In the past, many manufacturers have considered themselves “widget makers” with profits coming from selling products through channel partners. But in this new omni-channel world, it’s all about the end customer. To compete, manufacturers must steal a few pages from the B2C e-commerce playbook. In this presentation, Andrew Rieser, President and Co-Founder of Mountain Point, and Andrew Witherspoon, Vice President of B2B Industry for Salesforce, offer practical strategies for moving to a servitization business model. Their slides focus on how companies can develop customer-focused services and systems of engagement --- resulting in increased customer loyalty and a larger share of the profits across the life-cycle of their products.

1. Revolutionize Channel Sales and
Connect Directly with Customers
Using E-Commerce
Andrew Witherspoon
Vice President, B2B Industry
Salesforce

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3. Ushering in a new era of growth in manufacturing
The Fourth Industrial Revolution
2nd Industrial Revolution
Electricity1st Industrial Revolution
Steam
3rd Industrial Revolution
Computing
4th Industrial Revolution
Intelligence
1700s 1800s 1900s TODAY

4. Manufacturing Industry Optimism is at a 20-Year High
Upward Global
GDP Growth
Ongoing Low
Interest Rates
Geopolitical & US Tax
Policy Changes

5. What’s Top of Mind of Our Manufacturing Customers
Workforce
Demographic Shift
Changing Customer
Expectations
Opportunities Around
Connectivity
Digital Business
Transformation
#2Priority
Digital
Transformation
Source: Gartner Q4 2017 Insight Survey of Manufacturing CIO’s
Revenue Growth

6. There is a Seismic Shift in Customer Demands
Online Research Digital Transaction
Customers want to
learn about products on
their own time before
talking to a sales rep
Customers prefer to
transact online because
they can get what they
want, when they want it
Customers find that
great service is a
reason to stay loyal to
one company
Omnichannel Service

7. Empowered Customers
Have Given Rise to a New Era
IN 3 YEARS: 55% of business
buyers want to complete half
or more of the purchases onlineSource: Forrester Research “Winning In The Age Of The Customer” report.
TODAY: 38% of business buyers
completed half or more of the
purchases online
Digital Drives Profits
1-5% increase in revenue, 3-7%
increase in price per product
McKinsey & Company
Digital Drives Satisfaction
5-10% online buyers are
more satisfied with brand
Forrester Research
85%
McKinsey & Company
Don’t want Sales or
Service interaction
42%
McKinsey & Company
REASON TO CHANGE
SUPPLIER RELATIONSHIP
32%
Unable to get quick answer
while troubleshooting
Reorders aren’t timely
31% Sales reps are reactive
27% CSRs are unavailable

8. Customers have more power and greater expectations
Product-Centric
Customer relationship
has ownership and visibility
across the value chain
Sales maximize the
lifetime customer portfolio
value
Value chain ‘always-on’
connectivity
Focused on
customer transparency
Customer engagement
is ongoing
Customer relationship
was Managed by Distributors
Customer engagement
was Minimal
Account team
relationship
product Focused
Value chain transparency
and connectivity is Limited
Focused on
Internal operations /
Efficiency / Quality
Customer-centricity delivers
Transparency and Trust
The focus has shifted from product to customer-centric priorities
Source: McKinsey, The Great Remake - Manufacturing for Modern Times October-2017

9. The Challenge of Delivering a Unified Experience
Traditional business processes have led to siloed technology platforms
Operations
and IT
Field
Service
Data-Driven
Services
Dealers and
Distributors
Product
Sale

10. ITERATE
ON DEMAND
continual adaptation
to market conditions and
customer needs
MODERN CLOUD
ARCHITECTURE
multi-tenant SaaS,
pay as you grow
Customer-Centric Engagement Platform Requirements
FITS YOUR
BUSINESS
no IT upheaval: easily adapts to
existing systems and processes
CUSTOMER
AT THE CORE
outside-in, connected
customer model
DYNAMIC AND
DATA DRIVEN
understand, predict and shape
buyer behavior
EXCELLENT DIGITAL
EXPERIENCE
every interaction is informed by
customer data and behavior,
and experience rivals best
account team
CONFIGURE
NOT CODE
built for business users,
less IT effort
MULTIPLE
ENGAGEMENT MODELS
one platform, many models:
multi-tier distribution, direct,
wholesale, dealer, subscription

