Designing the B2B Experience (Magento Imagine 2016)

I spent the last four years advocating for responsive design as a scalable strategy to beat consumer’s expectations in a multi-device world. The B2C world shifted dramatically from designing for a screen to designing for users, which put tremendous pressure on B2B businesses to keep pace.

My last two years were focused on the B2B space and extending the considerations of RWD to customers that behave differently than a consumer but have the same critical eye.

This presentation details my thought process designing the user experience and services for the B2B customer and what it really takes to beat the curve.

More info: http://gravitydept.com/blog/magento-imagine-2016

Conference: Magento Imagine 2016
Speaker: Brendan Falkowski @ http://gravitydept.com
Location: Las Vegas, USA
Date: April 12, 2016

Transcript

1. Designing the
   B2B Experience
   Brendan Falkowski
   Gravity Department
   Magento Imagine
   Las Vegas, USA
   April 12, 2016
   

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2. Brendan
   Falkowski
   @Falkowski
   

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3. GravityDept.com
   

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4. Frontend Consulting For
   GEMAIRE
   

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5. gravitydept.com/to/acumen
   Acumen Theme
   Acumen 2 (April 30)
   Powers 1400+ stores
   Supported for 6+ years
   

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7. Advisory Board Member
   Magento Certification
   

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8. 1. RWD as Multi-Device Strategy
   2. Budgeting for RWD
   3. RWD in the Trenches
   4. Evolving RWD Strategy
   5. RWD and RESS in the Enterprise
   6. RWD Along the Conversion Path
   

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9. I help companies solve business
   challenges with design.
   

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10. Communication
    Information
    Persuasion
    Emotion
    Visuals
    Typography
    Interaction
    Motion
    Art direction
    User experience
    Bigger logos
    

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11. Good design puts the business
    and customer on equal footing.
    

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12. 2009 to 2013:
    B2C and RWD
    

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16. What I learned
    designing for B2B
    

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17. B2C Market
    

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18. $341.7 B
    2015 US retail eCommerce sales
    https://www.internetretailer.com/2016/02/17/us-e-commerce-grows-146-2015
    

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19. https://www.internetretailer.com/2016/02/17/us-e-commerce-grows-146-2015
    

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20. 7.3%
    eCommerce’s share in
    total US retail sales
    https://www.internetretailer.com/2016/02/17/us-e-commerce-grows-146-2015
    

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21. 66.4%
    Total retail growth attributed to
    eCommerce
    https://www.internetretailer.com/2016/02/17/us-e-commerce-grows-146-2015
    

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22. B2B Market
    

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23. 30%
    of Magento Enterprise
    sites are B2B
    http://magento.com/blog/best-practices/10-ways-boost-b2b-shopping-experience
    

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24. Retail e-commerce may still be sexier, but
    B2B is where the biggest sales and growth
    figures are.
    “ Paul Demery
    Managing Editor for B2B eCommerce
    Internet Retailer
    

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25. $780 B
    2015 US B2B online sales
    http://magento.com/blog/best-practices/10-ways-boost-b2b-shopping-experience
    

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26. $1.13 T
    Projected US B2B
    online sales in 2020
    https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce
    

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27. $6.7 T
    Projected global B2B
    online sales in 2020
    https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce
    

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28. B2B Growth
    Segments
    

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29. B2B growth will be
    driven by channel shift.
    https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce
    

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30. Petroleum products
    Pharmaceuticals
    Top B2B categories today
    https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce
    

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31. Motor vehicles + parts
    Electronics + parts
    Industrial machinery + parts
    Fastest growing B2B categories
    https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce
    

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32. B2B Challenges
    

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33. Site traffic
    Conversion rate
    Average order value
    1. Revenue Growth
    

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34. Buying
    Selling
    Growth
    2. Complexity Management
    

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35. Simplicity
    Visibility
    Personalization
    3. Customer Experience
    Management
    

