Underway § In the US alone, B2B is already 2x B2C § In US, B2B to reach $1.1T by 2019 § Investment is focused on eCommerce § Integration cost around 5x licensing cost § By 2019, B2B firms will outspend B2C on commerce technology § Metrics above B2C and increasing: § AOV (Average Order Value) § Conversion rate § Items per order § B2B growing at 4x rate of B2C § Global B2B market expected to reach $6.7 trillion by 2020 B2B $780B B2C $334B B2B 2019 Projection $1.1T
• A shift from legacy systems and catalog-only sales to online platforms • Significant cost reduction to serve customers • Opportunity to improve customer satisfaction and retention • Expanding sales roles beyond traditional channels Distributors white label sales Manufacturers direct sales • Forward thinking firms are changing how they view the sales process Large & Complex Purchases Simple Purchases & Reorders • Train sales reps for guided selling • Compete with specialized knowledge • Drive self-service using technology • Provide rapid support where needed
56% Prefer to buy online after deciding what to buy Say buying from the web is more convenient than buying from a sales rep Want the ability to manage their accounts online Want the ability to download product information Expect to conduct half of their B2B purchases online within three years B2B Buyer Attitudes (Forrester Research Survey)
• Younger buyers are rapidly increasing • Buyers bring their personal shopping expectations to work purchases • When expectations are not met, buyers will rapidly search for alternate suppliers • B2B buyers below 35 are 131% more likely to make corporate purchases online 2012 2014 Graph: http://bit.ly/googleB2B
Relevant and rapid search results • Intuitive navigation and filtering • Mobile and tablet-friendly design • High quality content Noriaki Kano The Kano Model What is novel and exciting now will soon become requested and then simply expected What used to be “nice to have” is now required B2C preferences shape B2B
Longer Enough • Catalog link but no online ordering or cart • “Contact Us” as only option for most interaction • Search only for content keywords, not products • Desktop-only design • Prior orders unavailable
customers with same process Fewer larger customers with customized process Streamlined payment options (credit card, PayPal) Many payment options – pay on account, credit card, wire transfer Few attributes per product Many attributes per product (up to 500+) Expect basic information (color, size, dimensions) Expect detailed information (specifications, diagrams, manuals) Any customer can buy any product Workflow, order approval, and custom catalogs Same price for all customers Different prices for different customers Add to cart with fixed prices Add to quote with price negotiation Buying different items each time (typically) Frequently reordering the same items SKU or product identifier is not important to buyer SKU must be visible / searchable throughout process Browse and discover products of interest Quick order entry from SKU Ship to one address Multiple addresses, with delivery info (loading dock, front door) Need to see if item fits Need to see if item is compatible with others and/or regulations Focus on new customer acquisition and conversion Focus on reducing workflow and cost to serve existing customers User views content to learn how to use / style / install product User views content to learn how to sell and support the product
To enable these workflows, what customizations do we typically see? ✗ Customized order entry ✗ Rewards programs ✗ Purchase lists ✗ Complex product configuration ✗ Organization hierarchies ✗ Approvals and cart transfer ✗ Live agent support ✗ ERP integration ✗ Pricing contracts ✗ PIM integration
eBay Enterprise / Magento rated as “Strong Performer” in 2015 Forrester Wave for B2B Commerce Suites • “…a low-cost, highly customizable solution for firms that want to develop a B2B engagement platform” • Robust set of partners with B2B knowledge and Magento expertise • Demonstrated capability to deliver complex implementations • New B2B site for merchants magento.com/b2b
B2B • Magento 2.0 GA in Q4 2015 • Plan to integrate additional B2B-specific features into our platform in 2016 • Priority is to deliver the most common functionality that B2B merchants require • High-level feature areas: • Organization hierarchy • Pricing contracts • Enhanced product content • Additional order options
Success in B2B • It’s about more than software! • Must also invest in team and workflow to realize technology investment • Andy Hoar, Forrester Research: • People • Process • Technology People Process Platform Platform People Process Platform People Process Platform
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