convenient than buying from a sales representative when purchasing products or services for work. – Andy Hoar, B2B analyst, Forrester Inc.IN 2015, ALMOST 60% OF B2B BUYERS MADE ONE-HALF OR MORE OF THEIR WORK PURCHASES ONLINE. “The data is very clear that B2B buyers now favor do-it-yourself options for researching products and services. By a factor of three to one, B2B buyers want to self-educate versus talk to sales representatives to learn about products and services. They say that gathering information online on their own is superior to interacting with a sales representative by a margin of 53% to 17%.”– Andy Hoar, B2B analyst, Forrester Inc.
  27. 27. ©2016 Ntara, Inc. All contents proprietary and confidential. 27 2. BUYERS’ EXPECTATIONS ARE CHANGING “93% of B2B buyers say that they prefer to buy online rather than from a salesperson when they've decided what to buy and just need to make the purchase.” – Forrester Inc. Challenge: B2B Buyers want simple, fast, and convenient purchasing channels. Opportunity: Remove routine tasks from the sales force and create true consultants.
  28. 28. ©2016 Ntara, Inc. All contents proprietary and confidential. 28 3. GAIN HUGE SALES CHANNEL EFFICIENCIES Migrate customers from offline to online channels to increase customer acquisition and maintenance cost savings.  Reduce costs for low-frequency, low-volume purchasers  Retain the customer Deploy cross- and up-sell engines to better meet customer needs. Source: Forrester Research, 2015. Build A World-Class B2B e-commerce Optimizing Channel Balance
  29. 29. ©2016 Ntara, Inc. All contents proprietary and confidential. 29 MORE TRAFFIC AND BRAND EXPOSURE B2B businesses with e-commerce report a 20% YOY increase in website traffic. 4. ENJOY PROVEN, TANGIBLE RESULTS INCREASED REVENUE AND LOWERED COSTS 52% lower order costs and 19% average sales growth. Customers spend more after migration than before. Source: Forrester Research, 2015. The Case For Channel-Shifting Offline Customers Online Source: Forrester Research, 2015. Digital Is Busy Transforming B2B Commerce INCREASED LOYALTY Omnichannel customers are more loyal than single- channel customers.
  30. 30. PART III: BEST IN CLASS EXAMPLES OF E- COMMERCE
  31. 31. ©2016 Ntara, Inc. All contents proprietary and confidential. 31 GRAINGER Source: E-commerce & B2B- “Review of the Best B2B E-Commerce Websites”
  32. 32. ©2016 Ntara, Inc. All contents proprietary and confidential. 32 GRAINGER
  33. 33. ©2016 Ntara, Inc. All contents proprietary and confidential. 33 FERGUSON Source: E-commerce & B2B- “Review of the Best B2B E-Commerce Websites”
  34. 34. ©2016 Ntara, Inc. All contents proprietary and confidential. 34 FERGUSON Source: E-commerce & B2B- “Review of the Best B2B E-Commerce Websites”
  35. 35. ©2016 Ntara, Inc. All contents proprietary and confidential. 35 FERGUSON Source: E-commerce & B2B- “Review of the Best B2B E-Commerce Websites”
  36. 36. ©2016 Ntara, Inc. All contents proprietary and confidential. 36 FERGUSON Source: E-commerce & B2B- “Review of the Best B2B E-Commerce Websites”
  37. 37. PART IV: BEST IN CLASS B2B2C EXAMPLE
  38. 38. ©2016 Ntara, Inc. All contents proprietary and confidential. 38 B2B2C: IT’S WHAT CONSUMERS WANT According to Forrester, more than a third of US online consumers surveyed expressed a preference for buying directly from manufacturers. 52 percent of online shoppers in the U.S. visit a website with the intention of buying. These buyers are driven by a greater assortment of products and their loyalty to the brand. Source: PwC, 2016. 2016 Total Retail Report 34%
  39. 39. ©2016 Ntara, Inc. All contents proprietary and confidential. 39 HUNTER FAN
  40. 40. ©2016 Ntara, Inc. All contents proprietary and confidential. 40 HUNTER FAN
  41. 41. ©2016 Ntara, Inc. All contents proprietary and confidential. 41 HUNTER FAN
  42. 42. ©2016 Ntara, Inc. All contents proprietary and confidential. 42 HUNTER FAN
  43. 43. ©2016 Ntara, Inc. All contents proprietary and confidential. 43 HUNTER FAN
  44. 44. ©2016 Ntara, Inc. All contents proprietary and confidential. 44 HUNTER FAN
  45. 45. ©2016 Ntara, Inc. All contents proprietary and confidential. 45 HUNTER FAN
  46. 46. ©2016 Ntara, Inc. All contents proprietary and confidential. 46 HUNTER FAN
  47. 47. ©2016 Ntara, Inc. All contents proprietary and confidential. 47 HUNTER FAN
  48. 48. ©2016 Ntara, Inc. All contents proprietary and confidential. 48 HUNTER FAN
  49. 49. ©2016 Ntara, Inc. All contents proprietary and confidential. 49 HUNTER FAN
  50. 50. ©2016 Ntara, Inc. All contents proprietary and confidential. 50 HUNTER FAN
  51. 51. ©2016 Ntara, Inc. All contents proprietary and confidential. 51 HUNTER FAN
  52. 52. ©2016 Ntara, Inc. All contents proprietary and confidential. 52 HUNTER FAN
  53. 53. ©2016 Ntara, Inc. All contents proprietary and confidential. 53 SUMMARY • B2C and B2B are very, very different. • Most manufacturers and brands need both • B2B2C strategy is complex and needs to be considered • Successful deployments must align Sales, Marketing, IT, and Operations • Where to begin? Ask for help from experts.
  54. 54. ©2016 Ntara, Inc. All contents proprietary and confidential. 54 Andy Didyk VP of Account Services Ntara didyk@ntara.com 423.926.8272 x8613 https://www.linkedin.com/in/andy-didyk-8826212 Ntara.com LET’S GET IN TOUCH
  55. 55. THANK YOU

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