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36. B2B businesses have more
    complexity and move slower
    

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37. B2B technology often feels
    dated compared to B2C
    

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38. B2C escalation is forcing
    B2B to change rapidly
    

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39. B2B buyer expectations are
    anchored by B2C experiences
    

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40. Under 33%
    B2B sites that invested in
    multi-device support
    https://www.b2becommerceworld.com/2015/11/23/b2b-e-commerce-sites-have-lots-upgrading-do
    

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41. 18%
    B2B companies with native
    mobile apps
    https://www.b2becommerceworld.com/2015/11/23/b2b-e-commerce-sites-have-lots-upgrading-do
    

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42. 26%
    B2B companies with
    responsive websites
    https://www.b2becommerceworld.com/2015/11/23/b2b-e-commerce-sites-have-lots-upgrading-do
    

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43. B2B businesses need to
    leapfrog a generation of
    technology
    

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44. 56%
    B2B buyers prefer to be
    purchasing online by 2017
    http://magento.com/blog/best-practices/10-ways-boost-b2b-shopping-experience
    

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45. 74%
    B2B buyers who research over
    half their purchases online
    https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce
    

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46. 30%
    B2B buyers who can actually
    complete purchases online
    https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce
    

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47. Shopping
    vs. Buying
    

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48. Shopping
    noun: the action or activity of
    purchasing goods from stores
    

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49. Consumers care about the
    store experience
    

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50. Prices online are generally the
    same everywhere
    

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51. When price/selection/quality
    are equal, services set you apart
    

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53. Procurement
    

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54. Constantly shopping around is
    expensive for businesses
    

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55. Product specifications
    Quantity
    Price flexibility
    Need by date
    Supply location
    

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56. Businesses prefer long-term
    relationships with suppliers
    

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58. Revzilla builds trust through
    season after season of revised
    gear advice
    

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59. I buy from Revzilla because
    their service is a reliable expert
    

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60. A service is more valuable than
    your products
    

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61. Manufacturers prefer to
    diversify their partnerships
    

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62. Manufacturers selling direct
    online changes the landscape
    for distributors
    

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63. Design services that are critical
    to your customer’s success
    

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64. Stocking products and fulfilling
    orders isn’t enough anymore
    

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65. Designing
    Services
    

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66. Businesses need to be sold on
    the long-term relationship
    

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67. One-off buyers can cost B2B
    sellers because their margins
    are low
    

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68. Stable buying patterns come
    from building indispensable
    services
    

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69. 1. Onboarding customers
    2. Onboarding employees
    3. Data advantage
    4. Wayfinding and search
    5. Personalization
    6. Real-time pricing and inventory
    7. Power user features
    8. Merchandising
    9. Omni-channel efficiency
    

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70. Onboarding
    Customers
    

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71. 44%
    B2B buyers say onboarding
    is too complex
    Oracle, “Taking the Wheel” B2B report
    

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72. Customer acquisition is hard:
    1. Value is hidden
    2. Complex registration
    

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73. They buy below minimum quantities
    Restricted by partner agreements
    Products require a license/authority to buy
    B2B sellers may block
    consumers completely because:
    

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74. B2B sites may sell to consumers
    with different terms and pricing
    

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75. Selling direct to consumers will
    frustrate B2B buyers who
    markup products
    

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76. These challenges add
    complexity to B2B onboarding
    

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77. New Customers
    

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78. Tell customers everything they
    will need before they start
    registration
    

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79. Avoid delays between
    registration and activation
    

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80. Consider disabling order
    functionality pre-activation so
    new users can still explore
    

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81. Automate contract creation if
    possible
    

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82. Standardized terms enable a
    customer to start buying
    immediately
    

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83. Existing
    Customers
    

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84. Don’t assume existing
    customers will adopt new
    services
    

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85. Build a pathway so existing
    customers can link their offline
    accounts together online
    