11. Be Relevant at the Digital Buying Moment
Buyer interactions with
customer service rep
Buyer interactions with
Dealer rep
New products or promos available
to buyer’s organization
Purchasing authority or
approval workflow
Field service requirements Email marketing campaigns
Personalized engagement informed by customer data, behavior, and preferences
Entire order history
(online, offline)
Customer & Asset
specific product
catalog
Contracted prices,
compliance and
safety documentation
Flexible purchase
options (one-time,
subscription, quote)
Multi-location
shipping

12. ADOPT A NEW
BUSINESS
MODEL
Keep up with the
speed of business
change
SUPPORT M&A
ACTIVITY
Take platform to a new
business: increase
EBITDA
CAPTURE THE
LONG TAIL
Serve customers you
can’t serve today
BE A DIGITAL
DISRUPTOR
Fully realized
digital business
Single Platform, Multiple Use Cases
This is Customer-Centric Engagement
MODERNIZE
AN EXISTING
CHANNEL
Customer expectations
have changed.
Deliver a digital
experience they
expect
ELIMINATE
FRICTION
Consolidate systems,
make it easy to do
business

13. Customer Success Platform for Manufacturing
Account Based
Communications
Program
Management
Sales and
Engineering
Collaboration
Forecasting*
RFQ
Management
Employee, Partner and Customer Visibility
Commerce & Order
Management
Field Service
Management
Warranty & Case
Management
Manufacturing
Apps
IOT Digital
Services
Finance Planning Quality HR
Supply
Chain
PLM MFG
*App Exchange and SI
Solutions
#1
B2B Customer
Platform

14. Revolutionize Channel Sales and Connect Directly
with Customers Using E-Commerce
The 4th Industrial Revolution is here!

15. 15
Industry 4.0
Workforce demographics Customer expectations Connectivity
Driving Forces

16. 16
Workforce demographics
73 percent of manufacturers
rank “attracting and retaining a
quality workforce” as the top
business challenge.
- NAM Manufacturing Outlook Survey

17. 17
Customer expectations
➔ Immediacy
➔ Personalization
➔ Consistency
➔ Anticipation

18. 18
Connectivity
IoT data should be
informative and power
customer services and
solutions.

19. 19
The Age of the Customer
New territory:

20. 20
Age of the Customer
ERP Supply Chain Product
Where we’ve been...

21. 21
Age of the Customer
Where we have to go...
● Servitization
● Value Chain
● Omni-Channel Technology
● E-commerce

22. 22
Servitization
- Servitization is a growing manufacturing model
ChiefExecutive.net
It’s about “offering not just a
product, but an outcome.”

23. 23
Servitization
Level 1: Parts or
consumables
Level 2: Maintenance
& ongoing monitoring
Level 3: Expanded
service offerings

24. 24
Value Chain

25. 25
Value Chain
Source: ResearchGate

26. 26
Technology
● Ecosystem
● CRM
● Brand
● Commerce
● Intelligence
Connected...

27. 27
E-Commerce
$6.7 Trillion
Global B2B e-commerce
revenue is projected to hit
$6.7 Trillion by 2020

28. 28
How do we get from
here to there?
Ok, but...

29. 29
B2B E-commerce
● High-quality product images and
videos
● Robust onsite search with visual
merchandising
● Social proof via reviews and ratings
● Flexible shipping options
● Order updates
Source: Shopify.com
● Personalization based on past
purchases
● Meant-for-mobile storefronts
● Online catalogs for easy browsing
● Real-time product and stock
availability
● Customer service via chat and phone
support
What does it look like?

30. In short… it looks like this.
30

31. 31
Priorities

32. 32
Priorities
72% of B2B customers
want self-service access
to accounts and orders
64% of B2B customers want
scheduled deliveries

33. 33
Challenges
Varying pricing
structures
Varying payment
methods
Massive catalogs
Secret pricing Outbound
sales model
Parts & configuration
options

34. 34
Solutions
Solution 1: Customer Portals
Customer portals allow companies to create unique customer experiences.
Custom prices Browsing based
on purchase
history
One-click
reorder
Varying
payment
options

35. 35
Solutions
Solution 2: Customer Communities
Solving customer problems and providing resources such as manuals,
tutorials, and trouble-shooting info builds loyalty, reduces customer service
calls, and drives interactions and sales.
Sales skills = Problem-solving skills

36. 36
Solutions
Solution 3: Omni-channel engagement
Personalized, timely online engagement is today’s “face to face.”
Chat bots Instant
messengers
Text messages Rapid follow-up
Seamless customer experience driven by a unified
CRM, customer service and marketing platform

37. Thank You!
Andrew Rieser
andrew.rieser@mountainpoint.com
@andrewrieser
704-626-6500