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eBiz 2017: Getting Multichannel Right for Your Business
The document discusses the significant shifts in sales and buying behaviors due to the rise of millennials and Gen Z, emphasizing the transition from traditional field sales to digital and inside sales channels. It highlights the urgency for businesses to adapt to these changes through optimized e-commerce platforms and effective marketing strategies to maintain competitive advantage. There are noted pressures on revenue and margins from evolving customer preferences and increasing self-service e-commerce adoption.
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eBiz 2017: Getting Multichannel Right for Your Business
- 1. Getting Multichannel Rightfor your Business 1
- 2. The Channel TippingPoint Field sales people are leaving the workforce Millennials and GenZ shop and buy differently from GenX and Boomers Distributor e-commerce is in the early majority phase of adoption Your customers are primarily interested in field sales as consultant The channel and (digital) marketing tipping point is in the next 2 to 4 years Getting channels and (digital) marketing right are key to competitive advantage and perhaps survival Wednesday August 2, 2017 2
- 3. Emerging Sales Segmentation WednesdayAugust 2, 2017 3 According to the US Bureau of Labor Statistics, in 2012 the US economy employed 4.5 million B2B salespeople. Forrester estimates that 1 million of those sales professionals, mostly what we call “Order Takers”, will lose their jobs to self-service eCommerce by 2020.
- 4. Millennials are Here Asof 2015 Millennials > Boomers Millennials > GenX By 2020 Millennials >> Boomers Millennials + GenZ >> GenX Wednesday August 2, 2017 4
- 5. How Millennials Shopand Buy Very frequent shopping methods • 50% by search • A third at distributor website • 27% with distributor sales rep Very frequent buying methods • 52% by email • 41% by web or mobile • 22% by CSR Wednesday August 2, 2017 5
- 6. Revenue and MarginPressures Loss of revenue due to non-existent or inadequate e-commerce platform Gradual loss of revenue from manufacturers selling direct Loss of price buyers who shift to national/global distributors Shift of relationship buyers who become value buyers Wednesday August 2, 2017 6
- 7. E-commerce E-commerce revenue asa percent of overall revenue is rising Lower barrier to entry for small companies A third of companies are stuck at less than 5% Wednesday August 2, 2017 7
- 8. B2B Digital MarketingImpact McKinsey study shows that B2B digital leaders perform better • 5 times higher revenue growth • 8 times higher EBIT growth • 80% higher return to shareholders Wednesday August 2, 2017 8
- 9. Distributor Marketing Lags Oneperspective: distributors suck at marketing Another perspective: enormous opportunity to leapfrog and gain competitive advantage through high performance marketing capability. Wednesday August 2, 2017 9
- 10. High performers are muchmore likely to do digital marketing daily or weekly. They also place much more emphasis on daily telemarketing. Wednesday August 2, 2017 10
- 11. Acceleration of Change WednesdayAugust 2, 2017 11 Frogs get boiled one degree at time. Think it is a hot tub. The temperature is about to go up precipitously.
- 12. Shopping, Buying, and Communication WednesdayAugust 2, 2017 12
- 13. Wednesday August 2,2017 13 Make your product easier to buy than your competition, or you will find your customers buying from them, not you. Mark Cuban
- 14. Wednesday August 2,2017 14 Very relational customer base • Similar emphasis on search, distributor website, CSR, and distributor sales rep • Purchasing is done with people over the phone, in person, in store • Significantly decreased emphasis on email and e-commerce
- 15. Wednesday August 2,2017 15 Very transactional customer base • Huge emphasis on electronic shopping – search, distributor site • Huge emphasis on electronic buying – email, website • Aversion to in person interactions with rep or in store
- 16. Buying Preferences by CustomerBase No two customer bases are alike in their channel preferences!! Wednesday August 2, 2017 16
- 17. Wednesday August 2,2017 17 A third of respondents either never want a sales rep visit or want one once a year A phone call is about as popular as a sales rep visit
- 18. Inside Sales Functions Customerservice Quote follow up Telemarketing Account management • Onboarding • Growth • Retention Wednesday August 2, 2017 18
- 19. It’s About yourCustomer’s Efficiency Shift from primarily or all field sales to • Digital • Dedicated inside sales Customers can get business done in 15 minutes instead of 30 to 60 Benefits to distributor • Cost per order with e-commerce is significantly lower, often $20 to $30 per order. • Inside sales can reach 20 to 25 customers per day at $7 to $9 per contact Wednesday August 2, 2017 19
- 20. Shopping and Buying Guideline WednesdayAugust 2, 2017 20 Electronic Hybrid Highly Electronic Personal Hybrid Hybrid Personal Electronic Medium Customer Large Customer Small Customer Millennial/Gen Z Gen X Boomer Highly Personal
- 21. The Cost ofnot Knowing Overbuilding or underbuilding e-commerce Having too many or too few sales people Maintaining too much or too little branch infrastructure Overlooking efficiencies in e-procurement such as EDI or email order automation Wrong media for the wrong generation Passing up high margin opportunities with medium/small customers because field sales can’t or won’t service them Wednesday August 2, 2017 21
- 22. The Distributor Imperative Rethinkyour entire business to understand • Know how your Millennial and GenX customers want to shop and buy from you – today and in the future • Evaluate economic impact of multi-channel offerings • Integrate online and offline channels • Enable your customers to shop and buy how THEY want to shop and buy from you START NOW! Wednesday August 2, 2017 22
- 23. Channel Impact Calculations Channels •E-Commerce • Inside Sales • Order Automation Key measurements • Net present value • Time to payback • Total cost of ownership • Benefit Wednesday August 2, 2017 23
- 24. Five Year Summary WednesdayAugust 2, 2017 24
- 25. E-Commerce Benefits modeled • E-commercerevenue lift • Customer retention lift • Order cost reduction Costs Modeled • SEO and SEM • Marketing automation or email marketing • Product data • E-commerce platform, maintenance and enhancements Wednesday August 2, 2017 25
- 26. Wednesday August 2,2017 26
- 27. Inside Sales Benefits Modeled •Inside sales lift • Commission/bonus cost reduction Costs Modeled • Inside account managers – wages, bonus, and benefits • Managers– wages, bonus, and benefits Wednesday August 2, 2017 27
- 28. Wednesday August 2,2017 28
- 29. Order Automation Benefits modeled •Revenue lift • Order accuracy improvement • Order automation productivity benefit Costs modeled • Order automation system Wednesday August 2, 2017 29
- 30. Wednesday August 2,2017 30