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86. Be liberal when accepting
    account info for verification
    

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87. Picky validation frustrates
    legitimate customers
    

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88. The best way to onboard
    existing customers is making
    accounts for them
    

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89. Sales reps should schedule time
    to promote and demonstrate
    online ordering’s benefits
    

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90. Onboarding is an opportunity
    to redefine the sales
    relationship + get raw feedback
    

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91. Onboarding
    Employees
    

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92. https://www.b2becommerceworld.com/commentary/2016/03/07/building-b2b-e-commerce-site-get-your-employees-board
    If you don't get nearly all of your
    employees supporting your e-commerce
    initiative, it's not going to have legs.
    “ Michael Mayer
    Director, E-business Strategy & Commerce
    Crescent Electric Supply Co.
    

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93. Didn’t know what we rolled out
    Didn’t know how it helped customers
    Couldn't support customers using it
    They didn't feel any ownership of the service
    To them, the eCommerce channel was a competitor
    Employees in the dark
    

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94. Source
    

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95. Educate early not after
    introducing eCommerce to
    customers
    

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96. Create opportunities for
    employees to invest in
    ownership of the system
    

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97. Record training to make
    onboarding new employees
    easier
    

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98. Don’t be surprised or worried
    by channel shift
    

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99. Sales attribution models need
    to reflect the changing weight
    of channels
    

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100. Sales’ role will shift from
     quoting/ordering to being more
     proactive about customer needs
     

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101. Not inviting salespeople inside
     eCommerce is setting them up
     for failure
     

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102. Data Advantage
     

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103. Omni-channel customers need
     service consistency to transact
     fluidly
     

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104. PIM
     Product Information Management
     

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105. Develop a process to intake,
     evaluate, and normalize
     product info from vendors
     

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106. akeneo.com
     pimcore.org
     informatica.com
     cobby.io
     

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107. Wayfinding and
     Search
     

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108. Hierarchical navigation is less
     important for B2B buyers
     

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109. Most B2B sessions start with
     search
     

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110. B2B buyers often know the
     exact product needed before
     reaching your site
     

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114. Query highlighting
     Search scopes
     Result types
     Search Enhancements
     http://baymard.com/blog/autocomplete-design
     

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115. Search needs to behave
     consistently between websites
     and apps
     

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116. homedepot.com
     search scopes
     suggested queries
     products
     categories
     brands
     

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117. m.homedepot.com
     suggested queries
     categories
     brands
     

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118. Home Depot iOS app
     suggested queries
     

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119. Home Depot makes it harder to
     search for products on their
     mobile services
     

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120. Their native apps actually have
     the weakest search
     

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121. Multiple platforms and search
     implementations will
     disconnect customers
     

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124. Personalization
     

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125. Any offering that adapts to the
     customer is personalization
     

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126. 1. Algorithmic merchandising
     2. Crowd sourced buying
     3. On demand production
     

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127. Convert better relative to the user’s journey.
     Increase order value when suggested together.
     Higher margin or clearance priority that are equivalent.
     1. Algorithmic Merchandising
     

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128. Shield the maker from inefficiencies of finding market fit
     2. Crowd Sourced Buying
     

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130. 3. On Demand Production
     and Customization
     

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132. Source
     

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135. Source
     

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136. Real-time Pricing
     and Inventory
     

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137. Actionable self-service quotes
     mean your doors never close
     

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138. 50%
     B2B buyers say personalization is a
     key reason they choose suppliers
     Oracle, “Taking the Wheel” B2B report
     

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139. List / trade price
     Negotiated price
     Direct sales
     Quantity-based pricing
     Pricing tiers by annual sales volume
     Pricing
     

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140. Warehouse management
     Freight or parcel delivery estimates
     Store / warehouse pickup
     Governmental licensing for hazardous materials
     Contractual restrictions to sell in territory
     Fulfillment
     

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141. Legacy terms may need to be
     grandfathered or renegotiated
     online
     

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142. Customers expect the same
     services and accommodations
     they receive offline
     

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143. Digital services must be an
     order of magnitude better than
     calling a sales rep
     

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144. B2C customers generally only
     care about inventory if an item
     is out of stock
     

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145. There are too many variables
     with personalization not to
     calculate real-time quotes
     

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146. Real-time processing is slow, so
     load personalized content
     asynchronously
     

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147. Power User
     Features
     

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148. “Add to Cart” is a bottleneck for
     high volume buyers
     

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149. Enable re-buying of past orders
     Order History
     

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150. Convert past orders to
     subscriptions
     

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151. Quick Order
     

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155. Wish lists can be supercharged
     for B2B buyers
     

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162. Enable merging, splitting, and
     renaming lists
     

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163. Listen for customer feedback
     

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164. Merchandising
     

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167. PIM systems turn connected
     data into merchandising
     advantages
     

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168. Product History
     

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171. B2B buyers appreciate tools
     that help them purchase
     smarter in the future
     

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172. Omni-Channel
     Efficiency
     

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173. Support teams need training
     and authority to resolve issues
     across channels
     

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174. $4.7 B
     Home Depot online sales 2015
     https://www.internetretailer.com/2016/02/24/mobile-sparks-q4-sales-home-depot
     

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175. 5.3%
     Home Depot online sales from
     total revenue
     https://www.internetretailer.com/2016/02/24/mobile-sparks-q4-sales-home-depot
     

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176. https://www.internetretailer.com/2016/02/24/mobile-sparks-q4-sales-home-depot
     Over 40% of our online orders actually end
     up in the store in some way, shape or form.
     “ Kevin Hoffman
     President of Online Operations
     Home Depot
     

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177. It’s your job to make channels
     seamless
     

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178. Buyer
     Demographics
     

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179. 56%
     B2B executives say some
     customers can only be served
     online
     https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce
     

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180. Consider who will leave and
     join the workforce in 5-10 years
     

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181. Millennials are the first
     generation where internet use
     will become universal
     http://www.pewresearch.org/fact-tank/2016/02/22/key-takeaways-global-tech/
     

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182. 72%
     US adults with smartphones
     http://www.pewresearch.org/fact-tank/2015/12/08/one-fifth-of-americans-report-going-online-almost-constantly/
     

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183. 92%
     US millennials with smartphones
     http://www.pewresearch.org/fact-tank/2015/12/08/one-fifth-of-americans-report-going-online-almost-constantly/
     

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184. 75%
     Millennials have purchased from
     phones
     http://insights.mobify.com/16-stats-to-convince-your-boss-to-invest-in-mobile-in-2016/
     

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185. 36%
     18–29 year olds who report being
     online “almost constantly”
     http://www.pewresearch.org/fact-tank/2015/12/08/one-fifth-of-americans-report-going-online-almost-constantly/
     

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186. Under 35
     Average age of B2B buyer
     Oracle, “Taking the Wheel” B2B report
     

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187. 34%
     Millennials in US labor force
     http://www.pewresearch.org/fact-tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-in-u-s-labor-force/
     

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188. Millennials represent more of
     the labor force than Baby
     Boomers or Generation X
     http://www.pewresearch.org/fact-tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-in-u-s-labor-force/
     

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189. Technology will push out
     businesses that can’t adapt
     

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190. 74%
     B2B buyers who prefer
     researching online vs. talking to
     sales reps
     Oracle, “Taking the Wheel” B2B report
     

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191. Digital services will be a major
     factor when B2B buyers choose
     suppliers
     

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192. Wrapping Up
     

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193. Designing services adds value
     to your business
     + your customer’s business
     

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194. Thank you
     

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195. Q&A
     

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196. Gravity Department
     GravityDept
     gravitydept.com
     magefrontend.com
     Brendan Falkowski
     Falkowski
     

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